How the Democrats Created the Financial Crisis: Kevin Hassett

Last night and this morning I listened to what I felt were two excellent analysis of the bailout. One was from Newt Gingrich. The other from Mitt Romney. Newt is totally against it. Mitt is tepidly for it.

The reason I thought McCain might come out against it would not be because of political reasons. However I was looking at the political pluses of it if he does come out against it.

Just as I can live with either Obama or McCain as the next President I can live with the bailout or I can live without it.

I know my Democratic friends out there will not agree or like this but I think the current economic situation benefits McCain because it takes the economic issue out of Obama's hands.

Neither Obama or McCain are really players in the BIGGEST economic decision of our times. Not good for Obama.

If McCain comes out for the bailout he and Obama will essentially share the same position. Not good for Obama.

If McCain comes out against it he shows his maverick side and further distances himself from Bush. Not good for Obama.

On top of that McCain is on the winning side of the energy debate. Not good for Obama.

If you look down the road 2-3 weeks the economy as far as the candidates are concerned could be a non issue in that neither would have had much to do with the biggest economic decision in 50 years. Not good for Obama.

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

KD, you seem to be operating under the assumption that an economc meltdown won't effect things like the occupation of Iraq.

You seem to not get that everything American does or does not do depends on our having a viable economy.

Right now, except for the fact that we are rearragning deck chairs on the Titanic to keep the stock market from crashing, we don't really have a viable economy.

We don't know what kind of economy we have.

The fiat money game is finding its logical conclusion and that ain't good.

The economy is viable and will continue to be viable if we keep politicians who've never run a business, made a payroll or a sold a product out of the frickin' way.

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

I hope you're right.

Time will tell.

Well they have been out of the way and here we are, so not sure I agree with you there.

No choice.

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

I share some of your compassion, or lack thereof, with the candiates but I disagree with your analysis of who will benefit from the economic mess. If McCain had no record on the economy, I would agree with you, but he does. He has basically said on numerous occasions that he knows little about economics. That coupled with a poll that shows the majority of people blame the GOP since they have been in power for the last 8 years, 6 of which they had the WH and Congress.

The layman, who includes most of us, looks at that fact and quickly develops a belief that the GOP should bare most blame. McCain would continue many of bush's economic policies, and that cannot be denied, well, unless he changes his mind again.

__________________
A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine.
Thomas Jefferson

Except I think McCain will be lay out a pretty good case that Democrats are more to blame for the Fannie mess and that McCain and the Bush Administration made many attempts to reel in Fannie but were stopped by Democrats.

Now don't get me wrong I think there's blame to around but I think McCain can make a pretty good case and wrap it around the Demomcrats neck.

Democrats are banking on pining the mess on Phil Gramm and amendment to deregulate the Commerical Banks. Problem is President Clinton signed it into law.

See NY Times from Nov 1999: Clinton Signs Legislation Overhauling Banking Laws Link here

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

I hope you're right. I hope McCain blames the entire mess on the Democrats and wrings his hands and cries how helpless Republicans are to do anything about anything, even when they are given big chunks of total control.

Read this and weep:

NY Times Nov 1999:

President Clinton signed into law today a sweeping overhaul of Depression-era banking laws. The measure lifts barriers in the industry and allows banks, securities firms and insurance companies to merge and to sell each other's products.

''This legislation is truly historic,'' President Clinton told a packed audience of lawmakers and top financial regulators. ''We have done right by the American people.''

The bill repeals parts of the 1933 Glass-Steagall Act and the 1956 Bank Holding Company Act to level the domestic playing field for United States financial companies and allow them to compete better in the evolving global financial marketplace.


Who was in bed with Gramm? Robert Rubin. Who shared the stage with Obama a few days ago? Robert Rubin. Who just through Obama under the bus to protect Clinton? Robert Rubin.


Link here

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

I don't think you can say the administration is at fault here. I'm no Bush fan, but I don't believe in blaming someone unless it's their fault.

See below for full post. I hit the send button too soon.

__________________
It isn't that Liberals don't know anything, they just know a lot that isn't so. -- Ronald Reagan

Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience. -- C.S. Lewis

I don't think you can say the administration is at fault here. I'm no Bush fan, but I don't believe in blaming someone unless it's their fault.

New York Times Article

What did Barney Frank say at the time?
Legislative outcome?

In the end the Dems blocked the effort after vigorous spending on lobbying by Fannie Mae.

So, I don't think you can argue that there was sleeping going on near the switch. I think you can fairly say that efforts to fix the problem ahead of time were blocked by a strong political effort put forth by those who were fighting for "affordable housing." Now we see how the housing was so affordable, WE get to pay for it!

__________________
It isn't that Liberals don't know anything, they just know a lot that isn't so. -- Ronald Reagan

Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience. -- C.S. Lewis

Please, y'all do the same thing. You haven't been able to do jack shit for the last two years cuz the big, bad Repubs keep blocking all your fondest legislative dreams from becoming reality.

Give me a break!

Following that logic, the Democrats must want to be in Iraq otherwise they would have pulled the plug in the last two years.

__________________
It isn't that Liberals don't know anything, they just know a lot that isn't so. -- Ronald Reagan

Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience. -- C.S. Lewis

I would agree and I sure hope the McCain campaign can get this understood by the American public. If he can, he just might get elected. Perhaps he's waiting for the debates.

__________________

ABC'S CHARLIE GIBSON: In each instance, when the Capital Gains rate was dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?

OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.

hmmm? Strawman, much?