I've said it before, and I'll say it again: bipartisanship in service of bad legislation is not a good thing.
And, make no mistake, this bailout bill -- at least if the details that are trickling out are accurate -- is going to be very bad legislation indeed. And by that I mean very bad for the American people, whose interests are by no means identical to Wall Street's.
If Barack Obama goes along with it in the name of post-partisan comity, he's making a big mistake. Washington is not lacking political leaders willing to go along with the flow. It's lacking political leaders willing to lead.
"This is our moment," Obama keeps saying in his speeches. And this is his moment to lead, rather than to appear as one of the Bailout Bipartisan Musketeers ("One for all, and all for Goldman Sachs").
Could it be that he's surrounded himself with so many advisors who are looking at the bailout from a Wall Street perspective, he now sees it that way too?
Last night, he announced that he'd urged Democratic leaders in Congress not to pursue efforts to include an economic stimulus package in the bailout, or to push for a provision giving bankruptcy judges the power to rework mortgage rates because it might derail a deal.
That's the kind of thinking that prompted White House press secretary Dana Perino to applaud the candidates for trying to take the politics out of the equation.
But, as David Sirota, asks: "When did a crisis suddenly mean that giving away taxpayer cash is laudably apolitical, but spending taxpayer money on taxpayers is inappropriately 'political?'"
There has been a flood of irate calls and emails pouring into Congressional offices from people who are not buying George Bush's efforts last night to paint the bailout not as a helping hand to Wall Street but essential to avoid wiped-out retirement savings, rising home foreclosures, lost jobs, and "a long and painful recession."
There are rumblings that McCain may attempt to torpedo the nascent bailout agreement in an attempt to play the populist rebel. As Marc Ambinder puts it: "nothing says 'maverick,' like voting against Bush and standing with the American public, who remain very wary of the proposal." Rank and file House Republicans are also shaking their heads and muttering "no deal." So will it be Obama, as the standard bearer of the Democratic Party, making a deal that, in the end, adopts the overriding trickle down essence of the original Paulson plan: give Wall Street what it wants, cross our fingers, and hope that the crisis is averted?
Instead of siding with Bush and Paulson on far too many deal points, Obama should draw a line in the sand and refuse to cross it.
Voters are not looking for smiling post-partisan photo ops. They are looking for a leader willing to fight for a bailout plan that more directly protects the interests of the American people.
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So please stop making reports based on "if" and "but" ...
"If Barack Obama goes along........"
Worst of all this proposed $700B bailout is merely a transfusion for a very sick patient. It does nothing to get to the root of the disease or stop the practices that got us into this mess. Why are we waiting to institute effective ongoing regulations and oversight of the institutions we're throwing money at.
The bottom line: this bailout rewards bad behavior and greed at every level from individual homeowners who made the risky decision to "bet" that the housing market would continue to go up, to speculative builders, to the largest banking institutions. I am appalled that the government is punishing those of us who acted with fiscal responsibility and restraint by forcing us to take on the massive losses of these speculators. Worst of all our children will bear the brunt of this bad, knee jerk, hurry up we can’t wait, policy for generations to come.
to vote for these SOB's.
I hope Obama does not vote for it. This is where he needs to show us little people he can put his words into action.
Obama: he couldn't say anything because he has never looked into Putin's eyes.
That's the difference in Obama and McCain.
McCain makes senseless comments to create hate and division.
Obama brings peace by making most logical and sensible comments.
By the way ask McCain to look in Obama eyes next time atleast when he is in a debate.
Stop cynicism and say something constructive.
WM had sufficient cash reserves to continue operations for almost two years. WM also had among the best customer service/satisfaction records in the retail banking business, $300B+ in assets, and nearly $200B in deposits.
In contrast, JPM has higher derivatives exposure -- $90T+ (yes, TRILLION!) -- than ALL other U.S. banks COMBINED! JPM had virtually no cash available for expansion earlier this year when the Fed seized Bear Stearns (BSC) and "loaned" JPM $30B to "buy" it. Because JPM had written a lot of BSC's credit default swap contracts, had BSC failed, JPM itself would have incurred TENS OF BILLIONS in losses. In fact, a 10% loss in its derivatives exposure would wipe out JPM's ENTIRE ASSET BASE!!
So, here's the Fed again lending a hand to JPM ... and destroying the investments of millions of shareholders. *NEWSFLASH*: JPM has NO CHOICE but to keep "saving" its failing competitors; if its competitors /co-conspirators tank, the biggest loser could well be ... JPM.
The REAL loser in all of this: Individual taxpayers -- who not only stand to lose their investments, but also wind up paying for the "bailouts" of the greedy bastards who caused all of these problems in the first place.
Though it is basically a trickle down program, its size gives it trickle up properties and this may work like a big "stimulus" package. Failure favors the Democrats since voters will vote their pocketbook on November 4th, but even if it means losing, we can't wreck and ruin our country. it was one thing for a Republican congress to raise taxes and cut expenditures in an effort to hurt the economy in 2000, but Democrats aren't Republicans this way.
it is reasonable to provide to tread water until Democrats can take over, hoping this program will save just enough people to ameliorate the misery. Some problems are met best by enduring from day to day when more radical programs may be an unmitigated disaster.
Imagine playing a game without rules. It produces nothing more than a conundrum. Who is the winner? In fact, no one wins. The one's at the top become the rediculed and lose their job while the ones on the bottom pay for the damages. Adam Smith may have seemed brilliant in his day but today we should have the integrity of thought to know that it isn't true. There is no invisable hand. People have to take responsibility for maintaining a system that is fair minded and works evenly across the board. The greatest wealth for all comes as a result of the wealth being somewhat even divided. Excellence can and should be rewarded. Greed should be seen for what it is.
Once again the Bush Administration, the Republican Party , Wall Street and the US financial Industry have violated the trust of American citizens in responsible business conduct. They all have pursued bankrupt policies to maintain their pride.
My suggestion to the US Congress and US Senate, CUT your losses in Iraq and RUN.
Establish the Sovereign Republic of Kurdistan.
It's dead logical.
Its the only solution to end the US Financial Crises
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This collosal fraud on the US financial system was conducted by the Bush Administration and their friends in Wall Street and the US Banking industry to pay for the US war in Iraq , which has cost Wall Street the US finacial system $10 billion USD a month, with only the energy barons of the US profiting from this financial disaster.
This US financial disaster has been going for 70 months , since the US military buildup for the US invasion of Iraq began in 2003, has cost the US financial system $700 billion USD. That means that the Bush Administration has robbed every US citizen which has invested money in Wall Street or US banks of 700 billion without the American citizens consent.
Otherwise we can debate this until all the banks go like Wa Mu.
We insure the bank deposits so we need to fix this now. Congress and the Executive branch of Govt have not been regulating industry so they are all at fault. Self regulation games like the one on the Front Page of Today's NYT's tells the old sad tale of the GOP mantra that has failed in epic proportions.
Other programs to bail out every homeowner can be debated for ever on the house floor.