Financial Bailout = Patriot Act Redux: Under Cover of Crisis, the Republic is Lost

Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi.

"When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.

As Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking, Housing and Urban Affairs Committee, put it Friday morning on the ABC program "Good Morning America," the congressional leaders were told "that we're literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally."

Mr. Schumer added, "History was sort of hanging over it, like this was a moment."
When Mr. Schumer described the meeting as "somber," Mr. Dodd cut in. "Somber doesn't begin to justify the words," he said. "We have never heard language like this."

"What you heard last evening," he added, "is one of those rare moments, certainly rare in my experience here, is Democrats and Republicans deciding we need to work together quickly."

- "Congressional Leaders Stunned by Warnings," The New York Times, September 20, 2008

Sounds familiar, and excuse me while I puke.

Remember the days after 9/11? It was like a bad dream, but some people in the Beltway were wide awake -- Ashcroft and Cheney in particular. With the stench of burning steel and flesh still redolent in the New York air, I watched with horror as ready-made legislation was rolled out; massive proposals for the curtailment of civil liberties and basic human rights, a package that came to be the Patriot Act. A sweepingly unconstitutional melange of odious infringements on the entire liberal tradition dating back to the Magna Carta -- conjured almost mystically from the ashes of the Twin Towers. The infinitessimal detail, the precision of legal language, and the hundreds and hundreds of pages, presented so hot in the tailwinds of the planes that tore the Towers down, made me wonder: was this stuff just siting in Ashcroft or Cheney's desk, waiting for this day?

Did the opposition party, the Democrats, share my concern? And how did the Fourth Estate play its historic role as official jaundiced eye on all encroachments on the liberty of the people?
Well, the New York Times and the rest of the mainstream media got in line to intone how necessary it all was. And the Dems said that this was a historic moment when partisanship must be cast aside, when the fate of the Republic hung in the balance and we would have to sacrifice some of our basic rights to enact the Patriot Act immediately. Lockstep was the dance craze, ditto was the word on the street, glassy were the eyes and slack the jaws of the republic in our moment of truth.

Forgive me if I smell a similar attempt by the Republicans, as the proxy in government for the banking industry, to ram a similarly lopsided, ready-made and offensive prescription down the throats of the American people under the cover of crisis. At the time, wishy-washier-than-thou liberals labored to "explain" to those of us with any perspective that "sometimes you have to sacrifice civil liberties to achieve safety" and that "the worst extremes of the Act wil be repealed as the crisis lifts" and even "his will be a short-term thing." Yeah. Seven years later and the Patriot Act has been renewed and expanded. Our baseline has moved drastically away from the liberal tradition upon which the nation was founded, and well toward the Soviet way.

Beware Republicans bearing solutions to a crisis -- but beware too Democrats and pundits who have neither spine, nor insight, nor political will to stand up for the rest of us and call these solutions what they are.

It's encouraging that the New York Times Op-Ed page isn't quite as wide-eyed this time around. But if Schumer and Dodd's comments are any indicator, this bailout may be the beginning of yet another phase of our unique American blend of socialism for the rich. As bailout packages and the tax code continue to redistribute wealth from the vast working poor and middle classes up the social pyramid to a handful of venal parasites at the top, one wonders: When will the Democrats realize that not only is this ethically and constitutionally wrong, it is a massive political opportunity waiting for some talented leaders to forge it into decades-long electoral gold. Chuck Schumer sure isn't listening. What about you, Barack?

Comments

[Kayaker12]

Well, one difference between the Dems reactions to the Civil Liberties Reduction (alias Patriot) Act and this bailout is that in this case the Democrats' money is also on the line. HORRORS! This is important! Phooey on those liberties.

[caterpol]

Admittedly, I'm no economics or foreign policy genius, but I view this current bail out the same way I view the debacle that is Iraq.

The ideology that brought about these crises is to blame. And when this ideology (unfettered free market capitalism, trickle down economics) keeps ending in what should have been predictable disasters, it's too late to make a U-turn . As in, the car's already hurtlng off the cliff and some emergency seat belt or air bag "liberal" regulation is too little, too late.

Our only hope for the future is to competely expose this RW ideology for what it is. A ponzi scheme. The Wall Street "gamblers" that made off with billions aren't gamblers at all. They're in cahoots with the house. When they win a hand, they get to keep the profits. When they lose a hand, the struggling taxpayers get to pay for their losses.

There is no good solution to the latest meltdown, not in the short term. In the long term, though, we can elect a gov't who will refuse to allow a handful of corporations the power to bankrupt our nation and in turn blackmail us into rewarding them with even more money.

[ThePeacemakers]

LOWER CAPS ON INTEREST RATES !
That's the regulation somebody needs to have the balls to say.
So what if more people won't qualify for loans, etc...need to go back to the days of old-fashioned underwriting where how much you make and how long you've worked at a job for a certain salary matters.
Only then will we see the true nature of the economy...
Americans do not make enough to justify the cost of housing and many other goods.

[Pete Cenedella - Huffpost Blogger]

Great to see two things: 1) this connection seems to hit a chord for a lot of us, and 2) at least some of the Dems are at least starting to get it. As I said below, and as te HuffPo front page link makes clear, Patrick Leahy of VT, that old lion, has explicitly made the 9/11 -- "no blank check" connection.

Obama clearly gets it, just watch his great campaign stop this weekend:
http://www.americablog.com/2008/09/obama-really-was-on-fire-today.html

The question is: will the Dems grasp the FULL WEIGHT of this moment and seize back the populist ideology from the Republicans. For too long these country club millionaires in the pocket of the most venal have masqueraded as NASCAR-lovin' just plain folks, while taking it to the Dems for being "limousine liberals." This moment is an opprtunity to turn that back around in a REALLY historic way. DO IT!

[schatsie]

Wonderful article, thank you so much for the beautiful write up... I have had the same thoughts recently and your article was great,,,,

OOOH, Jack Reid is going to town on Paulson...

[joshuahmcdonald]

In addition to the shared urgency of purpose in electing Barack Obama as President we must elect a 60-40 Democratic Senate majority.

As our financial institutions crumble around us, the Bush Administration, managed by the most extreme adherents of Market Fundamentalism since Hoover, has proposed a bailout amounting to nearly $1 Trillion in institutionalized Socialism. Having destroyed the foundation of our economy this Administration is now intent on billing the American taxpayer.

The irony is that over the last 2 Senate sessions the minority Republicans have set records in the number of partisan filibusters blocking much needed legislatio­n...includ­ing financial regulation which may have mitigated our current economic crisis. Over 130 filibusters in 2 years!

A 60-40 majority in the Senate allows the Democrats to legally quash obstructionist filibusters and get our representatives back to work solving the extremely serious problems currently facing our nation.

I urge you to add your voice and your financial contributions to the following Senate campaigns where strong Democrats are facing vulnerable Republicans:
- Alaska: Mark Begich (http://www.begich.com)
- Colorado: Mark Udall (http://www.markudall.com)
- Idaho: Larry LaRocco (http://www.laroccoforsenate.com)
- Louisiana: Mary Landrieu (http://www.marylandrieu.com)
- Minnesota: Al Franken (http://www.alfranken.com)
- Mississippi: Ronnie Musgrove (http://musgroveforsenate.net)
- Nebraska: Scott Kleeb (http://www.scottkleeb.com)
- New Hampshire: Jeanne Shaheen (http://www.jeanneshaheen.org)
- New Mexico: Tom Udall (http://www.tomudall.com)
- North Carolina: Kay Hagan (http://www.kayhagan.com)
- Oregon: Jeff Merkley (http://www.jeffmerkley.com)

[Lotus19]

Wow. I believe Obama is listening..he's trying to sound thealarm that Main Street has to be factored into this. But as you point out, this is not about Main Street. And what can we do about it. They are declaring fire and brimstone consequences if they don't act and the public is just going to let them. How convenient that this has all occurred right before the election. It all seemed too suspicious to me that these failings and bail outs were happening as Bush was is about to leave office, as if these corporate leeches are trying to leave the scene of a crime.

[MendyUSA]

PLEASE PLAGIARIZE and Post all over


Dear Congressman / Senator,

I urge you please do not support any bailout package for any financial institution that would contribute tax payer money to the bonuses and golden parachutes of any employee at any level of one of these failed institutions. I have worked for several companies in my career and some had earnings up and downs. During those down times employees were denied bonuses. We didn’t like but accepted that the purse wasn’t full and our bonus was directly tied to the success of the company holding that purse. To contribute tax payer money to the very people that through their greed knowingly took the risks that caused these companies to fail is unthinkable. I acknowledge the fact that a bail out is necessary to preserve our economy and mitigate the global effect of its failure. But to repeat, no contribution of tax payer money should be used to reward those that must bear responsibility for this failure, and unfortunately, the faultless victims that worked for them as well.

My sincere thanks for your consideration and service,

[Pete Cenedella - Huffpost Blogger]

I have plagiarized this and will indeed send along. Thanks!

[MendyUSA]

Pete thanks so much!

[jhNY]

Thanks for writing this article. The Economic Patriot Act is upon us, and an overwhelming number of Economic Patriots are banding together on Capitol Hill to pass it without any more than a few bitter asides, which they hope voters will overhear and misinterpret as meaningful. The Democrat Economic Patriots will betray us with a sad little smile; the Republicans will do it gleefully, except for a few quasi-philosphers of pure conservativism ( whatever that actually means) like former major-league pitcher Bunning of Kentucky. Both parties are now on record as having made a few noises of protest. Both parties hope you will remeber those noises, and not the deafening roar of the bonfire of our future, which they have now set ablaze.

[Zenfull]

Yes, now, Barack Obama, this is your opportunity to show your promise. Do the right thing, Brother.

[Lotus19]

He's trying...but as he has tried to tell us all along, this is about us...not about him. He can sound the alarm and then we have to let our voices be heard. This article, as well as many other great articles on this site, should be copied far and wide. And we have to let the media know that we demand that they report on the truths of these debacles and crimes.

[lthuedk 1]

Well, the Patriot and Military Commissions Acts must be repealed. They are anti-American, totalitarian acts. They are illegal on their face because they are tools of organized subversion.

Should there be no prosecution of subversive Neo Cons or the repeal of said acts, Congress will have it's work cut out convincing millions of armed Americans to not take the government back by force and convene a Constitutional Convention.

There should be no 700 billion pay out to the fascists without a national health care program and a mortgage crisis solution. We have the opportunity. Let's do it. Keep Republicans as far away as possible from decision making. They've done enough damage.

[schatsie]

If Bush can attach signing statements where ever he wants, then Obama should do the same for any bills that Bush signed to counteract Bushs signing statements.... I would hate for him to do that going forward and maybe Congress should make that illegal...

[ManwithaParachute]

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Use the link above to tell your Senator what you want them to do.

I cannot vote for anyone who authorizes this complete con on the American public. This is nothing more than a sell out of the American people.

[Pete Cenedella - Huffpost Blogger]

What's particularly chilling is the "32-word clause" in the Bailout that was reported on today here on HuffPost -- basically giving Paulson, as Treasury Secty, unlimited power and zero accountability. He can play footsie with his cronies on Wall Street, repay personal favors and pick favorites with OUR money, and we have no recourse.

[harriscrl3]

Do you ever notice when it comes to preserving rich people and capitalism Repubicans rush to spend taxpayers money they are so ready to cut the check at taxpayers expense to bail out the capitalist from their own greed but they couldnt even get clean water, shelter and food to New Orleans when a natural disaster BEYOND THEIR CONTROL strikes.

But we must all watch them cut checks in the tune of 700 billion dollars in our name and they wont even lift a finger to help homeowners who lost their homes because of deceptive practices.

Carol

[Pete Cenedella - Huffpost Blogger]

Good sign from the increasingly distinguished Senator from Vermont:

http://www.huffingtonpost.com/2008/09/22/bush-pushes-to-pass-bailo_n_128314.html

[schatsie]

thanks, that link was good!

[zoojean]

This sounds a lot like the Iraq war strategy. Don't ask questions, taxpayers. Just trust me with my 3 page outline of the biggest crisis in America's financial history. Trust me with your money. Soon my buddy, John McCain, will be in charge. haHaHa.

[and stuff]

If it is so easy for the government to suddenly spend my money on an insurance company, I wish it had been for health care.