Matthew Yglesias » Just The People Who Matter

Sep 21st, 2008 at 6:49 pm

Just The People Who Matter

Everyone should read the actual text of the proposed bailout plan the administration is sending to Congress. It’s clearly not a final version (the part about only purchasing from financial institutions headquartered in the US has already been changed, as Kathryn notes below), but it’s the essential shape of the proposal. See if you can read through the whole of it without concluding that everyone in Washington has lost their minds.

Not everyone’s lost their minds. Unfortunately, the people who matter seem to have.

Comments
45

45 Responses to “Just The People Who Matter”

John McCain: Serial Liar Says:
September 21st, 2008 at 7:00 pm
Freakin’ heck, MY. It seems as though you have no sympathy for these people who have had to give up their private jets!!
El Cid Says:
September 21st, 2008 at 7:16 pm
Paul Krugman (following Digby et al) brings up a rather salient immediate point:

As I read what’s happening now, John McCain is denouncing the Paulson plan, while Barack Obama — out of a sense of responsibility for the financial system — is only offering cautious criticism.

The Obama people — and the Congressional Democrats — do know that the Republicans will run a populist campaign against them on the basis that they voted for a horrible big-government program, don’t they?

No, unfortunately, I don’t think they do, and I would have been shocked to have seen over this past weekend any sign that they possessed that sort of basic political awareness.

This whole weekend I’ve felt like I’m watching a big setup for NAFTA all over again, where leading Democrats lectured all us DFH’s to STFU, that we didn’t realize the brilliance of what they were doing, and then they just handed Congress away and were a minority for a dozen years.
nukev Says:
September 21st, 2008 at 7:16 pm
When even Levin and Gingrich scream over sight to Bush the world becomes surreal in the extreme.
Don Williams Says:
September 21st, 2008 at 7:16 pm
1) I have a VERY sick sense of humor — so this situation reminded me of Mad Magazine’s January 1973 cover showing someone holding a revolver to a sad-looking dog’s head. With the caption:

“If You Don’t Buy this Magazine, We’ll Kill this Dog”

See http://www.marksverylarge.com/issues/7301.html

2) Ah, the time of Richard Milhous Nixon.

He was a Lovely man.
El Cid Says:
September 21st, 2008 at 7:21 pm
I should add that I don’t think Krugman is characterizing McCain’s reaction clearly, or if McCain’s reaction yet could even be so clearly characterized. I’m mainly looking at the part about the Democrats.

Pelosi’s out there saying the Administration’s plan is insufficient, needs more safeguards, etc., but it still doesn’t sound like they’re even close to understanding what it is they’re looking at.
Don Williams Says:
September 21st, 2008 at 7:25 pm
By the way, did anyone email the right wing blogosphere and ask Glenn Reynolds (Instapundit) et.al. how their Anti-Spending “Porkbusters” campaign is going?

Heh heh heh
gcochran Says:
September 21st, 2008 at 7:27 pm
“If You Don’t Buy this Magazine, We’ll Kill this Dog”

National Lampoon, of course. Sheesh.
anonymiss Says:
September 21st, 2008 at 7:30 pm
I’d just like to point out that this plan is 849 words long. And that’s including stuff like “The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.”

We’re supposed to give over $700 billion on a plan that’s been outlined with all the specificity and detail of an op-ed? To the same clowns who got us into this mess? Who incidentally have a history of screwing up EVERYTHING of importance they’ve touched for the past 8 years?

This is ridiculous. They are simply not fit to govern. And I’m sorry, given the solid chance that PHIL GRAMM might end up with this blank check? Have we lost our fucking minds?

The Democrats need a massive rewrite with oversight, and one that makes it clear the Wall Street fat cats get punished, the American people get any upside that comes out of this mess, and that the first order of business is salvaging the homeowners who got fucked–not just bailing out the bankers who gave them loans knowing full well they’d never be able to pay them back.

Paulson’s bullshit this morning about homeowners needing to take responsibility for this mess just makes it clear he can’t be trusted to do this in a way that represents the interests of the American people. He simply can’t.
El Cid Says:
September 21st, 2008 at 7:35 pm
I suppose, all things considered, we should probably be grateful that this Administration proposal was so over-the-top insane that this ‘plan’ (more accurately just a note scrawled on the back of a deposit slip saying ‘give me all yer money’) opened up the possibility of fighting against it.

If Paulson had presented something much cleverer, with like a couple hundred pages and ‘rules’ which the document specifically clarified were optional, etc., no one would have even thought of tapping the brakes, much less prepare an alternate plan.
Don Williams Says:
September 21st, 2008 at 7:44 pm
Re gcochran’s comment “National Lampoon, of course. Sheesh.”
———
Ah, right. Sorry. This Situation was also reminding me of a Mad Magazine Cover from that same time.

Showing a Lion violently shagging a wide-eyed sheep from behind, with the caption: March –In Like a Lion, Out Like a Lamb.
roger Says:
September 21st, 2008 at 7:56 pm
It is pretty obvious why the Dem response is muted. Schumer. As the senator from Wall Street, he wants this thing very badly.

Obama is going to have to diplomatically, but definitively, tie Schumer’s hands behind his back.

The bailout is, of course, only the open expression of what the Treasury and Fed have been doing ever since last August -stealing money from the government and giving it to Wall Street. You will notice that the effect of doing this, trying to solve a problem that is centered at the grassroots, has been unmitigated disaster. And, applying the Iraq rules, the Bush administration is doubling down. The problem nvolves the simple fact that the pattern of largescale wage increases and promotions usual during a boom didn’t happen during this boom, although the financial community was extending credit as if it was happening. This is the dynamic side of inequality – it isn’t just a justice issue. No consumer based economy can survive with the top 5 percent engrossing all the gains from productivity increases. The idea that this could be solved by extending loose credit is a brilliant GOP feint, but it has a very severe shelf life. On the horizon is a credit contraction and unemployment, meaning that the problem in mortgages is going to get worse. Luckily, the government is proposing a program that will do nothing whatsoever to solve that – but it will make Schumer’s friends in the bank industry sleep a little better. The yachts will still be there in the morning.
Ted Says:
September 21st, 2008 at 8:05 pm
I’m actually feeling cautiously optimistic about the Dem response. Apparently Obama has been on the phone with Pelosi, Reid, both Clintons, Schumer, Frank, Dodd, and Emmanuel.

http://blogs.abcnews.com/politicalradar/2008/09/obama-picks-up.html

If Pelosi’s statement this evening reflects a consensus view, I feel good about our odds of geeting a rewrite. Especially since center and center-right economists seem to distrust Paulson’s power grab about as much as the left does.

The $64K question, of course, is what happens to everyone’s resolve if the Dow drops 500 points on reports that we’re not signing Paulson’s dotted line.
anonymiss Says:
September 21st, 2008 at 8:06 pm
Well, maybe the New Yorkers should call Schumer? I’m calling him & Hillary tomorrow.
JonF Says:
September 21st, 2008 at 8:09 pm
Re: This whole weekend I’ve felt like I’m watching a big setup for NAFTA all over again, where leading Democrats lectured all us DFH’s to STFU, that we didn’t realize the brilliance of what they were doing, and then they just handed Congress away and were a minority for a dozen years.

???
I don’t recall the GOP running a populist, anti-NAFTA campaign in 1994 (or in any subsequent election). Do you perhaps live in an alternate universe where they did do such a thing?
Don Williams Says:
September 21st, 2008 at 8:12 pm
Re roger’s comment “It is pretty obvious why the Dem response is muted. Schumer”
————
It was also Chuckie Schumer who put the Democrats in the fucking Wilderness for 12 years –from 1994 to 2006.

With his stupid shit Assault Rifle Ban which did nothing to address violent crime (crooks use concealed pistols) but which alienated millions of blue collar union workers away from the Democratic Party.

Chuckie and his buddies over at the Foundation for the Defense of Democracies (cough Richard Perle, Charles Krauthammer, William Kristol cough) saw that as a feature, not a bug.

They LIKE it when Democratic officeholders are TOTALLY dependent on money from Billionaire Patrons of the Israel Lobby. A situation the New York Times described as a few hundred men seeing the Democratic Party as their own privately held club.

And those billionaires like a taxpayer bailout just as much as right wing Rupert Murdoch, Sheldon Adelson etc.
El Cid Says:
September 21st, 2008 at 8:14 pm
JonF: The role NAFTA played in the 1994 elections was weakened support and turnout for Democratic candidates, not Republican counterattack. Maybe in this case one would like to argue that such a thing will be impossible, given the degree of current Democratic interest in the elections.
Don Williams Says:
September 21st, 2008 at 8:15 pm
Stock index futures are indicating Dow will open down around 100 points (- 1 percent) tomorrow. Could change overnight, obviously.
John Emerson Says:
September 21st, 2008 at 8:15 pm
I’m absolutely convinced that the Paulsen plan is a diversion or bluff or bargaining chip, and what the Republicans actually want is something else. the Paulsen plan is so excessive that anything else whatsoever will look not so bad. Pushing the envelope.

Already many Republicans are opposing it. Next the Republicans will propose their own plan, and their story will be “We stopped Bush’s plan and replaced it with a fair, reasonable plan, but the Democrats won’t be satisfied and want to push through their own partisan plan.”

Will Charlie Brown try to kick the football? Yes.

A group of lobbyists met the Republicans the other day and gave their ultimatum: it’s got to be $700 billion dollars, no strings attached. The bankrupt beggars are playing hardball — that’s the nerviest thing I’ve ever seen. What are they threatening us with?
John Says:
September 21st, 2008 at 8:34 pm
The Obama people — and the Congressional Democrats — do know that the Republicans will run a populist campaign against them on the basis that they voted for a horrible big-government program, don’t they?

Surely one can just as imagine that if the Democrats vote against this, the Republicans will run against them on the basis that they dragged their feet about SAVING THE ECONOMY FROM UTTER DESTRUCTION. Making decisions on the basis that if you do something, the Republicans will attack you for it, is not terribly wise – the Republicans will always attack you for it.
Jim Says:
September 21st, 2008 at 8:34 pm
I’m getting a little tired of your anti-Richie Rich bias.
patriot games Says:
September 21st, 2008 at 8:43 pm
according to AP, on 60 minutes tonight McCain endorsed the Paulson plan….he also defends deregulation.

http://ap.google.com/article/ALeqM5htjyz7Bk_GOPn0uXonsBuSqkAE7gD93BDAH80

so politics play the other way. McCain will try to blame Obama for not supporting the plan, should it be held up.

but the more libertarian and fiscally super conserv repubs will be in conflict with McCain. Some might vote for Barr.
Harvey Lobster Says:
September 21st, 2008 at 9:04 pm
according to AP, on 60 minutes tonight McCain endorsed the Paulson plan….he also defends deregulation.

Good. Hopefully Obama and the unleashed 527s will be able to drive a stake through McCain’s vampire heart on this one. Maybe we’ll get a wrecked country, but with 87% less chance of nuclear conflagration!
Jim Lund Says:
September 21st, 2008 at 9:17 pm
Notice how the folks at the Corner describe this as a ‘Washington’ plan? It is not, it is the Republican plan. And yes Cornerites, they have lost their minds. Thanks for noticing!
a-train Says:
September 21st, 2008 at 10:24 pm
This “bailout” will solve nothing (except maybe prolong the inevitable until some time after the election).

http://www.moonofalabama.org/2008/09/solution-declar.html
Reversed Says:
September 21st, 2008 at 10:57 pm
The “Economic 9/11″ gets its patriot act. Should we be doing more than commenting in the echo chamber?
kafka Says:
September 21st, 2008 at 11:09 pm
Limiting executive pay? Hell I’d fire the bastards and replace them with GS pay scale civil servants.

But executive pay limitations will save jack shit compared to the $700 billion (for starters) total bailout cost. Don’t encourage Reid & Pelosi to sell out for such trinkets.
jalopy_jake Says:
September 21st, 2008 at 11:33 pm
Anyone seen Grover Norquist? Anyone?
patriot games Says:
September 21st, 2008 at 11:39 pm
CNBC

http://www.cnbc.com/id/15840232/site/14081545/?video=863253665&play=1

McCain has turned again. Now he favors the Paulson plan but with a bipartisan oversight board and, get this, exec salaries capped at the highest federal level.

Now he agrees with the dem plan, except maybe for the govt getting an equity stake.

Better still, CNBC asked if he thought Palin was the best VP choice given the crisis. he said yes…….

hold on to your moose parts
Ted Says:
September 22nd, 2008 at 12:19 am
McCain is smart to get on board with the exec salary limitation. No one believes it will solve anything, but it’s a great way to dramatize populist anger — and we need that anger on our side!

The most important concrete change that needs to be made is probably to write some provisions for oversight and transparency. But you don’t get 25,000 people to call their representatives by demanding more Congressional oversight. You have to throw some red meat in as well.
Richard Steven Hack Says:
September 22nd, 2008 at 1:24 am
I remember that Lampoon cover as well – and it’s been used in various contexts for years since.

The Dems will put up their usual token defense – until the Big Boys with the money call up and say, “Time to switch sides, or watch your campaign contributions dry up in 2010 and 2012!” – and they’ll cave.

Anybody who thinks this isn’t THE biggest bank robbery in history just doesn’t get it.

I should have been a hundredth of one percent as lucky in my bank robbery.

As we anarchists like to say, “Government IS organized crime.”
waldo Says:
September 22nd, 2008 at 2:18 am
Someone hasn’t lost his mind ~ Barack Obama…” the American people must be assured that the deal reflects the basic principles of transparency, fairness, and reform.

First, there must be no blank check when American taxpayers are on the hook for this much money.

Second, taxpayers shouldn’t be spending a dime to reward CEOs on Wall Street.

Third, taxpayers should be protected and should be able to recoup this investment.

Fourth, this plan has to help homeowners stay in their homes.

Fifth, this is a global crisis, and the United States must insist that other nations join us in helping secure the financial markets.

Sixth, we need to start putting in place the rules of the road I’ve been calling for for years to prevent this from ever happening again.”

Oh, and anarchy is for children.
Anthony Damiani Says:
September 22nd, 2008 at 5:07 am
There’s such widespread dislike for the initial shape of this deal, from both sides of the political spectrum, it’s hard for me to see this actually happening without serious modifications.
robertl Says:
September 22nd, 2008 at 5:54 am
This whole bailout is beginning to remind me of a financial version the Mariel Boat Lift. I’ve no doubt some of the “assets” we take over will be worthwhile but I’m sure the banks will stick us with more than enough Tony Montanos to make us regret the whole thing.
Richard Steven Hack Says:
September 22nd, 2008 at 6:23 am
Waldo” “Anarchy is for children.”

No – anarchy is for adults. Which is why you chimpanzees will never achieve it.

Come back to me after Obama starts wars in Iran and Pakistan and tell me how he “hasn’t lost his mind”.
Matt B Says:
September 22nd, 2008 at 9:47 am
Hi-freakin-larious article in the Saturday WSJ about rich people in Westchester Co. putting off nosejobs for their 16 year old girls because of the crisis. You’ll be happy to know the story ended well — the parents saved $2,500 by skipping the hospital overnight stay complete with private nurse.

Also: private jets are expensive to fuel and maintain.
Glen Tomkins Says:
September 22nd, 2008 at 11:04 am
The inmates are running the asylum

No, not everyone in Washingtom has lost their minds. Not even a majority. In fact, my overall impression is that some of our smartest, most industrious and clear-headed people are in Washington, and in disproportionate numbers.

The problem is that the loony few have been put in charge of all the smart folks who do the day-to-day work. This is not some accident or temporary aberration. Crazy people got to be in charge becasue we got tired of the back-and-forth struggle of public governance. Easier to let the buck stop behind the closed doors of the Oval Office, than to have to fight out every little issue in public, like they do in, you know, a republic.

The probelm of course, is that One Leader, conferring with his experts in private, really is no smarter, no less trammeled by the need to please the electorate (the dictatorship is still an elected dictatorship), than the messy, bickering committees that we have lost faith in because of their endless public squabbling. We only retain some illusion that the Decider deciding behind closed doors must know what he’s doing because the doors are closed, so the truth is not shoved in our noses, and we can pretend these bozos know what they’re doing.

We might still get by if the folks who got to be this Leader were of merely average intelligence and probity. But the pretence that the Leader is all-knowing, of superhuman human qualities, even someone you’ld like to share a beer with, means that only fools and knaves need apply for the job. We’ve been incredibly lucky that our presidents haven’t been even worse than they’ve actually been. We only let crazy people, or ruthlesly dishonest people, have the job of Leader, because we have made the willingness to participate in pure-d BS piled so high it would suffocate a normal person, a prerequisite for the job.
the upside of anger Says:
December 15th, 2008 at 9:14 pm
“Happy-Go-Lucky” is a lighthearted comedy that explores the life of Pauline “Poppy” Cross (Sally Hawkins) and her perpetual cheery attitude toward life in modern day North London. Hawkins, a primary schoolteacher, lives with her
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Just The People Who Matter

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