A California congressman opposed to the Bush administration’s bailout package said “the sky did not fall” after the House rejected the bill, despite consternations from “Wall Street fear mongers.”
Rep. Brad Sherman (D) didn’t call Treasury Secretary Hank Paulson a Chicken Little outright, but he did say the dire consequences Paulson and others warned about didn’t happen after the House rejected the bailout Monday.
“They claimed the market would drop by 2,000 points if we failed to do so quickly,” Sherman wrote in a letter to colleagues on Wednesday that criticized the authors of the bill. “The bailout bill’s prospects are still uncertain. Yet at its close yesterday the Dow stood at 10,850, down just 1.5 percent from Thursday’s close.”
He also said the drop in the stock market after the bill’s failure Monday has been exaggerated. Though the 777-point f
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