On Monday the U.S. House of Representatives did what would have made all the sense in the world, if time were not of the essence, which is defeat a flawed $700 billion-plus bailout of America’s financial sector.
Unfortunately, with major banks failing - the latest and nation’s fourth largest, Wachovia, got swallowed up by Citigroup in a government-arranged-and-backed sale on Monday following Wachovia’s near collapse - and an angry public that could turn into a panicked one at any moment, our elected representatives in Washington, D.C. do not have the luxury of time. One of the great lessons of the Great Depression was that Uncle Sam did not intervene quickly enough to forestall a run on the banks.