700 Billion New Direction for America
Sound bites, shifting positions, the search for political cover and more delays from Washington which may prove to be the best medicine for for the so-called financial crisis. One quote from John McCain offered by the press relates to the need for the government to do something.
The same goes for a quote from Barack Obama on Face the Nation last Sunday. “My inclination is to support it,” said Obama…”While I look forward to reviewing the language of the legislation, it appears that the tentative deal embraces these principles.” What principles? Oh is doesn’t matter. There are more sound bites and reports to muddy the water. But Obama’s ‘inclination’ is what may best describe Obama, unsure on most things. The Reuters’ source for these quotes had this title, ‘McCain, Obama tentatively support bailout plan.’ .
McCain said he had urged Bush in a morning call to use the Treasury’s Exchange Stabilization Fund to expand the financial services it guarantees beyond money market accounts. He also said he urged Bush to require the Treasury use its roughly trillion-dollar authority to shore up mortgage values. This is a little more to the point and shows McCain wants taxpayer bank deposits, etc., protected and to keep property values from free falling. But the USA Today’s report excerpt is not a quote. It is the paper interpreting what McCain said. The only quotes in the piece say nothing like what is stated above. The McCain quotes offered mostly speak in generalities while the only specifics express a desire to raise FDIC insurance which both McCain and Obama support. Perhaps that is what the title ‘McCain urges Bush action on crisis‘ really means rather than what it suggests and what USA Today interprets from thin air.
Not to provide any cover for Barack Obama but no where in the brief AP report referenced above is there a quote from Obama saying anything like what is in the excerpt shown here. The MSM is helping the Democratic party in their search for political cover for complicity in the subprime mortgage mess which people are now calling the financial crisis, meltdown or biggest disaster since the Great Depression.
And headlines or titles from both Google and CNN in the next piece also cloud the issues. ‘McCain, Obama: Raise deposit insurance to $250000′ while true, Google, is not the title of the piece at CNN to which your link points.
McCain, Obama: Raise deposit insurance to $250000
CNN - 4 hours ago
(CNN) — The $700 billion economic rescue plan failed in the House of Representatives because people don’t think it will do anything for them, Republican presidential nominee Sen. John McCain told CNN’s “American Morning…..
And CNN’s title to their report is misleading as well. McCain: I ‘may fail,’ but Congress has to ‘get the job done’ Later in the piece a more complete quote from McCain is presented. “But if I think I can do some good, I’ll do it. I may fail a first or second or third time, but we have to get this job done for America.”
No where have these reports shown what they are trying to claim. That Senator John McCain supports the 700 billion boondoggle.is not accurate. He supports action, he supports, as does Obama, of raising FDIC insurance coverage and what needs to be done to repair the damage done by the subprime mortgage failures.
Here’s a view for you. Who is responsible for allowing the bank deregulation? The 1999 Gramm-Leach-Bliley Act broke down barriers between banks, securities firms, mortgage lenders and insurance companies. That deregulation repealed Great Depression-era bank regulations with the approval of former president Bill Clinton.
The House version of the bill was passed by 205 Republicans and 138 Democrats. The Senate bill was passed on a party line vote with Republicans voting yes and Democrats voting no. President Bill Clinton signed the bill into law.
As posted here earlier Senator Chuck Hagel and Senator Elizabeth Dole, both on the Senate Banking Committee as well as co-sponsor Senator John McCain offered a bill to correct problems with Fannie Mae and Freddie Mac, etc., and the bill died in their own committee. That was 2005. Senator Dodd is on the committee and has been Chairman since the Democratic majority was won in the 2006 midterms. He gets lots of money from banking interests as well as other members of Congress. How is it that not until the subprime mortgage mess exploded in the markets his chairmanship and the complicity of many other Democrats with Fannie and Freddie has not been front and center in the discussion?
The Community Reinvestment Act while not in itself a root cause to the subprime mess had its effect on the problem. Having banks lend money in areas from which
they receive deposits, including low income areas, is a good thing. The Dems signed on as it is right up their alley in terms of their claim to champion the little guy and help the less fortunate. So Fannie and Freddie begin increasing their involvement with low income lending. Over the years money flowed to Dems from Fannie and Freddie, more loans were packaged and as the real estate market bubbled and prices rose dramatically. When the classic good credit market was saturated, deregulated banks, Fannie and Freddie and others expanded whom they would lend to and reduced minimums to cover just about everyone. And the money kept pouring into the Dems wallets. While everyone looked the other way and got fat and happy the bubble burst.
So now who isn’t holding bad paper? Who is too big to fail? How is all this going to be paid for? Can Dems get political cover by convincing the GOP to vote with them?
Is there enough blame to go around? Certainly, there always is. But the Dems are backing the 700 billion boondoggle or as Michelle Malkin calls it, crap sandwich, and most Republicans are not in favor of it. 2/3 of the GOP voted against the bill this week. A surprising number of Dems voted against it. But a boat load of Dems and one third of the GOP in the House voted for it. Barney wants it. Chris wants it. Harry wants it. Nancy wants it. And go figure, GeeDubya wants it.
The Democratic party and their New Direction for America won the majority in Congress in November 2006. Their candidate for President, Barack Obama was firmly connected to ACORN. Beyond voter fraud, ‘community organizing’ and ACORN have a vested interest in the subprime mess. Dems in general have a vested interest in outfits like Fannie and Freddie. Chris Dodd and the Banking Committee had their chance since 2006 and before to head off this problem. And now they want you to do it for them.
So to whom does the majority of the subprime mess blame belong. You guessed it, the Democratic majority in Congress whose New Direction for America had plenty of opportunity to avoid the problem and did nothing.
Stanford Matthews
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