Sep 30 2008
Did Democrats Orchestrate A Bailout Failure To Boost Obama?
First we have Nancy Pelosi giving a highly partisan pre-vote speech to enrage the GOP and try and get them to move to the exits – which, actually they didn’t, their numbers did not move that much at all. It was either the dumbest move on the planet to obtain bipartisan support – or a crafty bit of theatre to cover up a dark sinister secret.Â
Then, according to analysis done by Karl Rove, you have 5 Democrat Committee Chairs in VERY safe districts vote against the bailout??? Wait a minute – what was this all about? Why would these folks vote against the bill? Then there were numerous hyper liberal partisans like Barbara Lee, the Sanchez sisters numerous sub-committee chairs, and others – also in safe districts and who are natural allies of Obama and Pelosi – who voted “Nay”. What is going on here?
I have Karl’s analysis below (H/T Johny Dollar’s Place) but one thing strikes me strange here. With only 12 votes needed to move this over the top, why was the vote held open so long and what where the Dems waiting for? Could it be they had to call in some favors from these liberal leaders to keep the bill from succeeding? All evidence points to an effort by the Dems to tank the bailout – and the current mess is clearly helping Obama.
Is someone going to tell me these stalwart liberals would not put their candidate before the nation’s needs? Check out this comment from a democrat about the $1.1 trillion dollar loss this nation took yesterday:
Rep. Hank Johnson, D-Ga., told me yesterday that he felt no pressure at all to vote for the bill.
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What about the Dow going down 778 points?
“The stock market goes up, the stock market goes down, that’s not something that I am particularly concerned with,” he said.
The Dems could care less how this hit Wall Street or Main Street. I find it implausible that Pelosi and Co. couldn’t dig up 12 measely votes. What I do find plausible and possible is that they kept moving Dems into the “Nay” column as more and more GOP members supported the bill (65 ended up doing so). That required 5 committee chairs to jump ship to save the plan – to tank the bill!
That is the only explanation I can see for this voting pattern. There was no ‘whip’ for the vote, but there could easily have been a plan to pad the opposition to make sure it went down in flames and helped their presidential candidate! Think about this as you listen to Rove’s observations on who exactly voted in the opposition after Pelosi tried to stoke a GOP uprising.
The key here is a Dem leader on the floor BEFORE the vote saying this issue would be used against the GOP in the elections. Anyone not connecting the dots is in denial and in the tank for those who might have destroyed the economy for some votes. I would like each of those named by Rove to explain their vote to see if their ‘rationale’ even passes the laugh test.
If the Dems had to explain themselves they would look like the power hungry political animals that they really are. This is no different then the Iraqi war vote. Vote to go and then hang it around the President’s neck knowing that people hate war. Pretend you want to help the economic situation, exclude the Republicans in the initial stages of talks, as you try to help Freddy and Fanny. When that doesn’t fly you add in the Republicans and say we are bailing out the fat cats. The Dems don’t bail out fat cats, so they vote “no” hoping the Republicans don’t notice and pass the bill so it can be hung around their necks like the war. And bingo Obama has another issue. Republicans love war and fat cats on Wall Street. Dems are fighting for you the little guys.
Bingo! the more panic, the more likely it benefits Obama. I think the strategy is ultimately going to fail for the Dems tho because I think the market is going to rebound even without the bailout. After all, if Warren Buffet is pouring money into the market, he’s not expecting it to go down long term. Just put your money into secure investments, and you’ll make money. All that screaming yesterday about how much value the market lost, well …. it is making up about a third of that loss today….. anyone screaming about how great the market is today? If it goes up 300 today and 300 tomorrow, we’ll almost be right back where we started. Most Asian markets actually went up last night and Europe is up today. So it’s not all gloom and doom.
AJ: Over at Wizbang blog there is a good analysis of the magnitude of the bailout.
From the article: The Bottom Line: If the Treasury simply took the $700 Billion and started paying off taxpayer mortgages, they could pay off every mortgage in the country worth less than $75,000… Or put another way, $700 Billion could pay off well over half of all outstanding first mortgages in the entire country.
http://wizbangblog.com/content/2008/09/30/understanding-70000000000000.php
Why then is Bush playing along?? From the beginning, the reasons for this immediate 700 Billion Bailout was so laughable, I kept cleaning out my ears to make sure I was hearing the words coming out of the TV correctly!!
For instance, have you ever heard of a company needing a loan to make payroll??
Who would work for such a company??
Are they so stupid, that they believe that the way they run the government is the same way private enterprise run their business??
The only entity that could possibly need a loan to pay their payroll is a government entity!!
Yes, every single cable channel spouted this as a reason we were in need of this immediate bailout. Maybe they figured that those who work for a living and own a small business have no time to pay attention, and everyone else just collects a paycheck, so they have no idea how it works!!
SBD
It would be interesting to see how many, if any, Dem’s profited by selling the market short. This would be confirmation of a deliberate act.
AJ,
Thank you for saying what I have been wondering.
Dem strategy went like this:
MOAB fails, helps Obama.
MOAB passes, Dems use it against incumbent Republicans, secure supermajority in both houses. They then gut the bill as passed and reinstall all their socialist baubles.
Why does this surprise anybody? Remember, America’s pain is the Democrat’s gain – and they will cause all the pain their press lackeys can cover up.
The question is, can enough people realize the truth before Election Day?
unbelieveable, Aj… I have not even read your post yet… but…[Came in my sleep believe it or not]
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I have been composing a post called…
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“Did Speaker Pelosi DELIBERATELY SABOTAGE [bold in red] the Bailout Bill?” As usual you are waaaaay ahead of me…
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Evidence…
#1. Pelosi failure to rally enough Dem votes…
[you KNOW how carefully they can count]
#2. Her speech right before the vote… Designed to alienate Repubs for sure…
#3. Bill’s failure makes McCain look bad.
#4. Keeps economy in limbo and market as expected tanks for the day at least..
#5. The Bailout Bill WILL pass later in week or so in different form…
#6.. Pelosi can now load it up with more $$ … maybe reaching a trillion $
#7. Credit tightens or disappears… therefore good for Obama as Dems can blame Bush/McCain
#8… Now I am going to read your post and see what I have missed .
#9. Congrats, Aj…
Redteam – The market is going up because word has gone out that the Republicans will cave and pass the same bill with only minor changes on Thursday. Thus making republicans look stupid, petulant, and easily badgered.
And a note on Warren Buffets “investment”, aka “pouring money into the market”. Paulson brokered the deal personally, btw. Yes, I know treasury secretary’s aren’t supposed to do things like that, but Paulson needed support and he was able to strong arm Goldman into the mother of all sweetheart deals in order to get Buffet to sign on.
You should look at the terms of the deal he was able to force for this $5 billion investment. He was allowed to buy 10% under the market value that day, so he was given an instantaneous paper profit of $500 million. On the news of the support, Goldman went up another 10%, so Buffett made another $500 million. That wasn’t enough – this was senior preferred with a special Buffet-only interest rate of 10%, which cannot be changed by Goldman management. So Buffet is also guaranteed $500 million in cash payments per year in perpetuity from Goldman. And even THAT wasn’t enough – Buffet has the option of putting in another $5 billion at a time of his choosing at these same terms – phenomenal.
So yes, Buffet is a genius – with the system collapsing, he just found a way to rake in $1 billion in profits overnight with a guarantee of $500 million in yearly payments as long as Goldman exists, with an option to cash in for who knows how many billions more when the system finally stabilizes.
I don’t think he took a whole lot of risk here.
Maysman here… My post is up at…
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http://fuanglada.wordpress.com/
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—-Did Speaker Pelosi DELIBERATELY sabotage the Bailout Bill??…
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Come on over and add any thoughts in comments and I will revise the post as needed…
No Speaker of the House has ever brought a major bill to the floor without knowing the outcome. If said outcome is not to their liking the bill never makes it to the floor.
wws
The market is going up because word has gone out that the Republicans will cave and pass the same bill with only minor changes on Thursday.
not sure I buy that. First all (most) of the foreign markets went UP after the US tanked yesterday, therefore the US market, seeing that the WORLD didn’t shut down because they know the American economy is basically sound (as McCain said) decided it isn’t a big catastrophe so the buyers went wild today. If anything, I’d say more people will now not be nearly as afraid if a big socialist bailout isn’t passed. I realize all the MSM will keep trying to keep the fear and panic in play to help their guy, but I think the panic is over. The market will go up again tomorrow. NO BAILOUT.
AJ have you seen the “Sing for Obama” I think it is at “Gateway Pundit”, oh my gosh, Obama has Hollywood orchestrating children as young as 5 singing a song for him. Anyone who has seen WWII movies and Hitler’s Children will want to throwup.
AJ have you seen the “Sing for Obama” I think it is at “Gateway Pundit”, oh my gosh, Obama has Hollywood orchestrating children as young as 5 singing a song for him. Anyone who has seen WWII movies and Hitler’s Children will want to throwup.
New video up on Fannie Mae!
http://www.youtube.com/user/TheMouthPeace
It’s great!
Jesse Jackson Jr., the co-chair of the Obama campaign, voted against the bill.
Put Obama down for “present”
AJ,
This was definitely a setup.
See this from The American Spectator”
>During the vote, Rahm Emmanuel, who served as a
>board member for Freddie Mac, one of the federal
>agencies behind the crisis, was monitoring votes
>on the floor. He took a leadership role in tanking
>the bill. “He was cheerleading us along, mothering
>the votes,” says the aide. “We wanted enough to
>put the pressure on the Republicans and
>Congressman Emanuel was charged with making it
>close enough. He did a great job.”
>-American Spectator.
Rahm Emmanuel is one of the most effective House whips in the past 50 years. He can get a dozen Democratic votes for anything with mean looks.
Emmanuel not even trying, given that he’s from Illinois, plus Obama’s campaign co-chair (Jesse Jackson Jr.) voting no, means that yesterday’s outcome was planned by Obama’s campaign.
The Democrats won’t let the bail-out happen before the election unless it is entirely on their terms. They want to keep this issue going until election day as a means of distracting the public from the election campaigns they had been losing.
Rahm Emmanuel also is a past member of the board at Fannie Mae…not that there is any connection with that ya know.
Trent,
What can be done to offset this?