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A Good Morning for the President

Posted: 01/04/12 04:33 PM ET

The conventional wisdom line is set: with his victory(?) in Iowa, Mitt Romney is sure to win the Republican nomination, and he is the strongest candidate against Obama, so yesterday settled things in a good way for the Republicans. But I'm feeling like this was a very good morning for the President: Romney is still the likely winner of the nomination, but his fight against Rick Santorum will be tougher than anyone is currently predicting and will open up deep divisions in the Republican party; and Romney is the perfect opponent for a President now emulating anti-Wall Street trustbuster Teddy Roosevelt. The fact that Obama chose the morning of Romney's win in Iowa to announce the recess appointment of populist Richard Cordray as the new head of the Consumer Financial Protection Bureau is a beautiful moment: the stage is now perfectly set for a classic election fight between Wall Street's candidate and Obama.

More on the Cordray appointment in a moment, because it really is important. But first, my take on the results from my beloved former home state of Iowa. In my predictions about what would happen, I was wrong about one big thing and right about one thing. I had forgotten until a few days ago that the Republican caucus system is less like a caucus the way Democrats set it up, where people have a second ballot to go to a new person if their candidate wasn't viable (viability being set at 15 percent), and more like a straight up secret ballot, where people just get one time to vote. Because of that mistake, I had been thinking Romney would do a lot worse than he did, because he is no one's second choice. In this year's GOP, either you are a business-oriented Republican who likes Romney's CEO background and thinks he is the most electable candidate, or you just don't like him and are desperately searching for another candidate to go against him. If that system had been in place, Romney would have been killed by Santorum last night, because in all the precincts where Bachmann, Perry, and Gingrich weren't viable, Santorum would have been the overwhelming beneficiary of the second-place votes. Instead, it was a straight-up vote, and Romney won by the narrowest of margins because of the conservatives splitting their votes.

However, I did get the Santorum thing right. About 10 weeks back, when Cain was riding high, I started telling friends that there was no way he could last long at the top of the Republican polls. I thought Gingrich would have a turn, but was pretty sure that a few weeks in the sun as frontrunner would remind people why they didn't like him. I thought one of the conservatives at the bottom of the polls -- Bachman, Perry, or Santorum -- would start to surge. Given that Perry and Bachmann had already had their moment in the spotlight and hadn't impressed, my strong hunch was that it would Santorum. In the last few weeks, it became more and more likely in my view that this would happen, as some Iowa right-wing movers and shakers I knew from my days there like Bob Vander Plaats and Chuck Hurley came on board for Santorum. To people who thought I was crazy for predicting that someone at the bottom of the Iowa polls would be the winner, I reminded them of the Iowa caucus surges of the past, like when John Kerry at 10 percent and John Edwards at 5 percent two weeks out ended the 2004 caucuses at 38 percent and 32 percent respectively.

Santorum has no money, and he has no organization in any state other than Iowa and his home state of Pennsylvania, but I think he will give a tougher run at Romney than conventional wisdom suggests. We know three things about the 2012 Republican primary electorate: (a) 15-20 percent of them are intrigued enough by the anti-establishment, anti-orthodoxy Ron Paul candidacy to support him; (b) 25 percent are establishment-oriented enough to vote for Romney; (c) everyone else in that electorate is desperate enough for another candidate to have considered Bachmann, Perry, Cain, Gingrich, and now Santorum in one 5-month period. Santorum will be savaged by attacks he doesn't have the money to answer, and will be completely out-gunned organizationally, but the anti-Romney feeling is very strong and very deep in the Republican primary electorate, so this race could be tougher than people think. Here's the other thing: if one of these big right-wing groups decides to use their clout and money to defend Santorum from Romney's super-PAC attacks, this could be a very drawn-out fight. Romney is very likely to still win, but it will be tough.

So how does Richard Cordray play into Presidential politics? If Romney is the Republican candidate, in spite of what I wrote above about the toughness of his remaining primary battle, running against Wall Street is the way to win this race. Two Democratic presidents in the last century-plus have won re-election in tough economic times, FDR in 1936 and Truman in 1948, and they both won the same way: a populist campaign taking on Wall Street and big corporate money. With the horrors of the financial meltdown fresh in voters' minds, this is the year to win the same way. And in Mitt Romney, you have Mr. 1%, Mr. Wall Street, as Obama's opposition. Cordray is a protégé of Elizabeth Warren, and was the best attorney general in the country from 2007 to 2011 in taking on the abuses of Wall Street. And picking a fight with the Republicans on the morning Mr. Wall Street probably assures himself of the GOP nomination couldn't be a better symbol of that kind of populist campaign.

It has been a fun ride so far, the most entertaining presidential primary fight ever in my opinion. Now the fun gets even better, as Romney has to fight a rear guard action trying to get the right wing to finally give in and accept him, and as the Obama team gets their populist credentials in order so they can focus on attacking Mr. 1%. I am liking this fight.

 

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demisfine
Often correct, NEVER right.
12:02 PM on 01/06/2012
The DNC nneds to sit back and collect the talking points.
The GOP is writing the President's re-election ads.
05:58 AM on 01/06/2012
Excellent write, and astute predictions. Here is the straight ticket, pardon my punt,
Romney at the top, and to appease the complaining conservative right wing: Santorum for vice-president.
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demisfine
Often correct, NEVER right.
12:01 PM on 01/06/2012
Two north easterners?
No national appeal.
06:32 PM on 01/06/2012
It does not matter. Two Texans ran and the rest is bad history.
05:09 AM on 01/08/2012
Does two Texans have national appeal?
01:44 PM on 01/06/2012
Another VP possibility courtesy Robert Reich: Marco Rubio.
01:58 AM on 01/06/2012
There wont be any divisions in the GOP come election day. GOP supporters disgruntled with the nominee will be voting and it wont be for Obama. Guaranteed!
09:58 PM on 01/05/2012
Santorum is more scary than Bahman. Yikes.
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Merseysidefella
The View From The Top
01:15 PM on 01/05/2012
The final presidential election in November 2012 will be between two Wall Street candidates, whatever the cosmetic buildup looks like.

Sorry to sound so cynical, but thats the way things are. All this reality show of year long political primaries should not even exist. There should be a 15 day presidential campaign, with public financing at a fraction of the cost, like in many advanced countries out there.
Politics in the US consists of raising money for the business of elections, and the results are plain to see: the most corrupt (legally corrupt) system in the Western world.
There are many other different ways of doing things.
06:03 AM on 01/06/2012
"The final presidenti­al election in November 2012 will be between two Wall Street candidates­, whatever the cosmetic buildup looks like".

Yeah, maybe, but to win, Obama, will have to become a lot of the change we were waiting for or make an attempt, show result, or give lip service to that change. Thanks God for "Occupy Wall Street".
10:09 AM on 01/05/2012
Two political ads I love for different reasons: 1) Huntsman's ad where he calls Romney a "comedian" (LOL, yuk yuk, giggle, that's a good one) and 2) Romney's ad where he says is fighting for the "soul" of America (waiting to hear some black people chime in on this, LOL) and also where he calls Obama "pessimistic" (I don't even get this one, huh?, say what?).
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Akshay Singh
Go To Sleep
02:14 AM on 01/06/2012
Romney: Who let the dogs out,

http://www.youtube.com/watch?v=FDwwAaVmnf4
09:00 AM on 01/05/2012
Seems to me I remember Biden telling Obama during the Democratic debates he wasn't fit to be president. True then....still true.

Republicans and conservative independents will stand behind whoever gets the nomination
Artu Di-tu
El valiente vive hasta que el cobarde quiere
06:39 PM on 01/05/2012
That's what they thought in 2008...didn't quite work that way.
This user has chosen to opt out of the Badges program
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08:58 PM on 01/05/2012
Republicans... maybe. Independents... not so much. "Hold your nose and vote for Romney" is not an inspiring slogan. And this election will be all about getting out the vote.
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HUFFPOST SUPER USER
Rex Baker
07:55 AM on 01/05/2012
Romney will probably get the nomination, but not before his fellow candidates make sure everyone knows that he is a flip flopper on every important issue, that he an agent of Wall Street, and that he is not a true conservative.
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HUFFPOST SUPER USER
Rex Baker
07:50 AM on 01/05/2012
Let them spend their money fighting each other. And let them alienate each other prior to the general election. It's great seeing them go after each other.
Artu Di-tu
El valiente vive hasta que el cobarde quiere
06:40 PM on 01/05/2012
For the whole WORLD to see!

OBAMA 2012
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HUFFPOST SUPER USER
57basque
Mondragon Co-op or bust
07:32 AM on 01/05/2012
If we could ever get a better monetary system and a sane Defense budget, we might be able to get together, and be able to fund this plan of Arlo Guthrie to fix the world.

(Arlo is my favorite Ron Paul supporter.)

My plan to fix the world is simple as far as the USA is concerned. I'd put forth a massive rebuilding of infrastructure like every road, every school, ultra high spread internet, energy delivery and more than can be listed here. And I'd rebuilt it all ONLY with products, tools and machinery Made In The USA. No importing steel, wood products, concrete or high tech stuff from over seas. You'll see factories going up faster than a multinational corporation can send money to an elected official. That'd be my Day One - Job One! adg
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nkurland
I'm going to leave this planet alive
05:49 AM on 01/05/2012
The real story in the 2012 GOP primaries is the ideological fight going on within the party. Save for the united opposition to Obama, the two competing factions of Evangelical Christians and Libertarians are currently battling to determine the direction of the party. So while Romney maintains a stable level of support among those looking for the most electable candidate, the rest of the base continues to play a game of musical chairs.

Iowa happened to confirm this trend, which is great news. The Republican party is set to engage in a long grueling primary battle offering Ron Paul ample opportunities to lambast the current state of civil liberties and the wars while Romney continues to fail to register a strong win. The result will be shaky support within the Republican party if he gets the nomination, virtually negating any advantage from his perceived electability.
Democrat in the South
Empathy, the most important word
12:33 AM on 01/05/2012
The only thing Obama has to do when debating republicans is say to what ever a republican says, "we tried that for 30 years and it didn't work". Or better yet, he could say "I did what republicans wanted for the last three years, it isn't working".........
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CMontalvo
stranger in a strange land
11:06 PM on 01/04/2012
I'm an independent who voted for Obama and I'm rooting for Romney to get the nomination so I have a viable option to consider besides our disappointing incumbent President.

Paul is a side-show and Gingrich may still do some damage but will finally succumb. So the contest is really down to the evangelical and the centrist. And just as Huckabee failed to muster sufficient support in 2008 because of the ultimate issue (electability), so too will Santorum bite the dust, irrespective of a strong showing...even a WIN in SC. And, of course, money will make a huge difference as well. With Gingrich mortally wounded, Romney's super-PAC can set its sights on Santorum, who will continue to lack sufficient resources to respond. The nominee will be all but formally enthroned prior to Super Tuesday.

And while Lux celebrates the prospect of "a classic election fight between Wall Street's candidate and Obama", I'm thinkin' that voters may well see it as a fight between a savvy businessman with a proven record of success and a community organizer with a proven record of failure. Given the public's increasing disgust with OWS, any opposition they express against Romney will only add to his support. And anyone who thinks that the unemployment rate will decline enough to give Obama some relief is kidding themselves. When the world's largest economy (Europe) disassembles mid-year, it's gonna send a tidal wave in our direction. And that ain't gonna be pretty...for Obama!
Democrat in the South
Empathy, the most important word
12:31 AM on 01/05/2012
If republicans could have done anything about unemployment (EVER) they wouldn't have allowed the country to lose 700,000 jobs a month when they handed over the Presidency to Obama.

You should vote for Romney...don't ya think?
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CMontalvo
stranger in a strange land
11:44 AM on 01/05/2012
Sorry...I shoulda mentioned that I'm in the "evil 1%" and doing just fine, thank you.

And as for the responsibility for the credit crisis, everyone but the politicians acknowledge that the fault lies NOT with greedy bankers or homeowners but with BOTH PARTIES. An unholy alliance of anti-regulations Republicans and "Let's help po' folk buy houses they can't afford" Democrats conspired to dismantle Depression-era banking regulations that had kept our banking system safe for decades. Clinton repealed Glass-Steagall, Bush increased leverage limits on investment banks, Frank and Dodd pressured Fannie/Freddie to make sub-prime loans, Bush's OCC and OCS blocked state predatory lending laws, etc.

I know it's a bit old-fashioned but I still believe that people should EARN their living rather than stealing it from those who have done so. So I think I'll take a shot on the GOP to prevent the massive wealth redistribution favored by entitlement proponents.
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nana1ellen
07:22 AM on 01/05/2012
And your "thinkin" could be dead wrong! Most voters in this country know Wall street's involvement in this ongoing crisis, continued from the Bush days, by the way, and are not too thrilled these days with corporations, ie business. I am an independent but have eyes with which to show the Repubs have stymied everything good , for the average citizen, that Obama has tried to do thus causing him to "fail" which is what , by their own words, they wanted to do. No, it can't be the country first, can it? For Repubs it always has to be their way or the highway.
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CMontalvo
stranger in a strange land
11:59 AM on 01/05/2012
"Most voters in this country know Wall street's involvemen­t in this ongoing crisis..."

Actually, most voters (e.g., those who read something other than HuffPost) know that the credit crisis was caused by WASHINGTON, not WALL STREET. An unholy alliance of anti-regulation Republicans and "Let's help po' folk buy houses they can't afford" Democrats conspired to dismantle the Depression-era banking regulations that had kept our banks safe for decades. Then they tried to pin the blame on greedy bankers and homeowners...AND YOU BOUGHT IT!

And my arguments with Obama aren't on his failure to fix the unfixable economy. That can only be done by deleveraging. But you don't achieve THAT by replacing a PRIVATE debt bubble with a PUBLIC debt bubble...and that's what Obama's pork-laden stimulus plan has done. Add to that government indebtedness to pay people not to work for two years and to cut taxes and we've just dug the hole deeper still.

As for HCR, I have no complaint with the mandate but the program's provisions were almost exclusively about expanding access rather than reducing cost...ultimately a far bigger concern. They should've eliminated cost-shifting by Medicare/Medicaid and insurers, allowed interstate insurance competition, mandated higher premiums for those with lifestyle risks (e.g., smokers, fatties, drug/alcohol abusers), capped malpractice settlements, etc.
10:35 PM on 01/04/2012
It will all be forgotten, unfortunately, by November.
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BigBearcatBill
This is the real Bearcat - a Binturong
09:44 PM on 01/04/2012
I agree, nobody could design a better scenario developing. Michelle dropping out is good for keeping the higher ground in statements, you could look bad and chauvinistic saying the truth about her. When Cain left that crossed a lot of plusses he had for the repubs off the list, most being a black man actually looking acceptable to a lot of repubs of course because he is a big business slimer. One of their rational and moderate guys with real and good gov experience, Johson of NM took off to independent/libertarian showing he thinks his party has gone over the edge. And now everybody else, what is it 6 of these guys are still in it and some look to be for at least a few more primary states. The weakest Huntsman, Perry and Gingrich look like they want to lay waste to the top three, especially Mitt on their ways out! They look careless abouthow nasty that they may as well cross their names off the VP list. We all know these guys are the Three Stooges times 2, and Christie, Bush/Jeb, and only a couple others would have a chance.
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nana1ellen
07:25 AM on 01/05/2012
I, for one, hope to never see another President Bush. We need no more dynasties in this country, especially those who descend from ill-gotten gains.
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BigBearcatBill
This is the real Bearcat - a Binturong
01:05 PM on 01/05/2012
I agree, and it reminds me of a statement an old brilliant friend said back in the late '80s - are we sure we want to elected an ex-CIA director as President? That was Bush Sr. who had the job before his VP days with Reagan. That also made him say something like "and Reagan knew nothing about the Iran-Contra selling of weapons to Iran for their fight with Iraq in early '80s so the money Iran paid could go direct to funding conservative backed rebels/Contras in Nicaurauga to fight their new elected president that replaced Samosa who was a friend of US conservatives and basically installed as their king/president? With Bush Sr. as his VP and him probably having good friends in high CIA places that should know this was going on...makes you wonder if Ron was a good Forgettor if he was told anything by Sr., if Sr. knew anything from his ex-CIA buddies. I respect the Bushes for the good things they have done, and really don't want them in office for a couple generations because of all the possible ties to conspiracies which if real would make them look like power manipulators more than honest politicians.