Gimme your Money...and your house
Ever pick up a seemingly perfect apple only to start peeling it to find some small bruises underneath the skin. Of course you can continue to peel the apple, grab a small paring knife and cut away the rotten parts. What you will be left with is a delicious apple.
But imagine you are told to stop peeling that apple immediately, glue the old skin over it and wait until the rotten part reverts back to good apple. Ridiculous huh.
Well that is exactly what we are doing in the economy. In late 2006, the first layer of the rotten housing market was revealed, sub-prime. And rather then continue to peel the apple of housing, revealing all the rotten and bruised portions we have been told these rotten parts are only temporary, just stop peeling and surround the rotten parts with additional apples waiting for the good ones to cover for the bad until they all miraculously turn good.
There are two types of people who don’t like throwing $700,000,000,000 of our apples into a basket with all the bad apples.
The first, like myself, have spent years studying finance and economics, look carefully at the legislation and can form smart arguments about why this plan will not work.
The second, and far more important, is the average “Main Street” American who isn’t confused by all the details. They simply recognize the extortion for what it is. For them it’s simple. They DO understand that Wall Street impacts Main Street. In fact they feel better if Wall Street might actually share their economic misery.
And are you for it? They you must be scared and trust the same con-artists who got us into this mess or you ARE the con-artist.
Additionally, all you Supply Siders were sorta right. Except rather then the billions made by the rich trickling down, the economic suffering of the middle class over the last ten years is trickling up.
Now that is something that everyone should understand.
How does an incumbent protect himself if the market “craters”?
First, we have to assume that the PPT*(see below) is either a myth or toothless to prevent this “sucker” from “going “down”. Second, the electorate is less knowledgeable than anyone, ANYONE, on this blog and also politically naive.
When this cratering occurs, the electorate will be looking for a scapegoat and this bailout posturing allows all incumbents (D & R) to blame the other guy.
Just look at these two possible outcomes:
Market/Economy doesn’t craters before election:
a) Bailout passed and all who signed get to claim credit
b) Bailout doesn’t pass and all incumbents (except House Rs) look like chicken little
Market/Economy craters before election
a) Bailout passes and all who signed get credit and there is a subsequent incumbent massacre in House (except House Rs if they stick to their guns)
b) Bailout doesn’t pass and all the obstructionist tactics allow both parties to continue their good cop/bad cop routine of blaming the other guy for obstructionism
So unless you think that this bailout will save the day, you can’t have your name attached to any bailout. In addition, good politics states that both parties should appear to be working for the bailout to insure they can blame the other party for it’s failure.
If you are a Republican, Barney is the Bad Cop and Cantor is the Good Cop.
If you are a Democrat, Cantor is the Bad Cop and Barney is the Good Cop.
* PPT – Plunge Protection Team – conspiracy theorists felt that there was a secret team of banks and government officials that artificially manipulated the markets during down moves to prevent “plunges”. It operated as the Presidents Working Group on the Economy band now is pretty much acknowledged under the moniker of the Exchange Stabilization Fund (check Wikipedia)
1. Returns to Vietnam and jails himself.
2. Offers the post of “vice vice president” to Warren Buffett.
3. Challenges Obama to suspend campaign so they both can go and personally drill for oil offshore.
4. Learns to use computer.
5. Does bombing run over Taliban-controlled tribal areas of Pakistan.
6. Offers to forgo salary, sell one house.
7. Sex-change operation.
8. Suspends campaign until Nov. 4, offers to start being president right now.
9. Sells Alaska to Russia for $700 billion.
10. Pledges to serve only one term. OK, half a term.
Maybe I’m giving the Dems too much credit for political savvy but bear with me.
House Republicans won’t go on record as supporting this to avoid backlash back home from both rednecks and local community banks (BB&T?). Dems knew this soft spot so they keep saying it’s gonna pass so when it doesn’t they can blame the Repub’s.
Someone on Calculated Risk hypothesized that the $700 bil price tag plus the infamous Section 8 were there to force the Dems to be the bad guys killing the “bailout”. Remember, rank in file Repubs only understand simple yes or nos and can’t understand nuances like section 8.
McCain has nothing to do with the Dem’s strategy and he’s just doing anything he can to avoid being on stage with Obama. Remember how bad Nixon looked opposite Kennedy and at least Nixon knew policy. Keep in mind that all the Dems stipulations have nothing to do with the House Repiblicans’ objection to this bill. They oppose the entire premise of a Wall St. bailout. To use a tired phrase, they don’t care what kind of lipstick is put on this pig.
I wouldn’t be surprised if Bush expected the Dems to object only to be caught off-guard when his own party objected, hence his belated prime time speech.
In physics it takes more energy to get on object moving then to keep it moving; static vs. kinetic friction.
Once the populace begins moving against our current kleptocratic regime
Until that happens, the kleptocrats will continue their con-game on the silent majority.
For those who blame Republicans or Democrats, they need to take their blinders off. They play the good-cop/bad cop ploy to perfection.
I like the Mets and don’t like the Yankees. If you like the Yankees would you still put good money on them winning the World Series this year??