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 The Plague of Potomac FeverPosted on May 2, 2008By David Sirota If any publication was going to document the sickness known as Potomac Fever, it was going to be The Washington Post. Last month, the newspaper penned a front-page dispatch headlined “Housing Accord Puts Builders First; Strapped Homeowners Offered Little Aid.” It described congressional leaders agreeing to “provide billions of dollars in tax rebates to the slumping home-building industry while offering little to homeowners threatened with foreclosure.” The bill proposes $6 billion in corporate tax cuts, while “families who cannot afford to repay their home loans—the group at the heart of the mortgage meltdown”—would get less than 2 percent of that for “counseling services.” Next to this story was a report labeled “Sweeping Bills Passed to Help Homeowners.” It told of Maryland state lawmakers “toughening oversight of the mortgage-lending industry and establishing pre-emptive measures to help people at risk of foreclosure.” The newspaper page was a scientific proof, with states as the control. They show what minimally healthy democratic systems do: help ordinary people. That’s different from a Congress ravaged by Potomac Fever—the disease inside the Washington Beltway inhibiting emotions like compassion and integrity. As the housing crisis intensifies, this malady is getting worse. For example, states like Oregon are cracking down on predatory lenders, while North Carolina and Minnesota are the latest to regulate abusive mortgage fees. Yet, Congress—debilitated by the fever—does nothing to halt banks’ usurious practices that originally created the mortgage meltdown. State legislators are demanding aid to borrowers. Delegate Dereck Davis, D-Md., told The Washington Post that homeowners “need a federal bailout from Congress.” But in the land of Potomac Fever, bailouts are for financial firms. Congressman Barney Frank, D-Mass., in fact, told newspapers “it’s irrelevant” how many homeowners—if any—are ever helped. According to The Hill newspaper, he is pushing industry-backed legislation that would federally guarantee banks’ outstanding mortgages for modest write-downs. The proposal deliberately avoids forcing banks to freeze interest rates. Because the plan is voluntary, lenders “will just dump their worst loans into the system,” says economist Dean Baker. The Congressional Budget Office adds that the proposal focuses not on rescuing homeowners, but on “shift[ing] the risk involved in mortgage losses from the current lenders and investors to taxpayers.” Such virulent strains of Potomac Fever have many causes. One is the proximity of lawmakers to constituents. Many state representatives serve part time and are not career politicians, meaning they have authentic connections to local communities and therefore often better reflect public priorities. By contrast, professional lawmakers in Washington are insulated from real-world pressures by six-figure salaries, security sentries and servile staffers. Campaign contributions are also a culprit. Though industries certainly influence state legislators, Big Money has a tougher time controlling 50 separate state capitals than one U.S. Capitol. And, boy, is the money flowing in D.C. Reporting on the housing crisis, Politico.com says “campaign donations from affected industries have spiked [and] lobbyists also are making money off the misery.” Banks pleading poverty somehow have plenty of resources to buy influence. Finally, there is the filibuster—a tool that does not exist in state legislatures. Coupled with the U.S. Senate’s undemocratic structure giving Delaware as many votes as California, the filibuster allows 41 politicians representing just 11 percent of America’s total population to stop almost anything. Corporate lobbyists and their Senate allies have used the filibuster to obstruct legislation representing the public’s economic interests. Can Potomac Fever be stopped? Maybe not, considering most inside the Beltway are so afflicted they have lost the capacity to even see it. Then again, the more bold actions states take, the more ill Washington will look. Perhaps the embarrassing contrast can cure the plague. David Sirota is the best-selling author of “Hostile Takeover” (Crown, 2006). He is a senior fellow at the Campaign for America’s Future and a board member of the Progressive States Network, both nonpartisan research organizations. His daily blog can be found at www.credoaction.com/sirota. © 2008 Creators Syndicate Inc. TAGS:
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Honduras’ Top Court Refuses to Reinstate Zelaya
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Jump to Comments
By PatrickHenry, May 4, 2008 at 7:46 pm #
I agree.
If a private business deal between a bank, mortgage company and private citizen goes south, too bad. I as a taxpayer do not want my tax dollars funding bad business.
Report thisBy felicity, May 4, 2008 at 6:52 pm #
I wonder if the beltway poobahs realize that when America is a third-world nation, which it will be at the rate they’re going, they’ll be third-rate politicians.
Report thisBy G.Anderson, May 4, 2008 at 2:23 pm #
I remember when the Berlin Wall fell, and East Germany was freed.
There was a sense that we were living in historic times, and that the world would be a much different place when it was over.
The same thing is happening now, because the great engine driving the U.S. economy, consumerism is dying along with the middle class.
When it’s gone the U.S. will no longer be a superpower, with the money to bully the world with it’s military might.
How did it happen, Corporate America bought our government, and together they looted this country, down to the bone, and now American’s don’t have two dimes to rub together.
Yes, Mr. Bernake and the rest of them can rescue Wall Street, and pump billions into the economy. Yes they can save the banks, but ultimately who will they be saving those banks for?
Investors from elswhere?
Each time a family looses a home, or has to declare bankrucpy under the new bankrupcy laws that they put in place, we can see America sinking. And there are millions upon millions of American’s accoss this country that have lost their grip on a secure economic future.
Why, because of what’s been done to them by those very same banks that are being propped up with tax payer money.
Report thisBy Margaret Currey, May 3, 2008 at 3:30 pm #
(Unregistered commenter)
Aghrabusiness has caused some of the food problem, everyone was told raise corn so the grain agra business changed to corn.
Willie Nelson used to sing about the poor farmers, but no more because it is a business.
I heard that a big business that sells seeds overseas wants then to use their seeds never mind that the climate over in the middle east is different from over here and they do have less rivers to draw water from.
But things have to reach critical mass before anything is done, don’t people realize that people over there that are hungry will effect us as well!.
Report thisBy yours truly, May 3, 2008 at 3:15 pm #
(Unregistered commenter)
There’s A Cure For Potamic Fever
“Which is?”
“We elect a president who’ll end the Iraq War, negotiate with Iran plus turning things around here at home.”
“And then what sort of world?”
“It’ll be up to us.”
Report thisBy Tom Doff, May 3, 2008 at 2:23 pm #
Sirota has no idea how absolutely right he is about ‘Potomac Fever’.
A recent scientific study has revealed that there is a viral-like worm found only in Potomac river water, which, once ingested by a human, settles in either the anal or cranial area of the body.
These worms have a strong attraction to each other, and the determination of whether they settle in the brain or the anus seems to be random. However, once settled, and having taken over all the surrounding human tissue, they yearn for each other’s company, and thus fight, and succeed, in rejoining each other.
It seems to be a toss-up as to whether the cranial worms and their surrounding tissue succeed in rejoining with the anal worms, or vice-versa, but within a few days of drinking Potomac water, the whole process is complete.
This explains D.C.
Report thisBy PatrickHenry, May 3, 2008 at 11:24 am #
More on Palfrey.
http://www.democraticunderground.com/discuss/duboar d.php?az=show_topic&forum=389&topic_id=3233420< /p>
starting with:
http://www.thesmokinggun.com/archive/years/2007/030 7071palfrey1.html?link=eaf
Can someone say independent counsel?
Report thisBy Leefeller, May 3, 2008 at 11:10 am #
Death of convenience, truth not to be
reality is hidden, for none to see
We will never know for that is the plan.
Report thisBy PatrickHenry, May 3, 2008 at 10:45 am #
The media has been silenced, but too many know.
http://www.opednews.com/articles/opedne_gustav_w_07 0524_dc_madam_scandal_wid.htm
Report thisBy Leefeller, May 3, 2008 at 10:43 am #
Accountability being added to the list?
Report thisBy PatrickHenry, May 2, 2008 at 8:26 pm #
This is exactly why Ron Paul was so feared and thereby “closed out” of the media even with his debate wins and fundraising records. “They” simply could not give him the slightest chance.
Report thisBy Terry, May 2, 2008 at 6:33 pm #
(Unregistered commenter)
In this day and age with very good internet conferencing, etc. Why not require that US Congress members “work from home”. They do not need to live most of the time in Washington DC to do their jobs.
This would make it hard for lobbyist to get to them and make them far more involved in the daily lives of their constituents.
Report thisBy David, May 2, 2008 at 3:10 pm #
(Unregistered commenter)
It’s more of an intoxication. Members of congress get continually high on the attention paid to them by the lobbyists. They have staff that flatter them. They have free health care, food, postage, transportation, and god knows what else. They are stoned on politics. The only cure is publicly financed campaigns for ALL FEDERAL, STATE,AND LOCAL races. Without that, expect more stoned pols stumbling around with one hand in their pants and the other in yours.
Report thisBy Purple Girl, May 2, 2008 at 11:08 am #
Are we supposed to get excited becasue the private bankers ahve lowered interest rates for their Subsidiaries- Their Profiteer Banking Buddies- their spawns.
Report thisIt means Nothing to me- where is the lower interest rate on my Credit cards- Why doesn’t the at interest rate me I Can borrow at a 2% rate?
Why is my credit card rates only going Up- even though I pay on time and above the Minium?
Why cut New Homebuilder Co’s a Deal when Homes are not moving..
What the hell does this do to the Debts these Gamblers ahve already incurred- Which WE never Co signed those Loans in the first place. We would have never Borrowed from such Regimes of the ME Nor China ahd we been consulted about the debt we and our children are expect to repay! Frankly I think these Con artists should be required to repay their own gambling Debts to the foreign lenders- a pound of flesh may be required once we retrive what they Owe US. Place their children on the Global Auction Block!Also We never sold any property in this country- Foreigners got Conned with the ‘Swamp land Deal’- that bridge in Brooklyn is still Ours!
We shouldn’t be sending our Armed Service personnel over to the ME nor our Athletes to China- We should be sending ‘investment Bankers’!!!
By DennisD, May 2, 2008 at 10:29 am #
(Unregistered commenter)
We can start by calling campaign “donations or contributions” what they are “reciprocations”.
No one is giving any money they don’t expect to get back exponentially from the people they buy.
It’s up to us to enact term limits on our elected thieves, we can’t expect them to jump off their own gravy train. Vote all incumbents OUT every two, four or six years and we may begin to see real change.
Public disservice wasn’t meant to be a full time job.
Report thisBy KISS, May 2, 2008 at 8:50 am #
If not able to be enacted by a crooked supreme court than voters must not re-elect the incumbents.
Report thisThe amount of money showered into the campaigns of the pols is staggering. And now I read that luxury autos leased by congressman is paid for by us tax-payers…there is no shame with our elected folk. Now we are in a pickle over our dwindling food supply because agri-big business wanted to ease the pain at the pump..more hooey and profits for the giant agri-big business.When hundreds of lobbying dollars bring in million of dollars the ratio is easy to see why it works so well.
Potomac Fever is now an epidemic.