Monday, September 29, 2008

Bailout fallout - The good, the bad, and the ugly crap sandwich

There was an interesting dynamic to the bailouts. This was a populist revolution against leadership. About 40% of the democrats said no. Over 60% of the Republicans voted no. I salute those that voted no, from Mike Pence to Dennis Kucinich to our state delegation that said "No deals." Mike Rogers, Tim Walberg, Thad McCotter, Pete Hoekstra, Joe Knollenberg, Candice Miller, John Conyers, Bart Stupak, and Carolyn Kilpatrick. 6 Republicans and 3 democrats.

The finger pointing has begun. Some blame Pelosi. Some blame some Republicans who may have thought about voting for it until Pelosi ran her big mouth. Some blame Bush and Paulson. Some blame the dems. Some blame Mike Pence who was one of the few real leaders in this.

Simplify this.
John Boehner voted for this and was part of the GOP leadership. He called the bill a "crap sandwich". I agree with him. The question to Boehner is this. Why did you vote for a "crap sandwich?" Why did you push for the rest of the GOP to go for this "crap sandwich" that even 40% of the democrats refused to back? This isn't leadership. Real leadership is pushing an alternative plan to this, one that isn't a bandaid. This quote also isn't leadership and is part of the reason why democrats currently control the house.

"I do believe we could have gotten there today if it had not been for this partisan speech the speaker gave on the floor of the House"

That's Boehner. I think we could have gotten there if we wern't given a "crap sandwich" (your quote) of a bill. Boehner would have lost my vote if I lived in his district. This is why I wanted Pence to be minority leader.

Where did the real leadership come on this bill? McCotter started the major push in the house with a speech on TV. This was his post vote statement. "The voice of the Main Street has been heeded and obeyed by Congress. Americans said 'No!' to the Paulson bailout. Now, let our work commence in earnest and prudence on behalf of the American people."

Mike Pence was one the most visable leaders on this. ""Ask yourselves why you came here and vote with courage and integrity to those principles. If, like me, you came here because you believe in limited government and the freedom of the American marketplace, I urge you vote in accordance with your convictions. Stand up for limited government and economic freedom. Stand up for the American taxpayer. Reject this bailout and vote no on the emergency economic stabilization act,"

Pence and the Republican Study Committee had an alternative plan here that wasn't a crap sandwich.
Three of the best quotes here are from fellow Midwesterners in Indiana. One is Republican, one democrat. Both opposed the bill. All said close to the same thing.

From Baron Hill (D) - I have been rushed to judgment by the Bush Administration before. There hasn't been enough time to evaluate the impacts this legislation would have if enacted, or to consider alternatives. Congress deserves time to weigh the benefits and the potential pitfalls of borrowing this money."

From Steve Buyer (R) - "I am bothered that Secretary Paulson offered an immediate government solution rather than taking the time to explore effective private sector and market based solutions. The Paulson plan was an unprecedented infusion of government power into the private financial sector."

From Mike Pence (R) - “"The last time I heard that, I was on a used car lot. The truth is, every time somebody tells you that you've got to do the deal right now, it usually means they're going to get the better part of the deal."

Emergency and rushed Bills usually turn out to be real turkeys. That got us the Patriot Act approved by 99 senators. That got us the department of "Homeland Security." That got us a massive increase in government, the loss of our freedoms, and in my opinion did nothing to make us safer.

You can't rush this crap. You have to first try and prevent this. If that doesn't work, as it did not work here, you find the root of the problem. When a Japanese Maple (my dad will get that reference) wraps around a septic pipe and breaks it, you don't fix the pipe until you correct the Maple. Else, it will break again, and the maple roots would be even bigger. This bandaid does nothing to fix the problem. It is so Pelosi, Chris Dodd, GW Bush, Goldman Sachs Paulson, Barney Frank, and Boehner can say "Hey, we did something!" and go back to put their heads in the sand and hope the worse collapse happens when they retire so it isn't their problem.

There's no secret to the problems here. People spent more than they had. They screwed up. The banks also screwed up in lending. Fixed costs they did not budget for increased. Housing markets dropped. Jobs (in Michigan and some other places) were scarce. Energy prices increased dramaticly. Unless these are addressed, then this bailout will only make it worse down the road.

My plan would be this.
1. All of the above (Except ethanol which raises food costs) energy policy. We need to open up our domestic energy sources, creating jobs here and improving our national security at the same time. Drill in Alaska and offshore. Clean Coal electricity. Nuclear Power. And at the same time work for alternative fuel. Fuel Cell, cold fusion. This needs to be long term. As people spend less on energy costs, they have more money in their pocket. Demand will only increase with an industrializing China and India and their 2+ Billion people.

2. Reform Fannie Mae and Freddie Mac. This should have been done 5 years ago.

3. Cut pork spending.

4. As far as the Wall Street plan, the Republican Study Committee has an alternative plan which I can support. Click here to see Pence and Jeb Hensarling's plan

Paulson put all his eggs in one basket, as did Pelosi, Boehner, Dodd, Frank, Bush, etc. The rank and file house democrats and republicans alike united against this crap sandwich. It's time to think things through, quit rushing, and deliver something that isn't a crap sandwich.

1 comment:

liberalshateusa said...

The Dems wanted the GOP to pass the piece of crap and then blame the GOP, and use it during the election. It was their mess and they have to find some scapegoat.

The bill stilled allowed sub prime loans if I am correct. It was also going to allow dead beats to stay in their homes and cut the interest rate and take some monies off the principle.

The simple fact is not every one can afford a house. Should they assist person that rent an apartment also.

This is an article from the liberal NYT dated 9-30-1999 about the possible Article meltdown.