McCain and the Bailout

Rep. Roy Blunt (R-MO) describes the effect McCain’s arrival in DC had on the negotiations for the bailout deal.

I do think that John McCain was very helpful in what he did. I saw him this morning, we’ve been talking with his staff. Clearly, yesterday, his position in that discussion yesterday was one that stopped a deal from, uh, finalizing that no House Republican, in my view, would’ve been for. Which means it probably wouldn’t have passed the House.

Think Progress reports, "Indeed, both Republicans and Democrats fault McCain for derailing a potential bipartisan agreement. Yesterday, Sen. Robert Bennett (R-UT) and Rep. Spencer Bachus (R-AL) said a deal was close, but the House GOP — backed by McCain — disrupted the negotiations by proposing a plan that would not receive Democratic support."

Either, McCain’s role in scuttling the deal was irresponsible and resulted in the breakdown in negotiations, or McCain’s arrival helped highlight the fact that the House GOP would not have voted for the bill, which would have resulted in its demise anyway.

No matter which view you subscribe to, here’s a little nugget to keep in mind. Economists may have reservations about the Paulson bill but they really do not like the one proposed by the House GOP.