Before it went down to a crushing defeat, top officials at the Treasury Department and Federal Reserve were describing the $700 billion bailout plan that failed Monday in starkly different terms during private conversations with Wall Street investors.
As most people know, the proposed bailout failed yesterday in a surprising 205-228 vote, defying the wishes of President Bush as well as Democratic and Republican party leaders. Overall, there were 140 Democrats in favor of the plan and 95 opposed, with 65 Republicans in support and 133 opposed.
Progressive bloggers were tipped off that Treasury officials were holding a secret conference call with Wall Street executives Monday before the vote and managed to access the call and listen in. What they heard reveals a lot about who really wields power in the U.S. political system, and how Congress — both Democrats and Republicans — shade the truth for constitutients.