Great bailout of 2008: What’s next?

To say the first iteration of Treasury Secretary Henry M. Paulson’s $700 billion bailout plan was poorly received understates the case. In a closed-door meeting, House Minority Leader John A. Boehner (R-Ohio) reportedly referred to the bill as a “crap sandwich.” Even after President George W. Bush addressed the nation to explain the looming catastrophe and the potential effects of the credit crisis on Main Street , the House of Representatives rejected the bill, sending the Dow Jones Industrial Average into a 774-point nosedive. Days later, another version of the bill was passed by the Senate and the House and signed by the president, and the Dow dropped 342 points.

The legislative game of ping pong over energy speculation continued on Sept. 18 when the House of Representatives passed H.R. 6604, The Commodity Markets Transparency and Accountability Act of 2008, which aims to prevent manipulation and excessive speculation in energy markets. The bill was narrowly defeated in July under a rule that required a two-thirds vote to pass. This time the bill only required a simple majority, and passed 283-133.