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“Decision Point: Is it a good idea for me to land on an aircraft carrier in a flight suit with a sign that says ‘Mission Accomplished‘? Key Decision: How is it not a good idea?” On the announcement that former President Bush’s forthcoming memoirs will be called, um, Decision Points, the wags at the Gawker crime lab have some fun with Photoshop. (Speaking of decision points, I will concede that it’s very smart of the GOP powers-that-be to wait until the week after Election Day to remind America of the Dubya years.)
 “ ‘Today’s the decision day. I wish it weren’t the case,’ said Rep. Barney Frank (D-Mass.).” Despite the apparent attempt by divider-not-a-uniter John McCain to kill a compromise he hadn’t even read last week, the Dubya White House and Congress hold their respective noses and come to agreement on Paulson’s $700 billion bailout plan, with debate in the House starting today. “ The proposed legislation would authorize Treasury Secretary Henry M. Paulson Jr. to initiate what is likely to become the biggest government bailout in U.S. history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates. The plan would give Paulson broad latitude to purchase any assets from any firms at any price and to assemble a team of individuals and institutions to manage them.“
As I said here, I’m not all that happy about the nation having to subsume the risk, and ride to the rescue of, the many banks and Wall Street types that profited massively from these obviously suspect mortgage deals. But, what else is there to do? As with so much else occurring over the past eight years, it befalls us now to clean up the mess left by the free market fundies of late. I just hope we learn something from the economic consequences of this latest binge of free-market fraudulence, before they grow too dire. To wit, whatever the corporate-funded right tells you about self-regulating markets, we need, and will continue to need, real refs on the field.
Update: Uh oh. The bailout compromise dies in the House, prompting the Dow Jones to swiftly tank 700 points. “The measure needs 218 votes for passage. Democrats voted 141 to 94 in favor of the plan, while Republicans voted 65 to 133 against. That left the measure with 206 votes for and 227 against.“
As the TIME article linked above noted before the vote, “the candidate with the most riding on Monday’s vote is McCain, who backed the concerns of conservatives in the House over the initial agreement…[I]f a majority of the House Republicans don’t vote for the measure, McCain could lose political face. ‘If McCain cannot persuade them, it is hard to portray him as a leader,’ said Clyde Wilcox, a political science professor at Georgetown University.” So, that’s the silver lining, I guess. But the bad news now, alas, is considerably worse.
So, apparently Rep. Chris Cox (R-CA), Dubya’s new pick to head the SEC, is — wait for it — yes, yet another right-wing freakshow, this time of the corporate stooge variety. “Mr. Cox – a devoted student of Ayn Rand, the high priestess of unfettered capitalism – has a long record in the House of promoting the agenda of business interests that are a cornerstone of the Republican Party’s political and financial support. A major recipient of contributions from business groups, the accounting profession and Silicon Valley, he has fought against accounting rules that would give less favorable treatment to corporate mergers and executive stock options. He opposes taxes on dividends and capital gains. And he helped to steer through the House a bill making investor lawsuits more difficult.”
“‘There is a growing sense of frustration with the president and the White House, quite frankly,’ said an influential Republican member of Congress. ‘The term I hear most often is “tin ear,” ‘ especially when it comes to pushing Social Security so aggressively at a time when the public is worried more about jobs and gasoline prices. ‘We could not have a worse message at a worse time.’” The WP wonders aloud if Dubya’s already in lame duck territory. One can only hope. Update: Dubya pushes back.
In a “major shift in legislative strategy” aimed at preserving Dubya’s ill-advised privatization plan, the White House turns Social Security legislation over to House Ways and Means chairman Bill Thomas. “The California Republican saved President Bush’s tax cut in 2003, [and] has never lost a vote on the floor…Thomas, a mercurial lawmaker and former college professor who relishes a challenge, ‘wants to get in the game,’ whether or not the GOP leadership wants him to, said one corporate lobbyist with close ties to House leaders.“
I missed Dubya’s press conference last night — I taught my two last sections of the term, then headed for an arts fundraising shindig downtown (where I picked up a celebrity sighting in Chiwetel Ejiofor) — but, frankly, it doesn’t sound like I missed much. “With two in three Americans disapproving of the way Bush has handled Social Security, many political observers thought it would be prudent for Bush to cut his losses and negotiate a bipartisan compromise on Social Security…Instead, Bush held a prime-time news conference and doubled down on his bet.” Dubya tries to regain the Social Security initiative by declaring he’ll cut benefits for everyone but the poor. Privatization and lower benefits? Hey, what a deal!
“[F]or many investors Thatcher’s plan has fallen flat. Many investment funds charged huge commissions and fees, leaving contributors worse off than they would have been in the state system. The stock market collapse four years ago compounded their losses. Meanwhile, many private pension plans have gone bust, after companies drained those plans to pay off rising debts.” As England’s experience since Margaret Thatcher suggests, Dubya’s desired privatization of Social Security will likely cause more problems than it solves. (Somebody tell the nation’s business associations.)
“He who controls the present, controls the past. He who controls the past, controls the future.” Or is quoting Orwell too shrill? Well, you tell me — A coalition of women’s groups are blocked from holding a forum on Social Security at the FDR Library in Hyde Park because none of the attendees wanted to support Dubya’s ill-conceived privatization plan (Two Republican representatives were invited to speak — both declined.)
I’m just going to go out on a limb here and say that, despite the lies of Brit Hume and FOX News, ole FDR himself would probably have agreed that dismantling one of his most enduring achievements so that Dubya’s Wall Street cronies could pad their wallets is a lousy idea. (For what it’s worth, FDR’s grandson agrees.) At any rate, the new head of the National Archives, Allen Weinstein, is trying to mitigate the damage. And, well he should, for after all: “Weinstein has been on the job for six weeks. Several historical organizations opposed his selection, fearing he would politicize the archives. Bush removed the previous archivist without providing a reason to Congress.”
“Fortune 500 companies that invested millions of dollars in electing Republicans are emerging as the earliest beneficiaries of a government controlled by President Bush and the largest GOP House and Senate majority in a half century…Bush and his congressional allies are looking to pass legal protections for drug companies, doctors, gun manufacturers and asbestos makers, as well as tax breaks for all companies and energy-related assistance sought by the oil and gas industry.” In the stating the obvious department, the Washington Post discovers the Republicans are in the thrall of corporate power.
While the GOP may have bent the rules to facilitate passage of the ANWR drilling bill (set for a vote today), it appears they face a Senate shutdown by the Dems if they keep pressing on Dubya’s wacko judicial appointees. And why not? Dubya has revealed he’s not going to relent on Social Security PSAs, despite their unpopularity, and he continues to appoint controversial right-wing neocons like Paul Wolfowitz to top positions (in this case, the World Bank.) If Dubya and the Right don’t want to compromise, then we Dems shouldn’t play ball. It’s 1993 all over again. (That being said, it’s probably wise of Reid to keep legislation “supporting our troops” out of the boycott…FOX News would have a field day with that one.) Update: By a 51-49 vote, the Senate opens ANWR to drilling, with Dems Daniel Akaka, (D-HI), Daniel Inouye (D-HI), and Mary Landrieu (D-LA) putting the GOP over the top.
Update 2: Slate‘s Fred Kaplan has more on the Wolfowitz pick.
Update 3: Conservative George Will warns against GOP tampering with the filibuster rule.
“So what does the bill do? It makes it harder for average people to file for bankruptcy protection; it makes it easier for landlords to evict a bankrupt tenant; it endangers child-support payments by giving a wider array of creditors a shot at post-bankruptcy income; it allows millionaires to shield an unlimited amount of equity in homes and asset-protection trusts; it makes it more difficult for small businesses to reorganize while opening new loopholes for the Enrons of the world; it allows creditors to provide misleading information; and it does nothing to rein in lending abuses that frequently turn manageable debt into unmanageable crises. Even in failure, ordinary Americans do not get a level playing field.” Salon‘s Arianna Huffington ably dissects the GOP bankruptcy legislation currently making its way through Congress. Update: It passes the Senate, with the help of 18 Dems. For shame.
“We’ve now got this huge fight over a sideshow,” Graham said during a meeting with Washington Post reporters and editors. “It’s always been a sideshow, but we sold it as the main event.” To the White House’s consternation, Senator Lindsey Graham (R-SC) argues for sidelining Dubya’s private accounts in favor of a Social Security compromise. Well, let’s make sure they’re well off the table before we talk.
“‘The large deficits and apparent inability of Republicans to constrain spending has made it impossible for sensible folks to advocate’ big tax cuts, said Kevin A. Hassett of the conservative American Enterprise Institute. ‘Sooner or later. government has to pay for everything.’” In the face of rampant Dubya deficits, the GOP strains toward a moment of clarity and takes further tax cuts off the table for the time being. (Indeed, to the dismay of Grover Norquist, some Republican Senators, including Lindsey Graham (R-SC), are even considering raising taxes.) Reality bites, doesn’t it?
“Some lawmakers and senior party aides say that Mr. Lieberman remains in good standing. But they say that could change if he broke ranks and gave Mr. Bush a prominent Democratic ally on Social Security.” As feared and as usual, Senator Joe Lieberman seems to be the weak link in Democratic unity against the Dubya Social Security plan (although, to his credit, he has at least renounced private savings accounts.) Remember, Joe, once you start down the dark path, forever will it dominate your destiny. Just look what happened to the Zell-out.
Stand clear of the closing doors, please…Facing an uphill battle in their bid to privatize Social Security, congressional Republicans start contemplating a legislative exit strategy, which would probably include some concessions to a bipartisan plan. But the Dems, sensing the Clinton health care fiasco redux, may not play ball at all, with the exception of the usual “moderate” suspects. For the love of Pete, Senator Lieberman, please don’t give the Bush bill any of your patented Joementum.
“‘It’s a bill that’s going to significantly harm small consumers who want to hold large companies accountable for defrauding them,’ said Frank Clemente, director of the Congress Watch division of the consumer group Public Citizen.” So guess which side Dubya and the GOP were on? In the name of “tort reform” (and at the behest of their corporate overlords), the Senate GOP pass the Class Action Fairness Act, which moves state class action suits into the (less favorably disposed) federal court system. They did so after gunning down a series of Democratic amendments that tried to strike a more stable balance between private power and public accountability. Or would it have been too litigious to exempt cases brought by state attorneys general? We wouldn’t want some aspiring Mr. Smith cutting in to Old Man Potter’s profit margin, now, would we?
I was at the movies during Dubya’s State of the Union address — I tried to watch it online this evening after my Radicalism sections, but Quicktime died in mid-sentence, so I just ended up reading it. And, while I thought it was very well-written as per the norm, my thoughts on the address have been colored even more than usual by the punditocracy. So, with that in mind, I’ll avoid being derivative and just direct y’all to the following:
- Fred Kaplan: “Some of the president’s statements on national security were simply puzzling. Again on Iran, he said, ‘We are working with European allies to make clear to the Iranian regime that it must give up its uranium-enrichment program and any plutonium reprocessing.’ This is just false.“
- Chris Suellentrop: “You could call Bush’s idea the Screw Your Grandchildren Act…This was the Greatest Love of All speech, in which Bush asserted that The Children Are Our Future. But before you sign on to Bush’s proposal, be aware that what he’s offering is pretty tough love.“
- Will Saletan: “Tonight’s State of the Union Address demonstrated again that President Bush is a man of very clear principles. He’s just flexible about when to apply them.“
- Joe Conason: “Although George W. Bush and the White House aides who craft these public spectacles become increasingly adept at manipulating the feelings of his audience every year, their underlying method remains the same: to shade inconvenient realities with rhetorical vagueness and outright deception.“
- E.J. Dionne: “Our country could profit from an honest debate about the future of Social Security. Judging from President Bush’s State of the Union address, that is not the kind of debate we are about to have.“
With the Congressional battle lines forming over Dubya’s coming Social Security overhaul, Senate Finance Committee member and GOP moderate Olympia Snowe voices her doubts on CNN, which could greatly benefit Dems in defeating the plan (if we get our act together.) “Raising broad objections to the substance and presentation of the White House case, Snowe made it clear she is not convinced that a Social Security crisis has arrived, as Bush maintains…And Snowe said she is ‘certainly not going to support diverting $2 trillion from Social Security into creating personal savings accounts’” (although she is not averse to the principle of PSAs in general).
“America’s vital interests and our deepest beliefs are now one.” Really? Well, dang, that was easy. But who’s going to break the news to China, Russia, and the Saudis, for starters? As per many of Michael Gerson’s Big-Moment speeches, Dubya’s Second Inaugural was a well-crafted piece of prose with some nice rhetorical flourishes and an eye to history. But, stylistic flair aside, Dubya might as well have been declaring himself the President of Mars, for all the grounding this speech had in contemporary reality.
“The best hope for peace in our world is the expansion of freedom in all the world.” Freedom…I can dig it. Reminds me of the end of Braveheart. But, as Slate‘s Fred Kaplan already aptly questioned, “What is this thing called ‘freedom’?…Does ‘freedom’ always mean a Western-style, or pro-American, democracy? Whatever freedom is, how do we go about spreading it?” And, for that matter, isn’t this the guy who once told us there “ought to be limits to freedom?”
I know we shouldn’t expect nuance from this president, but today’s speech was even worse than usual (as well as being somewhat distasteful, given the very real problems with “freedom” Iraq is facing right now.) The only things I learned from Dubya’s speech are that freedom rains down like a benediction (in fact, exactly like a benediction) on the peoples of the world, and, whatsmore, that evildoers hate them some freedom. And that was about it. Seriously, he sounded like he was kicking off that goofy rave in the second Matrix.
On the domestic side, I was somewhat surprised that Bush didn’t push the Ownership Society meme a little harder — he only mentioned it once — but I guess that’ll probably get more run in the upcoming State of the Union. (Perhaps he didn’t want anyone reminded of Colin Powell’s “You Break it, You Own it” Pottery Barn rule when they were supposed to be drinking in the sweet, sweet freedom.) That being said, Bush did manage to squeeze in some Grade-A chum for the pro-lifers — “always remember that even the unwanted have worth” — which he then half-heartedly tried to mask with a plea to end racism. (Freedom, yeah! Bigotry, no! Serenity now! I think I got it.)
All in all, the inaugural wasn’t an embarrassing speech as delivered — Gerson’s too good at his job for that. But, like too much in this administration, it was all style and no substance, offering false simplicity and sanctimony in the place of good ideas or hard-won truths. In short, it was just like Dubya.
Surprise, surprise. “The Bush administration has signaled that it will propose changing the formula that sets initial Social Security benefit levels, cutting promised benefits by nearly a third in the coming decades, according to several Republicans close to the White House.” Administration officials claim the deficit caused by this “price-indexing” change — pegging first-year benefits to inflation rather than the rise in wages — will be made up by, you guessed it, “personal investment accounts,” a.k.a. the Bush privatization plan. Funny how Dubya neglected to mention this cut only a few weeks ago…I doubt the plan was formulated over Christmas.
Dubya starts the hard sell on his plan for privatizing Social Security, claiming such a move will reassure financial markets. “Mr. Bush never mentioned the near certainty that without raising taxes, which he has ruled out, any plan to add personal investment accounts to Social Security and improve its financial condition would include a reduction in the guaranteed retirement benefit.” Hmmm…that doesn’t sound very reassuring.
“Intent on using his capital to secure his place in history, Bush may finally pass a right-wing social agenda, an entitlement reform agenda and a neoconservative foreign policy…And by enacting his program, Bush may dash conservatives’ hopes for a lasting Republican majority.” With trouble already brewing among House conservatives, Columbia PhD, former FCC colleague, and Gipper scholar Matthew Dallek contrasts Dubya’s governance with that of Reagan, and finds the former wanting, to say the least.
By way of Follow Me Here, the chief economist at Morgan Stanley warns private audiences that, in his opinion, the US is headed for economic “Armageddon.” “In a nutshell, Roach’s argument is that America’s record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants. The result: U.S. consumers, who are in debt up to their eyeballs, will get pounded.”
Faced with the grim morning-after receipts of Dubya’s feckless splurging and deficit-exploding tax cuts, the Senate is forced raise the debt limit by $800 billion (again) to stop the government from going into default. “Though an increase in the debt ceiling was never in doubt, Republican leaders in both houses of Congress postponed action on it last month, until after the elections, to deprive Democrats of a chance to accuse them of fiscal irresponsibility.”
The dollar tanking? No problemo for this administration, who see a weak dollar as key to offsetting our ballooning trade deficits. “The unsettling worry, however, is what could happen if foreigners suddenly lost interest in holding dollar-denominated investments. The outward rush from U.S. stock and bond markets could send stock prices crashing and interest rates soaring.” Well, at least my college loan debt isn’t in Euros.
Visions 
The Great Gatsby (7.5/10)Currently Reading 
Hidden Cities, Moses GatesRecently Read What It Takes, Richard Ben Cramer
Founding Finance, William Hogeland
Twilight of the Elites, Chris Hayes
Last Chance to See, Douglas Adams
The Forever War, Joe Haldeman
Uphill all the Way, Kevin Murphy
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“Bush is supporting DeLay as ‘strongly as he ever has, which is strongly,’ McClellan said.” While trying once again to salvage his Social Security privatization plan (which even Republicans on the Senate Finance Commitee are now shying away from), Dubya struts beside Boss DeLay for all the world to see. Well, Mr. President, if he’s really the type of fellow you want us to associate with your administration…
