Watching John McCain thundering against Wall Street greed is like tuning into to the old Lawrence Welk show to find him doing a polka version of a hard-core rap song ("A-one and a-two, motherfucker!").
Speaking yesterday outside an auto plant in Grand Rapids, Michigan, McCain read his populist rhetoric -- "These workers here are the best in the world. They are the backbone and foundation of our economy." -- with a robotic cadence dripping with inauthenticity.
Wall Street is melting down, and McCain and the GOP have no credible response. When your erstwhile economic guru, Phil Gramm -- a man whose 1996 run for the presidency McCain chaired, and who appears to remain influential behind-the-McCain-campaign-scenes -- is Patient Zero of this killer economic epidemic, it's pretty hard to suddenly start channeling Upton Sinclair.
McCain is so clearly clueless on this issue, the current battle over who is best suited to deal with the financial crisis should be a rout. And, so far, Obama has shown not just an incomparably greater grasp of the situation and substantive policies to deal with it, but a real fire in the belly in going after McCain's vulnerable flank.
But for Obama to show the kind of transformational leadership the crisis demands, he needs to do what so many of his critics have chided him for not doing: take a stand that puts him at odds with the establishment of his own party. He did it in 2002 with the war in Iraq. He can do it in 2008 with the economy.
He needs to start by making sure that the economic advisers he turns to extend beyond those he had on a conference call on Monday -- Robert Rubin, Lawrence Summers, Laura Tyson, and Paul Volcker. It's great to include graybeards who have been through crises before, but he needs to go beyond the two Treasury Secretaries who were complicit in the 1990s deregulation orgy that has led to so many of the problems we are now seeing. And he needs to make it clear that the Clinton-era Democrats who put the interests of Wall Street ahead of the interests of Main Street are not going to be the primary voices he listens to.
Rubin and Summers played a pivotal role in dismantling banking regulations like the Glass-Steagall Act of 1933, FDR's pivotal banking legislation designed to constrain the power of Wall Street, and make the activities of the banking industry more transparent. It specifically kept commercial banks separate from their investment banking cousins -- and had long been the Moby Dick of the banking industry, the elusive prey the financial industry Captain Ahabs were determined to harpoon. Consequences be damned.
Phil Gramm, then chairman of the Senate banking committee, did the heavy lifting, and John McCain was an ardent supporter of the deregulation, but Rubin and the Clintonites were certainly up to their eyeballs in pushing legislation gutting so many of the regulations designed to bring accountability to our complex free market system. These bills included the the Financial Modernization Act, which obliterated Glass-Steagall; and the Commodity Futures Modernization act, which gave us unregulated trading of derivatives and the kind of credit default swaps that threaten our economy -- both signed into law by Bill Clinton.
Speaking at a large rally in Las Vegas on Wednesday, Obama declared: "we can't steer ourselves out of this crisis if we're heading in the same disastrous direction. We can't steer ourselves out of this crisis using the same old map, we can't steer ourselves out of the crisis if the new driver is getting directions from the old driver, and that's what this election is all about."
Bull's-eye. Now he needs to make sure the old drivers in his own party don't have their hands on the wheel -- or are the loudest of his backseat drivers -- as the nation navigates this rocky financial road and charts a new direction.
Follow Arianna Huffington on Twitter: www.twitter.com/ariannahuff
For a family of four, that is almost $10,000!!!! And that is just to get us to the election.
HOW IS THIS NOT PART OF THE TAX DISCUSSION?
BIG OIL TAX BREAKS?
TAX BREAKS SLANTED FOR THE WEALTHIEST?
CORPORATE BAIL-OUTS!
B.S.
Obama talks about no more RED or BLUE states, just American states, but never votes that way. If he voted the way he talks, he would be at 80 percent or above!
Compare Obama and McCain voting records here:
http://strategicthought-charles77.blogspot.com/2008/09/obama-vs-mccain-who-is-really-more-of.html
BiPartisan=of Two Parties, not Against my party!!
Making the Federal Reserve Bank into a Federal Reserve Credit Union will also stabilize the global economy and reduce incentives to start Wars, but this is a subject for another post.
How about launching a national workforce housing plan?
We could offer an opportunity for all homeowners to opt-in or opt-out of a one-time program to place a "deed restriction" on their property that would make it so that the owner had to own and occupy the property and when sold would be restricted to a 3% appreciation rate.
If a homeowner opted-in the house would be re-appraised at a much lower price and a new mortgage would be issued that the homeowner could actually afford and would remain affordable for future generations.
The "delta" between the mortgages would be paid for by the Federal Government that got us in this mess and the foreclosure mess would be over, as well as the banking crisis.
"Deed Restricted" housing is common in all the ski resorts and was started in Telluride and Aspen 30 years ago. There are thousands and thousands of deed restricted homes already in our country.
It wouldn't be a "bail-out", but an opportunity to launch a national workforce housing program and allow homeowners across of America to continue owning a home--a home they could now afford.
Watch this video and see what a bunch of crap they are feeding us.
Take 3 minutes to view this video and then send the link around the world. View it full screen so you can see the names and dates (should anyone not know who they are). Save it, resend it often.....
THIS COUNTRY NEEDS TO RUN THIS VIDEO OVER AND OVER UNTIL ALL OF US FULLY UNDERSTAND WHAT IS GOING ON!
The most despicable acts of deceit ongoing in this country... are the lies and hypocrisy... perpetrated by the people seen in this short video. The next time you hear the expression 'Bush's war' remember this video !!! And note that there is no 'opinion,' just direct video.
http://www.bercasio.com/movies/dems-wmd-before-iraq.wmv
The Iraq War...deception, propaganda and lies all which have stained this adminstration with human blood.
1. The U.S. Banks are so intertwined in functions of foreign banking, that to just tell them to shrivel up and die for their mistakes would send the financial world into chaos. Everybody was onboard with the cruddy subprime debacle.
2. The Global Market has made the world a FAR smaller place. It stinks to admit that a product can be manufactured, packaged and shipped to be sold on Main St, USA for 1/2 (or less) than the production price that it costs in the US factory. Even if the company wants to remain an National Company, the price to keep the American flag on the product costs too much vs the company that just moved from Industry Dr, USA to China.
3. When you owe other countries money in debt and debt related instruments, it is hard (if not impossible) to impose tariffs, and funnel their imports to a trickle. In contrast there is little or no reason for said country to comply with your wishes to export. This factor also creates a situation where demands must be met in order to slow the "cashing in of the IOU." Then your have said country enjoying the fruits of your exclusive innovation.
All of these and more factors are things that the next President WILL/MUST confront.
Let's hope that Obama/Biden are the ones who do it.
http://ladybroadoak.blogspot.com/2008/07/fannie-mae-freddie-mac-are-sound-panic.html
Fannie Mae, Freddie Mac Are Sound; Panic Unwarranted, Dodd Says
By Romaine Bostick
July 11 (Bloomberg) -- Fannie Mae and Freddie Mac are sound, have several options for capital and liquidity, and the ``facts don't warrant'' the negative reaction by investors, Senate Banking Committee Chairman Christopher Dodd said.
``There is sort of a panic going on, and that is not what ought to be,'' Dodd, a Democrat from Connecticut, said at a press conference in Washington today. ``Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage market.''
Dodd said options for the two largest U.S. mortgage-finance companies include using the Federal Reserve's discount window. He said the Fed and the Treasury Department are considering a ``number of options.''
Who is Phil Gramm??
Just Stop with your lack of fair accountability.
The republicans had a perfectly strong country and taken a WRECKING CREW to it. Seriously.
ITS TIME TO FIRE THE REPUBLICANS.
Will this democratic congress pass this terrible deficit spending? I heard they not only will, they want to attach additional spending to it for other feel good projects!
Spend Spend Spend.....is this the fiscal responsibility democrats promised us for getting control of congress.....large and larger deficits? I think the debt payments will soon exceed what we spend on education....if they don't already. And congress is about to borrow a whole lot more.
You know if these neocons have not done enough damage let us finish it off with fiddling with the economy. Is there anything that Bush has touched that he has not either broken or destroyed or lain to waste.
On the flip side how long does it take a welfare women to get help feeding and sheltering her children while these same bailed out people above kicking and screaming about such aid. Totally incredible. Hmmm think Bears & Sterns bailout and then think of the Katrinia bailout. People in Katrinia are still waiting for help after three years. We have lost our civil and moral compass.
Mean governments produce mean or broken people. Either / Or.
So much for thinking about single payer health care anytime in the short, medium, and way long range scheme of things.
Obama can address these things and is already a great statesmen in my opinion if only we can persuade a lot ot this population to vote for a black person.
So what are you saying, if I don't vote for Obama, whom I disagree with on his world view.....I'm a racist? I don't need that kind of "education" thank you. The presidency is not something you get by some "equal opportunity, reverse racism" law. We cannot be forced to vote for Obama because he is black just because you say so.
Bill Clinton had a down economy when he took office and make the economy , social programs , education and other programs very sound and a historical recovery.
This is like telling Obama to do as Bush and not listen to what others have to say about his policies and decisions on the Iraq , Iran , N. Korea , Syria , Russia and others.
***
http://clinton5.nara.gov/WH/Accomplishments/eightyears-03.html
President Clinton’s Record on Fiscal Discipline: Between 1981 and 1992, the national debt held by the public quadrupled. The annual budget deficit grew to $290 billion in 1992, the largest ever, and was projected to grow to more than $455 billion by Fiscal Year (FY) 2000. As a result of the tough and sometimes unpopular choices made by President Clinton, and major deficit reduction legislation passed in 1993 and 1997, we have seen eight consecutive years of fiscal improvement for the first time in America’s history.This would be a very sad and bad mistake....
the SMALL, SHORT, BRIEF recession in 1991 was over by the time the data that showed it happened hit the pages.
Bill Clinton (I miss you so much Mr President, if only we could have you now) did great job but he DID RIG THE SYSTEM to some degree. That is by refinancing long term debt at short term debt levels which were quite low at that time. A great idea if you could continue to refinance at 2-3% indefinitely which he knew they couldn't but wasn't worried about it since his 2 terms would be over by then.
so long term debts got refinanced later at much higher rates, then the dot.com bubble, etc
the real person to blame for all our ills is Allan Greenspan! He poured out money, ran the printing presses non-stop before Y2K leading to dot.com bubble which we are still paying for because, guess what Allan did after that....................... poured money printed money as fast as could into market, then more after 9-11, then guess what, everybody felt rich, home prices soared
you know the rest.
Greenspan is the villian. No congressman or senator nor even the President could have stopped Greenspan from wrecking the economy.
The trade imbalance is the result of bad trade deals that have shipped jobs to China. The only way to compete with Asia is to put tarrifs on the imports until trade balances. Of course exceptions will be made for countries that share our international burdens.
Obama should talk about the bad WTO trade deals and their direct impact that now we can not escape the total economic collapse unless China provides the money. Obama needs to explain how net loss of jobs is due to poor trade agreements that are destroying our communities and the economy and the American dream. Obama needs to make a goal of balanced trade with renegotiation of WTO import agreements including tarrifs if countries do not buy enough American products. This solves 3 problems: 1st, tarrifs bring in a lot of tax money, 2nd, it is the only way to save the Amerian dream and time is short, 3rd it is extremely popular and Obama needs a 10% lead to compensate for the last minute racial smear likely to come from the Republicans.
I find it horrifying that we are now each on the hook for an additional $10,000. If we (the people) own the securities now (on Monday) can we now lend ourselves money at better rates to get a mortgage? When the lenders are the same as the borrowers we have entered the land of Escher. Hall of mirrors.
What caused all this anyway? Is this just a crisis of confidence? If the sub-prime loans were the original problem, why not just buy them up in the first place and stop the flood in the beginning--would have been cheaper? Some people have to cause a problem before they decide to 'fix' it.
Poor Obama--even if he wins he'll be so saddled with this debt he'll never be able to do health care, or that $4000 tuition credit, or even energy stuff--there is no money! China should not be our creditor here. I'm getting dizzy--this is all so scary.
Obama predicted this in 03/07 and authored legislation to stop it. His leadership pre-dates Arianna's 'advice'. He has stepped out front over and over.
Don't blame Congress. Bush vetoes everything.
If you read Arianna's article, it does state that Clinton had a hand in dereguation--the point is that the Republicans have been way way enthusiadtic to follow the initial dereguations with major dereguation throughout Wall Street.
BHO has a vision for our nation, McCain has memories. BHO's campaign strategy leans forward, McCain doesn't wok weekends. BHO wants to create 5 million green jobs, McCain wants a $5 million enterance fee for the middle class. BHO wants to invest in our infrastructure, McCain has a chauffer for his golf card. BHO demands empathy and excellance, McCain thinks that Bush is right over 90% of the time.
http://www.adn.com/opinion/story/531723.html
This is from an informed Alaskan.