What a strange political day.  The Democratic controlled House, which has a positive rating lower than rock stew, failed to pass the “bailout” bill and everyone blames the Republicans.  Word resulting from this is it’s a good thing for Obama, who didn’t lift a finger to make anything happen, and that the public is ready to put more Democrats into Congress.  This is looking glass stuff.  Worst outcome is the Democrats decide to go back to their old proposal with the ACORN slush fund and pass it along party lines.

Even more Orwellian, Obama claims this crisis shows how bad unregulated capitalism is.  But the cause of this crisis is regulation — namely, the Community Reinvestment Act and other regulations that required banks to loan money to low-income, higher risk individuals, and the creation of Fannie May and Freddie Mac (followed by the Democratic use of these institutions to further overextend credit to the uncredit worthy.  Simply put, no capitalist would have lent money in the first place to the people whose mortgages are now collapsing and crushing the credit pipeline.  It took regulation to make them do that.

We are truly screwed if Obama wins and the Democrats control the House and Senate, because they don’t even begin to understand the problem, and will only gum it up with more regulation.