Opening the Day: Democrat Pete Stark Goes After Paulson's "irresponsible rumor mongering hogwash"

by: Matt Stoller

Thu Sep 25, 2008 at 11:36

What I'm learning is that Republican opposition is hardening to anything but a clean bill, and the Blue Dogs are the swing bloc around this deal.  As usual.

  • Here's a Dear Colleague letter from Congressman Pete Stark:

    Dear Colleague:

    Many years ago, I was the Chief Executive Officer of a retail California bank, with assets approaching a billion dollars.  I feel compelled to comment on the part of our financial system upon which ninety percent of our business and individual constituents rely.

    The independent community of savings banks and credit unions are safe, sound, and liquid.

    Yes, they may be suffering from higher delinquencies due to local economic problems - unemployment, lower home prices, natural disasters, etc. - but that, for the majority, results in lower profits, slower growth, and higher credit standards for potential borrowers.

    For those of us who believe in a market economy, those results should come as no surprise.  It should also come without question that the proposed bailout will only help reckless speculators who have been caught on the wrong side of the come line.

    Yesterday, a colleague said that he was worried that banks had to pay close to six percent for "Fed funds" (day loans between banks, usually available at one to two percent, to adjust cash requirements.)  Well, dear colleague, Duh!  Whilst one bank paid six percent, another bank earned six percent.

    Another colleague attributed to Secretary Paulson a comment to the effect that absent his bailout, folks wouldn't be able to get cash at ATMs.  That is irresponsible rumor mongering hogwash.

    Please, friends, whatever you decide about the "bailout," (and I intend to ignore/oppose it in any of the forms suggested thus far) I ask you not to create fear and incite the public to unwarranted hysteria, which actually could hurt the economy.


    Pete Stark
    Member of Congress

  • Krugman:

    My sneaking suspicion is that they started with a determination to throw money at the financial industry, and everything else is just an excuse.

  • Inhofe says the economy is 'not really a problem.'

  • DFA is running an ad on McCain's health records.  CNN declined the ad.

  • Jeb Bradley is slightly ahead of Carol Shea Porter in NH-02.  This is a progressive seat, and it would be too bad to lose it, though I'm less enthralled ever since she voted for the FISA compromise.

  • Jeff Merkley is now leading Gordon Smith by two.

  • Bill Clinton continues to praise McCain.  The Clinton's are obviously split; they are helping Obama, but want Obama to lose so that she can run again in 2012.  People are already informally lining up behind her in case Obama loses.  Pathetic.

  • The House approved $25 billion for carmakers.  I guess we should call this the 'other bailout'.

  • Larry Page accuses broadcasters of manipulating the FCC.

  • There is massive public opposition to the bailout.  People are mad.

What are you reading?

Matt Stoller :: Opening the Day: Democrat Pete Stark Goes After Paulson's "irresponsible rumor mongering hogwash"

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I was shocked to see Clinton praise Palin (4.00 / 1)
It was really over the top.  I really do believe he wants Obama to lose.

New Jersey politics at Blue Jersey.

Obama within 0.25% in North Carolina (4.00 / 2)
Rasmussen has Obama up 2% in North Carolina, per quick hits. That makes the last four polls out of North Carolina McCain 47.0%--46.75% Obama.

If Obama is on the brink in North Carolina, this is no longer a close election.  

People are mad (0.00 / 0)
Yes. But the polling seems to suggest they also understand why it might be neccesary. Anecdotal evidence isn't represenative.

The opposition is to the original bailout, which (0.00 / 0)
hasn't stood a chance of passing for 24 hours or so. At least that is my suspicion.

We know some of the details of the bill that is supposedly close to being agreed upon, at least by Dem leaders and that bill will likely be much less unpopular (if not 'much more popular'.)

But the Republicans, led by McCain of course, may choose to not support it. McCain would be doing this largely for political reasons while the Repubs will be doing it largely for ideological reasons.

The end result could be a disaster for the country and/or the McCain campaign. This is a pretty good bill to stave off a very real, if potential rather than inevitable, economic collapse. By opposing it for political reasons, McCain will be endangering the likelihood of getting something done in a timely fashion, thereby increasing the likelihood of a collapse, or at least further downfall. But by supporting it, McCain's stunts yesterday will look worse and he'll gain fewer brownie points than Obama, since Obama didn't panic and this is basically a Democratic bill.

"They" Don't want anything (4.00 / 2)
Hillary wants Obama to win, and is actually helping him.  Bill wants Obama to lose, and is doing absolutely nothing to help.

"Keep the Faith"

Carol Shea-Porter (4.00 / 3)
voted against the FISA Amendments Act.

She also voted against the Protect America Act of 2007.

Maybe there was a procedural vote somewhere where she didn't meet your approval, but if so you should provide the link. She's been great on pretty much every issue. She would be a great loss to forming a more progressive congress.  

If Bill keeps it up... (0.00 / 0)
...I can ensure you that Hillary's options past 2008 will be severely limited.

I don't appreciate being told constantly to think of the Party instead of myself, then getting verbally buggered by Bill.

blue dogs? (4.00 / 1)
well that's a surprise.

I've already called my blue dogs and told them to say not his deal.  A few days ago, they were expressing how "uncomfortable" they were with changing bankruptcy laws, so I called up and asked why. "Y'all weren't uncomfortable about changing the laws in 2005, you voted 32-4 to do it!"

These people are the worst.  All of them should be dumped it a burlap sack weighted down with stones and thrown off the nearest bridge.  if it's good enough for unwanted kittens, it's good enough for unwanted blue dogs.

Hey Matt... (4.00 / 1)
When you mention Paulson's bullshit frame of a "clean" bill, I'd suggest putting the word "clean" in quotes, to denote that it's being used in a unique sense unrelated to normal English usage.  Paulson certainly hasn't earned the right to have progressive bloggers use his jargon as though it was standard English, and shouldn't be given that courtesy.

"A fantasy is not even a wish, much less an act.  There is no such thing as a culpable or shameful fantasy."  -----Lady Sally McGee

Carol Shea-Porter (0.00 / 0)
DID oppose the FISA compromise. She went against leadership to do so. She never caved on FISA.


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