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Richard (RJ) Eskow

Richard (RJ) Eskow

Posted: April 26, 2010 09:07 PM

Shorting Democracy

What's Your Reaction:

This may be the single biggest lie in modern American history: "Most Republicans want a bill," said Sen. Richard Shelby, "but they want a substantive bill." We've criticized the Democrats plenty of times on the issue of financial reform, and the Dodd bill isn't perfect. But this wasn't a yea-or-nay vote about a bill. It was a vote to decide whether Senators would even be permitted to debate the bill. That difference means everything.

The GOP has now gone on record officially as saying it wants to block the Senate from even discussing a financial reform bill. They don't want to let the American people see and hear a debate on this topic from their Senators. When it comes to financial reform, they don't want the democratic process to take place at all.

Richard Shelby has received $789,489 in campaign contributions from the securities and investment community over the last five years, along with $430,352 from lobbyists, $306,700 from commercial banks, $239,600 from finance and credit card companies, and $151,300 from miscellaneous finance companies.

R. Shelby, R-Alabama. Price of a vote: $1,917,441. (That's the amount we know about, anyway.)

He had help, of course, from a unified Republican Party. Even Sen. Jim Bunning of Kentucky, who we praised when he voted for Blanche Lincoln's derivatives bill, joined in the effort to short-circuit the open democratic process. So did a lone Democrat, Ben Nelson of Nebraska, who was reportedly angry because a provision benefiting Nebraskan Warren Buffett was removed from the bill.

The bill contains many measures that Republicans say they want. As Sen. Shelby said, they claim to want something substantive. Normally a bill is finalized through a process of public debate -- at least that's what we were taught in civics class. But 41 Senators are on record as saying they don't want a public debate about this bill. They don't want to introduce amendments or debate the merits of the policies that are in it today. Their long-range strategy is no doubt to paralyze the Senate until Democrats are forced to accept back-room deals that will kill an already dangerously weakened bill. That's a great way to kill reform without leaving any fingerprints.

A recent study showed that Republican Senators received 25% more on average from the finance, insurance, and real estate industries than their Democratic counterparts (although the really big money went, as it always does, to New York's Senators and Banking Committee Chairman Chris Dodd, all Democrats. If you take out their contributions the party discrepancy becomes even more striking.)

It's all small change compared to the trillions of dollars that have been spent in the bailout, of course, or to the billions in bonuses being paid out to reckless bankers every quarter. When politicians won't even allow reform to be debated, much less passed, it's clear that the big Wall Street bankers are getting their money's worth in Washington.

For those of you who don't know what "shorting" is, by the way, it's the practice of borrowing something that isn't yours and profiting if it's worth less by the time you have to give it back. Since political office is only "borrowed" from the voters, isn't that exactly what these Senators are doing?


Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Curbing Wall Street project. Richard blogs at:

No Middle Class Health Tax
A Night Light

Website: Eskow and Associates

He can be reached at "rjeskow@ourfuture.org."

 

Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow

 
 
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booboo111
micro-bio
07:53 PM on 04/27/2010
I don't know why anyone would find this surprising. They've all been bought off or promised jobs, should they lose their seat, which is essentially the same thing.
This user has chosen to opt out of the Badges program
05:37 PM on 04/27/2010
This is bla, bla, bla... trying to make a principled argument over senate rules after what happened with reconciliation justification under republicans and democrats is a waste of time.

You can get utube videos with Dodd saying the exact opposite from what he said yesterday when he was in the minority and used the filibuster.

The only people who make these kind of arguments are party kool-aid drinkers.
04:01 PM on 04/27/2010
The Senate's composition does not meet most definitions of democracy.

The two senators from Vermont represent 621,760 persons

The two senators from Texas represent 24,782,302 persons

I think its time to can the "this isn't democratic" taking point
05:21 PM on 04/27/2010
Desmoron - the Senate wasn't designed that way. The House of Representatives was.
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HUFFPOST SUPER USER
Bleubeard
Tolerating intolerance is intolerable!
03:48 PM on 04/27/2010
DEMOCRAT: one man, one vote
REPUBLICAN: one party, one vote

(which one really represents their constituency honestly and fairly?)
This user has chosen to opt out of the Badges program
05:38 PM on 04/27/2010
one man one vote is not in the constitution. We are not a democracy we are a republic.

did anyone pass civics here?
09:36 PM on 04/27/2010
Apparently you didn't. And I love it how you righties hate the idea of democracy in this country, but argue that we must spend and spend and spend to create "democracies" in the Middle East. You people make no sense.
03:37 PM on 04/27/2010
I think they should until Fannie Mae and Freddie Mac are included in the new regulations. Until that happens we will see another financial collapse in the not-to-distant future. Remember, they are at the heart of our current financial situation. Maybe the Democrats don't want them regulated because it makes it much harder for income redistribution.
08:25 AM on 05/12/2010
Amen to that! Don't forget, if Barney Frank had to admit he was wrong about Fannie and Freddie's stability the world would come to an end.
02:37 PM on 04/27/2010
Just more evidence that the GOP Senators hate America. But we knew that already.
05:22 PM on 04/27/2010
Not America - just immoral, statist libs.
09:34 PM on 04/27/2010
Given that you seem to support a system that allow the big corporate banks to rob us blind, and that you are coming out against even DEBATING how to reform this system, you have a very twisted sense of morality, my right-wing extremist friend.
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Estreet1964
My neighbors know I'm a rock and roll singer
01:36 PM on 04/27/2010
It’s time to take action against this “too big to fail†nonsense that wrecked the economy and put millions of working class Americans out of work.

There’s a protest rally tomorrow (Wed. April 28th) in Charlotte, NC at the Bank of America shareholders meeting. Downtown Charlotte, 100 N. Tryon Street. If you’re in the southeast, show up and make your voice heard.

Help drive a stake in the heart of Casino Capitalism.
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cintirich
The posts above and below mine are wrong.
01:02 PM on 04/27/2010
Yes, Republicans recieved more from Banks and Wall St over the last 5 years, when for 4 of them, they were in power (at least in the White House after they lost congress).

Now that the Dems are in charge, that statistic has shifted drastically. Dems receieved more from Banks and Wall St last year, then the GOP by a significant margin.
12:46 PM on 04/27/2010
Until Freddie and Fannie are included in reform and "no more bailouts"(remember bankruptcy) are part of the proposed change, it should not be brought to a vote.
01:29 PM on 04/27/2010
Okay, but you've missed the point: GOP Senators don't even want to DEBATE financial reform. They don't want to TALK about the bill, and they have no proposals of their own. The talk about wanting a substantive bill is all a smoke screen for what is essentially an attempt to delay the passage of reform and nothing else.

If they've got problems with it, then they should TALK ABOUT THEM, and make suggestions for changes. But they're not even engaging. They're just throwing their toys out of the playpen and screaming.
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05:50 PM on 04/27/2010
This is a senate procedural vote. Nothing actually prohibits debate and talking --- I wish it were possible sometimes.

If you think this is about principles you have been fooled. This is no different than reconciliation on HCR, where there were plenty of utube videos of republicans and democrats alike saying the exact opposite depending on who is in the majority. The senators do not take these things as principles, but expedients.

The only persons who would make these kind of arguments over procedural votes are kool-aid drinkers from both parties, it is obvious the senator from neither party take this seriously.
12:17 PM on 04/27/2010
Unless lobbying is outlawed, American democracy and its society will continue to decline into oblivion.
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PathofTotality
Regret serves no purpose
11:54 AM on 04/27/2010
"But this wasn't a yea-or-nay vote about a bill. It was a vote to decide whether Senators would even be permitted to debate the bill."

So let me get this straight, they vote on whether or not to vote?!?! I will admit that I did not pay much attention in civics classes during school but that just sounds stupid and wastefull. Also, what section of the government decides what is allowed in Senate (I allude to the word "permit")? Do we or do we not elect officials, Dem or Rep, to vote and debate our countries issues? Not block said issues from even being heard and debated!!!
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cintirich
The posts above and below mine are wrong.
01:04 PM on 04/27/2010
The Senate makes it's own rules. The senate itself decided that 60 votes are needed for cloture to move on to floor debate.
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dfranz
With Liberty and Justice for all
11:45 AM on 04/27/2010
This is really a good deal for the Democrats. They have done a better job of exposing the Republicans than they did in the past for being obstructionists. Right now the Republicans are on the wrong side of history and public sentiment. I still have not heard any reasonable excuse from them.

Keep it up, the more you make a$%es of yourselves, the more people will see you for what you are and November will be coming faster than you think.
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elbzee
Fear is the mind-killer
11:43 AM on 04/27/2010
I find this most telling, "Democrat, Ben Nelson of Nebraska, who was reportedly angry because a provision benefiting Nebraskan Warren Buffett was removed from the bill." Well, hell, that makes sense. After all, Warren Buffett MUST be protected/rewarded. Of course scr3w the rest of the population of Nebraska, and, what the hell, the rest of the population of the country. Yeppers, hell of a representative!Ain't that sweet?!?!?
11:32 AM on 04/27/2010
"They don't want the democratic process to take place at all" A democratic process would entail the citizens of the U.S. to vote on the issues. We don't have the option to vote. Maybe you meant to say Bureaucratic process? This is not democratic at all.
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Daphydd
Lets play some music
12:05 PM on 04/27/2010
Semantics. We vote for Reps. They debate and amend bills and send them to the President. That's how our republic works. Except, the Republicans are doing everything they can to prevent the gov't from functioning, for the sole reason of regaining power. They don't give a damn about the American people.
01:30 PM on 04/27/2010
Correct.
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HUFFPOST SUPER USER
jabailo
(Participant) Texeme.Construct()
11:26 AM on 04/27/2010
So far the Demcrat version of reform is ill informed. They seem to want to ban short selling entirely. That just won't fly.

Look, all Obama has to do is make the SEC stop watching Long John Silver and get back to their cubicles and enforce the law.

That and enact some new legislation for transparency...you can't insulate people from gambling their money away...you can make sure that what they read in an official financial document is clear and complete. With XBRL -- XML markup language for business -- we can have real time reporting instead of annual or quarterly information. I should be able to see today's profits for any publically traded business...I should be able to track all their personnel, business decisions -- anything that an insider would know...I should know.

Then...place your bets.
11:50 AM on 04/27/2010
Well, you've certainly not read the bill. The closest actual provision to what you claim the bill is intended to do actually just removes FDIC insurance (and other preferential bank treatment) from those institutions dealing in derivatives. As such, the idea is to let the MARKET decide upon these derivative dealing institutions WITHOUT the artificial inflating of their worth by permitting them FDIC (and other) insurance