Republican Class Warfare

Republican like to use the term “class warfare” anytime Democrats mention income inequality, middle class tax cuts, Wall Street oversight or anything that would attempt to even the economic burdens on rich and the middle class.

But now that the ills of deregulation and self-enforcement have become apparent to even the most rabid laissez-faire capitalist, Republicans have taken the mantle of class warfare as their own.

If you listen to conservative talking points of late, it is obvious that their strategy is not to trace our economic woes to their true origin, but to blame all the results of this financial free-for-all on one oversimplified source; Poor People.

Yes, it’s those same mythical, Cadillac-driving welfare recipients once again thwarting the responsible Everyman’s dream of prosperity.

It’s not deregulation, that allowed for bundling of mortgages as investment instruments, thereby breaking the ties between lender and borrower and negating any direct concern about repayment. No, it’s Democratic pandering to the poor and minorities, which forced the helpless financial institutions to lend to the undeserving and uncaring poor.

Yes, according to today’s Republicans, it is the rich who have been abused, irrespective of their monumental financial gains and golden parachutes. And it is, in their opinion, the rich who truly care about the plight of the working man.

So Republicans applaud Jesus’ words, “The poor will always be among us”, and do all they can to ensure their prophetic fulfillment. This provides an easy and powerless target on which to blame all our ills. And all the while they continue their consolidation of wealth.

It is sad that the Republican strategy of blaming the impoverished victims still exists. But hopefully our eyes have been opened too widely to be closed again by simple, prejudicial finger pointing and this “class warfare card” has finally been trumped by financial reality.

Obama Ad: McCain Out of Ideas, Out of Touch, Out of Time

Quote of the Day

Senator Barack Obama, speaking on the campaign trail today, offering his explanation as to why his opponent doesn't want to talk about the economy:

"John McCain is out of touch. He is out of ideas... and he's fast running out of time."

Bush-McCain Economics: Rotten to the Core

Writing yesterday for The Huffington Post, US Congressman Jim Cooper (D-TN), succinctly describes the economic mess created by eight years of Republican rule in Washington:

"...for the past eight years America has been digging our hole deeper with more deficit spending. (George W. Bush, you'll recall, has borrowed more money from foreign nations than his 42 predecessors--combined.) America can't afford to let these problems fester, and after this week, Congress can no longer feign ignorance. We went into the basement to bail out the economy, and guess what we discovered? There are termites in the woodwork.

On Nov. 5--Barack Obama's first day as president-elect--I hope he'll put on his exterminator gear and begin a thorough inspection of our fiscal house, because it's been rotted by termites. The last owners only had the place for eight years, but they did a "heck of a job" weakening government from the inside out. I've got a plan to get control of our long-term finances, but I don't care whose plan we use, as long as we get started soon. Only a solvent government will be able to rebuild our economy and meet the many challenges of the 21st century."

National Poll: Obama By 9

A new Washington Post/ABC News Poll released this morning shows Barack Obama surging past John McCain to a 52-43 point lead nationally.  McCain's convention bounce gave him a two point lead two weeks ago, but that lead has now been erased as voters fear a worsening economy and the ongoing catastrophe on Wall Street.  

Highlights from the poll. View full polling data (pdf)

Obama leads 52-39 on the economy

Independents prefer Obama by 21 points on issues related to the economy

9% rate the economy as "good" or "excellent"


14% of voters believe the nation is heading in the right direction  (ties record low in 1973)


60% are worried about their own family finances


43% of independent women view Palin favorably compared to 65% last month (-22%)


62% of Obama supporters are "very enthusiastic" compared to just 34% for John McCain who feel the same way about his candidacy.

Quote of the Day

"The failed economic policies and the same corrupt culture that led us into this mess will not help get us out of it. We need to get to work immediately on reforming the broken government -- and the broken politics -- that allowed this crisis to happen in the first place."

-- Senator Barack Obama, in a message sent to his supporters this evening

New Poll: GOP Takes the Hit on the Economy

Just when you may have started to wonder if half of your fellow citizens have been in a coma for the last eight years, a new CNN/Opinion Research Corporation poll gives some hope that they haven't been. In a poll released this afternoon, the researchers found that twice as many Americans hold the Republicans responsible for the current economic mess than blame the Democrats. Well, duh.

Some 47% of those questioned believe the GOP is more responsible for the present (lousy) state of the economy, while 24% blame the Democrats. You gotta think those 24% have simply been off their meds too long.

These views already seem to be having an impact on the national, head-to-head poll numbers in the presidential race. The same poll gives Barack Obama a 51%-46% lead over Republican John McCain among registered voters.  It's a pity that so many voters have to be hit over the head with reality before they wake up, but such is the state of the body politic in America these days. Only forty-two days to go...

Video: McCain "No regrets" Deregulation "Helpful to economy"

He wasn't kidding when he said he needed an education in economics.

Here's a portion of the 60 Minutes interview from yesterday.

Video: Blueprint For Change - Economy

For those who've always believed that his message was not specific enough, here's Obama's Economic Blueprint For Change.

We'll post John McCain's economic proposals just as soon as he is finished disagreeing with himself on which direction to take this fundamentally strong economy.

Oregon's Merkley: "Gordon Smith Has Been Part of the Problem"

As the meltdown on Wall Street continues and the solvency of more and more financial institutions is in doubt, Democratic candidate for the US Senate in Oregon,  Jeff Merkley, lays part of the blame on his Republican opponent, incumbent Senator Gordon Smith. 

In a statement on the nation's worsening economic crisis, issued late yesterday, Merkley blasted Smith for his role in supporting Republican Bush's economic policies.  Mr. Merkley's statement reads:

Events of recent days underscore that the Bush economy, supported by Gordon Smith, has been built as a house of cards. That house of cards has included retail mortgage practices and mortgage-backed securities that have undermined our economic security.

At the retail level, families have been devastated by subprime – and even non-subprime - mortgages. Practices including pre-payment penalties, steering payments and exploding interest rates have often turned the dream of homeownership into a nightmare for American families. Deceptive and damaging mortgages should never have been allowed.

These, in turn, provided the basis for mortgage-backed securities - built on the shaky foundations of the subprime loans. The hollow, Bush-Smith economy has been devastating for American families and now, as we’ve seen, for American banks.

The current Bush-Smith economy is stripping wealth from families, shipping jobs overseas and putting opportunity out of reach. We need an economy that builds wealth for families, creates living wage jobs here in America and restores opportunities for American families.

Gordon Smith has been part of the problem - it's time for a new direction, and it’s time to put Washington to work for working Americans.

Tennessee's Bob Tuke Blasts Republicans on Financial Crisis

In his weekly message to Tennessee voters, Bob Tuke, Democratic candidate for the US Senate, lambasts Republican economic policy. Tuke is challenging incumbent Republican Lamar Alexander in the November election. Mr. Tuke writes: 

We all have been reading about something I never thought I would see - the failure or takeover of three of the largest and most venerable investment banks in America, together with the failure of several commercial banks and mortgage lenders across the United States. Add to those catastrophes the threats to the financial viability of Freddie Mac and Fannie Mae and the insurance giant AIG, and we face a financial industry crisis we have not witnessed since the Great Depression. 

Of course this crisis does not necessarily mean there will be a world-wide financial collapse, but such a collapse is possible unless there is substantially better financial governance in the next several weeks than we have had in the past several years. CEO's and Boards of Directors in the private sector need to rein in the aggressive and reckless risk-taking that has weakened our financial markets and the public confidence in them. Government regulators need to enforce the laws and regulations that already are on the books, and they need to write and enforce new regulations that will require more sensible lending and investment policies and that will hold accountable those who fail to obey the rules. Congress, especially the Senate, needs to do its job of oversight. 

I have been practicing law in the financial services industries for more than 30 years, and I have never seen such willful incompetence in both the private and government sectors. On the private side we have witnessed grossly exorbitant salaries and benefits claimed by executives (and awarded by ineffective Boards of Directors), greed in investments in subprime mortgage loans with losses that were entirely predictable, and failure to manage portfolios and people the way good business executives generally have in America for decades.

On the government side, the regulators of the financial services industries simply abdicated. Led by our historically incompetent President and Vice President, and influenced by lobbyists and massive campaign contributions, the Bush-Cheney-Alexander Republican approach of letting the financial markets govern themselves has resulted in this debacle. It did not have to happen. Proper regulation and Congressional oversight could have - and should have - curtailed subprime mortgage lending. The unsound housing investment bubble could have been prevented. Reckless investments by traditionally conservative institutions could have been stopped. 

This is another reason I am running for the U.S. Senate: To offer Tennesseans a Senator who understands the financial industries and who will not be influenced by massive campaign contributions and cozy relationships with lobbyists. Lamar Alexander has voted lockstep with the Bush administration's economic policies and has voted to strike down legislation to protect consumers and to eliminate adequate oversight of our nation's financial system, which has led to the disaster we face today. At the same time he has received approximately $3 million in contributions from executives and PACs of banks, realtors and securities companies for his ardent opposition to government oversight that would have protected borrowers and consumers.

I will look after the interests of the people of Tennessee and America instead of giving in to the interests of big money and their cronies. Together, let's Take the Hill.

McBailout

President Bush reminds all of us once again why Republicans should not be trusted with the economy.  As if we needed more reasons. 

"Americans should be confident that the actions taken today will strengthen our ability to weather the housing correction and are critical to returning the economy to stronger sustained growth."

Return to stronger sustained growth? Correcting? Forgive me for being pessimistic of Bush's ability to return us to a stronger anything.  

He's right about one thing though. Americans should be confident. But we're not. Given the Bush-McCain track record of the last eight years, it's a little hard to trust so easily.  The consequences of deregulating the lending industry are developing before our eyes. 

Pardon the expression, but the chickens are coming home to roost.  More may be on the way. Many are afraid this is just the beginning. For now, we'll begin with a few handouts, fully funded by the American taxpayer. $100 billion for Fannie Mae and $100 billion for Freddie Mac.  That's only $200,000,000,000.  If you're jaw hasn't dropped yet, consider staring at the eleven zeros in that number.  Then, ponder the possibility of a few more banks going belly-up. What then?

Palin echos why we should trust Republicans all the sudden.

"The McCain-Palin administration will make them smaller and smarter and more effective for homeowners who need help."

And exactly how do they plan on accomplishing any of that?  Promises, promises.  Sound familiar?

Now, McCain wants to govern with the same economic philosophies. Bushonomics. Adding on to the billions in bailouts...84,000 jobs lost last month alone.  An exploding national debt. Stagnant wages. Declining value of the dollar. Rising food costs.  Unaffordable healthcare, and a fading hope of going to college.

I'll pass on another four years of Bushonomics.  

The days of driving a few hundred miles "home" to see dad and mom are gone.  Gas prices are too high.  Waitresses, bartenders, and bellman struggle to make ends meet, many of them still making $2.13 an hour plus $40-$50 a day in tips ($17,430 gross income). A family healthcare plan is out of the question considering the tax burden on the tips. Forget savings. And seniors living on a fixed income will struggle again this winter to cope with rising heating costs.

I'll pass.

While today's billions in big bailouts for banks is the headline, the single-mothers who struggle to work full time and raise thier children at the same time are the real stories.  How on earth can John McCain possibly perceive the economy as fundamentally strong.  That alone is enough to make me question his ability to make decisions for the working middle class.  He really doesn't get it.  He hasn't walked a day in my shoes.