Wednesday, 1 October 2008
This model was developed by Howard Smith. It shows media reporting of the situation surrounding the rejection of the Emergency Economic Stabilization Act of 2008. Key aspects of the model include:
Votes by both houses are required pass the bill. However, these votes depend on changes to the bill, proposed by both sides. These proposals however are in conflict. The proposals by Democrats, which they view as necessary to allow them to vote for the bill, unfortunately are disliked by Republicans, thus reducing the Republican vote. And vice versa. Thus, there is a tension between the proposals. This arises from politics - Main street back lash on the measures generated by the combination of the required draw down on tax revenues coupled to the real or perceived excesses of Wall Street, lead to calls to punish the greedy bankers.
Note how these factors conspire to degrade the vote, and this, delay the passing of the bill ... leading to political and financial uncertainty. This causes destruction of savings, pensions and investments.