The Bailout Bill was a Roveian style setup of Democrats! ...Let me lay it out for you

[Kip Humphrey]

WHAT HAPPENED:
Chinese banks stop lending to American banks.

Paulson informs the White House the Fed needs to inject $630B in liquidity into the credit market to offset the loss of Chinese short-term lending.

Paulson & the White House go to Congress asking for $700B because its a "very big number" wrapped up in a 3 page proposal that is obviously nothing more than a naked power grab.

The Democrats react, scurrying to "improve" the White House bill so as to offer protections and reduce the fascist aspects of the bill. They were totally sucked in at that point.

Meanwhile, the House Republicans sat quietly, feigning support for urgently needed action.

Then, it seems a deal has been worked out until, suddenly, McCain is brought in and the House Republicans seemingly "revolt". The RNC lockstep House Republicans who ALWAYS vote by directive suddenly are unruly? Riiight.

10 minutes BEFORE the House vote, Bernenke released $630B liquidity into the capital market revealing that the $700B Bailout Bill WAS NOT NEEDED!

Minutes later, Pelosi, obviously angry, uncharacteristically lashes out at the administration and the House Republicans from the House floor just before the floor vote. IMO, Pelosi knew in those minutes that she and the Democrats had been had. With all of the world watching, she had little left to do but deliver on her promise of 60% Democratic votes and rub the Republican noses in the shit that is our economic condition. So, she absolutely slammed the Republicans in that moment when she would otherwise have praised their bipartisanship. Uncharacteristic for Pelosi? YES! But this was the only way she could hope to kill the bailout bill at the last minute... and it worked, or at least the House Republicans "claimed" her speech killed the bill.

I don't believe Boehner ever "had the votes" to pass the bailout. I don't think Boehner ever intended to have the votes. I DO believe Boehner had exactly the votes he wanted and intended. This was a setup to drape the Democrats in an extremely unpopular $700B taxpayer bailout (polls showed 80% of the public was against this bailout). The "unelectable" Republicans and McCain became populist saviors of hard earned taxpayer money while being seen as at odds with this failed and unpopular administration.

Think about it:
1. This is the RNC run, Rove-style Republicans, folks.
2. THE $700B WASN'T NEEDED.
3. Pelosi would NEVER have delivered that speech otherwise.

WHAT NOW?
The Democrats need to unglove and rally around REAL financial market and banking reforms. My take on what's needed: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4123458&mesg_id=4124942

[ixion]

1. And it was a document written by neocons

that should have been their first clue.

[Supersedeas]

15. and McGrumpy can decide what to do with wayward Repigs

[JonLP24]

2. Plus Bush is on TV right now saying the economy is dependent on this

And since when has he been an expert on what is necessary for the economy.

[elizfeelinggreat]

3. That $630 billion the Fed put in

threw me for a loop also. That smells bad.

[pleah]

4. K&R I agree, it was a setup. I also agree with Dennis Kucinich,

that it was the "biggest transfer of wealth in the nations history"!

[harun]

6. I stand with DK on this issue. He is right, as usual.

It is not a coincidence that we get Mr. Danger (B*sh) coming out of his cave before every election trying to scare the world. Happened in 2004, 2006 and now 2008.

[OhioChick]

22. Agreed. n/t

[NoSheep]

5. You think the way I think. How could anything out of jr's administration be anything

but a con game. Glad someone around here is "sensitive" enough to know when they're being shafted. I'm amazed at all the distress around here. "The sky is falling, the sky is falling"-this message brought to you by the administration who sold you the Iraq invasion.

[OmmmSweetOmmm]

7. I am still waiting to hear MSM mention the money the Fed put into the system.

Has anyone heard about it on the teevee?

[MelissaB]

11. I've had the tv on all morning and haven't heard a thing. I'm sure I just missed it.

:hi:

[OmmmSweetOmmm]

18. Here's a link to two threads on it.

The second link also has a link the Bloomberg news report on this

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4126010&mesg_id=4126010

and

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4126030

[MelissaB]

21. Thanks! I just saw the first one because it just went to the greatest.

I'm hoping Michael Moore, Raw Story, or Huffington Post with take the ball and run with this and make the msm cover it.

Edited to say: I'd also like to know if Pelosi knew this before the vote.

[OmmmSweetOmmm]

24. This is what the OP claims on this thread. That Nancy knew and she deliberately

blew it with the Repukes by talking about the Shrub administration failures, before the vote. Hence, a Rovian move. ;)

[MelissaB]

14. I wish someone would start a thread explaining this and demanding the msm cover it. n/t

[OmmmSweetOmmm]

17. There is another thread where this was reported and I believe there were comments, let me look.

[pnwmom]

8. Okay, I'll bite. So why did Bernenke release the $630 billion

when he did?

Was it a mistake in the master plan? Or did it serve some other purpose?

[Locrian]

9. terrorism

People dont realize what happens in disaster / shock capitalism is scary. And they easily panic as you can see.

Say there is an intruder with a knife at your loved ones throat. You have a gun on them - you DONT give them the fucking gun!!!


This bailout is the final take over.

[Loge23]

10. A painful and necessary correction

Like many others onboard here, the market turmoil has cost my family dearly.
But the fact is, we were living in a bubble in WS.
The injection of the $700B bailout, IMO, would not prevent the market from eventually leveling out anyway.
The only legitimate "crisis" here was liquidity. Obviously, the liquidity situation has arisen from the irresponsible transfer of real money to the wealthy (check CEO salaries, WS bonuses, speculator profits, etc.) and the replacement of real money with paper (collateralized debt, credit swaps, you name it, etc.).
This had to be reconciled eventually, particularly with such a large part of it financed aboard.
So here we are.

The only right thing to do, IMO, is:
1) Hold the guilty accountable. Much of the vanquished real money has, in effect, been stolen. Even worse, much of this larceny has been officially sanctioned by our current government (deregulation, etc.). It's time for every citizen to understand this. If we can't arrest the theives, then at least let us vanquish these people from positions of responsibility - starting with Paulson.
2) Do not respond to Paulson or any of the current administration's alleged "fixes". Wait them out, and then rebuild our financial institutions the correct way.
3) Do consider an allocation of funds to set up a mortgage reconciliation mechanism which should be designed to prevent as many foreclosures as possible. This will only apply to people actually living in the homes, not speculators. This is costly and will essentially absolve irresponsible behavior on the part of some homeowners. But the horse has left that barn. By stabilizing the RE market, we can create a pathway for such owners to eventually sell and trade down.
4) Tell the story. Obama is not seizing a golden opportunity here to explain the real issues and take a firm stand on combating greed. Someone should.

[Barack_America]

12. What Bernake did does not replace a bailout.

Also, Chinese banks have denied the lending stop to US banks.

[chill_wind]

13. I'm sorry Kip, but I call BULLSHIT.

This was a miscalculation and failure of Democratic leadership every step of the way, starting on DAY ONE.

Crisis: Day One...what if Nancy & Harry had said:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4113135

There's a point where we have to stop letting them off the hook. In a few short months, Rove just isn't going to be a convenient excuse.

[LaPera]

16. Why is that, Rove's slimy effective politics will always be a strong influence with

McCain and the republican party. (He's on board the McCain bus as it is now).

Dems should vote NO on this fucking corporate bail out...it's complete and total bullshit....The urgency is more Bush bullshit so the bill can't be rewritten to truly help out the people, as opposed to helping the corporations who depend on our tax dollars for their corporate socialism.

Call congress and tell them to vote NO and take the time to write a better bill and don't be bulldozed by Bush AGAIN!

[chill_wind]

19. The leadership of both parties were just doing business as usual.

Bailout follows the 10 normal principles for how our government functions

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4130717

I defy anybody to disprove it.

[Kip Humphrey]

20. But I agree the Democratic leadership failed miserably..."they were had"...

This "crisis", falling at the end of the quarter, was totally manufactured:

1. The SEC chairman can unilaterally rescind the mark to market reporting requirement as a stop gap, thereby forestalling 3rd Qtr bank margins collapsing. No Congressional intervention required.

2. The FED exercised its duly authorized power to inject the $630B into the credit market forestalling a credit liquidity freeze. No Congressional intervention required.

The Democratic leadership was totally suckered and desperately needs replacing with leadership that can understand the RNC and is unafraid and smart enough to go toe-to-toe with the Republicans instead of being played for fools all of the time. This is all out political warfare and the Democrats have a B-team leading them that doesn't have the grit to double down when they need to.

[MindMatter]

23. Look, people, Rove isn't as smart as all that

This whole thing is a disaster for Bush and McCain. It all reflects on Bush's leadership and policies.

There is no upside for the Hose GOP killing it. While the public viscerally hates the notion of a Wall Street bailout, they also hat the ides of their banks failing or their pension plan turning up missing. There would be absolutely no upside for Rove doing something like this.

Please stop with all the Rove s zen master crap.

[kster]

25. Right

:thumbsup: