Many folks don’t realize this, but the republican national platform, developed during and for their national convention in Minneapolis earlier this month, states, in pertinent part:
“We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself.” (read it HERE)
Keeping that in mind, remember that in the past eight years, the republicans have controlled the executive branch of government with GW “borrow and spend with no accountability” Bush in the driver’s seat. Also during that time, they also controlled the US congress for six of those eight years, during which they rubber-stamped Bush’s policies.
Thus, it is neither possible nor credible to state emphatically that the republican philosophy of no regulation and no accountability of the trillions of dollars spent during that time isn’t indirectly responsible for this economic meltdown. Even now, Bush and many of his congressional cronies are pushing for a bailout bill with no strings attached. In other words, bail out the financial institutions that got all of us into this mess in the first place, but do so without any accountability whatsoever. As Bush stated earlier this week, he wants a clean bill and then congress can go back and work on another bill that takes accountability issues into consideration.
But Bush knows he has only has four months left in his disastrous term, and that there is zero chance of congress being able to pass a second (accountability) bill, which Bush would have zero incentive to sign into law, even if a lame duck congress could agree on it.
Both presidential candidates are endorsing a bill with safeguards, including the limiting of salaries and severance packages for the CEO’s of the credit card companies, banks, mortgage lenders, insurance investors and all the other financial institutions that made the bad decisions which caused this catastrophic economic loss. Not one of those CEO’s deserves as much as a dollar bonus nor generous severance package of millions of dollars each, while the American taxpayers is footing the bill and losing their houses in the process.
There is a difference, however, between the two candidates’ positions. Obama is true to the democratic principal that regulation is necessary to limit and control the negative effects of human greed. Democrats remember the sweatshops and child labor realities of a century ago. In contrast, McCain’s first blush was to call for the firing of Chris Cox, the head of the SEC ( U.S. Security & Exchange Commission).
No one took McCain to task for his “shoot first, sort it out later” proposal more that the conservative columnist George Will, who yesterday wrote a stinging commentary against McCain for his lack of economic understanding as well as his lack of knowledge of the law in calling upon the Bush to fire Cox, when the president has no such authority.
I urge you to read George Will’s column HERE. Note that Will, a staunch right-wing conservative, wrote, “The political left always aims to expand the permeation of economic life by politics. Today, the efficient means to that end is government control of capital. So, is not McCain’s party now conducting the most leftist administration in American history?”
For those purist capitalists who believe that the bailout is just plain wrong, you might want to read up on the history of the Great Depression of the 1930s HERE. It was largely the lack of regulation and oversight of financial markets and companies on the part of the government that allowed for the greedy and unscrupulous actions of the bankers and CEO’s of the time that was directly responsible for the stock market crash of October 1929 and a lack of government intervention that caused the crash to morph into the Great Depression. The same could happen today, given a lack of drastic and effective action to stop it.
As a bad as the $700 billion bailout is, and it is incredibly bad, allowing the economy to slide into a depression is far, far worse. In 1979 the federal government bailed out Chrysler, which according to sources has produced a $400,000,000 profit for the federal government since then. So bailouts are nothing new, and they are effective, with the proper accountability.
One last thing: It was bad decision-making among the shakers and movers of Wall Street and the unregulated financial sector that was largely responsible for the meltdown.
So what does it say that McCain’s campaign manager, Rick Davis owns a company that received a monthly $15,000 from 2005 until just last month, paid by one of the mortgage companies in the middle of the credit crisis? This was reported by the New York Times!
Read about it HERE and then try to explain why anyone should vote for this hypocrite.
After all, what’s seven billion taxpayer dollars among friends?