Mr. McCain Bungles a Bailout

By: Evan M
Published On: 9/26/2008 10:36:14 AM

So if I understand this correctly, yesterday afternoon, before Sen. McCain came to town, the main principles of an agreement on how to fix the mess in our financial industry were in place.
We've reached a fundamental agreement on a set of principles. One, for taxpayers, which is tremendously important. We're giving the Secretary the authority he will need in order to act and the funding that he will need. We also have dealt, I think, effectively with the issue of effective oversight, with home ownership, of preservation, as well as executive compensation. - Sen. Christopher Dodd, September 24, 2008
Then, Senator McCain arrives in town and suddenly the intransigent House Republicans have an "alternative proposal" they want to discuss. This alternative proposal amounts to nothing more than the same ideological policies that got us into this mess in the first place.
The stripped-down plan advocates a two-year suspension of the capital gains tax and calls for pull privatization of Fannie Mae and Freddie Mac, which were taken over by the federal government earlier this month. - TPM Muckracker
So, because of a relaxation of regulation, our financial system gets into a huge mess requiring the government to go deeper into debt to bail out the system. Yet the Republican's answer, with McCain's tacit approval, is to reward the architects of financial anarchy by cutting capital gain taxes and allowing them the opportunity to take over the two institutions undergirding the mortgage market. That's like saying the way to solve a murder is to give the killer a bigger gun with more bullets.
Republicans like Sen. McCain like saying that it is not the Government's job to pick winners. But that doesn't change the fact that the government has been picking winners for the past six months. The biggest winner, of course, is JPMorganChase, who has been chosen by the government to receive valuable financial assets and lines of business at cut rate prices. This is not to criticize JPMorganChase or to even say they're not the right organization to get these assets. On the contrary, it seems fitting to allow strong banks to take over the assets of weak banks. However, it is disingenuous at best to assert the superiority of an unfettered free market philosophy - the basis of the "alternative plan" - while selectively selling assets of one bank to another and nationalizing one of the largest insurers in the world. Even today, in the middle of the biggest financial crisis of our lifetimes, the NRCC's website asserts, "Thanks to Republican economic policies, the U.S. economy is robust and job creation is strong." There is a cynical hypocrisy in the Republican's moves that is unworthy of a great nation in a time of turmoil.

Sen. McCain has shown a stunning lack of leadership on the critical issue of the day, the fix of the financial industry. Instead of helping resolve the crisis, his arrival and interference with very delicate negotiations merely stalled and extended it. If he were a true leader, he would get the House Republicans in a room and force them to sign on to a bipartisan deal. He would demonstrate that "mavericky" ability to spurn his own party for the good of the nation. Instead, he quibbles and prevaricates, he fiddles while Wall Street burns. And he fiddles from Washington DC, in an attempt to be near the action, in the hopes that he can claim ownership of any progress without being responsible for ensuring it.

And he is attempting to use this bungling as a reason to avoid a debate with Sen. Obama.

At this critical time in our nation's history, it is irresponsible to avoid a debate about the issues of the day. The American people need to hear what Sen. McCain will say in an unscripted forum with his opponent across the stage. To skip a debate is to skip a job interview.

We should not give the most important job in the country to a man willing to skip the interview. We should not give the most important job in the country to a man who exacerbates, rather than solves problems.

We must work, work tirelessly and unflinchingly, to elect Barack Obama President of the United States, because Sen. McCain has conclusively demonstrated himself unfit to lead.

(With a tip-o-the-hat to DailyKos and MyDD. Crossposted from Leesburg Tomorrow.)

Comments



You got it mostly right (Cliff Garstang - 9/26/2008 11:25:46 AM)
But you missed the part where the Republicans blame Clinton, and by extension Obama, for the mess the Republicans themselves created.


No doubt (Rebecca - 9/26/2008 11:51:13 AM)
No doubt Clinton is partially responsible, but Obama separated himself from the Clinton legacy in the primary when he defeated Hillary Clinton.


Unkind photo with McCain holding his nose because of the stink he caused. (Tom Counts - 9/26/2008 2:06:16 PM)
Did you really have to embarrass the "old fart" with a picture of him tightly holding his nose to avoid the stink he created ? Not sure if what he is trying to avoid smelling was figurative (the bailout plan stink he created) or literal (hence the "old fart" term), or both.

To compound the embarrassment factor, the photo has the lady to his right smiling (laughing ?).

Anyway, thanks for the good laugh. Good photo choice.

                   T.C.