It looks like John McCain and the House GOP decided to swoop in at the least minute and scuttle a kinda sorta okay bailout package in favor of a counterproposal of tax cuts for rich people and corporations. Read your Krugman.
If conservatives won’t play ball, I think the smart move for progressives on the Hill is to come back to Bush and Paulson with a much less palatable plan — huge stimulus, big tax hikes on super-high earners, mortgage cramdowns, etc. Let Bush either cave 100 percent to a Nancy Pelosi dream deal or else let Bush bring McCain and John Boehner to the table. There’s no reason for progressives to be making concessions to the Bush administration and the financial industry if they can’t even get their lackeys to back their own plan.
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