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 How McCain’s Grandstanding Sidelined the Bailout DealPosted on Sep 25, 2008By E.J. Dionne John McCain’s sudden intervention in Washington’s deliberations over the Wall Street bailout could not have been more out of sync with what was actually happening. He lamented that “partisan divisions in Washington have prevented us from addressing our national challenges.” But for days, bipartisanship has been the rule in this argument. Republicans and Democrats alike were highly critical of President Bush’s proposal to inject $700 billion into the financial system. Yet leaders of both parties were trying hard to negotiate an agreement with Treasury Secretary Henry Paulson. That’s why they were close to an agreement in principle even before the two presidential candidates arrived Thursday for the White House meeting that McCain thought was so important. House Speaker Nancy Pelosi and Minority Leader John Boehner normally fight about everything. But on Wednesday they issued a joint statement noting that “working in a bipartisan manner, we have made progress,” even if Boehner was having trouble delivering his party’s votes. And if McCain had been following the negotiations closely, he would have known that at times this week Senate Democrats worried that Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee, was too eager for a deal. Frank did not need McCain to make him bipartisan, and he grumbled that Thursday afternoon’s White House gathering was a mere “photo op.” Senate Banking Committee Chairman Chris Dodd, D-Conn., called it “political theater” that may have stalled the final agreement. President Bush himself was uncharacteristically forthcoming with concessions. In his address to the nation, he said he wanted to “ensure that taxpayers are protected.” That meant he had acceded to Democratic demands that the government get shares in the companies it rescues. He endorsed oversight mechanisms his administration’s original proposal lacked. He accepted an idea his negotiators had resisted fiercely: limiting what the financial titans who got us into this mess could pocket from this enormous package. If you doubt that McCain’s moves were about rescuing his candidacy rather than our economy, consider how his proposal to suspend the presidential campaign came about. McCain had just gotten off a phone call with Obama on Wednesday in which they discussed a joint statement of principles and McCain broached the idea of suspending the campaign. Obama said he’d think about it, but McCain didn’t give him time. To Obama’s surprise, McCain appeared on television shortly after the conversation to announce his unilateral pause in campaigning and a call for postponing Friday’s debate. This is bipartisanship? As for getting the presidential candidates to Thursday’s White House meeting, Bush’s lieutenants had been in discussions with McCain’s people during the day on Wednesday. Obama didn’t get his invitation from the president until around 7:30 p.m., just an hour and a half before Bush’s speech. This was an active intervention by Bush on behalf of McCain to box Obama into the photo op. Again, was this bipartisan? The simple truth is that Washington is petrified about this crisis and will pass something. There are dark fears floating through the city that foreign investors, particularly the Chinese, might begin to pull their billions out of our system. Scarier than the bad mortgages are those unregulated credit default swaps that the financier George Soros has been warning about. There are $45 trillion of those esoteric instruments sloshing around the global financial system. They were invented as a hedge against defaults on debts, but even the financial smart guys don’t fully understand their impact or how to price their real value. Fear is a terrible motivator for careful legislating, but it’s a heck of a way to bring about a lot of bipartisanship. McCain jumped into this game in the fourth quarter. Many of the players on the field, caked in mud and exhausted but determined as they approach the goal line, wonder why this new would-be quarterback has suddenly appeared in their midst. McCain could yet play a constructive role by rounding up votes from restive Republicans, particularly in the House. Oddly, the biggest obstacle to a bill may not be Democrats, but Republicans who refuse to go along with their own president. And—yes, there is an election coming—Democrats will be wary of going forward unless a substantial number of Republicans join them. But McCain’s boisterous intervention—and particularly his grandstanding on the debate—was less a presidential act than the tactical ploy of a man worried that his chances of becoming president might be slipping away. E.J. Dionne’s e-mail address is postchat(at)aol.com.
© 2008, Washington Post Writers Group
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Bush the Infallible
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Jump to Comments
By truthseeker4all, September 28 at 12:02 am #
@P.T.
Substantively, how is he [McCain] hanging things up, if he is?
I think the allegation goes something like this.
Some number of republicans in the House quietly opposed the modified bill, but for some reason, they didn’t inject their opposing views into the process (perhaps because they felt outnumbered). As far as I can tell, if McCain was asked to return to DC, it was by this small group (I believe Boehner was one of them).
By going to DC, McCain may have emboldened this silent group to throw a surprise stink bomb [by Boehner] into the process as everyone else was ready to sign on.
If nothing else, the presence of McCain and Obama was a distraction to those who were actively working on the plan, and by appearance, neither of them were adding any real value. By grandstanding and positioning himself to take credit for any future success, McCain’s involvement threatened the bipartisan cooperation of those who were actually working on it. Clearly, Democrats did not want McCain to ride in at the last minute and claim victory for doing nothing.
Report thisBy BobZ, September 27 at 6:33 pm #
The revolt over the bailout bill is centered around extreme right wing conservative Congressman from southern states who hate anything remotely related to the east coast or west coast. All they want are more tax cuts for the rich and for corporations. They are ideologues in the worst sense. They want to come up with a bill that actually rewards Wall Street rather than penalizes them. They have completely lost sight of the underlying crisis. All they see is an opportunity to push their far right agenda which would be catastrophic for America. What we are seeing is a full court press in the final months of the Bush Administration to make sure Barack Obama won’t be able to put his vision for America in place. Democrats need to be extremely wary of what is going on here and be prepared to vote against this bailout. Average Americans will be with them.
Report thisBy Purple Girl, September 27 at 6:57 am #
Why are you all Still Protecting Him?
Report thisIf you want to know how we got to this economic hell hole follow the crumbs backwards to one of Mac’s Seven Front doors. If his cronies have already devoured those- Just look over Johns’ Shoulder...Phil Gramm, Rick Davis,Black, Carly… don’t need to go back to far to see the DIRECT connection between John McCain and WallStreet Gambling Casino’s
And everyone keeps talking about Sarah’s two bit ‘Troopergate’ - One employee- shit Johns kneecapped Millions By Now- He’s been at it for about 26 yrs!
Someone better tell DICK to retieve all his minions from AK- they need to focus on Digging John’ Ass out of this Nation’s Biggest TREASON Case. Lest We forget how intertwined John is with the Oil Corps Too- Fucking US from all sides- wages, savings, Prices and debt. yep John’s an ALL AROUND GUY alright- Just not OURS!
John it would be best advise you try to avoid being visually or verbally linked with Wall Streets Woes right now- We are all getting Flashbacks to Keating 5 and Wondering How did you get out without a scratch again?Hmmm…
By mendez, September 26 at 2:15 pm #
Mr. Dionne, do you not understand that the majority of regular folks out here don’t want this bailout? Screw McCain but the bigger question is why Dems are bending over backwards to appease Bush? Why not demand a “Newer Deal” and put that money into an infrastructure work program, which we will need when unemployment hits 15%?
Report thisBy Max Shields, September 26 at 11:36 am #
E.J. Dionne and the other Obama/Dem shills (Eugene Robinson, et al)illustrate what happens when the house of cards collapses and the culprits are Dem and Repub “leadership”. The shills rush to support their guy from the other(s).
McCain may be playing coy, but Obama is clueless which is why Rubin (the other collusionist in the collape) can be assured that he’s got the ear of the Dem candidate.
The two parties ARE the PROBLEM and in some real ways the Dems own much if not most of it. While a tiny handful of Dems are progressive, the vast majority are either right-wing blue dogs or neoliberal elitists.
The mess is not so much the financial outcome but the corporate/political fascism which is the prime mover.
Obama is thoroughly part of that system. Only the delusional will pump him up as something he clearly is not - a progressive or populist.
Report thisBy mackTN, September 26 at 11:25 am #
(Unregistered commenter)
This was a setup. Bush summoning Obama to Washington probably was suggested by Rove so that McCain wouldn’t look like a fool if Obama were there, too. If I were Obama, I would have called in sick or suffered from plane problems.
That this politicking would take place during what they say is a looming disaster proves how desperate the Republicans are to keep the keys to the file cabinets. McCain would pardon Bush et al. The Democrats (well, I can’t be sure) might be willing to send him to Guantanamo with the rest of the terrorists.
Other more credible people than me have also started charging Bush with running a criminally negligent administration. He put this country in an Iraqi sinkhole, demanding billions every month, all the time chirping about the health of the economy. If Obama wins, I suspect Bush will search for immunity in another country before January.
Does the term pathological liar come to mind?
Report thisBy WR Curley, September 26 at 10:15 am #
(Unregistered commenter)
The best source out there in the non-specialist sphere for insights into this latest BushCo rip-off is the “Counterpunch” website. Highest recommendations, in particular, for recent postings by Pam Martens and David Estabrook. It’s easy to get lost in the blizzard of arcaca swirling around this mess...particularly since many of the debt instruments at risk are poorly understood by any but the tiny cabal of master swindlers who created them (most of whom have cashed out long since. Remember...the money didn’t vanish; it paid out to those who sold at the top).
Bottom line? Keep the faith and keep the pressure on your nominal representatives to resist the rush to plunder the commonwealth. If this bailout proceeds in anything like the form proposed by Paulson/Bernanke/Bush, there will be no liquidity whatever left in the public sector for any of the items on the social agenda - not health care, not education, not infrastructure, not social security, nothing.
Maybe that’s the point.
Warren Buffet recently purchased an equity stake in (bailed out) Goldman Sachs. In return for his largesse, he’s getting a chunk of brand new preferred stock proportionate to his stake. He gets paid first, with interest, when the company turns around. Sounds pretty good to me. Any Wall Street player unwilling to accept those kinds of terms has no business dropping his bastards on our doorstep.
Think about it. If a trillion-dollar public investment in the markets will return the system to profitability, we all might as well profit along with the pin-stripe crowd.
Panic? Even the most strident fearmongers out there are threatening nothing worse than a 2% slowdown of economic growth in the near term. We’ve seen worse.
Report thisBy P. T., September 26 at 9:55 am #
The debt swaps work okay when there are just a few defaults. But when nearly all of the real estate market tanks and there are a massive number of defaults, companies holding or insuring a lot of real estate debt can go under.
Report thisBy Riaz Merchant, September 26 at 9:20 am #
(Unregistered commenter)
One little noticed item in the news was the suggestion by some McCain handlers to defer the presdiential debate to next Thursday, on the day of the VP debate and move the VP debate to a future date.
An unprepared Sarah Palin in the VP debate (see interview with Katie Couric) has the potential to do great harm to McCain’s campaign.
Report thisBy lisemeir, September 26 at 9:02 am #
(Unregistered commenter)
LindaWest-- I’ve heard that recently-- that gramm-swapping was in part to blame for the whole mess. But I’m not sure I understand why that’s so key. Can someone clarify? The one thing I do know is that Phil Gramm is a (now “unoffical") adviser to McCain’s campaign. Maybe someone can clarify why gramm-swaps are all about?
Report thisBy P. T., September 26 at 8:54 am #
This article does not really explain what, if anything, about John McCain’s views is out of sync with the compromise that was being worked out. Substantively, how is he hanging things up, if he is?
Report thisBy thedailymccain, September 26 at 8:46 am #
Here is John McCain’s strategy for tonight’s debate.
http://www.youtube.com/watch?v=T0iIN1OSYSQ
Report thisBy Purple Girl, September 26 at 8:44 am #
As Clearly as we can follow the criminal activities of Dick Cheney through 4 decades, we can just as clearly see McCains for the same period of Time!
Report thisAl HIS Chickens have come home to roost on HIS Doorstep.Lest we forget that McCain was not just a whore for Wall Street but also for the Oil industry.
Oh John You have not only disgraced our country ,but done a grave disservice to every person who has & Does wear our Uniform- Benedict Arnold did not cause such Devastion to our americna Way of life ( HE was actually a Hero Befroe he Turned Coat- I cna not say the same for YOU).
His ‘Military experience’ has been proven to be nothing more that a story line- but his time since has bore out his true colors- and they are NOT Red, White & Blue!
Who immeidately claimed Iraq was resposnible for the Anthrax attacks - even though it was already confirm to be one Of OUR Military Strains...You McCain. which led US into a war for no reason costing Untold Numbers of lives- literally and figuratively. Cost US not only the Surplus we had at the end of the Clinton years- but about 4 TRILLION more in Debt,to Whom do we owe Johnny boy let’ sask your staff & advisors. those Who Swindled Foreign investors by FORGING OUR SIGNATURE as co - signor on these Fraudulant Loans and Now want US to pick up the tab- not just for Corps residing here- but Foreign Criminals Banks TOO!
to add insult to Injury - and he must be held responsible for this Naitonal INJURY- He Names the most inexperienced, ignorant and inept as His possibleSuccessor- During a Time of 2 Wars, Numerous conflicts with other Froeign powers and Economic Catastrophe- this is what someone Who Puts ‘Country First’ Would possibly Do? NO!!!!!How many Mor eActs of Brazen TREASON will we allow this man to ge taway with. When it comes to Punishing for High Crimes Mr. Benedict McCain should be Standing Right next to Dick Cheney on that Wall!! Keating 5, Iraq War, Oil Prices (windfall profits) and Now our Economic beheading...Follow the Blood Stained Dots they also lead to mcCains Doorstep ( at all his numerous Residences)
Oh an By the Way Mac, Michigan LOVES Ya for your die hard Patriotism when it comes to buying Cars too!
By felicity, September 26 at 8:36 am #
Before McCain departed for DC yesterday to help ‘solve’ the financial crisis, he was asked if he’d read the latest two-and-one-half page rendition of the bail-out. No, he hadn’t. (I figure that’d take about 15 minutes of his time.)
Safe to say that McCain intends to ‘play’ president but has no motivation to actually be one - which also might explain his choice of Palin as vice.
Report thisBy Alan, September 26 at 7:08 am #
(Unregistered commenter)
Disastrous
Disastrous war
Disastrous economy
Disastrous disaster management
Enough!
Report thisBy LindaWest, September 26 at 6:46 am #
The 45 trillion (can I possibly have heard that right?) in unregulated credit default swaps are a specific nightmarish problem caused by specific actions by specific people. On purpose. With a specific piece of legislation. Led by Phil Gram, in 2000. Call these things what they are, gramm-swaps, and get ready to open your wallet.
Report thisBy Inherit The Wind, September 26 at 6:45 am #
Yeah, John McCain is really showing us his leadership abilities.
1) He panics
2) He flies off the handle
3) He cannot multi-task
4) He only used the White House summit as a photo op
5) He made the dissension in the House worse
6) He didn’t lead HIS party forward in either house. Or backwards, either, for that matter. He left them hanging.
7) He undermined his party’s president, the leadership of both parties in the two houses, and the American people.
Meanwhile....
President Bush himself was uncharacteristically forthcoming with concessions.
E.J., that can be explained in 2 words: SIGNING STATEMENT! You usually pick up on stuff like that better. See, it doesn’t matter to Bush what’s signed as long as it’s signed. Then he just writes a signing statement to say it means whatever he damn pleases, probably giving Paulsen the exact powers Paulsen originally asked for--Absolute Dictatorship of the economy with NO recourse!
Report thisBy Hammo, September 26 at 6:15 am #
The scare tactics and urgency have been seen before from the current administration: The invasion of Iraq, The Patriot Act, etc.
It is like a re-run of a TV show script.
It is good to see the FBI getting into the Wall Street situation. Maybe the day will come soon when they will look into other misconduct associated with the current administration.
Related to this ... the article:
“Give up Your Cash, or You’ll Lose it in a Crash”
PopulistAmerica.com
Sept. 26, 2008
http://www.populistamerica.com/give_up_your_cash_or_yo ull_lose_it_in_a_crash
Report thisBy Lj in MD, September 26 at 4:56 am #
(Unregistered commenter)
I can just imagine the meeting….”we only have 3 months left in office, our shill, McCain, is going down in flames, we need to score big right now!” The “plan” they came up with….take all available profits out of the investment and banking sectors, put thousands of Americans out of their homes and endanger the savings and retirements of millions or other Americans. Now for the big score….the whole system will fall apart and as it does, we get those same Americans to pay us an additional $700billion for screwing them in the first place. The genius bit was adding that any of the decisions and policies made by these neo-con, economic rapists will be above any laws and they can not be punished for the horrific results that will sure ensue. Thus, they can hand out $billions like Halloween candy to their cronies and we can only watch and scratch our collective heads in amazement. The problem….we have to ram this down their throats before they have a chance to read it. We have to scare the crap out of them with details of the pit we will all fall into if this money and unlimited power is not approved immediately. We have to make it “unpatriotic” to not go along. That strategy worked for the “Patriot” Act which allowed the administration to avoid that pesky constitution of ours and to spy and imprison on our own citizens. It worked for getting us all lathered up to invade Iraq. And the only ones who have profitted are Halliburton (and subsidiaries), oil companies and contract mercenary companies.
Report thisMcCaine’s latest strategy has not only derailed a bipartisan effort to arrive at a bailout (whether that is a good thing or not) with at least some conditions, it has allowed him to:
1) Postpone the P-debate or at least set him up to look like a hero when he rides in at the last minute crying “I was off fighting corruption in Washington and reforming our financial system, so sorry, I am not prepared to debate but we can have a nice town hall meeting if you like”.
2) He has suggested that the VP-debate be postponed indefinitely. This was the most feared event on the GOP calendar, as Barbie’s interview with the GOP friendly Couric demonstrated.
3) Set himself up to swoop in at the last moment to “save the day” as you pointed out. He will sit on the sideline and say nothing then deliver republican votes at the last minute.
He is playing games with my job, my money, my retirement and my solemn right to cast a vote in a fair election. But I doubt if he cares very much.
By hippy pam, September 26 at 4:12 am #
The GUBMINT GIVETH......and the GUBMINT TAKETH AWAY..
Report thisBy Fahrenheit 451, September 26 at 1:56 am #
Well, by accident, maybe McCain being a spoiler actually did a good thing. According to the guy below (see Bio) this giveaway may be the worst possible choice. I have felt this crisis should run it’s course and let the chips fall where they may. Either way were screwed, but the bailout/giveaway is the worst of the screw jobs. I’ve supplied a link to his interview (Dr. Hudson) and it’s a must see IMO.
Bio:
Dr. Michael Hudson is a Wall Street financial analyst and historian. Dr. Hudson was Dennis Kucinich’s Chief Economic Advisor in the recent Democratic primary presidential campaign, and has advised the U.S., Canadian, Mexican and Latvian governments, as well as the United Nations Institute for Training and Research (UNITAR). A Distinguished Research Professor at University of Missouri, Kansas City, he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire and of Super-Imperialism and of The Myth of Aid .
http://therealnews.com/t/index.php?option=com_content& task=view&id=31&Itemid=74&jumival=2408&upda terx=2008-09-26+03:59:59
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