The bailout scare is a trap...

[misanthrope]

...an October Surprise intended to do little more than manifest campaign power for Repubs over the coming 5 weeks.

Anyone notice when Sen. Richard Shelby made the rounds on TV news shows last night, each time wielding his prop of the letter "signed by 200 economists from Yale, Harvard, the University of Chicago...," he couldn't give the first tangible reason he didn't like the bailout or what provisions in it gave him pause?

However, today he is telling reporters that he has his own version of the bill to introduce. How did he magically gain an understanding of the entire matter overnight? Did he write the bill in his sleep?

Combine this with the administration's urgency in this matter, the repeat of the methods used in the ramp-up to the Iraq War, the antics by the House GOP and it all starts to stink.

There is some grand political theater going on here and the Dems could derail it all by either agreeing to postpone recess or table the bailout until after recess. Anything else is likely to play right into the GOP's hands.

[fascisthunter]

1. Thom Hartman is Talking about This Being a Trap

[leveymg]

2. Major fail. The GOP's little act is so transparent, even the M$M says its obstruction

If they've lost CBS News, they've lost.

[Tangerine LaBamba]

3. Oh, don't I wish!

I would LOVE to see the Democrats tell them it's on hold until after the recess. That would be so smart, but they'd also run the risk of whatever consequences might ensue.

No one would ever believe that those same consequences would take place anyway.

We're screwed, no matter what.

[David Dunham]

4. No. Poll today shows 70% of the public now supports the bailout.

[ShortnFiery]

5. I don't believe it. Not for a New York Minute. There's protests in every major city. eom

[misanthrope]

6. I don't buy it**nm

**

[ixion]

8. I don't buy that number for a second

from what I hear from clients I've talked to (and their friends and clients) and from the outrage that I've seen manifest in the past couple days, there is no way in hell that 7 out of 10 support being robbed by Wall St.

[kentuck]

9. It a sham...

for political consumption.

[lib2DaBone]

11. Bullshit Bullshit Bullshit... link? .... Nevermind.....

[livelongandprosper]

7. If so this October Surprise so far has helped Obama not McCain n/t

[orwell]

10. Shelby has been consistent...

...unlike most of the R's. He is the ranking Con member on Senate Banking so he does understand what he is talking about, unlike clowns like McConnell. Years ago he opposed the Chrysler bailout as well. He flat out conceptually opposes bailouts and he doesn't like this plan. I don't like it either. He has actually been an important voice in this debate.

That being said I think everyone realizes something must be done. I would prefer that they all slow down a little and come up with something a little more sane than what is currently being proposed.

I don't like legislation crafted at the other end of a shotgun.

[Virginia Dare]

13. The House repub leadership has really been sandbagging him and he's pissed..

he actually threw McCain under the bus this morning, said he hadn't even talked to him until yesterday. It appears the Senate leadership wouldn't play McCain's little game, but those POS's in the House agreed to go along with it.

[debbierlus]

12. It is - very obvious now - check out this little quote from Lindsey Graham about McCain - (MUST READ

McCain's leadership in the negotiations "is to try to stop us from yelling at each other, announcing deals that don't exist, to actually talk to the House and the Senate and get agreement and then go to the press," Sen. Lindsey Graham, R-S.C., said on NBC's "Today" show.

It is a total and complete set up.

If it works, it will depend on how Obama handles this tonight. I think he will turn the tables back on them.

[torbird]

14. And.....scene!

Yawn. Next!

[DemReadingDU]

15. I'm hoping it's postponed, or totally stopped

There is no reason for us taxpayers to bailout those reckless Wall Street investors. And absolutely can't have Paulson installed as 'King' to get control of the money form Congress.

[That Guy 888]

16. My sister works in finance, and she showed me a white paper that they gave her at work

I posted an excerpt of it here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x387908

From skimming it's 23 pages and what she told me about it, the title seems to some it up well - Proposed $700 Billion Bailout is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market.

Basically, the paper (which Weiss also sent to Congress and the Senate banking committee) say that there will be about $3.2 trillion in banks that are in about the same condition as the earlier failed banks that are covered by this bailout.
The second part of the paper states (in part) that:


"There should be no illusion that the market for U.S. government securities can absorb the additional burden of funding massive government bailouts without traumatic consequences.

<snip>

This bill(Fannie and Freddie Mac, AIG and the proposed Financial market bailout), approaching $1 trillion, is so extreme, it is undeniable that

1. It could double or triple the federal deficit in a very short period of time.

2. Such a dramatic increase in the deficit would drive up the cost of borrowing not only for the U.S. Treasury, but also for other bonds and for millions of Americans seeking a mortgage or other credit, since the Treasury yields are the benchmarks against which most borrowing is based.

3. To the degree that the Federal Reserve purchases U.S. government securities for its own account to help support bond prices, it would devalue the U.S. dollar, risking a dollar collapse and the flight of much-needed foreign capital from the U.S.

4. Ultimately, either of these outcomes - sharply higher U.S. interest rates or a U.S. dollar collapse - could seriously aggravate the very debt crisis that the bailout plan seeks to address."

[KharmaTrain]

17. It's A Weathervane

I've long felt the timing of this "crisis" is dubious. It's the "September Surprise" if you will...one that is politically motivated...but not in a way Camp Gramps should be happy about.

No doubt Wall Street and its K Street cronies run their own polls and were seeing how poorly Gramps was doing and that he stood a strong chance of losing the election. The boooosh regime is seeing this as well...and with it goes their clean escape from the beltway. A Gramps loss means the final fleecing of the treasury would be difficult...thus the "crisis" and bail-out as the quick escape before the fall. It's the rats jumping ship before the "adults" come back and force accountability and responsibility.

I see the Democrats playing kick the can here. We're 40 days away from what could be a big victory, and with it, a fundmental shift in power inside the beltway. Gone will be a lot of restrictions on how to propose and ammend legislation...and a cooperative Executive that will need a strong House & Senate to do a lot of the dirty work in cleaning up this country's messes. Pelosi has played cat and mouse with this thing...making sure a majority of GOOPers will sign on with this bill before it comes to a floor vote...and, in essence, opening up a rift within their ranks...one that I predicted would occur after the election.

The bill, as it currently stands has been cut into pieces...not the 720 billion lump...and with several key Democratic concessions included. It's a band-aid...and it pushes the real resolution of this mess beyond the election.

Cheers...

[uppityperson]

18. Do you mean the "OMG! NOW!" urgency of it all?

I agree. Yes, something needs to be done, but it needs to be done right, not fast. Doing things fast is one of the reasons things are as bad as they are right now.