The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

It’s More Than Politics, It’s a Bad Bill.

Posted by iusbvision on September 30, 2008

The Blame Game You Hear on TV is BS – Here is Why So Many Voted NO on the Bailout.

It was a bad bill, but first let’s talk a little politics.

I have watched TV from my daughters hospital room just amazed at the BS you get from the elite media. The simple fact is that the vast majority of talking head “experts” that you see on TV have no idea what they are talking about. I wished I could have blogged right away about what I was seeing, I have a couple of hours at a computer so I thought I would make a few quick posts.

I was watching the roll call of the bailout vote and I saw that 97 Democrats had voted no as well as 133 Republicans. I wondered why so many in both caucuses bailed. I figured that in that 97 defections there must have been major Democrats bailing from the House banking committee and several committee chairs to give more Republicans the political will to vote no. When the Republicans saw that committee chairs that Speaker Pelosi can remove from those chairmanships and others who are close to Pelosi were voting against the bill, they realized that Pelosi was letting them do it.

Think about it. Republicans watch Pelosi come out to make this horrible partisan speech below that is filled with easily disproved nonsense, and then many of Pelosi’s closest allies are voting no. These are people that if Pelosi leaned on would change their vote. If this bill resulted in bad news down the road, Pelosi’s vulnerable yet powerful committee chairs in the House were allowed to vote no so they could say they were not to blame.

We now know from Karl Rove that many GOP members of Congress realized this while on the floor. The Democrats were going to try and eek this vote by and than blame Republicans for it’s results while key Democrats close to Pelosi voted no; yet all you heard in the press was that Republicans were offended by Pelosi’s remarks so they voted no as if they were a bunch of cry babies. Barney Frank who made these allegations  because he knows that most people in the press were ignorant of the facts on the floor as they unfolded. The Democratic leadership was counting on the ignorance of those in the media and in the public to get away with a political play.

Here is Karl Roves’ Statement

Here are the Democrats of the House Banking Committee that voted no and this was their baby with Sec. Paulson.  

Rep. Brad Sherman, CA
Rep. William Lacy Clay, MO
Rep. Joe Baca, CA
Rep. Stephen F. Lynch, MA
Rep. David Scott, GA
Rep. Al Green, TX
Rep. Emanuel Cleaver, MO
Rep. Lincoln Davis, TN
Rep. Paul W. Hodes, NH
Rep. Andre Carson, IN
Rep. Don Cazayoux, LA
Rep. Travis Childers, MS

Follow this link for a list of the Democrat Committee and Sub-Committee Chairs who voted no. Pelosi could have easily leaned on them to vote yes. The roll call for the vote is HERE.

While these were peripheral reasons why the bill went down, the primary reason is that it is just not a very good bill. It provides temporary solutions that could make matters even worse down the road. 

It does not fix the oversight issues that were a primary catalyst in the first place, it did not update accounting rules to make mortgage securities easier to rate. The banks would get these funds, but have no obligation to continue extending credit to moderate risk – credit worthy people, smaller banks, farms and companies. If the object is to get some solvency into these banks in trouble because of the mortgage crisis, shouldn’t we demand that they still behave as responsible banks instead of just sitting on a huge wad of taxpayer cash to only act as a soft and fluffy cash barrier to their own risk? The object of the bill is to get banks in the position to be responsible lenders again so the economy doesn’t shut down; this bill doesn’t do that. There is also no ethics reform that prevents the kind of influence peddling that contributed to this mess in the first place.

This video makes some of these points. Rep. McCotter:

Hat Tip and Johnny Dollar Blog

UPDATE: So I popped on famed author and economist Dr. John Lott’s website today and I am thrilled to see that he took a similar take as we did (look at Dr. Lott’s other post HERE as well).

One Response to “It’s More Than Politics, It’s a Bad Bill.”

  1. KC said

    I read your blog, and I disagree with pretty much everything that you write (including this post). Nevertheless, I do pray that your kid gets better.

    [Thanks for the kind words KC :-)

    If you are willing to have a civil conversation – I would like to make an effort to convince you. I spent hours and hours reading the OFHEO reports. They are public record, so remember this, the Congress knew this was coming for years, the public record showing it is a slam dunk. The Bush Administration warned Congress, again that is a part of the public record and a slam dunk. When McCain and a few others tried to fix this, the needed reform went down in a party line vote, that to is a slam dunk in the public record. I just wish that Bush went on TV and warned us this was coming because he knew. So everyone bears some responsibility. If you read those reports as I did, you would be outraged, any sane person would. The American people need to get mad and start thinking!- Editor]

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