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 Rant: Many Now Believe Bush/Paulson Scammed Us, Stole Billions

Good Morning Bloggers - Raw Story today is pointing to a letter from CONSERVATIVE Senator James Inhofe (R-OK) where he tells his Senate colleagues that he "intends to push for immediate legislation that would require Congressional authorization for any further payouts" related to the recent bailout package.

According to my sources in DC, many in Congress are beginning to believe that Bush and Paulson bailed out their friends on Wall Street, with few conditions to lend the money out. Many now feel that's all they really wanted. There are rumors flying around DC that they needed to save specific institutions and markets before leaving office.

Since investing the money they have done very little to encourage lending, and they appear to be holding on to the rest of the funds just in case something else goes wrong - an emergency buddy fund I guess? They are supposed to be freeing up credit. They were supposed to be demanding that banks lend money. What the hell is going on?

The ultra-conservative Oklahoma Republican told the Tulsa World, "It is just outrageous that the American people don't know that Congress doesn't know how much money [Paulson] has given away to anyone. ... It could be to his friends. It could be to anybody else. We don't know. There is no way of knowing. ... He was able to get this authority from Congress predicated on what he was going to do, and then he didn't do it." I agree. I'm beginning to wonder if they know anything up there. What is wrong with them?

I never thought I would say this, but I think Inhofe is right! I, like so many others, came to believe that the government was trying to stop a disaster when they passed the legislation. Facts on the ground since are showing that things weren't as bad as suspected, and if anything it's beginning to look like Bush and Paulson created the panic based on very little data.

It's beginning to look like we might have been scammed again, just like with the Iraq War - another crisis that helped Bush and his buddies. What did Bush say, fool me once shame on me, or some perverted version of it? Maybe he's not the idiot we all took him for? Maybe he's just a much bigger CROOK! Then again, we're supposed to TRUST THE PRESIDENT when he warns us of a potential disaster. I don't know about you guys, but I feel sick!

Incredibly, our trustworthy Democrats in Congress - and center-right Republicans - didn't dig deep enough. I know they convinced many of us in the end, but aren't they supposed to know more than us? Then again, maybe they're not as smart as we think they are? Maybe we rely on a bunch of smooth-talking IDIOTS!

What in the hell is wrong with this government, especially our elected representatives? Nobody seems to know what they're doing. WE NEED ANSWERS NOW!

We need to FOCUS ON STOPPING THE BUSH CRIME SYNDICATE from plundering more. We need immediate investigations! We need action now! Unless something happens, this may be the first issue where I take a stand AGAINST OBAMA! Once in office, we need President-Elect Obama to support immediate investigations into possible Bush crimes, or we should take to the streets!

The American people voted for change, and we might not be able to wait until the inauguration. The Lame Duck Congress should act now! To protect our democracy for the future, we need to get to the bottom of what is happening to that money. I hope you agree.

Tuesday's Political RANT #1 - Michael

Political Rant: Bush is Stealing Trillions and Congress is Doing Nothing

Good Morning Bloggers - I've said it before and I'll say it again, the Bush Administration is pulling off one of the greatest heists in history disguised as a financial crisis bailout.

The Washington Post this morning is reporting that in the "six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders."

Incredibly, the Post is reporting that the lets-destroy-America-at-any-cost Bush administration has committed $290 billion of the $700 billion rescue package while paying little to no attention to the money's initial purpose - helping increase credit for small business and average Americans. According to most economists who wrote about Secretary Paulson's news conference yesterday, they are spending the money in ways that will NOT HELP middle-class Americans.

There are reports that Congress is getting very angry about it too. Even the House GOP is angry. That should scare some of you Republican readers. GOP House Leader Boehner is calling for immediate disclosure. I wonder if the Bush Administration is going to comply. I doubt it seriously. They're too busy investing in their family and friends to make sure their personal investments don't go too far south.

There is a Congressional Report required of Paulson, which shockingly hasn't showed up and the deadline has passed. "It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

There are estimates that the Bush Administration has given away or loaned as much as $5 TRILLION of our money so far. If it's true, and the money hasn't gone towards reviving the economy to help most Americans, then we really are looking at one of the greatest financial heists and political debacles in our history, perhaps in world history.

There is also news - reported on few news programs except for my favorite The Rachel Maddow Show - that the Treasury Department eliminated a VERY IMPORTANT tax rule a few weeks ago WITHOUT CONSULTING CONGRESS. It could turn out to be illegal, but the rule prevented companies from investing in bad assets to avoid paying income tax. It was considered tax fraud.

Once released from the rule, companies made "stand-by" investments eliminating billions in federal tax debt overnight. The Bush Administration is allowing large companies to STEAL BILLIONS owed to the people of the United States. As I keep saying, this is one of the most corrupt and immoral administrations in American history.

I seriously CHALLENGE any of you Republicans reading this to defend their actions. Don't try and claim that taxes are wrong. That argument won't fly here. For most Americans, these actions look like fraud and theft.

In my personal opinion, the Bush crime syndicate orchestrated this whole financial crisis at the end of their last term to do exactly what they're doing. This HEIST has been planned all along. THEY ARE CRIMINALS! You Republicans should be angry too, because they seriously hurt your party - not to mention your wallets.

I do want to rave more than rant now that the election is over, but this is just too important to ignore. We need to stop theses thieves from robbing us blind. CONGRESS NEEDS TO DO MORE! I hope Barack Obama can do something to repair the incredible damage done.

Thursday's ANGRY Political RANT #1 - Michael