Political Necessity

I don't like it but the Senate, after loading the bailout with all kinds of crap passed the bailout with a solid majority. I think this is just an example of political necessity and after the new administration takes over we will see some proper legislation enacted. Obama surely knows that this bill will hamstring his ability to get anything progressive done and therefore means he is buying in to a one term presidency. He is smarter than that. The fear of what might happen in the capital markets in the near term drove this ugly piece of legislation over the finish line but everyone that is voting for it has decided that under the present political situation it is the best that can be done. I'm with Krugman on this...

"I think that Congressional leaders know that it’s a bad bill, but feel compelled to defend it, because they’re (rightly) scared of the financial consequences of a second rejection. And to some extent economists like myself are in the same position; I think I called it the “hold your nose caucus.”

We need to hold out noses for a few months until we get some semblance of 'real' government in position to do something right.