On the way towards a bailout

US politicians have been slow to pass the bailout plan because they don't want to make a decision that could see them get blamed for the financial mess.

On Monday when the US House of Representatives rejected the $700 billion Troubled Asset Relief Programme, or Tarp, triggering an historic 777-point drop in the Dow Jones Industrial Average, financial analysts around the world went into shock. And for good reason. They had been counting on the US politicians to act reasonably and responsibly.

That was a mistake. Most politicians act in a manner they perceive will best get them re-elected, which doesnÆt always involve reason. And this helps explain...

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