Commentary Magazine


Topic: bank lending

Flotsam and Jetsam

Not content to lose just Massachusetts, key Democrats want to keep at ObamaCare negotiations: “There is a still sizable contingent of Democrats who continue to believe failure is not an option, even though their voices have been softer since the Senate loss in Massachusetts. Obama, Pelosi and Reid, by all accounts, still agree with this thinking and remain sincerely committed to pushing ahead. Most Democrats have already voted for the bill, making them more invested in finishing the job than their counterparts were in 1994.”

No, honest: “President Obama’s campaign to overhaul the nation’s healthcare system is officially on the back burner as Democrats turn to the task of stimulating job growth, but behind the scenes party leaders have nearly settled on a strategy to salvage the massive legislation. They are meeting almost daily to plot legislative moves while gently persuading skittish rank-and-file lawmakers to back a sweeping bill.” They would be skittish, of course, because  two-thirds of the country hates the legislation.

But you can understand that Democrats want to run on something other than failure: “The $700 billion bailout program for the financial industry has so far done little to boost bank lending, aid small businesses or reduce home foreclosures, a top government watchdog said in a report. Neil Barofsky, the special inspector general over the Troubled Asset Relief Program (TARP), said in a report that while the bailout has helped stabilize the financial system, many of the program’s original goals have not been met.”

And they probably don’t want to run on their fiscal management because: “the White House expects the annual gap between spending and revenue to approach a record $1.6 trillion this year as the government continues to dig out from the worst recession in more than a generation, according to congressional sources. The red ink would recede to $1.3 trillion in 2011, but remain persistently high for years to come under Obama’s policies.” Yes, the spending “freeze” is really just for show.

And their good-government pledges are nothing to brag about: “The recent awarding of a lucrative federal contract to a company owned by a financial contributor to the Obama presidential campaign — without competitive bidding — ‘violated’ President Obama’s many campaign pledges to crack down on the practice, a top State Department official told Fox News.”

Seems the voters don’t think Obama gets a B+: “Just 19% of voters nationwide believe that President Obama achieved most of his goals during his first year in office. A new Rasmussen Reports national telephone survey finds that 70% hold the opposite view and say he did not accomplish those goals.”

Former CIA director Michael Hayden has convinced Diane Ravitch of Brookings: “I realized that Eric Holder has misplaced priorities. He Mirandizes suspected terrorists (alleged terrorists, that is), and vigorously pursues CIA agents. Holder should go.”

Conservatives should give the president some credit: “It took a year, but one bright spot in President Obama’s State of the Union was that he bothered to say nice things about trade. ‘We have to seek new markets aggressively, just as our competitors are,’ he said. ‘If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores.’” Now let’s see if Obama’s party will move trade deals through Congress.

Not content to lose just Massachusetts, key Democrats want to keep at ObamaCare negotiations: “There is a still sizable contingent of Democrats who continue to believe failure is not an option, even though their voices have been softer since the Senate loss in Massachusetts. Obama, Pelosi and Reid, by all accounts, still agree with this thinking and remain sincerely committed to pushing ahead. Most Democrats have already voted for the bill, making them more invested in finishing the job than their counterparts were in 1994.”

No, honest: “President Obama’s campaign to overhaul the nation’s healthcare system is officially on the back burner as Democrats turn to the task of stimulating job growth, but behind the scenes party leaders have nearly settled on a strategy to salvage the massive legislation. They are meeting almost daily to plot legislative moves while gently persuading skittish rank-and-file lawmakers to back a sweeping bill.” They would be skittish, of course, because  two-thirds of the country hates the legislation.

But you can understand that Democrats want to run on something other than failure: “The $700 billion bailout program for the financial industry has so far done little to boost bank lending, aid small businesses or reduce home foreclosures, a top government watchdog said in a report. Neil Barofsky, the special inspector general over the Troubled Asset Relief Program (TARP), said in a report that while the bailout has helped stabilize the financial system, many of the program’s original goals have not been met.”

And they probably don’t want to run on their fiscal management because: “the White House expects the annual gap between spending and revenue to approach a record $1.6 trillion this year as the government continues to dig out from the worst recession in more than a generation, according to congressional sources. The red ink would recede to $1.3 trillion in 2011, but remain persistently high for years to come under Obama’s policies.” Yes, the spending “freeze” is really just for show.

And their good-government pledges are nothing to brag about: “The recent awarding of a lucrative federal contract to a company owned by a financial contributor to the Obama presidential campaign — without competitive bidding — ‘violated’ President Obama’s many campaign pledges to crack down on the practice, a top State Department official told Fox News.”

Seems the voters don’t think Obama gets a B+: “Just 19% of voters nationwide believe that President Obama achieved most of his goals during his first year in office. A new Rasmussen Reports national telephone survey finds that 70% hold the opposite view and say he did not accomplish those goals.”

Former CIA director Michael Hayden has convinced Diane Ravitch of Brookings: “I realized that Eric Holder has misplaced priorities. He Mirandizes suspected terrorists (alleged terrorists, that is), and vigorously pursues CIA agents. Holder should go.”

Conservatives should give the president some credit: “It took a year, but one bright spot in President Obama’s State of the Union was that he bothered to say nice things about trade. ‘We have to seek new markets aggressively, just as our competitors are,’ he said. ‘If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores.’” Now let’s see if Obama’s party will move trade deals through Congress.

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Flotsam and Jetsam

The party of “no” is ahead in the congressional generic poll.

All that time “engaging” Iran was supposed to prepare the ground for international sanctions. But China and Russia are as unhelpful as ever. China sent only a low-level flunky to the international meeting: “China’s virtual snub has caused consternation among the four Western powers in the group, which had hoped to use the meeting to reach an agreement on whether to begin drafting a Security Council resolution on a fourth round of U.N. sanctions against Tehran.” And Russia thinks there is “still time for meaningful political engagement and efforts to find a solution.” I wonder if the Czech Republic and Poland can get their missile-defense systems back now.

Martha Coakley tells the Big Lie the weekend before the election, accusing Scott Brown of wanting to turn away rape victims from hospitals. It is so ludicrous and false (even by Boston Globe standards) that one wonders if that will be the final nail in her coffin.

More bad polling news for Coakley suggests that she was desperate to throw the long bomb.

Let’s get this straight: if ObamaCare proves to be so unpopular that Massachusetts sends a Republican to the Senate, the Democrats will try to force the hugely unpopular bill through with a bare 51-vote majority? Yup: “Democrats are prepared to use a budgetary procedure to pass healthcare reform legislation if they lose a key Senate race on Tuesday, a House leader said this weekend. … Senate Democrats had previously ruled out using reconciliation, reasoning that the maneuver was politically and procedurally risky. The tactic, for instance, leaves it up to the Senate parliamentarian to decide whether elements of the bill under consideration are relevant to the budget process, risking reforms seen as critical to Democrats’ reform efforts.” There is no reason to ever listen to the voters, they must figure.

Is there any wonder that there’s an “enthusiasm gap” in Massachusetts?

Obama is now resorting to good old-fashioned business-bashing: “The White House has spent months imploring banks to lend more money, so will President Obama’s new proposal to extract $117 billion from bank capital encourage new bank lending? Just asking. Welcome to one more installment in Washington’s year-long crusade to revive private business by assailing and soaking it. Mr. Obama’s new ‘Financial Crisis Responsibility Fee’—please don’t call it a tax—is being sold as a way to cover expected losses in the Troubled Asset Relief Program. That sounds reasonable, except that the banks designated to pay the fee aren’t those responsible for the losses. With the exception of Citigroup, those banks have repaid their TARP money with interest.”

Dana Milbank chides the Democrats for meeting in a bunker but then regurgitates the mind-numbingly silly and unsubstantiated mantra that has sent them marching over the political cliff: “They can pass health-care reform and have a losing year, or they can shelve health-care reform and have a disastrous year. Voters may not like the health-care bill, but they’ll punish the majority party even more for dithering and drifting without accomplishing anything.” Actually, I think they’re punishing them for ignoring the voters’ clear message.

The party of “no” is ahead in the congressional generic poll.

All that time “engaging” Iran was supposed to prepare the ground for international sanctions. But China and Russia are as unhelpful as ever. China sent only a low-level flunky to the international meeting: “China’s virtual snub has caused consternation among the four Western powers in the group, which had hoped to use the meeting to reach an agreement on whether to begin drafting a Security Council resolution on a fourth round of U.N. sanctions against Tehran.” And Russia thinks there is “still time for meaningful political engagement and efforts to find a solution.” I wonder if the Czech Republic and Poland can get their missile-defense systems back now.

Martha Coakley tells the Big Lie the weekend before the election, accusing Scott Brown of wanting to turn away rape victims from hospitals. It is so ludicrous and false (even by Boston Globe standards) that one wonders if that will be the final nail in her coffin.

More bad polling news for Coakley suggests that she was desperate to throw the long bomb.

Let’s get this straight: if ObamaCare proves to be so unpopular that Massachusetts sends a Republican to the Senate, the Democrats will try to force the hugely unpopular bill through with a bare 51-vote majority? Yup: “Democrats are prepared to use a budgetary procedure to pass healthcare reform legislation if they lose a key Senate race on Tuesday, a House leader said this weekend. … Senate Democrats had previously ruled out using reconciliation, reasoning that the maneuver was politically and procedurally risky. The tactic, for instance, leaves it up to the Senate parliamentarian to decide whether elements of the bill under consideration are relevant to the budget process, risking reforms seen as critical to Democrats’ reform efforts.” There is no reason to ever listen to the voters, they must figure.

Is there any wonder that there’s an “enthusiasm gap” in Massachusetts?

Obama is now resorting to good old-fashioned business-bashing: “The White House has spent months imploring banks to lend more money, so will President Obama’s new proposal to extract $117 billion from bank capital encourage new bank lending? Just asking. Welcome to one more installment in Washington’s year-long crusade to revive private business by assailing and soaking it. Mr. Obama’s new ‘Financial Crisis Responsibility Fee’—please don’t call it a tax—is being sold as a way to cover expected losses in the Troubled Asset Relief Program. That sounds reasonable, except that the banks designated to pay the fee aren’t those responsible for the losses. With the exception of Citigroup, those banks have repaid their TARP money with interest.”

Dana Milbank chides the Democrats for meeting in a bunker but then regurgitates the mind-numbingly silly and unsubstantiated mantra that has sent them marching over the political cliff: “They can pass health-care reform and have a losing year, or they can shelve health-care reform and have a disastrous year. Voters may not like the health-care bill, but they’ll punish the majority party even more for dithering and drifting without accomplishing anything.” Actually, I think they’re punishing them for ignoring the voters’ clear message.

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The Private Sector? Who Knew?!

At his “jobs summit,” Obama discovered: “Ultimately, true economic recovery is only going to come from the private sector.” Mon dieu! You mean lambasting business, hiking taxes, imposing a flurry of mandates, and regulating carbon emissions aren’t the way to go? No, no. The Obami still want to do all that. They just expect the private sector to grow and hire workers in spite of all that. I guess.

One senses the cloud of incoherence descending daily, now on the verge of enveloping the White House in a blanket of contradictions and policy dead ends. The summit produced “a to-do list for the private sector that sounded rather familiar: weatherization, small-business incentives, regulatory and other help for exporters, and tax credits for employers who hire new workers.” But there was no recognition that the big stuff — ObamaCare and cap-and-trade — will drown out whatever small benefit might be obtained from this “familiar” list of shopworn ideas.

Clinton economic guru Roger C. Altman, writing in the Wall Street Journal, warns that the Democrats are heading for an electoral wipeout and suggests:

By providing new incentives for job creation and bank lending, offering more detailed and forceful commitment to deficit reduction, improving relations with industry, and taking a more forceful stance towards Wall Street, the Obama administration can reduce next year’s election risk.

Sounds like a good idea. They could have a summit. Perhaps they could call it the “Undo the Damage Summit.” Well, I’ll leave the marketing to others, but you get the idea. If you want the private sector to create jobs, you first have to stop bludgeoning employers.

At his “jobs summit,” Obama discovered: “Ultimately, true economic recovery is only going to come from the private sector.” Mon dieu! You mean lambasting business, hiking taxes, imposing a flurry of mandates, and regulating carbon emissions aren’t the way to go? No, no. The Obami still want to do all that. They just expect the private sector to grow and hire workers in spite of all that. I guess.

One senses the cloud of incoherence descending daily, now on the verge of enveloping the White House in a blanket of contradictions and policy dead ends. The summit produced “a to-do list for the private sector that sounded rather familiar: weatherization, small-business incentives, regulatory and other help for exporters, and tax credits for employers who hire new workers.” But there was no recognition that the big stuff — ObamaCare and cap-and-trade — will drown out whatever small benefit might be obtained from this “familiar” list of shopworn ideas.

Clinton economic guru Roger C. Altman, writing in the Wall Street Journal, warns that the Democrats are heading for an electoral wipeout and suggests:

By providing new incentives for job creation and bank lending, offering more detailed and forceful commitment to deficit reduction, improving relations with industry, and taking a more forceful stance towards Wall Street, the Obama administration can reduce next year’s election risk.

Sounds like a good idea. They could have a summit. Perhaps they could call it the “Undo the Damage Summit.” Well, I’ll leave the marketing to others, but you get the idea. If you want the private sector to create jobs, you first have to stop bludgeoning employers.

Read Less




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