A Major New Plan Coming from Donna Edwards, Peter DeFazio, Progressives

by: Matt Stoller

Tue Sep 30, 2008 at 13:56

You guys are amazing.  43 donations in 12 hours is remarkable, not because of the number but because this site spends A LOT of time criticizing Democratic leaders, so turning around and investing your faith in Democratic politicians requires a dexterity of mind and a realistic optimism that we find quite rarely.  We're going to shoot for 100 donations, because Better Democrats are the most important thing we can aim for this cycle.  And as evidence, this is what having Better Democrats means.

U.S. Rep. Peter DeFazio (OR-04), an outspoken critic of the Bush/Paulson bailout, along with Rep. Kaptur (OH-09), Rep. Scott (VA-03), Rep. Cummings (MD-07), Rep. Doggett (TX-25), Rep. Holt (NJ-12), Rep. Edwards (MD-04) and Rep. Hirono (HI-02), will introduce legislation today to address the failures in the financial markets. DeFazio believes that the Paulson/Bush proposal is based on a flawed premise: if the American taxpayers spend $700 billion to buy Wall Street's toxic assets - a plan pundits are calling "trash for cash" - it will create liquidity in our financial markets and will somehow trickle-down to Main Street.
DeFazio's plan is not in any way based on the Paulson/Bush plan. Instead of throwing taxpayer dollars at the program and crossing our fingers that the plan work, the measure will direct the Administration to take five simple steps, suggested by noted economist and former head of the FDIC, William Isaac, to re-regulate the markets and move America towards a healthy financial future.

The legislation will be available at the press conference.

Who: Rep. DeFazio, Rep. Kaptur (OH-09), Rep. Scott (VA-03), Rep. Cummings (MD-07), Rep. Doggett (TX-25), Rep. Holt (NJ-12), Rep. Edwards (MD-04) and Rep. Hirono (HI-02)
What: Press Conference to introduce legislation to fix financial markets
Where: House Radio and TV Gallery
When: 3 pm TODAY

I'm amending my position on a bailout from hell no to HELL YES.  Here's a video from the night of Donna's victory, where she thanks OpenLeft for her victory.

We did this.  We helped put Donna in office, and she's showing leadership.  She's making us proud.  And I know many of you gave to her and volunteered for her, and you should be very very proud.  For those of you who didn't, you now have another chance to put people into office who will band together, as these progressives are doing, not when it is easy, but when the pressure is on, when it is hard.  I know this is an uncertain time, nerves are raw, and we're playing with trillion dollar decisions.  But this is when it is most important to stick to our values, to show that progressive leadership IS powerful and IS meaningful and that we will reward those who stand up.  

Join us.  Give a little today.  And in 2009, we'll have a powerful caucus of Better Democrats in the House and the Senate.  I can see it now, Donna Edwards, Darcy Burner, Alan Grayson, Jeff Merkley, Annette Taddeo, Sam Bennett, etc.

Matt Stoller :: A Major New Plan Coming from Donna Edwards, Peter DeFazio, Progressives

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Question (0.00 / 0)
This looks awesome, but I am curious how much chance it has of becoming the base for the new bailout. As much as I love these Progressives, there are some (including our Madame Speaker) who seem to be more than willing to leave behind their principles in the face of opposition. Do you have any idea how much clout this plan has with congressional leadership?

Former Edwards Supporter, Obama Supporter since January 30, 2008

we'll see (0.00 / 0)
More is planned, I promise you.

[ Parent ]
You can get a taste of an Issac based plan here (0.00 / 0)
here is Issac laying out what he thinks should be done.


its another responsible sounding plan with minimal to no tax payer exposure. this is a very promising development.

I prey to the gods that the progressive caucus just doesnt load their bill down with a honey pot of pet wishes. stay focused on the narrow - protecting tax payers - and we can win the middle and corner republicans into supporting it.

Michael Bloomberg, prince of corporate welfare

[ Parent ]
Will Bush (0.00 / 0)
sign this plan into law?

[ Parent ]
Who knows? (4.00 / 1)
But I know I'd like to find out!

[ Parent ]
Where is that quote from? (0.00 / 0)
Is there a link?


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press release (0.00 / 0)
it's from a press advisory, which I also received. I posted notice of it at Kos, but I also transcribed some of his great interview work from yesterday. He really takes it to Paulson in places, like this:

I think it's unbelievably irresponsible for a Secretary of the Treasury go out and say the sky is falling and start using wild ...I heard in a number of caucuses, from some of the most prominent members of my caucus, this may not have been this big a problem and we wouldn't be in this corner--except Henry Paulson said it was, and now it is, and it can become a self-fulfilling prophecy. I think it's really time to consider whether or not having a Master of the Unvierse from Wall Street, who got rich creating this stuff, that he now says threatens the entire world, is the guy to solve the problem.

Go Peter!

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[ Parent ]
It will be interesting to see where this goes... (0.00 / 0)

This article says Issac's plan is being pushed by a group of Republicans, no mention of DeFazio's group.

I am not conversant on the details enough to know if what Isaac's proposes is sound, but it certainly seems better than dumping $700B into the breach.  

what Isaac's proposes (0.00 / 0)
i just posted a link to an essay in the WaPo up stream. it sounds very good!

"The banks do not need taxpayers to carry their loans. They need proper accounting and regulatory policies that will give them time to work through their problems."

and if republicans are pushing it that would be incredibly good!!

Michael Bloomberg, prince of corporate welfare

[ Parent ]
That's what I read initially, but it seems vague... (0.00 / 0)
I don't know enough about the angles to know if what Isaac has in this article are a real solution, but it sounds better than giving an almost blank check for $700B to Paulie and Georgie.  It was only after I read the Yahoo article that I got a bit concerned that Isaac's plan is the one that also calls for a capital gains tax holiday. If this plan really is clean and DeFazio's progressive group and House Republicans agree to keep it this simple, then I am all for it.  

[ Parent ]
cap gains tax holiday (0.00 / 0)
ive not read what you have, but i would guess a cap gains tax holiday would be in the interest of sparking the economy. as much as progressives hate this sort of thing lower taxes in general does mean there is more money to speculate on new businesses. im not arguing for a cap gains tax cut, i certainly don't think there is any place for it in a bailout/solvency solution. but that would be the logic i would expect and its not inherently untrue.

Michael Bloomberg, prince of corporate welfare

[ Parent ]
Not sure a cap gains tax would help. (0.00 / 0)
The issues seems to be housing slump, credit tightness, and a stack of almost worthless paper.  I don't think a cap gains tax holiday does anything to solve any of those issues.  I would think a holiday would just increase speculation and might even induce a sell off, but market investing isn't even the problem.  I suppose if they waived capital gains on any money made from purchasing big shitpile, it might have some function but why would anyone buy it if they could put their now tax-free gains into assets with actual value?

In fact, it seem Isaac's plan doesn't contain this.  The potential problem with it is the ending of 'mark-to-market' valuing which I think means it would allow banks to just make up a value for their portion of the big shitpile and hope they can hold on under Federal protection.  I hope that is wrong.

[ Parent ]
How would such a tax cut (0.00 / 0)
be any different from the Bush tax cuts of the past eight years which have proven completely ineffective in stimulating the economy?  Trickle down economics does not work.

[ Parent ]
Anyone know where there might be a webstream of this? (0.00 / 0)
and Matt do you have an embargoed press release we can have now? its after 3.

Michael Bloomberg, prince of corporate welfare

Here you go. (0.00 / 0)
I can't embed the video.

[ Parent ]
actblue swamped? (0.00 / 0)
I'm getting an error from that ActBlue link, and even just trying to go to their home page is timing out. Anyone else having trouble with this?

not everything worth doing is profitable. not everything profitable is worth doing.

me too (0.00 / 0)
I had to re-load several times to get it to work. Keep trying, I guess.

"I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that."
-Lawrence Summers

[ Parent ]
Sounds like a really good idea.... (0.00 / 0)
Is there any way for this to get through? I mean, I'm not one for moral victories when my 401k is crashing.


link to presser video (4.00 / 1)
Plus the hot diaries at Kos, here from Loaded Orygun...

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