Mark Warner (D-Va.) discusses the early talking points surrounding the financial reform package:
If you haven’t spent time with these issues,“ Warner sighed, "it’s easy to pop off with sound-bite solutions that don’t work.”
Indeed it is. And that’s exactly what the GOP plans to do. And they’re already doing it; they have likely already won the framing war. Compare and contrast these statements from GOP fucktard in chief, Mitch McConnell
“We cannot allow endless taxpayer-funded bailouts for big Wall Street banks. And that’s why we must not pass the financial reform bill that’s about to hit the floor.”
-and-
“[The Dodd bill] gives the government a new backdoor mechanism for propping up failing or failed institutions…. We won’t solve this problem until the biggest banks are allowed to fail.”
with these (all from Warner):
“It appears that the Republican leader either doesn’t understand or chooses not to understand the basic underlying premise of what this bill puts in place.”
“Resolution will be so painful for any company. No rational management team would ever choose resolution. It means shareholders wiped out. Management wiped out. Your firm is going away. At least in bankruptcy, there was some chance that some of your equity would’ve been retained and you could come out in some form on the other side of the process. The resolution that [GOP Sen Bob] Corker and I have tried to create means the death of the company. The institution is gone.
Sen. Richard Shelby, the ranking Republican on the Banking Committee, refers to the resolution authority as:
a "slush fund”
-and-
“the mere existence of this [slush] fund will make it all too easy to choose a bailout over bankruptcy.”
Warner counters:
“Again, it’s either that they don’t understand or they choose not to understand. There’s nobody in the financial sector who believes this. They’d laugh at the proposition that $50 billion is enough to get you through the resolution process if a couple of firms go down. What we’ve heard time and again is that the challenge in a crisis is to buy enough time to keep the lights on for a few days till you get the FDIC in here. You could make it smaller. Corker and I spoke about $25 billion. But this is funded by the industry.”
“And here’s the hypocrisy of the Republican leader’s comments, I can guarantee you that if there had not been some pre-funding, the critique would’ve been: ‘Look at these guys! They’ve left the taxpayers exposed! What’s going to keep the lights on for these few days? It’s going to be Treasury funds or Federal Reserve funds. The taxpayer will be exposed!’ ”
You are goddamned right they would. But that’s not the point. As usual, the Democrat has a nuanced, sober take on the way forward. The GOP has a short, meaningless slogan that offers no policy insight or suggestion whatever. It’s just "go die in the streets” pointed at their corporate paymasters. Of course, both parties know such an event would never be allowed to transpire, so all’s well.
What the Democrat should be saying:
The GOP wants to help these fatcats to the punchbowl. Again
The GOP is lining the pockets of the bankers and guaranteeing future bailouts
Why is the GOP against prosecuting the worst of the Wall Street offenses? Why do they want to perpetuate the boom/bust cycle that benefits only the richest few?
And etc… Rest assured you’ll hear none of those in the run-up to 2010. Attempts at financial reform will fail. The next economic meltdown will happen sooner rather than later and find an American government that’s financially unable to do anything about it. Depression II will make the current recession seem like the good old days. And will be blamed on Obama. Wait and see.
