Bailout Bill: Obama Needs to Lead, Not Be One of the Bailout Bipartisan Musketeers

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.

Follow Arianna Huffington on Twitter: www.twitter.com/ariannahuff

Comments

[baronblack]

This bailout idea realy has me in a major bad mood. If banks and big business want to make bad loans to poor people then take their homes away when the reality that they can't make payments hits why should we help? Isn't it the battle cry of the deregulators that we need less government in business matters? They always argue about the capitalist system being the world's best economic model so why does the leading capitalists want a socialist bailout? It all makes no sense!

My offer if I was king of America would be as follows: we pay $350 billion they turn over all corporate property, accounts, cash, securities and all top executives also give the deeds to personal homes, boats, airplanes, etc to the new government oversight agency which would be headed by 12 people. The 12 person oversight panel would consist of one consumer credit counselor, 10 forclosed home owmers of all ethicities and regions, and 1 senator. Payments would be required monthly and late /missed payments result in sales of personal executive assets first then corporate assests.

Just my idea of a fair bailout:-)

[14U]

ITS ALL ABOUT THE MONEY!! NO MATTER THE SUBJECT, think about it the polition will tell you what ever it takes to get you to vote for them, then in office, WHAT???? OH WELL you have point there, as a matter of fact I have been working on that, thing is, that is going to take a little more time,OR my favorite line of BS, those rup. or those dem. are not doing there job or the best line at the time they can come up with.

[14U]

I know the American people want things to be the way that it was back in the good old days.
Jobs for any one that wants a job. GUESS what, thats not goin g to happen till they STOP, letting the jobs go to other countrys. IKNOW Its becouse of the cost of doing business here in thUS. Wouldn't that be the job of our gov.? Have taxes so it's not busting the business people,look I know we have to have taxes to pay for the programs. Things are way out of hand for one reason and only one reason,
ITS ALL ABOUT THE MONEY! ! WHATS IN IT FOR ME?? Like the old joke goes , two businessmen walking down the street, when one guy notices a good loking lady on the oppisit side of the street, tells his friend, man i'd love to screw her. friend looks back at his friend and asks out of what?? Again Its all about the money!! no matter what, bottom line here folks money is the answer. How much is it worth to you?Don't believe me when is the last time you ,that are reading this did something for someone with out asking for something in return, even gas money, hey sometimes I say man hate to say but I NEED some gas. its all about the money even when YOU don't want it too be!

[riverrat66]

As a 66-yr.-old­, disabled 'Nam-vet in failing health, I'm compelled for health-reasons to attend
thrice-weekly exercise classes at the Jefferson Barracks (MO) Medical Center.

Separated only by a fence-line, the Jefferson Barracks National Cemetery's endless rows of
grave-markers cascade over small, rolling hills as far as the eye can
see.

I reflect on the terrible loss in blood alone this Nation has endured to preserve
and protect out Democratic Way of Life.

Dad's here. So's Mom; grandfathers; uncles; cousins and childhood-friends from my generation.

In late-June, I flew up to see my nephew inducted into the U.S. Military Academy at West Point.

I cannot help to wonder aloud: 'Was It, and is it, ALL Worth It?'

We are heading into a long, tortuous-era of re-defining and re-evaluating just Who We Are.

Whatever emerges from this intense period of national self-reflection and commensurate corrrective
measures MUST neither embrace the pendulum-extremes of under-controlled, greed-motivated,
free-marketry, nor over-controlled interference on the part of our National Government.

Either one will threaten the very foundations of our Democracy.

Over-Consumption of everything from petroleum-­to-video-g­ames has led us to the inescapable
reality that : More-and-More is, in fact, Less-and-Less.

Belt-tightening in every area of our lives is our only way out of this horrendous­-situation­--economic­ally.
Cautious and careful use of our military --another.

Riverrat66­-St.Louis, MO

[Hansharriet]

Adrianna, once again you have hit the nail on the head! If I wouldn't be 87, I would have led a movement to get you either into the Senate or Govenor of California to give you the opportunity to let people know how to handle these situations.
Last night, I have written to my Congressman, Van Hollen and to my two Senators in Maryland and urged them not to back the bailout. This country is strong enough to overcome the politicians and lobbyists who cry: "The sky is falling" and the Bushes, Paulsons and Bernankes who participated in creating these crises by fighting against any controls or active oversight of these Mafia like Insurance Companies, Banks and other financial institution. They now want the American people to trust them? No! No! No! We let them do whatever they wanted and they screwed us royally. These gangster corporations should be put into the shackles they need. They can't be trusted. Free market, my eye. It's a controlled market. Controlled by the thieves who commit the crimes.
The same people wanted to privatize Social Security so they could steal from the Senior Citizens.

The solution for Congress is to take its time and come up with a bill which is fool proof and does not let these corrupt institution make the decisions for the people.

Obama, don't follow the corrupt crowd. You were against the lying Iraqi fiasco. Please realize that this is a repitition of this disaster.

[Artos]

Here is what I think that the Dems should do if they have to do anything,

1) Make all the Execs present contracts null and void.
2) Pay all Execs only 35,000 a year.
3) No perks, no bonuses, no incentives, no stock options and no Golden Parachutes.
4) Taxpayers get equity in company shares.
5) All ARM mortgages revert to their original interest rate and become fixed, If that rate was less than 5
% it should be fixed at five. No lower.

This is the extent of what should go into a Bailout measure. It doesn't need to get anymore complicated than that.
Finally, if the Republicans fail to provide a significant enough support insofar as votes are concerned then Dems should not support it either. Let it remain a Bush debacle, as it should.

[jamesdaddio]

I believe Obama's intentions are sound and that's the difference; once in the White House he can clean house and you can believe he will do that.
First get him elected and he will change the advisory committee’s in charge of finance cut funding for the absurd war and begin funneling money back to people this is what will bring the America we remember back we will have more work and easily pay our mortgages.
People can spend and hopefully get out of dept . McCain cronies want you stuck so they can shop in empty stores for 300,000 outfits.. Believe it. Bill Moyer mentioned how nice it was to shop in Beverly Hills without people present it's a kingdom of suppression

[ReElectNoOne]

NO NO NO ! Obama, like McCain needs to just keep his nose out of it other than casting his one vote for or against depending on the bill.

He is not on the Banking Committee working this out. They are doing ok considering the issues. If Obama tries to stick his nose into some one else's committee it will just be seen as meddling for sake of politics.

Chris Dodd already indicated he has heard from Obama a number of times on the subject but not once from McCain. This is Dodd's committee and Obama is not on it.

[thinkinggrandma]

I have been disappointed in the bailout efforts proposed by the administration and comments by congress. As I watch more and more of us slip from middle class into poverty with none of the advantages of being poor. No section 8, medicaid, food stamps or tax relief for us I begin to wonder who is going to pay for all of this.

I am old enough to remember when made in America meant it was the best in the world. When our products were sold worlwide and sought after. Now I spend weeks searching for a shirt made in America and find that there are none.

Has anyone on wall street or in government thought that with no good paying manufacturing jobs there is no one to buy houses, cars or anything else. A Walmart and service economy will speed us further and further into 3rd world status. Ralsph Nader started predicting this 30-40 years ago when we complacently started letting the corporate giants run our congress and the white house.

I was hoping Obama would raise our status to a world power country again. Now I think like everyone else, he has not recognizrd that we are no longer a world power but a joke on the international scene.

[maserati2]

The bailout bill as originally offered, came with a warning that passage must be immediate and unquestioned to avoid disaster. (Quick, sign here, you can read later after we fill in the blanks.) The bill was loaded with goodies for the banking industry, from not limiting payoffs and profits for CEO compensation to unlimited authority for the Czar of finance .

Sounds like the original bill was going to be accepted until angry calls and letters started piling up. Belatedly, Republicans then decided to protect their jobs by refusing to sign. The sticking point apparently was the nerve of the Democrats to insist on oversight protection and attempts to soften the effects of lost jobs and vacant homes.

Wasn't a large part of the original problem caused by factory closures and falling property values everywhere? And the only solution is to open our bank accounts to reward the financial community with an opportunity to loot the treasury one more time? (No questions, no answers, just sign here. We will fill in the blanks later.)

If the intent of Congress is to restore our economy, wouldn't protecting the flow of dollars through that economy be of greater value than offering payoffs to the very people responsible? How transparent and self-serving that the Republican element blaming the Democrats for the present panic does not agree that working, taxpaying citizens offer benefits that offshore tax shelters do not?

[tdterry1999]

The dems have the votes to pass it.why don't they.becau­se its not a good bill.

[surfzen]

If in fact, $700 billion is purchased with taxpayer money, there will be a 5 to 10 point commission (we are talking $35 Billion to $70 Billion commission, if not a lot more) to some entity for handling the transaction. Will it be Goldman Sachs, or WA Mu's savior Morgan Stanley Chase? With those kinds of dollars floating around, do you think there will be a few DC boys that learn the true meaning of the word MORDIDA? I love the part about how the taxpayers will get their money back eventually and maybe even some profit. Maybe they can throw in the Road to Nowhere and the Bridge to Nowhere too. Ha Ha Ha.
Chuck

[ReElectNoOne]

I doubt the government will pay a commission on a forced take over....

[lion1]

WALL STREET AND U.S FINANCIAL INSTITUTIONS fincanced the U.S WAR in Iraq which has cost $US700 billion so far from 2003.

The Bush Administration has fleeced Wall Street and the US banking giants of $700 billion.

If the Democrats support this $USD 700 billion taxpayer repayment to Wall Street and the US financial banking giants , then it is a Democrat VOTE for 5 more years in Iraq.

The Democrats must say NO to 5 more years in Iraq, which this $700 billion USD bill will make sure takes place if it is passed.

Its the Republican Party and the Bush Administration which has fleeced the US banks and Wall Street of $700 billion USD.

This 700 bilion USD bill will show if the Barack Obama and the Democrats are SINCERE and say NO to this 700billion USD bill or HYPOCRITES like the Republicans and the Bush Administration and pass the bill.

The whole world is watching.

[Possumpaul]

America has blessed the world with new words and phrases. I offer in return this for your lexicon from Australia.
Verb :- 'Bushed' - to be hopelessly lost in the wilderness.
It implies reckless overconfidence and foolish assessment of ones abilities. I think you could adopt this term now.
Chronic overspending by government, business and individuals has led to a society in debt. You trade in debts not money. If China, EU or Japan pull the plug , you are up a well known creek in a barbed wire canoe. A bailout, a patch, a confidence boost wont last. Grasp the nettle. Fundimental adjustments are required. Downsizing the American lifestyle required. Obama and McCain not mentioning this? I'm not surprised.

[Frannyvida]

So, if we tank completely there goes everyone's 401k. All the little people that had a job with savings benefits used it even if minimal. What's the solution to that? Can anyone give us an answer. I'm not willing to go with the P plan as originally presented, but I certainly don't trust the far far far right snot nosed house members like C the Virginia Rep. Who has the answer.

[terraprieto]

Instead, Reid and Pelosi rolled over for Bush, agreeing to the Paulson outrage with minimal oversight provisions added. It's now the Bush+Democrats bailout plan that is infuriating taxpayers nationwide.

The Republicans in the House are the ones standing up and saying "No! We cannot send hundreds of billions of taxpayers dollars to Wall Street." The Republicans are coming across as heroes to many infuriated Americans who don't listen closely to the bogus, laughable House Republican alternative. Were the election held today, I suspect the Republicans would win both houses and the presidency.

It is disgusting that Obama and the Democratic leaders have already caved in on their proposal to allow bankruptcy judges to adjust the terms of usurious mortgages for homeowners. The Democrats in Congress, including Obama, have rolled over for Bush and the Republicans both substantively and politically.

It is a catastrophe for Democrats and America.

[billw8017]

A succession of "saves" has exhausted our easy alternatives. Paulson's objection that capping CEO golden parachutes might discourage companies from approaching the Treasury for their handout is particularly ludicrous. The Paulson plan may be a very bad idea, but it is not clear we can afford to do nothing. Democrats are right to tack on a bit of their own agenda and limit the release of funds pending the election and meeting the voters. Their response postpones real action until after the elections when time will have revealed better what is going on and real hearings with calmer judgments are possible.

It is wrong to turn against the Democrats on the grounds that they have undue respect for the Republicans. if the Republicans are that contemptible, we have to support the Democrats and move the center toward them. Good government currently involves dealing with conservative and even radical Republicans because voters have given the Republican Party this much influence.

[Artos]

terraprieto,

Yeah, heroes! Isn't that interesting. Funny isn't it how the Repugs with their de-regulation crusade first loose all the controls which made this all possible, then when their President wants to "rescue" the Bankers with our money, they back out. And the gullible easy to read Democrats decide to believe the Chicken Little rails of "The Banks are Falling, The Banks are Falling!", as usual get bamboozled into going along. Talk about Self-destructive. I'm sure the Repugs are rubbing their paws in glee and having a good laugh. I really can't stand either Party anymore, Thank Buddha I'm an Independent. The Democrats are getting so predictable, but the deviousness of the Repugs is even more predictable.

[Frannyvida]

What you're not pointing out is that one of the media leaders of this proposal is Virginia Republican Rep Eric Cantor. He's about as far to the right as you can get. Haven't you seen him on the telly ranting on McSame's behalf? They submitted a 1 page proposal that would basically call for privatization and insurance that would take any control and transparancy off the table and continue to make the rich richer and the poor poorer.

Notice the amount of timesTrump (gross) has been on CNN with BUY BABY BUY rhetoric. Of course he wants McSame to win because he's all Country First while he continues to help create a GREEN DUBAI. At this rate we'll all have to purchase The Rosetta Stone CD's to learn Arabic and Chinese in order to read the names of the new streets he'll be naming.

So what's the answer?

[terraprieto]

Obama and the Democrats are on the path to losing this election.

I am distressed and angry at the Bush-Pelos­i-Reid-Fra­nk-Dodd 700 billion dollar taxpayer giveaway to Wall Street swindlers.

Not only is Congress set to reward those who engaged in predatory lending practices while giving nothing to the victims, the Democrats are losing the upcoming election in the process.

Don't any Democrats in Washington know how to play this game?

When the Republican president and treasury secretary requested this outrageous bailout, to be passed immediately, Reid and Pelosi should have said:

The Democrats will consider providing the handful of votes needed to pass the Republican President's bailout with unanimous Republican votes for the plan in Congress, IF the following conditions are included in plan:
and then proceed to list the needed relief for the VICTIMS of Wall Street, including the proposal to allow bankruptcy judges to adjust the terms of usurious mortgages for homeowners.
(cont.)

[funkalicious]

That is a nice quaint view of the world of inside info in Washington. That Dodd and Frank who get all of their money to run their lives would do anything but have us bow down to wall street while they shove a magic wand into the dark hole.. and make it all better.

We should be demanding a claw back of the 2007 Bonuses that the investment bankers drained out of the system.

Where was the outrage when they took over Freddie and Fannie and stuffed it full of pork.
It was obvious a that point in the game that our Senate and Congress had no clue about the reality
or that they would act in a responsible way to ensure the peoples trust.

Bush and his cronies lost the public trust long ago as they dithered in Washington on every major
initiative , the war , energy independence , public transit, Katrina,.

It was the democrats we expected to be the adults but it turns out they are mostly a bunch of Doddering old fools who are nothing more than failed investment bankers lap dogs.

We need to dismantle the Office of Thrift supervision tomorrow. They failed you are the weakest link goodbye.

[Zan-Gah]

I thought Obama mentioned the limitations needed on the bailout bill to give us a little equity and justice and to keep it from being a trough for Wall Street.

Zan-Gah