EESA and the Transformation of American Economic Values.
Once again we are being told that the Wall Street bailout (I mean "rescue"... or is it "stabilization"?) was on the verge of accumulating enough votes to pass. The terms of the deal (now titled the "EMERGENCY ECONOMIC STABILIZATION ACT OF 2008") are available in complete and summary form on many sites throughout the Web. The fact that the breakdown of the bill was not presented in bullet form is a bit disconcerting. It's as if Congress wants the reader to work in order to understand it. The obfuscation written into all pieces of legislation inhibits most people from truly engaging proposed bills. If there is a truly "elitist" bent in modern-day American politics, it is most evident in this bipartisan approach to "transparency".
Make no mistake about it... the Democrats will own whatever bill eventually gets passed. Some will point out that the president can veto the bill, but it appears unlikely that any version will be voted on if that possibility exists. So the extent to which the EESA protects the interests of the taxpayer is determined by whatever concessions the Dems can wrangle from George W. Bush and Henry Paulson. Certainly House Republicans will try to take credit for introducing their own version of the legislation, but these claims will be mostly disingenuous. The fact is that the only addition they have contributed is a government-run insurance company for bad private investments (which seems like a function similar to that of AIG).
It's not like the small cabal of House Republicans* that were ushered into the White House by John McCain last Thursday didn't have a lengthy wishlist. But first and foremost, they wanted to test their economic theories of the "free market". At the heart of the matter, they are resolutely against any government intervention. In other words, they'd let the situation play itself out if it were left up to them- stability of the nation be damned. It doesn't really matter that the vast majority of national and international economists (from all points along the political spectrum) have warned that action is necessary to avert a major worldwide crisis. To give you a sense of where House Republicans are coming from, keep in mind that their main objective was to push for corporate and investor tax cuts to be included in the bill.
Despite what the disciples of pure economic theories believe, we are witnessing a major transformation in the way that global markets are managed. It is no longer possible to convince the majority that deregulation is an ultimate good. Those policies have allowed certain banking corporations to get so large that they can effectively hold the health of the country for ransom. This is effectively extortion by the very players that got us into this mess with their advocacy of completely unfettered markets. What I find particularly galling is that John McCain continues to enable those with this philosophy while simultaneously proclaiming himself the contemporary Teddy Roosevelt. This is a mortal insult to that great former president's legacy of trust-busting.
Now I'm not saying that I wholly support the bill that Congress turned down today. I would have preferred that the government simply offered loans at moderate interest rates, instead of offering to buy highly dubious assets at a reduced price. If these turn out to be worthless, the taxpayer would lose big under such a plan. I also appreciate the lip service devoted to regulation and oversight. We've heard that before, and for it to be effective government must attempt to be incorruptible. Still I am thankful that we don't have the Congress that presided over the economy for the first six years of Bush's presidency without confronting the impending collapse of Wall Street. If we've learned anything from the last ten years, it's that laissez faire capitalism is a potentially fatal strategy as it essentially rewards unlimited greed, borderline-criminal short cuts, and a dangerous degree of deception.
*The reponsible parties for inaction include John McCain, Eric Cantor (VA), Paul Ryan (WI), Jeb Hensarling (TX), John Carter (TX)... and ?
Make no mistake about it... the Democrats will own whatever bill eventually gets passed. Some will point out that the president can veto the bill, but it appears unlikely that any version will be voted on if that possibility exists. So the extent to which the EESA protects the interests of the taxpayer is determined by whatever concessions the Dems can wrangle from George W. Bush and Henry Paulson. Certainly House Republicans will try to take credit for introducing their own version of the legislation, but these claims will be mostly disingenuous. The fact is that the only addition they have contributed is a government-run insurance company for bad private investments (which seems like a function similar to that of AIG).
It's not like the small cabal of House Republicans* that were ushered into the White House by John McCain last Thursday didn't have a lengthy wishlist. But first and foremost, they wanted to test their economic theories of the "free market". At the heart of the matter, they are resolutely against any government intervention. In other words, they'd let the situation play itself out if it were left up to them- stability of the nation be damned. It doesn't really matter that the vast majority of national and international economists (from all points along the political spectrum) have warned that action is necessary to avert a major worldwide crisis. To give you a sense of where House Republicans are coming from, keep in mind that their main objective was to push for corporate and investor tax cuts to be included in the bill.
Despite what the disciples of pure economic theories believe, we are witnessing a major transformation in the way that global markets are managed. It is no longer possible to convince the majority that deregulation is an ultimate good. Those policies have allowed certain banking corporations to get so large that they can effectively hold the health of the country for ransom. This is effectively extortion by the very players that got us into this mess with their advocacy of completely unfettered markets. What I find particularly galling is that John McCain continues to enable those with this philosophy while simultaneously proclaiming himself the contemporary Teddy Roosevelt. This is a mortal insult to that great former president's legacy of trust-busting.
Now I'm not saying that I wholly support the bill that Congress turned down today. I would have preferred that the government simply offered loans at moderate interest rates, instead of offering to buy highly dubious assets at a reduced price. If these turn out to be worthless, the taxpayer would lose big under such a plan. I also appreciate the lip service devoted to regulation and oversight. We've heard that before, and for it to be effective government must attempt to be incorruptible. Still I am thankful that we don't have the Congress that presided over the economy for the first six years of Bush's presidency without confronting the impending collapse of Wall Street. If we've learned anything from the last ten years, it's that laissez faire capitalism is a potentially fatal strategy as it essentially rewards unlimited greed, borderline-criminal short cuts, and a dangerous degree of deception.
*The reponsible parties for inaction include John McCain, Eric Cantor (VA), Paul Ryan (WI), Jeb Hensarling (TX), John Carter (TX)... and ?
Labels: Corporate Excess, Democrats, Economics, EESA, Free Market, John McCain, Politics, Republicans, Shenanigans
posted by Merge Divide at 4:17 PM
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