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    Crap Sandwich

    Posted:
    09/29/08
    Politico.com
    In a closed-door session with House Republicans, Minority Leader John A. Boehner just called the financial rescue deal a "crap sandwich" – then said he'll vote for it when it comes to the floor Monday.

    House Republicans are the key to the bill's passage – Speaker Nancy Pelosi said earlier today that it's a "bipartisan" bill and will need "bipartisanship" to pass – and it now appears that a substantial number of them will put cast their votes in favor of it.

    According to a source in the room, the plan has so far won endorsements from Minority Whip Roy Blunt, who negotiated it on behalf of the House Republicans; Eric Cantor, the chief deputy whip; and Paul Ryan, a hard-core conservative from Wisconsin who may hold more sway with conservatives on this issue than any other member of the House.
    I've come to the reluctant conclusion that the Republicans in the House, and John McCain should blow up this bill. It is now an undisputed fact that McCain and the House Republicans blew up a very bad deal forming on Thursday. This was a good thing. In it's place we have a better bill, as the link to the side by side comparison shows. The GOP by exercising their leverage was able to strip out some of the onerous things, but not enough in my view to be worth it. We still have a $350 billion bailout to Wall Street, possible another $350 if congress approves further. What is swinging my opinion is that very smart people are saying the only thing necessary is to change the rule on Mark to Market Accounting:

    Economist Wesbury is saying that if we change that one rule and don't force them to mark down to market value and just let them hold on to all the stuff, and say just on sub-primes for this period of time you can change that rule -- a temporary change -- that'll free the market up. It's seized right now; it's frozen. This will thaw it out and get it going again. He says that'll solve 60% of the problem ... and I think he's right.

    There are other very smart people who insist that MTM is not the problem and will not help things. But why not write the bill in such a way as to try the cheapest easiest stuff first, then the harder stuff, then finally the taxpayer bailout.

    Bernanke and Paulson are so worried about a crash of the stock market, they want to send a signal that help is coming. With prioritization, the signal would be sent. Economists that believe in the MTM change would be happy. Economists that don't believe in the MTM would be happy as well, because they know that behind it is the bailout they prefer.

    With this bill, there is no prioritization. Mark to market is an afterthought. Insurance is an afterthought. It's clear that the core is a straightup transfer of bad assets to the taxpayer with the use of taxpayer money. Billions of it.

    The bill is not good enough. Americans will recognize that and take it out on the nearest politician. Boehner and McCain should vote no on this crap sandwich, take the immediate hit, and then go on to tell the American public that we can do better. Or let the Democrats and Bush pass the bill they love so much on their own. They certainly have the votes.


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    Dave

    David Stacy is a network administrator from Cincinnati, OH. Dave has been blogging at nixguy.com since 2004, and AOL's political blogs since 2006. more

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