From the AP:
Federal Reserve Chairman Ben Bernanke bluntly warned reluctant lawmakers Tuesday they risk a recession with higher unemployment and increased home foreclosures unless they act on the Bush administration's $700 billion plan to bail out the financial industry. ... Bernanke's remarks about the risk of recession came in response to a question from Sen. Chris Dodd, D-Conn., who seemed eager to hear a strong rationale for lawmakers to act swiftly on the administration's unprecedented request. "The financial markets are in quite fragile condition and I think absent a plan they will get worse," Bernanke said. Ominously, he added, "I believe if the credit markets are not functioning, that jobs will be lost, that our credit rate will rise, more houses will be foreclosed upon, GDP will contract, that the economy will just not be able to recover in a normal, healthy way." ... Dodd later spoke disparagingly of the administration's proposal. "What they have sent us is not acceptable," he told reporters after presiding over a lengthy Senate Banking Committee hearing at which Bernanke and Treasury Secretary Henry Paulson urged swift action by Congress.
Even in this so-called crisis which as more "normal people" up in arms than the war in Iraq does, the same old Democrats can't seem to put aside their agenda and political prejudices to act swiftly to fix a problem. They all know better than the other person. So we get stifled. Again.
And yes, this has happened before. Try every time GWB or McCain or other legislators have attempted to pass regulation laws for the now collapsed Fanne Mae and Freddie Mac. Reasons? Well, I leave that to you to decide... but I will offer the suggestion that a lot of it is due to Dodd being in the pocket of some very wealthy former CEOs of said lending firms. And when I say "in the pocket" I mean that Dodd has received the most amount of money from those CEOs during his career from 1989-2008. source
Look at the number two on that list. Yeah, that's after only 3 years in the senate. That much money is BIG incentive to stifle good solid legislation that could have prevented, or at least helped to prevent, what we are currently dealing with.
And even with that you think we would be quick to learn that there is a problem. Every time GWB urges lawmakers to act swiftly and put aside partisanship, the opposite happens.