Republicans May Jump the Shark

Good Morning Bloggers! It's been a roller-coaster of a week trying to ride the ups and downs related to the health care debate in Washington and across the country right now. To be really honest, the reason it took me so long to post this week was due to extreme conflict within my own mind about how to react to events. I don't like to blog unless I feel well-informed and comfortable about an issue, and this one has pushed me to the limit.

First of all, I would like to say that I think the Republicans and a few bought-and-paid-for "conservative" Democrats are doing a great job lying about the health care debate. Like the president says, they are out there sewing fear hoping to terrorize the electorate. They are using every opportunity to skew the debate, distracting people from the real legislation.

It's sad to say that their tactics are working somewhat, since most of the national polls are showing a decline in support for the health care initiative overall, however, it's interesting to note that when the polls actually tell people what's in the primary legislation, the overwhelming majority of Americans favor it. It's also important to point out that most of the polls are misleading, manipulative and unworthy of reporting.

I don't wish to get into the nitty-gritty of the debate in this post seeing that I want to talk more about why we need to stay focused, but suffice it to say that after talking to a few Washington insiders this week I feel better about the delay and most of the legislation being debated in the House and Senate.

The House has some great bills, but the sticking point at the moment involves my own awesome Congressman Henry Waxman and the bill being debated within the Energy Commerce Committee, where we're being held hostage by a small group of Blue Dogs.

I called Waxman's office and they assured me the chairman supports a strong public option, and that his compromise with the Blue Dogs requiring rates to be set by "the secretary" is almost as good as rates being set by Medicare. I'm no expert, but it does concern me. A strong public option based on affordability is the only way to go in my opinion. Still, I believe in Waxman, and will continue to hope for the best.

The bill forged by Senate Health, Education, Labor and Pensions (HELP) led by Chris Dodd (D-CT) and Ted Kennedy (D-MA) are very positive. Their work along with a few other Senate committees provide some kind of public option and clean-up most of what is wrong with the health care system in America. Hopefully the Senators will be able to find common ground during their August break.

We should be highly skeptical about the legislation coming out of Senate Finance led by Baucus (D-MT) and Grassley (R-IA) pushing for eliminating employee health benefits in favor of ineffective health cooperatives, but the good news from what I hear is they do not have the support of the majority of Democrats in the Senate.

I also hear they've earned a bit of a bad rep lately. The other Senators fully realize just how much health care industry money has been pumped into that committee, so much so that it's been embarrassing for many in the Senate. FYI, after working in the Senate I know how Senators keep an eye on their colleagues and donations - often looking for motive before a vote. They don't always like it when powerful committee leaders sellout to overzealous industry profiteers.

Donations from lobbyists work best when the amounts donated to each politician remain secret. When the process takes time and legal reporting leads to open accounting (past legislation thanks to Democrats), it can create conflicts between officials. There are signs it is beginning to happen in relation to the Senate Finance Committee, as some Washington insiders report many are tiring of Baucus and his industry friends. Still, Baucus is failing to create a bipartisan bill, which is fine with me since I don't believe it will be good for the American people in the end.

There is also the fact that most of the committee chairs and co-chairs receiving the bulk of the money represent less than 3% of all Americans - a fact that sticks-in-the-craw of many elected officials.

The other side of this debate is - of course - the Republican lies. They are bigger and better than ever. Again, despite the August delay, I'm hearing good news from my friends in Washington. There are signs the Republicans may have gone too far once again. They may have "jumped the shark" in their opposition to health care. Many are reporting that their latest lies - the elimination of Medicare, loss of personal health care choices, and forced living wills and early death - may be one step too far to say the least.

It doesn't matter if Hannity, Limbaugh and others repeat the lies ad nausea, as long as they can easily be disproved. In the end, the lies themselves can ruin the credibility of the opposition.

The polls show that when Americans learn about the primary legislation, they support it. The bulk of the legislation goes far enough to solve most of our health care problems. The special interest groups have been spending millions on ads and the polls haven't changed that much. Most important, the president and others are willing to sacrifice their valuable political capital (something most politicians won't do) to get a bill. If the legislators spend August learning about the options and informing their constituents, then we may just have a chance to change the system come Fall.

To me, the glass is half-full. To me, the signs are pointing in the right direction.

It's easy to get discouraged these days when it comes to Washington, politicians, corporate greed and especially all the Republican lies. It's harder to actually do the heavy lifting, oppose the "ends justify the means" crowd" and fight the good fight. That's what we need our politicians to do. We need them to stay focused, and to ignore the ignorant rants of the uninformed. We need them to follow the president's lead, stay strong, and pass real health care reform for the majority of Americans who support it.

Thursday's Political Rave - Michael

PS - As I always like to say, please use the contact information section on this website to contact your elected representatives and tell them WE THE PEOPLE support health care reform with a strong and effective public option - not coops. It's the only way to save us from the greed and corruption of today's Republican-supported health care debacle.

AIG is a Foolish, Republican Distraction

Good Morning Readers! The news lately has been filled with both Republicans and Democrats screaming bloody murder over the completely unjust bonuses being paid by AIG. I agree there have been lots of mistakes made and that everything should be done to stop those payments, however, I also believe the right wing is driving the scandal to distract from the more important reforms.

Republicans haven't had a lot to crow about lately, so they're thrilled the Democrats dropped the ball involving something as controversial as bonus payouts to failing Wall Street bankers. Sure, AIG under the Obama Administration should have seen this coming, but it's still a GOP distraction.

The GOP operatives pushing this scandal are only interested in political gain. It's a scandal within a scandal. They are conveniently ignoring the fact that Bush and Paulson paid the first installment without any congressional involvement and without excluding bonuses the same way, because they too were afraid of employee lawsuits. Subsequent Capitol Hill and Treasury negotiators were also concerned about employee lawsuits. They were worried about increasing liabilities, something lawmakers care a lot about these days. They all had bigger fish to fry.

That's at the heart of the matter, yet nobody seems to have the balls to talk about it. It's all about politics now, and the Republican spin machine is doing its best to strum the last Democratic nerve. The only thing the Republicans are concerned about is a "gotcha" moment, and the Democrats on Capitol Hill are falling for it all hook, line and sinker. Only President Obama has had the nerve to take responsibility while asking us to focus on the big picture. I agree with him. Let's do it!

The AIG Financial Products Corporation, which is now being dismantled by government appointed executives, is the real scandal. The bonuses are horrible, but the real story is why the financial products division of AIG ever came into existence. Let's not forget the regulatory changes led by Senator Phil Gramm of Texas, Newt Gingrich, and the rest of the Republican Congress during the waning days of the Clinton Administration started this national nightmare. They know it, but for some reason rank and file Republicans ignore it, and average Americans never talk about it.

Sure, Clinton signed it under extreme pressure, and he was wrong to do it, but the real culprits were the Republicans who destroyed the walls that stood between banks, speculative investment brokerage firms, insurance companies, and the rest. Those protections were put in place after things went horribly wrong during the last Republican depression. They were designed to manage greed, PROTECT the free market from its darker side, and in the end keep the wolves out of the hen house. It was the REPUBLICANS WHO DESTROYED IT!

Of course, their deregulation was made worse by the fact that regulators were undermined by the Bush Administration. Oversight was weak at best. The Bush Administration was without a doubt a REACTIVE regulator. They didn't believe in the protections. They didn't do their job. I don't care what my right wing readers say, the Bush Administration could have done more to prevent the crisis. They had the data, they knew about AIG and the $50 TRILLION plus DERIVATIVES market, and they knew about the risk to the whole economy. They did NOTHING! They were at least negligent, and at worst conspiratorial.

My dinner party debates always feature a Republican blaming Congressman Barney Frank, Senator Christopher Dodd, and the usual Democrats for not reigning in Freddie Mac and Fannie Mae. What they never admit is how the Bush Administration had the authority, through dozens of regulatory agencies, to reign in the risk across the board. Many economists feel that most administrations would have done so. It was the Bush Administration, along with the Republican belief in small and unobtrusive government, that failed the American people.

Therefore, let's be angry about the greed on Wall Street, but I think it's more important to keep our eyes on the prize. Let's make sure the Democrats and the Obama Administration do everything necessary to reverse the regulatory changes that allowed the Bush Administration to look the other way. Let's FORCE future Republicans to regulate the risk by creating strong and principled new laws.

Let's reform until we can't reform any more. AIG is the critical patient that needs to be isolated and treated, but it's the Republicans and their broken philosophies about government and the market that represent the deadly contagion. Let's find a vaccine and a cure! Let's make sure we never become victims of their greed and stupidity again.

Thursday's Political Rant - Michael

Political News: Chris Dodd Bailout Plan Has Merit

Good Morning Bloggers - It's early, but for now I'm supporting Senator Christopher Dodd's (D) plan over the not-so-great track record of Bush and Paulson. Politico posted a decent review earlier, and there have been many critiques online and elsewhere since that really impressed me today. I wish you guys would give your opinion. It's important to the nation.

Dodd bill more aggressive than Treasury plan
"Banking Committee Chairman Christopher Dodd is taking [a] much more aggressive approach to the Treasury bailout plan, demanding foreclosure assistance, limits on executive compensation and profit sharing for taxpayers if the Treasury begins to make money back on the bad debt it plans to purchase."

"Dodd's legislation, obtained this morning by Politico, has just started to circulate among Senate legislative directors. His plan addresses many of the concerns raised by Democrats and Republicans who are concerned about handing over $700 billion blank check to Treasury Secretary Henry Paulson."

"While the Treasury would receive much of the authority that it wants to buy up distressed assets, Dodd's add-ons have many of the populist ideas that will appeal to skeptical Democrats. His plan is also broader than the one unveiled by House Financial Services Chairman Barney Frank (D), so there will be significant negotiations in the days ahead between the House and Senate if Congress is to pass a bill by the end of the week."

"Among the major provisions Dodd is adding:

• Authority for bankruptcy judges to restructure mortgages for homeowners facing foreclosure. This was considered a poison pill in a housing bill that passed Congress earlier this summer, but it has gained much more currency now that Washington wants to bail out Wall Street.
• A provision that would require the Treasury to take a 65 percent portion of 20 percent any profits it makes from the newly purchased assets and put it into the federal government's HOPE program, an affordable housing program.
• An oversight board that not only includes the chairman of the Federal Reserve and the SEC, but congressionally appointed, non-governmental officials.
• Limits on executive compensation. This is a major stumbling point for Paulson in his negotiations with Congress, but cracking down on Wall Street executive salaries will be a major selling point for lawmakers. Dodd and Frank have put in place what's known as a "claw back" provision aimed at revoking compensation that executives received based on fraudulent claims.
• An independent inspector general to investigate the Treasury asset program, appointed by the president."

At first glance I think it sounds more aggressive and sensible than Paulson's plan, which requires us to trust people and institutions that have already proven to be incompetent. The most important consideration is that Goldman Sachs Group - formerly run by Treasury Secretary Henry Paulson - and Morgan Stanley, stand to be among the biggest beneficiaries of his proposed, unregulated $700 billion bailout.

Common sense suggests caution. I hope you share your thoughts. I already wrote my congressman and both Senators requesting caution and oversight. Because it's important to our nation and future generations, I hope you do the same. Simply Google the legislators name and you'll find them. I must admit, I'm extremely worried.

Tuesday's Political News #1 - Michael