The last few days should have been a brutal lesson in realpolitik for Obama. He went all out to try and pass a Republican bill on the assurance from Republican leaders that they would put half their caucus behind it. While I think the bill shouldn’t have been passed, I believe that Obama thought doing so was in the country’s best interest, which is why he was willing to deal.
And how did the Republicans repay him? With betrayal and racism. First they spent the last week trying to blame the Community Reinvestment Act for causing the crisis. The not so sub-subtext? That it was forcing banks to lend to Blacks and Latinos that caused the mess. That’s a simple lie, CRA sponsored banks and lending institutions have a lower default rate than non CRA lenders, because there are more stringent conditions, but lying has never stopped Republicans from dealing in racist appeals to the worst people in America.
Then, push comes to shove time, Boehner fails to deliver. A massively unpopular bill has been defeated, and the storyline is that it’s because Republicans didn’t vote for it. Obama and the Democrats have been left swinging in the wind, trying to pass a bill the public hates with the Republicans scuttling it.
Unfortunately Obama doesn’t seem to have learned a lesson from this. He is still pushing the bill hard, a move which is likely to:
- Give him a smaller majority in the House or in the worst case scenario give the House to the Republicans
- Turn him into a one term president when the bill doesn’t actually make the economy notably better for ordinary Americans.
I don’t really know what to say about Obama anymore. It boggles the mind that the Paulson bill, a Republican bill, has somehow turned around and become the Obama bill, pushed by Democrats. It is fantastically unpopular and for good reason, since it is a bailout for the richest people in the world, not just America, and does almost nothing for the ordinary people who are expected to pay for it.
Obama can’t lose this election to John McCain. McCain has turned himself into a punch line. But a lot of the house members whose arms Obama is twisting are likely to pay the price for him. Likewise in 2010 Obama is setting himself up for huge reverses in Congress, then in 2012 he will become a one term president. The smart move at this point would be to put up a good bill that helps Main Street, let the Republicans defeat it if they chose and then fight the election on it. Why not? If Obama can twist arms for the Paulson bill, why not for a good bill?
Interesting question, isn’t it?
Related posts:
- Conservative Blogger Rick Moran Calls on the Right to Condemn “Crazies”, Sees Racism in Attacks on Obama
- Republicans Still Dubious About Voting For Senate Health Reform Bill
- Red State Targets Blue Dogs Who Vote for IMF Bailout
- Bank Bailout: When a Bonus Exceeds Earnings, How is It Not Fraud?
- Republicans May Block War Supplemental over Guantanamo
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Evening Ian and Pups!
Too Bloody Right, Ian.
I’m starting to think that Barack has been doing a wee bit too much of his own KoolAid.
Ian,
Did you read Dennis Kucinich’s letter to Pelosi? As well as the attached Alexander letter? Obama would do himself a favor to read it tonight and take the advice from both.
Yeah starting to wonder about him too. You can try to be post partisan but you had better think like a partisan.
Digg It Pups when you get here!
dugg
I’m still reeling from “Veto is a four-letter word” — are we reduced to this bickering? And my former city of Wilmington, DE was ruined the first years incorporation came to town — it is a dead city. Such a shame.
Is there a link?
Its almost as if the leaders of both parties had more in common with each other, and with the Wall Street tycoons who so generously fund them, than they do with regular Americans who are expected to vote for them, in gratitude for getting screwed.
What is mind boggling is that 45% of those eligible decline to participate in these crucial elections … what could they be thinking?
Well, not really, Ian. Most, if not all, of the Dems in districts that are tossups or close voted against the bill.
reelin’
Martin Feldstein, National Bureau of Economic Research, on Charlie Rose & making sense. Suggesting mortgage replacement loans.
What did Dennis say?
Posted it in the previous thread. Here you go:
http://kucinich.house.gov/News…..tID=104160
The Kucinich letter links to the Alexander letter.
Yup. I assume thateveryone on his economic team except probably Stiglitz is voting their self-interest and telling him to pass the bill.
I also think, and have thought for some time, that in economic terms he is essentially a kinder Reagan.
But the politics on this are so bad that it boggles the mind. I just cannot understand how they could botch this so badly that this Republican bill is now the Democratic bill.
How is Wilmington dead? it’s not like Philly. But it is far from dead. Do you mean people living downtown and such?
Did I say that right? Are you too? I don’t know what to think — spirited discussion or frayed tempers?
Christine, say more about what happened to Wilmington. Guess I’d always assumed the incorporation business was clean and attracted money.
.
Dennis Kucinich
well, Obama will support the next one, that will make it more than halfway decent, won’t it?
If Obama is just a little bit nicer, just a little bit longer, surely the Rs will come around.
You should use a snark tag, people might take you seriously.
So sad,,,hope to get there one day.
“If Obama can twist arms for the Paulson bill, why not for a good bill? I have my thoughts on an answer as I think you do as well Ian; yes it is an interesting question that I hope others ask.
Got a couple of new items for your perusal:
Senate to Vote Wednesday on Bailout Plan
http://www.marketwatch.com/new…..aspx?guid={671D2D55-B15D-4E1D-B61B-6E34864436B7}
U.S. regulators issued clarification on Tuesday afternoon about how to use “fair-value” accounting, which has been cited as one of the major reasons for the meltdown in the U.S. financial system. Among the clarifications issued by the Financial Accounting Standards Board and the Securities and Exchange Commission, are that MANAGEMENT’S INTERNAL ASSUMPTIONS may be used to measure fair value when relevant market evidence doesn’t exist.
More foreclosures on the way and hopefully, people challenging such in court.
How AIG Facilitated European Banks Circumventing Minimum Capital Requirements —from http://www.nakedcapitalism.com/
I lived in Wilmington from 1968 until 1981. It struggled through riots and gentrification, and we had an adorable town house on 13th St. We moved in 1981 to Cleveland. Our daughter moved there in 2006 to attend graduate school for two years at UD and Winterthur. We tried to find her a place to live that was safe, and could only find Trolley Square. Downtown is ruined! I was crushed to see Market St. looking like a slum, and even worse further down.
Sorry. Thought the snark was self-evident among the folks here. *g*
Should be, but you’d be surprised how many people will take someting like that seriously. *g*
nahant,
I Dugg your Digg…and left a comment, too!
I did, too — and then moved away. What we remembered as Wilmington moving up, Dan Frawley loved the city so much and we all tried to live downtown for the first time since the 60’s. What I can only suppose, is that all the bankers from New York took one look at the schools, and moved to Chadds Ford, the village of my youth just over the border in PA. They built mansions and sent their kids to private schools, and then drove 15 minutes to Wilmington to rule the financial world.
Martin Feldstein (Harvard University) on Charlie Rose now, just making so much sense in talking through the import of stabilizing the housing crisis and that “that” is what is really at stake and that the Paulson Bill does not do that.
Addressed the import of a bill that focuses on housing and foreclosure.
What I find REALLY scary is Obama’s backing MAY indicate that his political skills are not sufficient to address what he will face. This:
http://www.salon.com/opinion/g…../24/digby/
is looking more prescient all the time.
He doesn’t want a good bill. He wants this bill. He’s knee-deep in Wall St. money. Expect his presidency to look just like this.
I couldn’t agree more, I don’t understand Obama’s campaign at all. If he were running against just about any other wingnut he wouldn’t stand a chance. I canNOT believe any Democrats are voting for this heinous bill, what are they thinking! I sometimes think I’m living in the bizzaro universe and hoping the real superman will come in and rescue Lois and me.
Replied to your comment!
All I can figure (since he’s been so nice and respectful so far) is that he knows what he’s doing.
He’s toasting McCain.
Feldstein talking sense??!! That would be a first.
And what would the horse race be if Obama were really running for prez. With the R record, and Palin, and McCain’s lies, and, and, and, the fact that McCain is still within 5 points (which means McCain will win by cheating) means Obama is running an absolutely disgraceful campaign.
I think you meant to reply to @30.
Falling on their swords at order is what I’m told. I wish Nancy would rebel against Obama on this, everything I hear indicates she isn’t happy and sees the political consequences. But then, she wouldn’t be Nancy if she was the type to rebel.
Yep, sorry. Hit the wrong reply button.
With economic advisers like Summers, Rubin, and even Sunstein, it is completely unsurprising that Obama would back this bogus bailout.
Surely, you jest.
Today, the Congressional Progressive Caucus supposedly proposed legislation that would be an alternative to the current legislation. BUT there is nothing on their website about such nor does a google find such a proposal. didn’t they issue a news release and if not, why not? Were they ‘leaned on’? And Barney Frank is a member of the caucus.
Why NO news coverage?
That’s why I wrote about it. He made a great case for addressing the housing market and foreclosure issues first. He had sound suggestions too.
I don’t think Obama cares about how much he wins this by. I think (pollyanna again!) that he cares about governing.
I think Ian is right, and Obama and his advisors should sit back and ponder what the Republicans have managed to do over the past week. Obama is about to be the water carrier for this legislation, and the general public doesn’t like this legislation.
Maybe they’re all beat and want to sleep?
If the Senate passes a bailout bill, can the House add amendments?
Have you considered the possibility that the financial companies might be playing a part in stringing Obama along? They might be giving him and the Center Dems a line about how much they will give to the Dems if only Obama would save them.
But all the while they are colluding with the GOP?
I have to agree that Obama has run a poor campaign, but he does have a large issue to overcome. Everything he does has to be seen in light of avoiding the race issue, which is a tough row to hoe. That having been said, granted that he could have done much better.
IMHO it is Campaign bubble…… on the road every day, not enough sleep, input from a 1000 different directions and not getting access to super advice from Ian just might be the issue…… Also IMHO….. Obama is doing way better to be informed than McCain…….
Oh, but they wouldn’t! Neither would the GOP be a party to such a scam!
/s
I’ll have to look for it. I have a long history with Feldstein, dating from 1968, when he was responsible for econometric models of the financial sector, for a complete econometric model of the U.S. economy that I was helping to put together for Otto Eckstein. Feldstein was a complete hack. Just doing it to learn something & put it on his C.V. Didn’t care that I found errors in his data and his coefficients, estimated on the accurate data, were not as significant. Just use the equations anyhow.
Subsequently followed his career from afar, and it was consistent with my personal experience. Just did whatever to get ahead. Particularly prostituted himself during the Reagan prez.
I suppose, true to the model, he may realize that the political scene is changing, and is now prostituting himself to get power in a D admin. Time will tell.
what a low bar to set!
House members who voted ‘yes’ on bailout received 54 percent more from banks/securities firms.
Figures…. money talks
I’m still not buying any part of this “rescue”. We keep being told that if we don’t hand over $750 billion, then Really Bad Stuff is going to happen. When we say, “Um, excuse me? HOW MUCH?” we’re told we “don’t get it.” When we ask to have it explained to us, we are again told, “you just don’t get it.” Finally, someone will say if we don’t do this bailout RIGHT NOW, no one will ever lend money to anyone else ever again.
As someone pointed out earlier, most of us get several applications and blank checks from credit card companies every week, and we’ve seen several large companies bought out by even bigger companies in the past two weeks. In other words, we’re not buying the “There’s no more money!” hysteria. It’s clear that some people/companies have quite a bit of money and don’t mind using it, but they understandably don’t want to spend it on a big huge toxic shitpile. So why should the taxpayers have to buy it?
Doesn’t Obama’s campaign finance person Penny Pritzker have a conflict
as far as subprimes go?
http://en.wikipedia.org/wiki/Penny_Pritzker
Blowing $700 billion on the Paulson plan is a hell of a way to govern.
Ok we could all use a laugh….
Palin’s Facebook page
To zoom in (on a pc) click CTRL +
Sure playing both sides of the fence is part of Chicago politics!
http://en.wikipedia.org/wiki/Penny_Pritzker
2 decades of economic torpor is what this $700 billion giveaway accomplishes.
If you want the “Change that we can believe in” that is not possible if this bill passes. There just won’t be jobs or money for a meaningful alternative energy program.
This is a disaster of epic proportion happening as we write.
Funny!
Was it Shakespeare who said “damned with faint praise?” *g*
Who says that Obama understands economics he might be relying on Penny to help shape his positions on economic issues? Penny though might have a conflict of interest.
IIRC, any bill can be amended, it just has to be resubmitted to the originating house.
He probably does believe this bill is the right thing to do.
I should tell you that I lived on the grounds of the Hagley Museum. My family had housing in the former blacksmiths building, then turned into a two family home. Coming from Chadds Ford, PA, I thought that the city of Wilmington was a paradise of commerce. I attended Padua Academy, and spent two years walking from North Union Street to the drive that faced Joe Biden’s house. It was wonderful, and after I married, we decided to live downtown. The city was rising. Restaurants were opening downtown! The Opera House was renovated and Market St. was turned into a pedestrian way. Delaware Technical College, where Mrs. Jill Biden teaches, was a huge presence in the city. When I returned all those years later in 2006, it was all gone (except for maybe Del Tech). Gosh I love Jill Biden.
how do you zoom back out? [control -] didn’t work for me–had to exit IE and reenter to get rid of the big scale
Obama confuses. He sometimes presents like Clinton -talk like a populist/act like a corporate Dem. That’s not the confusing part because I’m used to corporate Dems. But Obama doesn’t seem like a corporate Dem.
well, I thought that was how things usually worked, just wondered if they had some special rule in place on this since it is not your everyday bill
Control – key
Understand, but don’t see that there would be any difference here (FWIW).
I’m not doubting your knowledge, but we’re not exactly following the rules here. Spending bills are supposed to originate in the House, and tomorrow we’re going to start the bailout over in the Senate. And it seems to me that $750 billion counts as spending.
The failure of Superior bank by the Pritzker family seems like a preview of the current bailout in that Penny wishes things had gone this way in 2002.
Also how is her bank doing now?
Charlie Rose comes on later here.
Feldstein points out the importance of resetting mortgages. 10 million homes with negative equity.
He blames lack of regulation for the mess, not the players.
He was associated with AIG so can’t comment on its takeover.
Praises the consolidations that Glass-Steagall used to prohibit.
He calls both Bernanke and Paulson talented.
He thinks there will be a major downturn.
My language, which is still pretty imprecise & inchoate, is that for Obama we know that there’s a lot of there there, but we don’t know what it is. That’s my primal reason for distrusting him.
my knowledge of Congressional rules is limited to what I learned about “How a bill becomes law” in 8th grade
thought maybe somebody greased the skids somehow on this one
That’s a frightening thought. Of course, the opposite would be too.
For me the cold chill of revelation of a set-up was that photo of Pelosi, Bush and Reid, sitting at a table looking like losers…
It should be CTRL – to zoom out….. it worked for me in IE and FF
Perfecting the rope-a-dope – $700,000,000,000
wonder if that photo will win a Pulitzer
or was it taken by White House or Congressional staff photographer?
it certainly has a sorry tale to tell
I’m with the folks who have said, “You know, we tried a bipartisan rescue. It didn’t work. Now we’re going to try a progressive rescue.” And if Wall Street doesn’t like the terms, let ‘em sink. We’re offering them a life preserver here. If they don’t like the color, they’re free to drown.
IIRC, they can take any pending (i.e., unpassed) spending bill (that originated in the House) and amend it to be whatever they want, i.e., replace the language with whatever they want it to be. This being the Senate, it would probably have to be “without exception”, without dissent, which is quite common. Not really an issue with experienced parliamentarians.
i don’t know of any bank that will lend ya large sums of money without collateral and a description of what the money is for – whether a car loan, mortgage, college, or to pay down debts. and i have yet to meet a banker who was willing to lend out of the goodness of his heart and not charge interest.
Ian, I usually agree with you but:
if no bill is passed and people’s retirement money disappears, Repubs will pay: big gains for House Dems.
next president: I’ve believed for the last two years that the next prez, whoever, is a one termer.
GWB has left such an incredible shit pile mess that no one can can clean it up in four years.
Failure is built in.
Obama can win the election, but odds are against him, or anyone else turning the world around.
The more I listen to Obama the more I think he’s either naive or lying about dealing with the GOP, as currently constituted in Congress. The same goes for the bailout. If you look at his stance from FISA to bailout, you’re looking at DLC lite. BTW, Obama isn’t naive.
In a previous blog by Ian, I mentioned the dearth of House leadership, then up pops Dennis Kucinich. God I’d love in Pelosi or Hoyers spot!
I watched Rachel Maddow tonight and she had on Rep. John Culbertson from Texas, one of the right-wing Republicans who voted against the Obama/Paulson bill. Among the things that he said should be done are
— Replacing mark-to-market with something more “realistic.”
— Raising the limits on FDIC protection.
Those are two of five of the liberal Democrats’ No Bailout Act. The other three are:
— Permanent continuation of the prohibition on naked short sales.
— Permanent continuation of the restriction of short sales to up-ticks.
— Infusing captial into critical and worthy institutions via purchase of equity.
I doubt that conservatives would have any trouble with the restrictions on short sales, so it should be easy to get agreement between liberals and conservatives on four of the five provisions.
The quarrels about the last provision will have to do with:
— questions of where the money will come from (DeFazio recommends a British-style securities-transfer tax.)
— questions of the degree of control the government will have over the corporations whose equity they purchase. (We all know too well how government involvement screws up free enterprise. /s)
Given Obama’s negotiating skills, he sould be able to bring the sides together on this one and get a bill that has broad populist support.
I’d suggest adding Finland’s provision of no dividends and no bonuses until the government has been repaid. The electorate will like that one.
Why would the GOP risk giving Obama a legislative victory right before an election? Sure the plan may suck but $700 billion will cause the markets to go up and stay up past the election.
Bush pushed for this and failed, McCain was trying to take credit for this bill passing even as the GOP was making commercials to run against the bill?
There seems to be a question of who is in control of the GOP?
If Obama cares about governing, he should be on fire about this bailout, because it compromises his freedom to budget his promises. The Bush-Cheney crime syndicate is doing everything they can to bound and gag an Obama administration, and make them fail. So that, naturally, a Republican can ride to the rescue in 2012. They don’t care about the cost and damage to the country. They’re all about WINNING. Them, and Nancy Pelosi, apparently.
Nancy, I have two words for you: Pyrrhic victory.
Bob in HI
nahant still here?
it looks like comments on Digg, and replies to comments, and replies to replies, all run up the Digg score. is that your understanding also?
Well said, Frank, if they move fast they can get in front of this. Or not.
Still here, my friend?
I have to say it: I said long ago (on this blog) that Obama was “stealth DLC.”
OT
Why hasn’t the name “Obama” been put into Outlook Express spell check dictionary? I just typed his name incorrectly and Osama comes up as correct spelling.
Obama would have to be a flaming idiot to fall into that trap, and I don’t believe that that is the case.
This isn’t what we think it is.
yeap – getting ready for my late late nite
what is it, then?
FIXED.
Obama = stealth DLC?
What does that make the Clintons? Chopped liver?
What is your evidence?
Bob in HI
I am not sure about that! But Diggs do count so I don’t not see why coments shouldn’t also promote a Post.
Have you been doing any shopping for your new PC??
you have to really understand the history that naomi klein was writing about in her book, THE SHOCK DOCTRINE.
obama is another creature of the global gangsters[rockefellers, the bilderbergers] who will do anything to seize the entirety of this planet. never forget, obama, in all his autobiographical efforts, as eliminated his columbia years. years where he was zbig’s acolyte. and zbig is the cardinal mazarin[or is it richelieu?] to don david.
this election is as notional a contest as bush v gore, bush v kerry.
it is akin to the enron energy trading desk, two finger puppets on the same hand. at the end of the contest only mr hand wins. and after this illusory contest, the velvet glove[the puppets] will be pulled off. and the chain mail beneath will be finally, indelibly revealed.
some years ago, the milton friedman[the chicago boy] doctrine was used to destroy argentina, chile, bolivia, etc ad infinitum. it should never be forgotten that the university of chicago was a creation of the rockefellers.
it should also never be forgotten that the us presidency has been held by rockefeller courtiers[lackeys] since the end of ww2.
this is an election where the electorate should stay at home. refusing to vote for the same interests that have controlled their lives for the last 60+ years.
no voting.
my guess is that imaginary vote totals would still be proferred to the benighted populace.
Obama could be laying Playing Possum and saying what ever he has too to get elected and the screw the right so far we have just been assuming that he was going to screw us.
comments and ups and downs to comments do drive up the scoring
the more chatter about a digg, the faster it climbs is my understanding
You gonna dive?
Is it the Greedy Forkers edition?
That’s creepy.
Hi I tried the Solar calculator but it doesn’t cover my zip.
maybe… have to wait and see
haven’t had time to get to a store but have been watching ads
if you go look at the Digg comments, they say “+ 1 Digg”
sounds like an additional opportunity to promote the Lake and its writers?
I could maybe sorta understand how Obama might really think he had a deal worked out but Dodd and Franks were sure steamed. Boehner is NOT a good faith operator.
I’m conflicted because I hate the obstructionism and doubledealing of the house goopers, but I’m glad the bill got scuttled.
late late nite upstairs
The Clintons are DLC. Period.
Obama, IMO, is stealth DLC because he supports policies that favor big corporations – like the Paulson bailout. ‘Nuff said?
Yup, even if we win, we lose.
But if McCain-CrazyLady wins, we’re totally forked.
I’d choose win/probablyscrewed over lose/totallyforked.
ouch either way…
What do you mean by “that trap”?
Maybe you misunderstood about what I meant by “on fire.” What I meant is that Obama should beware any solution that actually involves anything like the commitment of 700 billion dollars. He should be wary of any deal authored by the Bush White House.
Bob in HI
I know they don’t cover the entire nation. But IO do know they are trying to expand the markets they do cover. I had a nice talk with the Engineer who first came out to give us the proposal.
how about all Diggers present go and comment on nahant’s Digg and see how high we can run up the score?
Per HuffPo:
“I’ll refuse the public’s money and let their economy die unless they cut my taxes too.”
Like you need me to tell you…
Either (obviously):
Obama wants to govern from farther Left than his campaign suggests, but also realizes that you can only govern if you are elected…
or
Obama is pure corporatist (FISA being a prime example), and the Left can truly go pound salt as far as he is concerned.
Which is why I think neither is true. Obama is a political hybrid.
Deep into EPU territory but did you guys see this…
I just read Glenn Greenwald from yesterday.
So as I suspected all along this is just a giant sham for Paulson to enrich his friends. They said so on a private call to industry insiders.
This is so disgusting. Call your congress critters.
via Glenn Greenwald:
http://openleft.com/showDiary……aryId=8675
http://www.nakedcapitalism.com…..ction.html
Things are going swimmingly here in Arizona ….. YA McCain the fundamentals are strong….. ya right….
Lehman unraveling leaves Arizona retirement fund a little poorer ~ $400 million
Cupboards Bare At Phoenix Food Pantry
Valley’s homeless population growing
Under the settings button the thumbs up and thumbs down?
“Wake up America”.
Christine, I had a similar eye opening experience some years ago. Was dealing with a number of multi-family properties along the east coast. Saw the sublime (some senior properties), the very good (many surprisingly in not particularly prosperous large towns/small cities), to the adequate/marginal.
The shockers were ghastly properties in DC. It’s affected how I’ve viewed our politicians ever since. If they can’t be entrusted with the care of DC, how could we possibly expect them to care for the country.
Warren Buffett on Charlie Rose tomorrow.
All (millions) of Pennsylvania teachers don’t even know how much money they lost in their retirement accounts because of the borrowing practices and etc. of according to an article in Forbes magazine Aug 21 (or July 21) 2008.
Ian, thank for bringing up the white supremacist meme.
How is McCain going to vote on this bill?
Great analysis. Obama is a very “conventional” candidate wedded to the established power structure but certainly preferrable to the alternative. In the U.S. the political discourse swings from the extreme right to the center. There is no voice on the left that is given any considereation in the corporate media. This is an opportunity for transformative legislation yet Obama takes a “safe” centrist course. I guess he really believes that he can get along with Republicans. The Social Democrats thought they could “get along” with the NDSP in Germany circa 1933.
Obama’s lifelong response to racism has always been, from what I can tell, to make himself seem less “scary.” He’s an establishmentarian. Encounters with racism don’t radicalize him, they move him further into the bosom of the elites.
Such a proposal will mean nothing if the Dems aren’t willing to follow through and present it to Bush and a likely veto. But I like it anyway.
Ask yourself, who in Congress was elected to represent DC?
The most successful program that the government has ever come up with is FHA loans. I sold houses for 20 years, and FHA is one of the best things out there. Anyone can get into a home with three to fiver percent down. It’s not a poor people’s program, it’s just a good way to buy a house if you’ve got a job and decent credit but not a lot of cash on hand.
Most of the other programs to assist lower income families to purchase homes follow FHA guidelines and have other protections built in. Only problem is you can only buy a house up to a specific market average in your area, meaning that if the average home in your area is $250,000, that’s about what FHA will lend on.
60% of the foreclosures in the country are on refis, where people have taken equity out of their homes to use for other items, or just to get a low interest rate for a while. A lot of these homes are very high end, and would have never belonged to lower income folks in the first place. REgardless of anything else, you had to qualify for the house at some point.
Blaming the poor is as old as greed. I watched the lenders weaken the requirements, skirt the Private Mortgage Insurance requirement, encourage folks to play Russian roulette with the equity in their homes for a lot of years. There never should have been anything like a 100% or 105% mortgage. Those are just accidents waiting to happen if the real estate bubble bursts.
There was a lot of really questionable stuff out there, and to listen to neocons at the American Enterprise Institutes, Ben Stein and others blame it on some government programs that gave families the hope of home ownership is totally irresponsible and completely expected.
I suspect that Obama’s advisers are all DINOs, or anyway closet Republicans.
Our so-called leaders in Congress are apparently planning to put in a tax cut to get the GOoPers and the blue dogs to vote for their bailout plan. Ghu, they’re stupid!
They should tell those guys ‘Either vote for a bill that fixes the underlying problem of bad mortgages, regulates the derivatives and hedge funds, and makes executive pay and bennies either reasonable in amount or heavily taxed, or explain to the voters in your districts why you think they don’t matter.’