Bailout Imbroglio: Politics, Power, Pulpits, & Profit

The failure to pass bailout legislation is a symptom of a larger issue…one that percolates in the background. Good governance must promote a social structure that insists the nation be neutral while accepting the soul’s autonomy. Preserving our American identity hangs in the balance.


Commentary By: Daniel DiRito

We’re in uncharted waters with a leaky boat and a storm on the horizon…but the GOP wants us to know that Nancy Pelosi is a mean-spirited partisan.

Let me see if I can get this straight. The Republican president of the United States sends the Secretary of the Treasury and the Federal Reserve Chairman to Capital Hill with a message of impending economic doom…asking the party in power to put aside partisanship and pass necessary legislation.

The party in power (Democrats) holds its nose and puts together a bill premised upon the gravity of the situation, endures John McCain’s grandstanding at the eleventh hour, allows him to characterize his involvement as critical to the success of the process, spends hours meeting with those in the GOP who want to amend the bill, comes to an agreement on a bill the GOP leadership can support, and then brings the bill to a vote.

In that vote, over sixty percent of Democrats support legislation that was requested by the head of the opposition party, two thirds of the presidents fellow Republicans jump ship and oppose the bill, and the GOP house leadership wants Nancy Pelosi and the Democrats to shoulder the blame?! Well there you have it…nothing illogical about that, right?

Frankly, I’ve personally reached the point at which I’m opposed to any attempt to glue what remains of our failed government back together. Unless and until politicians are held accountable for the consequences of their actions, I’m in favor of pulling the rest of the metaphorical china from the cupboard and smashing it all on the floor. I say as much because I don’t think anything will change until the American public is forced to face reality…even if that means standing in line for a loaf of bread and a bowl of soup.

Look, let’s be honest as to what all of this GOP partisanship is about. From their self-serving perspective, it’s power and money…and they’re willing to do whatever it takes to obtain both. Voters, on the other hand, have allowed themselves to be drawn into an ideological struggle to define morality. Taken together, this is the underlying formula for the disaster we’re witnessing.

Instead of a candid discussion on the merits of rescuing our financial structure, the political combatants have spent years defining our differences in terms of good versus evil; right versus wrong. While voters blindly engage in this theoretical tug of war, the real battle for dominance is waged in the trenches…replete with lobbyists looking to commit larceny in tandem with their trusted troopers…the political elite.

The unseen metrics of today’s maelstrom center upon the pursuit of profit. Those house Republicans who opposed today’s legislation tell us they are concerned about main street. In truth they, in concert with their corporate benefactors who want the government to insure their success without foregoing the profits that may eventually result from the government’s intervention, see main street as a peripheral player.

Let me explain. If the bail out takes the current form, the companies that avail themselves of it will have to forego the upside of the very assets that have made them a ton of money during the housing bubble and now leads them to the edge of financial ruin. Conversely, if the legislation is structured as an insurance mechanism, they receive the financial assist they need without foregoing the future profits that may ensue with the passage of time and an improved economy.

In other words, house Republicans are carrying the water of Wall Street while telling us they’re looking out for the interests of taxpayers. You see, one need only look at the proposal that came from the Bush administration…a virtual blank check to assist their wealthy benefactors…to understand their intentions. Only when the legislation, as modified by the Democrats and a handful of Republicans, became apparent, did the GOP revolt materialize. It did so at the behest of their capitalist (and opportunist) friends who stood to see their profit potential handed over to the American taxpayer.

Don’t be fooled…the motivation of many in the GOP, who voted against this bill, has little to do with those of us living on Main Street. The proof is found in today’s vote…and the reality that a bail out is inevitable. The acrimony simply centers on who gets the lion’s share of the benefit.

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Monday, September 29th, 2008 by Daniel DiRito |

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