Politics or Country. Politics Wins Rnd. 2

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Yesterday, the word was an agreement framework was at hand. What transpired after that is anyone's guess, and I will offer some in a moment.

But, the facts are these: A group of House Republicans have opposed this Republican proposal from the outset when Treasury Secretary Hank Paulson announced it days ago. One hour after McCain's arrival in D.C. yesterday, bi-partisan statements were made to the media that a basic agreement was at hand. Today,that sentiment was reiterated in a bipartisan statement this morning. Then, Sen. McCain met with balking Republicans in the House and became their spokesperson in the White House meeting which ended just 30 minutes ago. Now there is no agreement, Sen. Shelby and another spokesperson at the White House announced.

Republicans are opposing Republicans on this 'rescue' plan. Democrats have cooperated with the White House and Republicans on this Republican sponsored plan coming out of the Bush White House. Speaker Pelosi has said however, that for this bill to pass the House, a majority of House Republicans must sign on to support this bill. Otherwise, Democrats refuse to left held holding the responsibility for the plan Republicans did not support. The markets rose today on the news that an agreement was forthcoming. The markets closed on the positive news. Then the announcement came that there is no agreement. Those are all the facts we have at the moment.

The questions: Is McCain killing this rescue plan as the spokesperson for the House Republicans who do not want to see taxpayer dollars reaping the rewards of ownership of the eventual sale of these securities. These House Republicans are said to be offering the counter proposal that the wealthy private individuals and corporations buy these bad debts from the big financial firms instead, and in return for their purchase, receive undisclosed compensation for their loans and the profits from their sale later when the housing market rebounds.

Sen. McCain was opposed to this bailout, before he was for an urgent passage of a solution, and now appears to be siding with a private bail out, perhaps, in lieu of his carrying the House dissenting Republican's proposal and concerns into the White House meeting with Pres. Bush.

There is another undercurrent circulating in D.C. Apparently, 44 economists have signed a statement indicating that failure to act on the bail out may not cause the dire consequences to our financial system and economy which Pres. Bush, Treasurer Paulson, and Fed Chief Bernanke have outlined as coming if the bailout does not take place.

Polls are also showing the public is very divided, with 20% indicating they don't know if the bailout is necessary, and a majority of the rest opposing a tax payer bail out. The polls also show the majority believe there is a crisis that must be addressed.

The big picture is this. Democrats overwhelmingly support a tax payer bail out to rescue the economy. The White House agrees. The majority of Senate Republicans agree. Half or more of House Republicans agree, and half or less disagree. The public is divided with a large percentage having no idea what should be done. Democrats will not pursue this bail out in the House unless a clear majority of Republicans will vote for it on the record.

It is of course possible, that global and or U.S. economic meltdown will not ensue if a bail out plan fails to pass. No one can know the future for sure. The majority opinion in government and in the financial industry however, is that a serious contraction in economic activity and growth in unemployment and bankruptcies both personal and business will follow.

In the midst of all this effort, there is an election race for President, House of Representatives, and 1/3 of the Senate. And if there is anything absolutely clear about the this national financial threat to our economy, it is that our politicians in the U.S. Congress and White House failed us all, in lack of oversight, and lack of enforcement if existing rules and laws. To vote the majority of these same politicians back for another term, is to vote against our own interests. Rewarding this negligence will only bring another Iraq War by another name, another failed Katrina response to another natural disaster, and another economic threat to us all, through negligence and preoccupation with election and power.

McCain says he is working for a bi-partisan solution. But, what is taking place has all the appearances of John McCain derailing the salvation of the economy he himself says needs saving. In this tug o war between country and politics, politics has won round 2.

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This page contains a single entry by David R. Remer published on September 25, 2008 5:55 PM.

What's Really Keeping Politicians Up These Nights? was the previous entry in this blog.

Bailout: Rogue Republicans is the next entry in this blog.

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