"Congressional Leaders Stunned by Warnings"! Do You All See The Pattern Here?!?

[leftchick]

unfuckingbelievable that they would once again be duped (or is it collusion?) by these fuckers. By Schumer's remarks it looks like we are headed down another road to hell...

http://www.salon.com/opinion/greenwald/

Saturday Sept. 20, 2008 10:31 EDT
The complete (though ever-changing) elite consensus over the financial collapse

<snip>

David Herszenhorn, New York Times, today, "Congressional Leaders Stunned by Warnings":

It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.

Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi.

"When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.

As Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking, Housing and Urban Affairs Committee, put it Friday morning on the ABC program "Good Morning America," the congressional leaders were told "that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally."

Mr. Schumer added, "History was sort of hanging over it, like this was a moment."

When Mr. Schumer described the meeting as "somber," Mr. Dodd cut in. "Somber doesn't begin to justify the words," he said. "We have never heard language like this."

"What you heard last evening," he added, "is one of those rare moments, certainly rare in my experience here, is Democrats and Republicans deciding we need to work together quickly."

Leave aside for the moment whether this gargantuan nationalization/bailout scheme is "necessary" in some utilitarian sense. One doesn't have to be an economics expert in order for several facts to be crystal clear:

First, the fact that Democrats are on board with this scheme means absolutely nothing. When it comes to things the Bush administration wants, Congressional Democrats don't say "no" to anything. They say "yes" to everything. That's what they're for.

They say "yes" regardless of whether they understand what they're endorsing. They say "yes" regardless of whether they've been told even the most basic facts about what they're being told to endorse. They say "yes" anytime doing so is politically less risky than saying "no," which is essentially always and is certainly the case here. They say "yes" whenever the political establishment -- meaning establishment media outlets and the corporate class that funds them -- wants them to say "yes," which is the case here. And they say "yes" with particular speed and eagerness when told to do so by the Serious Trans-Partisan Republican Experts like Hank Paulson and Ben Bernake (or Mike McConnell and Robert Gates and, before them, Donald Rumsfeld and Colin Powell).

[originalpckelly]

1. Yes, it sounds like the Patriot Act after 9/11 and the Iraq resolution.

It's pretty fucking scary to see how stupid these people on "our side" are, isn't it?

[magellan]

4. Stupid or in cahoots?

We'll find out when we see the wording of this bailout, things like what they included in the conditions and what they didn't.

[originalpckelly]

6. I'm sure we're getting screwed.

I'm waiting along with you to find out how, you know, on top of being on the line for $700 billion.

[leftchick]

11. Commercial Mortgages?

I believe I saw posted somewhere that they are included.

[kentuck]

12. Yes. Commercail mortgages and student loans...

and who knows what else?

[leftchick]

13. and like the hundred pages of Patriot Act

I am sure they will not bother to read it! :argh:

[kentuck]

15. But they want us to remain loyal to the cause?

truthfully, I am finding it very difficult at this moment.

[leftchick]

32. you are not the only one

but what the hell choice do we have? I don't see any choices anymore.

[kentuck]

36. It's nothing short of betrayal by the Democratic Party...

We vote for them because we expect them to do more. We don't expect them to be corporatists and Republicans.. We have no choice. Period.

on edit, I should add, it is betrayal if they go along with this.

[bbgrunt]

22. no need to wait. I vote cahoots.

[nancyr]

38. In cahoots...all of them.

[leftchick]

7. I honestly do not believe it is stupidity

these corporations of all stripes are their bread and fucking butter. They serve these so called INDUSTRIES, which are no more than gambling by the wealthy, with our money. They certainly do not serve us. Take a look at where more than 50% of Dodd's campaign money came from!

http://www.opencongress.org/people/show/300034_christopher_dodd

Industry Donation % of total

Finance/Insur/RealEst $9,085,739 50.7 %



Lawyers & Lobbyists $2,431,462 13.6 %
Misc Business $1,427,640 8.0 %
Other $1,144,686 6.4 %
Communic/Electronics $948,286 5.3 %
Health $739,200 4.1 %
Ideology/Single-Issue $546,119 3.0 %
Defense $358,550 2.0 %
Labor $339,650 1.9 %
Construction $317,600 1.8 %
Energy/Nat Resource $224,646 1.3 %
Agribusiness $195,500 1.1 %
Transportation $168,600 0.9 %
Total: $17,927,678

[originalpckelly]

2. K&R

[kentuck]

3. Exactly!

It is so discouraging to see folks that you thought would stand their ground, rush to the siren call of the panic distributors of this Administration.

[Jamastiene]

5. They usually are stunned when something happens

that causes them to have to pull their heads out of their asses.

[malaise]

8. The Iraq Resolution

Fool me Once!

[leftchick]

10. and that was just the first!

Glenn does an excellent job of shining a light on their complicity. MFers! How in the hell do they sleep at night??

:(

[malaise]

16. Pelosi and Reid should have impeached these criminals ages ago

They are digging their own graves and dragging everyone else under. They'd better dind some spines next week.

[leftchick]

27. I realize now why they have not

because the whole stinkin system is rotten to the core in both parties (save a few Dems). Impeaching would have exposed their sins as well. Self preservation first, us fuckin last!

[malaise]

34. Well this time if they sign they're history as well

it will be the Bushco Empire.

sp.

[Tangerine LaBamba]

9. We're toast

That's a brilliant, dead right on analysis by Greenwald, and it's the portrait of how we're going to die.

How come I could see this coming a couple of years ago, and yet Congress is "broadsided" by it?

Same way so many people knew that Iraq had no WMD, that we beseeched the government to let the weapons inspectors do their jobs, but, still, we invaded Iraq.

This isn't my America. I don't know what place this is, but it surely isn't my America.

[fascisthunter]

18. Too Many Bullshit-Artists in Congress

i gave them the benefit of the doubt long ago, but not anymore. They are all complicit at this point. They had their chance to prevvent this and should know much more than the commun DU poster... I call bullshit on their ignorance!

[screembloodymurder]

14. Pitchfork the M*****F***'ers!

It's time to act.

[slipslidingaway]

17. Bernanke Admits The Truth

http://globaleconomicanalysis.blogspot.com/2008/09/congressional-leaders-stunned-that.html

"...Congress was stunned because Bernanke finally admitted the truth (or at least came closer to doing so). Congress ought to be reading blogs rather than listening to clowns like Paulson and Bernanke.

How many times have we heard Paulson the Parrot sing the praises of the strong dollar and the soundness of the US financial system?


...Earlier today Paulson has the gall to state "this will cost the tax payer less than the alternative".

No one bothered to ask why it should cost the taxpayer anything at all.

Furthermore, Paulson once again proved he needs simple arithmetic lessons. Shifting losses from those who should bear them (stock and bond holders of failing companies) to the taxpayers is not going to save the taxpayers a dime, rather it is going to cost them plenty, $1.2 trillion plenty as noted in US Taxpayer: A Giant Dumpster For Illiquid Assets..."

[TahitiNut]

19. Congress: "I'm SHOCKED there's gambling going on over there!!"

I've seen this act before.
:shrug:

[slipslidingaway]

20. UPDATE:

from Greenwald's post...

"UPDATE: Here is the current draft for the latest plan. It's elegantly simple. The three key provisions: (1) The Treasury Secretary is authorized to buy up to $700 billion of any mortgage-related assets (so he can just transfer that amount to any corporations in exchange for their worthless or severely crippled "assets") ; (2) The ceiling on the national debt is raised to $11.3 trillion to accommodate this scheme ; and (3) best of all: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency" .

Put another way, this authorizes Hank Paulson to transfer $700 billion of taxpayer money to private industry in his sole discretion, and nobody has the right or ability to review or challenge any decision he makes."

[leftchick]

28. that is so twisted and sick!

and I can already hear all of the Democratic Ayes! :(

[slipslidingaway]

33. And note the point made about the 700 billion at any one time...

http://globaleconomicanalysis.blogspot.com/2008/09/700-billion-bailout-proposal.html

"...Inquiring minds are also noting "The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time."

The idea behind the above statement is to allow for a continual dumping ground such that there will always be $700 billion in toxic garbage held under this program. As soon as any asset can be unloaded by the Treasury at cost, another toxic loan is eligible to be assumed on the books of the Treasury. This process can last for as long as two years..."

[Ichingcarpenter]

35. Knell before Zod....... I think its clear WTF this act is

Beatings will continue until Moral improves....... Zod has spoken.

FASCISM

[slipslidingaway]

42. Well of course then you reach a point where the beatings are too

much, unfortunately I think we still have a ways to go.

:(

[Peace Patriot]

40. This bullshit was written years ago, you can be sure--like the "Project for a New

(gulp) American Century" (PNAC)--with its designs upon Mideast oil and wish for a "new Pearl Harbor"--I think the bailout was written before the crash, and the crash was designed for the bailout.

Where are the documents and drafts for this one? On some burned hard drive?

Total, unmitigated looting of the American people. It was already bad, with a projected $10 TRILLION+ deficit over the next ten years--from the unnecessary, illegal, hugely expensive, genocidal, corporate resource wars, from no-bid contracts, from billions "gone missing," from corporate lootings (gas gouging, credit card usury, mass firings, golden parachutes, raiding pension funds) and privatizations of every kind, from insider thievery of every kind, and from multiple tax cuts for the super-rich. It was bad enough. It was terrible--and one couldn't think how we would ever recover. But this...THIS is nothing short of treason.

[slipslidingaway]

43. Consolidation of money and power into fewer hands is what

I've been thinking this past week. How could people in power, both parties, not have seen this coming, you are correct in thinking they most likely had some plans on the shelf to deal with the disaster...the taxpayer.


And there is no accountability for all that you have listed here.

:(

"Total, unmitigated looting of the American people. It was already bad, with a projected $10 TRILLION+ deficit over the next ten years--from the unnecessary, illegal, hugely expensive, genocidal, corporate resource wars, from no-bid contracts, from billions "gone missing," from corporate lootings (gas gouging, credit card usury, mass firings, golden parachutes, raiding pension funds) and privatizations of every kind, from insider thievery of every kind, and from multiple tax cuts for the super-rich. It was bad enough. It was terrible--and one couldn't think how we would ever recover. But this...THIS is nothing short of treason."


http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4046159&mesg_id=4046159

This was written in 2000...

"...God help us if the illiquidity spreading like a cancer in the current fixed income markets ever blossoms in full force. Of course the ultimate safety net can be found right on your IRS Form 1040..."

[fascisthunter]

21. Yeah, and I'm NOT Surprised Schumer would State such BS

Chuck, you had to know...

[MsLeopard]

23. Yes, and who could have ever expected

that terrorists would use airplanes as bombs (Condi, 2001)? I find it very hard to believe that members of Congress, of both parties, have so little insight into what is happening to global financial markets now. They have actively participated in creating it - through the "bought-and-paid-for" system of campaign finance we have. Stunned, my ass. They just have to pretend they are.

[orwell]

24. This is classic...

...disaster capitalism at its finest.

And the sheeple will nod, take on the saddle of onerous debt, and lose themselves in another few months of reckless consumption.

Bread and circus...

[nadinbrzezinski]

25. Critical difference from 9.11 to this

in this case the warnings that this was happening and that it is THAT SERIOUS started sounding over a year ago by plenty of economists who did have a clue... those in the Federal Reserve system et al, have been in serious denial all this time, but folks IN Wall Street have been on a borderline panic for months now

Will this plan work and stabilize markets? I hope it does

If it does not... 1929 will look like a walk in the park

But the other choice many would love round these parts it to do nothing.

Guess what happened in 1929 when they did nothing?

Oh and get off that fantasy that this was done on purpose by the way

Now here is what I want you folks to do.. MAN phones, and call congress

And BE READY TO TAKE TO THE STREETS

Just writing this on a board will get you nowhere, except maybe make you feel better

[earth mom]

26. I'd like to believe they are all as dumb as a bunch of rocks, but it's more likely they are all

in cahoots and are covering their own a$$es.

Hell, most of us on DU know the score and we are on the outside looking in. So I don't buy it that Congress is "stunned and shocked".

Puhleeze. :eyes:

[Ichingcarpenter]

29. They think the public are as dumb as a bunch of rocks- The Warnings have been out

there for 5 years at least.

[pleah]

30. Schumer is a traitor, remember Mukasey?

If they were doing their job, they would have seen this coming. Everyone else did and the ones who didn't, didn't want to see it coming.

Schumer can act shocked all he wants. :eyes:

[dgibby]

31. More of the same

Disaster capitalism, shock doctrine, and unfettered deregulation. We are soooooooo screwed!:grr:

[formercia]

37. Senator Charles E. Schumer, Democrat of New York.

Isn't he the guy who promoted Michael Mukasey for Attorney general? :sarcasm:

Everyone send Schumer a set of knee pads.

When is that lickspittle KAPO going to get a spine?

[Peace Patriot]

39. Throw Diebold, ES&S and all these 'trade secret' election theft machines into 'Boston Harbor'

NOW!

[EFerrari]

41. More theater. n/t