Strange bedfellows pulled the plug on bailout bill
Comments (17)
Tuesday, September 30, 2008 | 04:18 PM ET
By Henry Champ
I would have thought spotting the Loch Ness monster would have been more likely than watching some of the coalitions of congressmen and women that lined up to defeat President George W. Bush's $700-billion bailout package Monday.
Democrat Peter DeFazio, left and Republican Virgil Goode each opposed the bailout bill. (Associated Press)
There was Democrat Peter DeFazio of Oregon, voting no.
So did Virgil Goode of Virginia.
DeFazio is a progressive, voting for government intervention in health care, labour, education and the environment. He opposes the Iraq war, free trade agreements and tax cuts.
Goode is very conservative Republican. He was first elected as a Democrat but was thrown out of the party when he supported the impeachment of Bill Clinton. He was overwhelmingly re-elected as a Republican, running on a record of opposition to abortion, gun control, same-sex marriage and gay rights.
'I don't buy it'
In the run-up to any House vote, members are given a couple of minutes to outline their support for, or their opposition to, the legislation being considered.
Here's what these two men said.
First DeFazio:
"We started here a week ago with the Paulson plan. It was simple. Give them the keys to the treasury and suspend all the laws. What we're doing or proposing here today is infinitely better. The Democrats have laboured hard to put in taxpayer protections and provide consequences for Wall Street executives.
"But what we consider today is still built on the Paulson-Bush premise: That is, President Bush and his Treasury Secretary Mr. Paulson say dumping $700 billion of taxpayer finance debt – and buying up Wall Street's bad bets – will solve the liquidity problem. It will trickle down through the economy to benefit small business. It will solve the underlying problem with the housing market and it will stem job loss.
"I don't buy it. There are less expensive, less risky, targeted regulatory forms and programs that could work better. But bottom line, President George Bush and his Treasury Secretary Henry Paulson insisted on a top-down Wall Street bailout solution.
"It's sort of like the financial surge strategy. And just like the surge in Iraq, as we go into it at the outset, we know it's not sustainable and we know it won't solve the underlying problems.
"Even worse, President George Bush and Secretary Paulson and the Republicans insisted upon watering down the most critical portions of the bill. There is no mandatory way to pay for his bailout. No fee, no tax, just a proposal from a future president to a Congress that a Congress might think about to help take taxpayers off the hook.
"That's not protection. The golden parachutes, yeah they were exchanged for camouflage parachutes. The executives on Wall Street are still going to get millions – look at the loopholes there. … We can do better. We should start again on a new package, come back next week."
Now Goode, in a much shorter statement:
“I will be voting no on this measure because this is a bad-day approach that will not save America. We need to infuse capital into our banking system and not more federal debt. Federal debt is not the way to go. We also must look at the fundamental cost of encouraging those who have little chance to repay, to get loans. Over-encouragement was a fundamental cause and it is not addressed in this bill. I hope we will vote no for a better day and a better bill.”
'Stunning' lack of political courage
On this Tuesday morning after, the blame game is everywhere.
The Democratic leadership says the Republicans failed to deliver votes from the GOP caucus they had promised. This charge comes despite the fact 95 Democrats like DeFazio voted no as well.
Republicans say Speaker Nancy Pelosi's floor speech just before the vote was wildly partisan and a bitter attack on the Bush administration. The Republican leadership said many of their members changed their vote at the last minute because of it.
Goode was going to vote no, regardless of who spoke.
The Washington Post has an editorial this morning blaming some no-voting House members whose "lack of political courage is stunning. Perhaps their votes will help them get what they want in November, a return trip to Washington."
Neither DeFazio nor Goode lack courage.
Nor is there any chance they will lose in November. Both could leave on a long holiday and still get elected.
Listening to voter anger
Blaming members of either party is not going to get this resolved. The situation is more simple and direct.
President Bush sent over bad legislation that is not passing the smell test with American voters. His efforts on television and radio to win support have been lacklustre. He is mired in lame-duckism. Nobody is listening.
His surrogates, Paulson and Federal Reserve Chairman Ben Bernanke, have not convinced the public they have the right answers or have earned the trust to administer the bailout.
The Democratic and Republican leadership allowed themselves to be steam-rolled into quick actions. The loopholes in some areas of the bill are colossal. The anti-"golden parachute" clauses do nothing to prevent clever companies and their executives from circumventing them. The mechanisms to ensure the public gets profits in the future are constructed with Lego blocks.
All of these people made one big mistake.
They didn't listen to the American people.
DeFazio and Goode did.
This is going to get solved at some point. It will go faster if the lawmakers take a moment and read what DeFazio and Goode said in their speeches to the House.
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Henry Champ is CBC Newsworld's correspondent in Washington, D.C., delivering Canadian viewers the latest developments in the U.S. political arena. Recently, he has been a leading Canadian voice on coverage of the war on terrorism, the war in Iraq and the growing concerns over the Canada-U.S. relationship.
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Comments (17)
Sam
Ontario
There is no problem with ACORN although you alluded that there was this morning. They reported ALL irregular registrations. The only problem is the Republicans MAKING it a problem.
You can register as many times as you like, it's not illegal, but you get to vote only ONCE.
There will be no Mickey Mouse voting, sorry to tell the Republicans that but it ain't gonna happen!!!!
Per RFK jr there have been ONLY 24 voter fraud cases since 2002, so that's out of what, 800 million votes?
( My earlier post didn't post so let's see if this one does)
Posted November 4, 2008 04:36 PM
Sue
ns
Joseph said
"This division is the same one that has been causing problems for years.
The Financial Crisis threatens to marginalize the American Dollar.
The Euro will supplant it as the De facto world currency.
The high level strategists in Washington know how bad things are."
The fact is that the 'bailout' is courtesy of all the countries who are footing America's bills. European/UK 'Skynews' did a survey of who they wanted as President and 23% were for McCain, 75% for Obama. I don't think it matters what the bailout decision is. I think all that matters is that, if Obama is voted in, on Nov 5th the world will breath a sigh of relief and world markets will feel optimistic again, pulling American markets up with them. If McCain gets in the pessimism will be palpable and countries will want to stop lending/buying US money, especially if it is to keep funding McCain wars in their own countries. Let's see - we want to keep borrowing billions from you so we can threaten you and bomb you! It's almost a sad joke.
Suggestions have already been made as to which country could hold the new currency (replacing the American $) eg the Euro. If this happens, America is truly broke and there will be no more money to borrow for future bailouts or wars.
Posted October 3, 2008 10:15 AM
anita_pi
Djibouti
I think a lot of people are missing things in their arguments. I don't personally know enough to make an informed decision but after reading this article and some of your posts, I have to say, you can't just go blaming the government for everything. Keep in mind it's the American people who voted Bush in.
And somehow I doubt the government alone was responsible for the credit-crunch: that would also be the American people as well.
Also, I think there would be huge repercussions to the bailout. It basically allows for a free fall of other companies doesn't it?
And if De Fazio and Goode don't like that proposal, let's see them come up with something better.
Posted October 2, 2008 02:22 PM
George Dyson
We need to think that this mess was created by three parties - Wall Street Banks who saw a chance for profit in packaging up debt and selling it to investors without full disclosure and the local banks who were keen to sell mortgages at any price and those on "Mainstreet" who were too profligate to sign up for loans they could not afford. Seems that just about covers an awful lot of the taxpayers that are now holding the bag. It just seems ingenuous to say that the Taxpayer should not carry the can here - it was a country wide, population wide systemic failure due to taking on far too much personal credit.
Posted October 2, 2008 02:12 PM
rtc
Montreal
Need I remind people that the poor average Joe elected this congress and this president? It's amazing how, with such ease, the electorate absolves itself of responsibility.
When voters elect a president because he's someone they would be comfortable inviting to a barbecue; when they approve of a VP candidate because she's "just like me!"; when they believe the crap they hear on Fox and talk radio indiscriminately; when more than half of them believe in ghosts, astrology, and most of them can't spell DNA then is it a surprise that they get this kind of government?
Posted October 1, 2008 01:10 PM
Alexander Horn
Great perspective Mr. Champ. It seems that the story is always about Democrat vs. Republican; whereas you make abundantly clear that this is about a pissed-off America finally standing up to a child-president who has obeyed their trust with his narrow decisions for far too long.
Posted October 1, 2008 12:35 PM
ned
montreal
Jerry - the usa is both a republic and a democracy, the two are not mutually exclusive.
Posted October 1, 2008 11:19 AM
Andy
How Nancy Pelosi can blame the Republicans for the defeat of the bill when 40% of her own members voted against (including four committee chairmen she appointed) it is pure, shameless partisanship. So is the GOP leadership blaming Pelosi's pre-vote speech.
Despite the right decision having been made by the House, both parties' leadership looking weak and childish.
Posted October 1, 2008 10:16 AM
Taz Devil
If this revamped bailout goes through - and it probably will - the US taxpayers will be footing the bill for the next four or five generations. Nice going, Wall Street, the Fed, Congress and the White House. Let the average Joe and Jane foot your screw-ups for eternity. It's the way it has always been and it's the way it will always be.
Let's all keep it in perspective folks, stranger things have happened. Given that this New World Order really means freedom for the chosen few and social, political and economic slavery for the masses, the charade has to end and the system has to collapse at some point. If not now, then very, very soon.
George W. Bush may go down as the worst President in American history for his eight-year circus but he's not the one truly running the show. He's simply the convenient moron minion doing the bidding of his corporate, military and political masters. He's the puppet, not the puppet-master. Much larger forces are at work. Always keep your eyes on the money trail and the social policy-makers.
This current massive debacle reminds just me of George Orwell's 1984. Simply put, it is no longer a work of fiction but an accurate representation of today's world order. Lies are truth, freedom is slavery, communism is capitalism, Republican is Democrat and Democrat is Republican, reason is unreason, fiction is non-fiction, ignorance is intellect and fear breeds the need for a false sense of security.
The giant hamster wheel keeps on turning. It's just too bad the global masses are the hapless, helpless and hopeless hamsters forever chasing the intentionally elusive pellet called truth.
As the apt saying goes: The rich get ricker and the poor get poorer.
Posted October 1, 2008 09:54 AM
Deborah Robinson
NL
It occurred to during the discussions about whether or not to approve the bailout that both hardline Republicans and Democrats may well vote no, but for absolutely opposite reasons.
The Democrats because it would result in a staggeringly high tax burden for the average-Joe. And the hardline Republicans because they believe that the market should be left completely alone to do what market will do.
How often in history has it come to pass that what is right for the John Doe prevails because of a belief in total unfettered capitalism on Wall Street???
This strikes me as the most ironic thing that I've ever witnessed.
(And the icing on the cake is the egg on McCain's face.)
Posted October 1, 2008 08:48 AM
Karen
Ontario
Yes, Wall Street has crippled itself, but it is the heart that pumps life into the financial world. This isn't just about bailing out the idiots that put us in this mess, its making sure that oridnary people still have jobs, and access to cash for things like fuel and bread and milk. If there is no bailout, it all dries up. How will people feed themselves? How will people live? Where will people live when they've lost their homes? And they already have.... by the thousands.
The key is to perform the bailout with the utmost care, which these two responsible politicians are ensuring. Bravo to them both, for they are standing up for Americans in the best way they know how. The whole bunch of them need to go back to the drawing board and figure out a way to save Wall Street AND Main Street. Yes, rescue the morons, but don't forget to protect the people that trusted them in first place.
Posted October 1, 2008 08:01 AM
Joseph
This division is the same one that has been causing problems for years.
The Financial Crisis threatens to marginalize the American Dollar.
The Euro will supplant it as the De facto world currency.
The high level strategists in Washington know how bad things are.
The domestically focused internationally illiterate American has no idea.
There have been a number of seemingly horrible policy decisions that are based on the same hidden mandate.
Everything from stonewalling alternative energy (Oil as a commodity purchase fuels demand for US $,) war in Iraq, and attempts to exaggerate the American economy that caused this this financial crisis.
Prepare for China to make good on their threats that are making Washington duck and cover.
Sales of US Debt worldwide are going to spike.
Posted October 1, 2008 05:34 AM
Matt
Well, I really hope that the U.S. doesn't do some last minute bailout...
Financial crises like this are due to deep running greed and irresponsibility. If you give a bailout to the exact people that created the problem, they will use it to further their own goals and will not do what is in the best interest of their economy.
Posted September 30, 2008 09:29 PM
Douglas Peron
Main Street people are not stupid. You don't throw good money after bad.
Posted September 30, 2008 08:36 PM
Jerry
seattle
Actually BNL, it's a republic but you're close.
Posted September 30, 2008 06:54 PM
Ray
Squamish
You know, it is nice to see still that when the **** hits the fan, that some politicians are still able to see past their partisan blinders and do what they truly believe is right for the people, regardless of consequences.
Posted September 30, 2008 06:34 PM
BNL
Oklahoma
Go DeFazio. Go Goode.
This is still a democracy, isn't it?????
Posted September 30, 2008 05:54 PM