First, Jim Poniewozik. Now, Jimmy Pethokoukis, with a couple of presumably well-plugged-in thoughts on what might happen next on Capitol Hill:
1) The Democrats could push through the bailout with more Democratic votes by adding in a stimulus package or a provision that would allow bankruptcy judges to unilaterally change mortgage contracts. With the markets in chaos, Bush would have almost no choice but to sign it. (Conspiracy theorists speculate this was Nancy Pelosi’s plan all along.)
2) Continuing market chaos could push dissenting Republicans to vote for the plan as long as there is some modification that would serve to justify their change of hearts, such a change in the oversight provision that would make it harder for Treasury to spend the dough. Some sort of tax sweetener, either for buyers of the bad assets or for homeowners, would be better.
Yeah, I guess going back to the drawing board and returning with a clear plan to recapitalize the banking system would be too much to ask for. As for me, I need to find some more bloggers named James with unpronounceable surnames that begin with P to respond to. Anybody got any suggestions?
