Category: The Dubya Era

Bailout, or we all sink.

“‘Today’s the decision day. I wish it weren’t the case,’ said Rep. Barney Frank (D-Mass.).” Despite the apparent attempt by divider-not-a-uniter John McCain to kill a compromise he hadn’t even read last week, the Dubya White House and Congress hold their respective noses and come to agreement on Paulson’s $700 billion bailout plan, with debate in the House starting today. “The proposed legislation would authorize Treasury Secretary Henry M. Paulson Jr. to initiate what is likely to become the biggest government bailout in U.S. history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates. The plan would give Paulson broad latitude to purchase any assets from any firms at any price and to assemble a team of individuals and institutions to manage them.“

As I said here, I’m not all that happy about the nation having to subsume the risk, and ride to the rescue of, the many banks and Wall Street types that profited massively from these obviously suspect mortgage deals. But, what else is there to do? As with so much else occurring over the past eight years, it befalls us now to clean up the mess left by the free market fundies of late. I just hope we learn something from the economic consequences of this latest binge of free-market fraudulence, before they grow too dire. To wit, whatever the corporate-funded right tells you about self-regulating markets, we need, and will continue to need, real refs on the field.

Update: Uh oh. The bailout compromise dies in the House, prompting the Dow Jones to swiftly tank 700 points. “The measure needs 218 votes for passage. Democrats voted 141 to 94 in favor of the plan, while Republicans voted 65 to 133 against. That left the measure with 206 votes for and 227 against.“

As the TIME article linked above noted before the vote, “the candidate with the most riding on Monday’s vote is McCain, who backed the concerns of conservatives in the House over the initial agreement…[I]f a majority of the House Republicans don’t vote for the measure, McCain could lose political face. ‘If McCain cannot persuade them, it is hard to portray him as a leader,’ said Clyde Wilcox, a political science professor at Georgetown University.” So, that’s the silver lining, I guess. But the bad news now, alas, is considerably worse.

We are all “Socialists” now.

“Let’s be clear about why we’re facing a crisis that could pull down the global financial system. The irresponsibility of individuals who bought houses they couldn’t quite afford pales in comparison with the irresponsibility of the financial wizards who built on those shaky mortgages a towering edifice of irrational faith. Someone in the government should have looked at all those trillions of dollars’ worth of mortgage-backed securities and collateralized debt obligations and credit default swaps and demanded that Wall Street prove that all, or even most, of this purported money was real. But we’re in the eighth year of the Bush administration; adult supervision left the building long ago.” — Eugene Robinson.

Boy, nothing like panic and near-catastrophe in the banking and financial sectors to turn all the stark raving free-market fundies redder than Eugene Debs on May Day, eh? In any event, once again we’re on the verge of learning the hard way that Wall Street does a really lousy job of regulating itself, and that, when push comes to shove, it’s the “don’t-tread-on-me” entrepreneurial capitalists among us who are the first to beg for Big Guvmint to come in and bail them out — at above-market prices. “The only emergency is on Wall Street, and that is entirely of Wall Street’s making. It was the banks that made the loans, the banks that bought the paper, the banks that dumbly believed the models that said that housing prices wouldn’t collapse…How touching to see executives from the likes of Lehman Brothers, not normally an institution associated with widows and orphans, squawk about cutthroat tactics.” And I don’t seem to remember the economic Big Boys, or their mostly-GOP minions in Congress, show such concern about the vagaries of risk when the plight of ordinary folks was being discussed, vis a vis the egregious bankruptcy bill of 2005.

Of course, we can’t just let many of our major financial institutions implode without consequence, and — even though delegating the Dubya administration any more “emergency powers” at this point seems like a colossally bad idea — it seems a given that something will have to be done to sort out all this out, and it will no doubt end up costing taxpayers and aggrieved homeowners a bundle. I just hope, when the dust settles, we remember this time how this all came about, and not just let the idiotic free-market fundies blather on about tax-and-spend liberals killing the entrepreneurial spirit every time some sort of regulatory apparatus is discussed in Washington. We know how that movie ends.

McCain: Grey Cell Green.

“I’m not running for president because I think I’m blessed with such personal greatness that history has anointed me to save our country in its hour of need. My country saved me. My country saved me, and I cannot forget it. And I will fight for her for as long as I draw breath, so help me God.” Wait…John McCain was a POW? Who knew? (And how big of him to run the first completely selfless and ego-free presidential campaign in American History. A true patriot, he.)

I suppose I should’ve gotten my post up about McCain’s speech some time yesterday…but, really, what’s the rush? However well-watched, John McCain’s nomination address to the nation on Thursday night felt like a virtual political non-event. [Transcript.] I mean, c’mon now: I sat through three days of mind-numbing inanity and blatant falsehoods, distasteful 9/11 videos and endless surge talk, for this? (By the way, memo to Lindsey Graham, Tom Ridge, and anyone who happens to buy into the oft-repeated line of argument that “McCain was right in Iraq because of the surge.” Our recent involvement there began several years earlier, with McCain cheering on Dubya’s idiotic invasion and boasting of an easy victory. Remember that?)

Now I don’t think the speech was as woefully terrible as some — it was probably better than his last greenscreen speech, for example. (I am struck by the fact that today’s decaying GOP is so sickly it can’t even manage to exploit veterans for political gain properly anymore. What happened to you guys?) But, to my mind, Sen. McCain’s remarks definitely didn’t get the job done, unless — like me — you think the job that needs doing right now is getting Barack Obama elected to the Oval Office.

The most affecting moments of McCain’s speech were, naturally, in his discussion of his POW experience, and if the Republicans hadn’t beaten this point into the ground over the past few days, his retelling of those dark days might’ve packed a real emotional wollop. (“After I turned down their offer, they worked me over harder than they ever had before. For a long time. And they broke me.“) But, after all the reveling of late in McCain’s horrible stay in the Hanoi Hilton, and all the attendant plaudits to military heroism and sacrifice, country first etc. etc. served up as sides by the GOP during thus, McCain’s humdrum delivery of an otherwise subpar nomination address reminded me of nothing so much as another praiseworthy war hero wounded in his nation’s service: Bob Dole.

Of course, it wouldn’t be a nomination address in today’s GOP without some highly dubious propositions therein:

  • “A word to Sen. Obama and his supporters. We’ll go at it over the next two months. That’s the nature of these contests, and there are big differences between us. But you have my respect and admiration.” Oh, really? After several days of throwing chum in the water to get the fundies fired up, particularly on Wednesday night, this hail-fellow-well-met bow to the opposition felt ludicrous. You can’t have it both ways, y’all.

  • “And let me offer an advance warning to the old, big spending, do nothing, me first, country second Washington crowd: Change is coming.” As you know, and as Sen. Obama noted last week, McCain voted with Dubya a whopping 95% of the time. That’s not change we can believe in. And just because the president’s name went unmentioned over the past few days doesn’t mean we all just up and forgot about his awfulness.

  • “I’ve fought corruption, and it didn’t matter if the culprits were Democrats or Republicans.” Uh, unless those Dems and Republicans were doing business with Charles Keating. Ok, that may be a bit under the belt, but the fact remains: His opposition to pork barrel spending aside, McCain was mostly AWOL in the recent fights against GOP corruption that marked DC during Boss DeLay’s rule. His campaign is veritably drowning in lobbyists. Like so much else that once made McCain a relatively appealing figure, even his well-known advocacy of campaign finance reform has been thrown under the bus of late. And derailing the Alaskan probe into Palin’s illegal firings for electoral purposes is emphatically not fighting corruption.

    And so on. I’d spend more time picking McCain’s address apart if I thought it had been in any way effective. But, the POW-section notwithstanding, it felt rote as written and rote as delivered, and — in opposition just as in support — it was a hard speech to get all that fired up about. With Sen. Obama up in the states he needs and Dems mobilizing new voters all across the board, McCain needed a real gamechanger Thursday night. (Imho, the automatic dispenser of lousy headlines that is Sarah Palin is just going to keep backfiring, and the party of Lincoln continues to toy with the disgusting “Uppity Sambo” card at their peril.) In short, he didn’t get it.

    There’ll be a bump — there always is. But, to my mind, John McCain’s climb just got a whole a lot steeper. Barring some monumental revelation, egregious debate flub, or international incident over the next two months, it’s hard to see McCain getting any closer to victory in 2008 than he is right now. And over the next eight weeks, I would nevertheless expect a lot of Republicans and GOP-leaning independents, perhaps momentarily flush with good feeling for McCain, to think it over, remember the past seven years, look over at Sarah Palin in the veep slot, and decide to put their country first…by voting for Sen. Barack Obama for president.

    • A Government for Hire in a Combat Site.

    Another choice link by way of Web Goddess. Until half an hour ago, I probably would’ve told you my favorite apocalyptic-pop Youtube video was this creepy-weird German mashup set to Johnny Cash’s “The Man Comes Around”. But now it’s probably this ska-happy rendition of Dubya crooning “ITEOTWAWKI (AIFF).” Both are worth watching, if you can get around their innate “not lovely lovely Ludwig Van” eeriness.

    Oscar Mike at Last?

    “‘We have a text,’ Iraqi Foreign Minister Hoshyar Zebari said after a day-long visit Thursday by U.S. Secretary of State Condoleezza Rice.” How badly do the Republicans want to keep the White House? Apparently enough that the Dubya administration, contrary to its earlier stance (and to McCain’s promises of “100 years” in Baghdad), seems to be on the verge of signing a withdrawal accord with Iraq that would have all U.S. troops out by the end of 2011. (Not that we have much choice in the matter, given that Baghdad has already made it clear it wants us gone.) Well, however politically influenced, this is clearly a step in the right direction…but it’s way too late in the game to save the GOP now. It’s not like we’re all going to forget who started — and enabled — this disastrous sideshow.

    Georgia On Our Minds.

    “‘I expressed my grave concern about the disproportionate response of Russia,’ Bush said. ‘We strongly condemn bombing outside of South Ossetia.‘” As Georgian forces pull back from South Ossetia in the face of a full-scale Russian assault, the US, UN, and European Commission increasingly condemn Russian attacks across all of Georgia.

    Meanwhile, Medvedev argues that Russian operations are winding down, but that troops will stay in South Ossetia for awhile. “Anatoly Nogovitsyn, a colonel-general on Russia’s General Staff, said at a Moscow news briefing that Russia was not intending ‘to invade Georgia’ and that a ‘key principle’ of the current operation was that troops remain inside South Ossetia — ostensibly to protect a population it said was under assault by the Georgian military, as well as its own peacekeepers stationed there.” Update: Russia pushes into Georgia.

    Habbush%*t.

    “That it was a forgery can no longer be doubted; that it originated with the White House may be harder to prove. Two former CIA officials — Rob Richer and John Maguire — have gone on record as saying they were personally charged with carrying out the forgery, but their marching orders, if they existed, came directly from Tenet (who has fiercely denied the story). The closest thing Suskind has to a smoking gun is Richer’s memory, five years later, of ‘looking down at the creamy White House stationery on which the assignment was written.'”

    In his review of Ron Suskind’s The Way of the World, Salon‘s Louis Bayard tells the tale of the Habbush letter, a forgery fabricated by the CIA to tie Iraq to Al Qaeda (and, thus manufacture a casus belli for the War in Iraq.) In other words, George Tenet — perhaps on higher authority — signed off on an illegal black op aimed against the American people. If this goes up the food chain — and, at this point, who’d be surprised if it didn’t — this is definitely an impeachable offense. Where’s the outrage?

    Update: Politico has more.

    Dubya’s Monica, and her Spoils.

    “‘Thirty-four candidates told investigators that Goodling or one of her deputies raised the topic of abortion in job interviews and 21 said they discussed same-sex marriage, the report said. Another job applicant said he admired Secretary of State Condoleezza Rice, only to watch Goodling ‘frown’ and respond, ‘But she’s pro-choice.'”

    I mean, given all the other crimes and corruption within this sordid administration, why not throw in some good old-fashioned spoilsmanship? Another protracted investigation comes to a head today, as a 140-page internal report breaks down the illegal staffing system in Dubya’s Justice Department, as run by GOP apparachik Monica Goodling. [Mukasey reaction.] The report “concluded yesterday that Goodling and others had broken civil service laws, run afoul of department policy and engaged in ‘misconduct.’‘” (As seen at The Oak and The Spencerian.)

    Failing Upwards: The Movie.

    Hide the war plans and lock up the booze: The teaser for Oliver Stone’s W leaks on Youtube, starring Josh Brolin (W), Elizabeth Banks (Laura), James Cromwell (41), Ellen Burstyn (Bar), Ioan Gruffudd (Blair), Jeffrey Wright (Powell), Thandie Newton (Rice), Toby Jones (Rove), Scott Glenn (Rummy), and Richard Dreyfuss (Cheney). it should be up officially tomorrow.