A forecast: Crash by Next Friday

I've said it before and I'll say it again. Democracy simply doesn't work.
- Kent Brockman, The Simpsons

Why is it that the American government seems to be so good at self-paralysis at a time of panic? You hear all about how great American democracy is, and then when you see it in action in a crisis and it does, essencially, nothing. I think the problem here is threefold.

1) Bush only has about 43 days left in office. Not a helpful position to be in to extract influence on the USA.
2) Congress are currently in Election Fever (and even McCain's stunt in trying to stop the election debates from happening is not going to disuade them) and every single congressman or woman sees this as a great opportunity for a royal punchup.
3) The House of Representatives smells revolution and is Democrat controlled.

All three of these bodies will need to validate any mass bailout of the financial sector. And if you honestly think that the notoriously stubborn politicians the US has in abundance will simply roll over to the bankers, then you're mistaken.

To put it in concise terms, we're DOOMED.

So here is my prediction. If it becomes apparent on monday that the deal is not coming any time soon, the markets will crash by by next friday. I'd put up money but at the moment I have none. Idiotic choice of the supplier of EMA to 6th Form students has put paid to all my habits for the moment.

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