60 Minutes tonight aired a piece about the market meltdown and its causes. Described as a “shadow market” the details of the crisis were revealed in detail and it told how millionaires were made on the backs of ill advised loans to scores of Americans who could not afford them and these loans were in turn bundled together and sold as commodities along with a deregulated form of insurance. When the borrowers reneged on their loans the house of cards came tumbling down. Much of this is well known but the intricacies highlighted in the program were enlightening. But what was not addressed in the episode was who we were actually bailing out. All those Wall Street and banking con artists who made a fortune on this corrupt business will not forfeit one dime of the wealth they have generated from the housing swindle. In essence we are taking over those bad loans from the wealthy who made a fortune on them.

Conservatives rail on the social welfare programs that reward the laziness of the poor with food stamps and the like but no hard working American would ever want to switch places with those who are destitute, no matter how much government assistance they received under the current system. Compare that to those who have reaped millions in the real estate scam that is ensuing. Is there one among you who would turn down 10 million dollars if you knew the government was going to come in behind you and bail out the mess? This is worse than communism. In essence, the bailout is the socializing of debt and the privatizing of profit.  Most Americans are seeing the disaster of fiscal policy playing out right before their eyes; $700 billion for the war in Iraq and a similar number for the bailout. Everyone is asking, for what end?

Joe Biden was criticized recently for stating that paying taxes was patriotic. He was referring to the wealthy who will be required, under Obama’s plan, to return to their tax rate they paid during Clinton’s administration. With the $700 billion bailout bill ($850 if you include all the pork) there was a tone to its passage that sounded a lot like Biden’s. It is the right thing to do for America we were told and all those wealthy people (and a lot of not so wealthy people who are heavily vested) heard the heavenly music upon its passage. But most Americans are not comfortable with the bill. Why didn’t the Democrats use their majority in Congress to simply pass the bill on their own? The reality is their constituents didn’t want them to pass it. Those who face tight races in their districts or states, whether Republican or Democrat, would have this vote as the last visual reminder of their voting record in Congress and thus they voted no to save their political hide. To some who voted yes it may be the last vote they ever make. We are told, despite the price tag, there is no guarantee the bill will stem the tide of the damage that has been done but what I am sure of is those who made a fortune off of the backs of us Americans are neither moral nor patriotic. But the sad thing is the bill may curb the golden parachutes of future CEOs of these institutions but for most, these criminals have already landed safely thanks to you and me.

There is no more diverse state politically than Oregon. Portland is as liberal as any city in the US including San Francisco but if you go east you find yourself next to Idaho and conservatism breathes in these locales. But this election is unique and the winds of change favor Barack Obama. One GOP senator seems to understand the nature of this election and he has hitched his wagon to the Illinois Senator in a new ad.

It is unheard of for a candidate from one party to identify with the nominee from the other party but Oregon Senator Gordon Smith has done just that. His ad shows Senator Obama’s website and also refers to Oregon’s Democratic Governor Ted Kulongoski. The advertisement is intended to show Smith’s ability to be bipartisan but the message is much more than that. The waves sweeping on Oregon’s shores these days are much bluer than in the past and Senator Smith wishes not to drown in the high tide. The impact of this ad may very well work for Senator Smith but he won’t win any friends in his party for running it. But if he indeed wins and the scales tip favorably toward the Democrats in Congress, Senator Smith will be able to put his bipartisan experience to work.

There is another element to this tactic by Senator Smith. There is not a feeling of disdain about either Barack Obama or John McCain. This climate has allowed for the Oregon GOP senator to air his ad. The vitriol that has served as the sword of Damocles the past several decades has been tamped down in this election.  Thankfully, mouthpieces such as Michelle Malkin, Ann Coulter and Michael Moore have been marginalized and with the nature and depth of the problems that the new President must face this can only be a good sign for our country.

An Obamacan is a Republican who supports Barack Obama

Why are Republican Congressmen hindering witnesses in the latest hearings on credit card abuse? Representative Carolyn Maloney (D-NY) has proposed a bill that would protect credit card holders from their interest rates skyrocketing for the slightest infractions. Several consumers who have had their interest rates go from a fair rate to 23% overnight due to one late payment had agreed to testify before Congress. Republicans found a way to silence many of these witnesses. The panel’s Republicans insisted the visitors allow their lenders to discuss their financial histories publicly-in any forum, at any time. This did the trick for four of five witnesses who were fearful of the one part in the waiver that would allow their history to be fair game at anytime. The credit card companies and their lobbyists were there in huge numbers during Thursday’s hearings espousing the virtues of their consumer relations while the those who had been unfairly treated sat in the audience, successfully gagged.

Maloney’s proposal, called The Credit Card Holder Bill of Rights serves as a check on the companies that give out credit cards. Their power has become increasingly one sided in the past ten years. This should be a signal to everyone just who the Republicans cater to, and it isn’t us.  

If you haven’t seen the Frontline special on the abuses of credit card issuers see it here. It is an outstanding piece of journalism.

For more on the Credit Card Holder Bill of Rights (HR 5244):

Congress Takes on Credit Card Interchange Fees

Maloney and Conyers Introduce Two Bills