If you're an Obama supporter, as I have been for the last two years, this post may bother you. On the other hand, you may have perceived many of the same ideas while listening to Obama address the Senate yesterday, concerning the bailout bill.
Frankly, I was very disappointed with Obama's support of the bill. I was even more disappointed with his speech! To my ears, Obama used a rusty formulaic structure for his speech, with an unusual amount of fear and guilt lathered on the American people.
From the beginning of the speech, he was talking about blame for the state of the economy - but he didn't mention the Iraq War, outsourcing of jobs, or the plummeting employment rate. He used an analogy of putting out a fire now (by passing this bill in a hurry), but he failed to mention the other truthful part of that analogy - that some fires actually need to happen in order to destroy things so that new things can take place. Example: some of the moldy houses that Katrina visited had to be allowed to burn down, so new ones could be rebuilt. Many people have commented on the similarity between the devastation caused by Katrina, and the destruction to our economy.
Obama went on to accuse the House of failing to act. This is a blatant mischaracterization. The House DID act, just not the way Obama and others wanted it to. This is partisanship, pure and simple. I was surprised to hear Obama go there. He also connected the stock market drop to the House decision to vote down the original bailout bill. I was watching the stock market going down before the voting even started. Plus, it is simply inaccurate to attribute the activity in the stock market to anything other than investors' willingness to invest. Period. There are a multitude of reasons why investors choose to buy and sell stocks. Most of those reasons have nothing to do with what is happening at the same time in Congress.
Bottom line, Obama used fear and guilt in large doses in an attempt to persuade the American people to approve of this bailout bill created in the Senate. The bulk of his speech is chock full of talk about dire consequences, dangerous situations, threats of what will happen if we don't act now to rescue Wall Street. It was horrifying to hear him use causes near and dear, such as mortgages, car loans and college tuitions, payrolls, and bills, to convnce fellow Senators of the viability of this bailout bill. To plead the case for the bill based on a fear of a recession - that most of us already know we're in - well, that was an insult to our intelligence.
Obama also erroneously appropriated credit to the bailout bill for things that the bill simply doesn't guarantee, such as real protections for taxpayers, oversight, accountability, help for homeowners, elimination of golden parachutes, and profits or returns on our taxpayer contributions to this bill. Yes, those things are mentioned in the bill (I've read all 106 pages) - but every condition has a giant loophole for the Treasury Secretary to slide through, without any obligation to Congress, taxpayers, or anyone at all.
There are absolutely NO guarantees that the provisions of the bill will be managed correctly, that any money will be gotten back by the taxpayers, or that there will be any profits whatsoever. Obama clearly stated this in his speech. But didn't he also say previously that he would NOT support a bill that didn't have those guarantees built in?
One key item in the bill, which Obama mentioned in his speech, concerns the possibility Obama described by saying, "If we fall short, we will levy a fee on financial institutions so that they can repay us for the losses they caused." There's a clause in the bill about this, true. However, there are many more clauses in the bill, which indicate the very real possibility, even intention, that the Treasury Secretary will buy up assets and then dismantle the financial institutions. There would be no entity to "bill" a fee to, no financial institution from which to obtain reimbursement for our losses.
Another Senator has called this bailout bill "legislative blackmail."
The conclusion of Obama's speech exhorted the American people to do more to help our economy, to take more action to prevent the economic downfall we face. From this soapbox, Obama launched his familiar stump speech - blaming the runaway spending of the Bush Administration, and saying that many important programs will be delayed or abandoned, in spite of our great sacrifices.
The best line of his speech came at the very end, where he said, "...our destiny is not written for us, but by us." That rang true. Unfortunately, that truth was cloaked in thick political rhetoric, the likes of which has a real potential to derail Obama's voting base.
Comments are closed for this post.
