A failure of leadership

The House failed Monday to pass a bailout measure for the nation's financial system -- a direct reflection of the incompetence of the Democratic leadership, particularly Speaker Nancy Pelosi.

The bill went down 228-205 and the stock market responded with a massive plunge, falling 777 points, the most ever in a single day.

President Bush had urged Congress to pass the $700 billion package -- which would have allowed the government to buy bad paper from troubled banks and other financial institutions -- and it appeared the votes were there to do so.

Instead of simply moving forward, however, Speaker Pelosi opted to grandstand, taking the floor before the vote to deliver a frothing speech blaming the current crisis on a "right-wing ideology of anything goes" and a "free market" run amok.

The partisan and misleading attack led to the defection of a number of Republicans who otherwise had been prepared to hold their noses and support the bill, killing the legislation.

"Because somebody hurt their feelings, they decide to punish the country," said Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee.

But Rep. Frank -- who for years looked the other way as Fannie Mae and Freddie Mac careened toward the wall -- ignores the fact that 95 Democrats also voted against the bill. Why didn't Speaker Pelosi have her own troops in line? And if she knew the vote was going to be close -- which was obvious, given its unpopularity in the heartland -- why risk losing potential GOP support with a hyperpartisan floor speech that could have been ripped off from MoveOn.org?

Unfortunately, Speaker Pelosi's rant was another destructive -- yet typical -- example of the counterproductive leadership approach that has dominated Washington since the Democrats regained control of Congress in 2006. Whether it's Senate Majority Leader Harry Reid calling the president a "loser" or Speaker Pelosi jetting off to meet with rogue foreign dictators, those leading the Democrats seem more intent on continuing a grudge rooted in the 2000 election than actually advancing the interests of the nation.

Despite the market drop, Monday's vote may well end up being a good thing.

Yes, something must be done to instill confidence in the markets and assure the American people that this country's institutions remain sound despite the current malaise. But frankly, nobody knows whether this measure will have the desired effect -- and a little more fine-tuning and scrutiny may be best in the long run.

After all, had the more fiscally conservative House Republicans not slowed down the rush to an agreement last week, the measure would have contained such nonsense as allowing bankruptcy judges to rewrite mortgages to shield people who don't pay their bills, and a proposal to steer billions in cash to left-wing advocacy groups under the guise of "affordable housing."

A little more reflection and a few more changes that recognize the dangers of facilitating such a massive government intrusion into the private sector will only make for a stronger bill.