Will a real leader please stand up?
Like a mob of deer staring in the headlights of the Mack Truck of economic collapse, the clowns in the House were unable to pass the carefully negotiated bailout bill. This indecision, admidst news of Wachovia’s meltdown/firesale today.
Don’t get me wrong, the Feds need to do something, and reasonably quickly. I don’t think a bi-partisan solution is credible – too many old-school Repugs are wedded to their extremist, anti-goverment, anti-regulation fantasies. The Dems need to link the House Repugs to their nasty lame duck President, blame them for fighting market oversight, for ignoring the looming crash, and for delaying the news until after the Repug convention, and for now trying to ram down a pro-rich guy plan of socializing bad financial assets.
It was pretty clear in the Prez debate that the two candidates want to steer a wide path of the bailout, an extremely unpopular topic with the public. But if Obama can’t do it, the Dem leadership needs to go on the warpath and make this unpopular bailout a Republican bailout. Or we’ll just see another repeat of this crap in 10-15 years.
*Update* Spy Buddy suggested an interesting idea to get through the impasse – bring in two tough but practical pols, one from each party, from outside Capitol Hill – her thought was Michael Bloomberg and Willie Brown – and let them hammer out a real deal while crushing any dissent. I’d still like to see the Dems make some hay out of the Repugs, but her tactical suggestion is more practical for getting us through the next few days.
Stumble it!
Tags: $700 billion bailout
September 29th, 2008 at 8:46 pm
I’m a low information voter so I’m not getting our Democratic leader’s reason for saying he would have voted, albeit reluctantly, for this heist. Since everybody in Washington seems stumped about what to do, now that the overwhelming majority of voters have not been defied forty days before an election, I’ll make a suggestion about what to do.
How about if the Democrats were to draw up a Democratic bill and get it through the House where the Democrats have a larger majority than the Republicans ever had from 1995 to 2007. Then we’ll see if Senate Republicans want to filibuster the bill during this … emergency.
You know, a bill that would allow judges to renegotiate mortgage terms on primary residences like they are allowed to do on vacation homes; a bill like the one that George Stephanopoulis throws in as unlikely #4 — Get More Democrats On Board:
Finally, one other unlikely option talked about on Capitol Hill is to try to pass the bill almost entirely with the Democratic majority in the House. That would require adding a major stimulus package favored by Democrats, infrastructure spending, unemployment insurance spending, and heating and food stamp assistance for low-income Americans.
I guess if that was a good idea members of Sen. Obama’s brain trust would have thought of it. You know who I mean, the Left’s go to guys; former Goldman Sachs Co-Chairman and Co-Senior Partner Bob Rubin, former Goldman Sachs Chairman and CEO Hank Paulson, and current major Goldman Sachs stake holder Warren Buffet.
Sen. OBAMA (published: September 21): … if you look this week, I was in constant communication with Hank Paulson, Ben Bernanke; my economic advisers which include Paul Volcker, the former Federal Reserve Board chairman; Bob Rubin, former Treasury secretary; Warren Buffet, who I think everybody feels knows the economy pretty well. …
And by the way, on September 23 after giving Sen. Obama his advice that the $700 billion bail-out was a good idea Buffet bought in Goldman Sachs for $5 billion. Nothing to see here, move along, change is a comin’.
September 29th, 2008 at 9:11 pm
I hate when that happens. It looks like Big Tent Democrat beat me to half of what I just posted.
September 30th, 2008 at 1:22 am
My 9:11 pm comment has made it into the thread, while I see my earlier “comment is awaiting moderation” still. Did one pass muster and the other not because of their content?
September 30th, 2008 at 7:40 am
Our extensive team of moderators fell down on the job. We’ll fire them en masse as soon as we work out the details regarding severance pay.
September 30th, 2008 at 7:41 am
It also would be nice if any future proposal was vetted by … oh, I don’t know, a few respected independent economists, maybe? You know, people who might know how things will actually work?
And, CMike, a Democratic stimulus package in the middle of such monumental legislation is ill-advised. We’re in too critical a situation. For once, Congress, let’s can the partisan stuff — although I may be shouting in the wilderness.
September 30th, 2008 at 8:31 am
I’m with CMike, if we want real lasting change, we need to squash the Repugs while they are weak.
September 30th, 2008 at 10:40 am
While I was for the rescue plan initially, as I noted in my response fubar’s post earlier this week, I’m not necessarily disappointed at the way this played out, for a number of reasons. Politically, this is a loser for McCain, as his foolish Super-mediator gambit has clearly left him with egg on his jowls. This could, however, have a positive effect for Repugs in Homer districts where this is quite unpopular and where Repugs at risk have voted against. Also, the solutions that Rep. Eric Cantor and his crew of arch-yahoos have come up with (the insurance program idea, and the capital gains tax reduction that they threw in just for old times sake) have been universally ridiculed, as have their “Pelosi hurt our feelings” whining. Substantively, some good ideas that may make it into the bill have emerged, like the bankruptcy judge workout provisions that CMike mentions, as well as a great idea from Alan Blinder, former Fed governor, that incorporates some bottom-up remedies (buying the underlying assets themselves, actual foreclosed homes, rather than solely the mortgage-backed securities held by hated Wall Street firms). Also, as the markets are illustrating today, investors are optimistic that a better plan will emerge from this, and that Armageddon may be postponed for a week or so as we work through this.
September 30th, 2008 at 1:02 pm
Yeah at the end of the day we just need to keep reminding voters that Shrubya is crying “Wolf” again.