Bail-out politics stymie right-wing talkers

It's a lousy talk show topic, this economic 9-11.

That's because it's all complicated 'n' stuff, and few talk hosts even have the vocabulary to explain it, let alone demagogue it.

(photo: lefties in Times Square)

The crisis is too big and political in a hyper-political season for talk radio to ignore it and go back to talking about Rev. Wright or how mean the press is for pulling pop quizzes on Sarah Palin.

Wall Street blocked out the sun, overshadowed the debate making even Tina Palin news just a wacky celebrity sidebar like updates on Lindsey Lohan's neuro-chemical/psychosexual adventures. 

(Palin news isn't going so well for the f-righties. Karl Rove told Hannity & Colmes Friday that Sarah Fey was "over-prepared" for Katie Couric, and that she knew too much caused her disastrous babbling, "... are we gonna see, he asked, "the woman that we saw in Dayton, Ohio and at the Convention ... comfortable in herself? Or are they gonna have over-prepped her, stuffed too much information in her mind and made her a little uncomfortable? ... she's really good when she's just talking with people." Will "just talking" to political grown-ups like Joe Biden and Gwen Ifill pack it for nervous Republicans who are freaking out? Or be just entertainment for the 50 million folks who'll tune her in Thursday night to see if she if Tina Fey did her justice?)

As far as the economic meltdown goes, even Rush Limbaugh said, "Let's face it, folks, there are very few of us who can spend hours and hours and hours reading things about this..."

(photo: Rush Limbaugh- blue but not bowed)

He's got a point. And not only do few have the time to study, but even fewer (like us) actually get it if they did.

And that includes much of the meat in the seats of talk stations.

"This has humbled talk-show hosts, because none of them really have the answer to it all, just like the rest of the media. They're trying to get their heads wrapped around it, looking for information, bringing on the experts," said Michael Harrison, editor of Talkers Magazine.

Some talkers see it as a good topic to make phone jinglings, the mother's milk of talk radio.

"There are two topics that generate a full bank of ringing phone lines. "Fred Grandy, morning host at Washington's WMAL told the Washington Times. "One is anything to do with this financial crisis and the other is anything to do with Sarah Palin. If there's any way we can link those two, we'll be on the air forever."

(photo: WMAL's Fred Grandy)

Listeners all day Monday showed they were confused, and worried by the crisis and the inaction by Congress. But they were confused by just who, exactly is evil: Is it the President they've been told to support no matter what for years who proposed the bailout?  Or the House Republicans who are against it, ostensibly led by Rep. John Boehner who was ostensibly for it?

It's confusing -- who are the good and which are the bad? The fractured Republican Party is on both sides -- the dead duck president on one, red meat righties on the other, and McCain squawking and flapping in the middle looking as presidential as Donald Duck with his butt on fire.

What a dilly of a pickle, nobody, everybody to blame for this obvious evil, and meanwhile, Rome burns.

"Conservative free-market principles apply in the good times and the bad times," lectured Laura Ingraham. "Conservative free-market principles will get us out of this if we allow them to." (No doubt noting the erosion of McCain/Palin favorables, Laura warned listeners Monday that if they elected Democrats in November, talk radio was doomed as it was in Stalinist Russia). 

Rush -- never humbled -- gives the conservative platitudes, too, but holds himself high above any solutions. “This nation was ... built on individualism as far as profit and responsibility. And with us bailing these banks out we're ... saying any time you get into trouble we're going to come bail you out."

And who's Big Pants bedfellowing with? Antiwar protesters in Times Square! About 50 stalwarts demonstrated all weekend with signs that read, “Bail out people, not banks!" and “Money for human needs, not war and corporate greed!”

What's a dittohead to do?

"This is an ideological problem. If you are conservative and you believe in small government and the free market, if you fail that's your problem. That's the way the market is supposed to work," Alan Abramowitz, political science professor at Emory University told Reuters.

The plan, he says, puts conservatives in a bind, and that it was proposed by a conservative Republican president further blurs distinctions. They've gotta embrace the bailout and forsake their highly-touted free market principles, or oppose it and watch their brittle theories turn to dogshit in the eyes of the public.

Some hosts are simply hypocritical and contradictory like Seattle's squeaky, conservative lip-servant, Dori Monson, (KIRO m-f, 3-6p). He says "a pox on all your houses," both Dems and Republicans. He'll have a little of each, thank you very much: government should save the sorry asses of the Wall Street mucks, AND it's too much government that's to blame.

Dori says -- blahbittyblah -- he "still fervently believe[s] in free-markets,"  but fat-cat free-marketeers should be bailed out just one more time... "But once we're past this crisis," he wrote on his blog, "we have to move toward a climate of independence and self-reliance."

Sound familiar?

Comments

[AuthenticAndrew]

Dori isn't a real person, he's a static, literary character. The evil henchmen, the village idiot. He exists to make people like Chris Gregoire look heroic. He's the dragon who's den she could breach so that she would have something to slay. Without Dori things wouldn't be quite so predictable.

[Ann Wog]

Thanks for the mention, and even the picture, of Fred Grandy and our little show all the way over in DC. Imagine my surprise!

And Fred's right, this topic is a biggie for our listeners, who essentially feel vindicated today by the failure of the bill. I've been fielding a full bank of phone calls since 5am.

[sparky]

My guess is that Dori's wife balances the check book and pays the bills.

[Duffman]

I think he's mentioned several x's on the air that his dog Star (the wonder-dog) does that.
His appears to be a household of incredible capability with everyone multi-tasking to support the team. Much like the progressive/liberal credo...always going the extra mile, always voting more than just 'present'.

[joanie]

Randi talks the bail out, knows her stuff and has excellent guests.

Haven't heard much from all the so-called free marketers on this blog, have we?

I've heard several fixes that would help keep home owners afloat and the banks as well. But we're so focused on helping wall street that the little guy is forgotten.

Any respect I had for Paulson is long gone.

[Duffman]

'Any respect I had for Paulson is long gone.'

...how 'bout Pelosi? Don't you hope that when Obama/Biden take over they will find a way to replace her?

[Duffman]

Can't say too much about our current POTUS's ineptness, but at least he's coming on the TV regularly to reassure the American puclic. [Much like Roosevelt did in 1929]. [smile]

[chucks]

You gotta know that the thing with Peelosi opening her big mouth yesterday had to be a conspiracy. Nobody can be the incompetent on their own. She had to have help from Barney and Chris Dodd. The three of them got together and blasted their best gas via her vile mouth.
It would be nice if Barney and Chris would admit that their insisting that mortgage bankers lower the requirments for qualifying for loans to the point where any piece of crap could get a mortgage. They loaned money to people that never paid a bill in their lives. Sure you make $3,000.00 per month, so you can buy this $350,000.00 home. We will just set you up with this 4.5% variable rate and you will just have to the pay interest only for the first year or three.
Call me when the rate resets and we will redo the loan. You can't lose.

I don't think that there is a single radio personality that I would put in charge of this financial mess. Their input is amusing and all, but the expertise is a little lacking.

[Duffman]

Be patient, relax and trust that our Government will cure what ails. Joanie & Sparky: prepare your classrooms and children for what may be scenes Reminiscent of Anything Familar?

[Sandy Skull]

Ever notice that when ever the Republicans fuck-up, the Republiclans attack a Dempocrat for something
inappropriate" they said?
The Republicans are badly xs;it here, they sided with the left-wingers to torpedo that bill.
The American people get it, that's why the numbers are in freefall for the Republican ticket.
And what's even more crazy is that the bill will pass this week aqnd it won't look a helluva lot different.

[sparky]

chucks, I have a 4.75% FIXED mortgage on my house. All that was required to find that was some basic investigation into various banks. That, and I have excellent credit.

As far as your conspiracy is concerned, Republican Rep. Issa from California would disagree with you. He said that Pelosi's speech had nothing to do with it.

"Instead, Issa said that the credit is actually due to former FDIC Chairman William Isaac, who has been on Capitol Hill briefing lawmakers as to what other options and financial tools are available to the treasury. As more and more people got educated as to tools and how they could be used and why they’d be better, I think it surprised Republican leaders, because they had members that had the ammunition to say why they couldn’t support this one at taxpayers’ expense,” said Issa.

That is from the CBS news website.

[Duffman]

'He said that Pelosi's speech had nothing to do with it.'

Doubt if it had NOTHING to do with it. Regardless, not good for a leader in that position; I'm sure you would agree with that. I get the impression that you and others herein of same political ilk aren't too fond of Pelosi but naturally are afraid to say so. [Actually you DID and I give you credit]

[sparky]

I dont like her, but probably not for the same reasons you don't.

[Coiler]

Republican John McCain has maneuvered himself into a political dead end and has five weeks to find his way out.

I can't wait for Thurs nite debate with Sarah Quaylin

sidelineMcCain

[Coiler]

Republican John McCain has maneuvered himself into a political dead end and has five weeks to find his way out.

I can't wait for Thurs nite debate with Sarah Quaylin

sidelineMcCain

[Duffman]

Wasn't that first sentence a 'quote' for linked article...you should ID as such.
At least you 'linked' this time instead of copy & pasting...thanks for that.

[Coiler]

The source is linked, look at the 'link' ok? Gawd , which short bus do you keep riding on?

[Duffman]

Hey...ease up re-coil, I was trying to do you a favor so that you wouldn't be accused of being a plagiarizer (like your two hero-candidates).

[chucks]

Sparky
You are an educated woman with a fully functional brain ('cept your politics). You were wise enough to refi in 2002 or 03 when rates were at the very lowest. You are one of the few who did better than I (4.875% also fixed). Good on you. It is nice to see the monthly statement and have more than half of the payment going to principal. The problem is the uneducated, unqualified folks, with piss poor credit that were led down the path by politicians like Frank and Dodd. That, combined by unscrupulous lenders and brokers did us in as a nation. These poor idiots are losing their houses and we are being asked (or forced) to bail them and the bankers out, as well as those who invested in that trash paper. Of coarse that includes you, Joanie, my bride as well as the rest of the state employees who have the state investment board investing your (our) retirement money.
Of coarse I, like the rest of the posters here am an expert at what we should have done. Where I fall short, like the rest of you, is what we should do next or in the future.

[Duffman]

With Gary's permission, I thought this post (on another blog) was really helpful in understanding this current topic.

55. This Crises in the banking industry all started with Jimmy Carter in 1977. He had a Democratic Congress comprised of a veto-proof, filibuster proof Senate (61 seats) and a House dominated by a Democratic majority (292 Democrats vs. 143 Republicans).

The Democrats said that it was 'discriminatory' for banks, NOT to loan money to minorities. This was referred to as Red Lining. This was the case even if there was little or no collateral, a bad credit rating and insufficient income to qualify for loans.

So, together, they passed into law the Community Reinvestment Act (CRA). Even after enactment, there were still safeguards in place. While the banks were required to loan to low income minorities and they received a credit in their reserves for doing so, repayment plans and assets were required.

The Clinton administration by Executive Order, reformed the CRA by creating the 'President's Community Development Bank' which increased lending, reduced paperwork and guaranteed banking services to residents of the inner cities.

Clinton advisor Paul Begala is famous for observing about executive orders, �Stroke of the pen, law of the land. Kinda cool."

The wise guy investors soon learned about Reduced Document Loans that soon became No Document Loans. With a little help from a Mortgage Broker they could buy a house with no cash and in 6 months refinance it and take out thousands in cash. Many times these mortgages were written at rates 4 to 5 percentage points higher than what a fully documented loan would be issued for. However, many were non amortizing loans, with the unpaid interest added back to the loan, therefore the wise guy didn�t have to pay the higher rate.

After the Enron and Worldcom debacles, the Bush administration, after the urging of the American Institute of Certified Public Accountants (AICPA) had the SEC impose the Mark to Market Rule on American Corporations. This rule states that you must mark the value of any asset down to its current market price. While this caused Corporations to at times show a loss, it devastated the Financial Corporations as it affected their reserves. If WAMU had not had to Mark to Market, it would still be alive. This could effect many other banks, most of them local, main street banks, as they all hold stock, both common and preferred, in Fanny and Freddy in their reserves. This occurred as the Comptroller of the Currency, who is the Federal Bank regulator, and the FDIC, considered them as safe as Treasuries, and they had a higher return.

In 2003, the Bush administration attempted to increase oversight and add a new regulatory arm under the Department of the Treasury. This agency was to monitor and regulate Fannie Mae and Freddie Mac, which at that time were the largest holders of CRA allowed/mandated subprime paper. At this time both Fanny and Freddy were headed by prominent Democrats.

John Mc Cain was one of the co-sponsors of the act in the Senate. The bill died as the Republicans did not have a large enough majority to cut off a filibuster. Sen. Chris Dodd (D) led the opposition to the bill. There is no record of Sen Obama�s opinion as the Senate leadership never brought it to a vote as a filibuster was threatened by the Democrats. The two largest recipients of campaign contributions from Freddy and Fanny in the Senate were Dodd and Obama.

In the House, when the bill was being debated, Barney Frank, who is the current Chairman of the Pelosi House Financial Committee stated: �These two entities, Fannie Mae & Freddie Mac, are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." This statement was made less than four years ago.

The Government in imposing its will on the Financial Institutions and rejecting calls for oversight, has caused this train wreck, and they must now come up with some type of a solution.

That brings us to the present, when the MSM in recent days has reported incessantly on the �Wall Street Bail Out� causing a large number of people to think that the money was going to rescue large Wall Street Corporations with their over paid Executives. Is it no wonder, that the congress was deluged with calls, e-mails and letters opposing the government�s investment in Mortgage Backed Securities.

That brings us to today, the day after Pelosi, speaking like a ward healing political hack, turned off the Republicans and couldn�t get her Democrat majority to pass the bill allowing the treasury to buy mortgage backed securities.

Many conservatives decry the plan as being socialistic and many liberals bemoan the fact that none of the money is going to help people save their homes from foreclosure. This problem was created by socialistic, idiotic act by the Government and the Government must now stand up and pay the bill.

After the securities are purchased, the Government Agency that is set up to collect the funds, can instruct the loan servicing companies to renegotiate the adjustable rate mortgages to a rate in line with the market. Therefore, they will be able to afford their mortgage and it wont be foreclosed on, the house wont be dumped on the market depressing already low Real Estate values.

In the past, when the Federal Government stepped in to assist in stabilizing a Corporation, they have ended up making a small profit (Chrysler & Lockheed). When it has set up an agency, Resolution Trust Corporation, a majority of the funds were regained. Even if RTC didn�t make a profit and in fact cost the taxpayer, how much did it save the American Economy and who else was large enough to do it?

Pelosi�s dysfunctional Congress has the lowest congressional approval ratings in history; has no effective leadership and totally failed the American people yesterday. Meanwhile, the Chairman of the House Ways and Means Committee, the committee that writes the House budget, Charlie Rangel, is being investigated for tax evasion, while refusing, with the Speaker�s full support, to step down.

Posted by Gary at September 30, 2008 11:41 AM

[PugetSound]

Hey
Barracks Teleprompter has some requests. And I see what Chucks been doing as his roadie.

hmmm, what no rider for some m&m's

[chucks]

Great, I finally get a job and the freaking teleprompter gets my ass fired.
I am going back to the Buy-More and sell computer crap.

[Duffman]

Yeah chucks if I were you I'd consider a grievance against the ITU (yep, you guessed it the International Telepropmpters Union). Can you imagine if they all went on strike...

[Duffman]

That 12:30 post was not by me! someONE is still using my name, :(

[Duffman]

Whatever...01:57PM not me...thought the 12:30 post would be helpful and educational. Apparently it was...too much so!

[Tommy008]

Are you hearing the little school children singing their paeans of praise to Obama, tapes that surfaced today on talkradio? Scary stuff. Barack and Michelle are the new Juan and Eva Peron, some say Hitler and Eva Braun but that's a bit far. Reeks of fascism or oldschool Soviet rule.

[AuthenticAndrew]

This isn't about what Jimmy Carter broke, it's about all the people who came after him who failed to fix it.

[sparky]

what talk radio station/host?

nd chucks, I thought this bill yesterday was crap and Im glad it didnt pass. Around 3 today, Peter DeFazio from Portland OR is going to hold a press conference and suggest another tack...unless the repugs can tease a few more over to the Yea side and get that crap from yesterday passed.

[sparky]

what talk radio station/host?

nd chucks, I thought this bill yesterday was crap and Im glad it didnt pass. Around 3 today, Peter DeFazio from Portland OR is going to hold a press conference and suggest another tack...unless the repugs can tease a few more over to the Yea side and get that crap from yesterday passed.

[sparky]

what talk radio station/host?

nd chucks, I thought this bill yesterday was crap and Im glad it didnt pass. Around 3 today, Peter DeFazio from Portland OR is going to hold a press conference and suggest another tack...unless the repugs can tease a few more over to the Yea side and get that crap from yesterday passed.

[sparky]

wtf..sorry for the multiple posts...that what you get with cheap government equipment

[Duffman]

the school district owns your fingers too......?

[Tommy008]

the singing school children fro Obam were played on Medved and Dori, and i think Rush, also.

[Duffman]

Tommy008: I linked it in my post at 10:05

[Duffman]

Tommy008: I linked it in my post at 10:05

[Duffman]

sorry for the dbl post; I borrowed sparky's government fingers

[sparky]

jesus, Duffman, you mock ME for cutting and pasting...and you copy Sound Politics to boot...

[Gay Gary]

Yes! I PM'ed Dori with this one, too:

Obama Kids

vs.

Peron Kids

Who will win?!

[Bagley Wrong]

You guys are pretty desperate for issues... Why don't you get a better candidate instead of this old grouch. Barack Obama invokes real adoration, not the fake kind McCain tried to gin up with Palin.
You will lose if the election is fairly counted.

[Duffman]

yeah sparks, touche'(sorry)...pretty interesting tho huh?

..I knew you w/chime it right after I pasted it... haha

[Duffman]

'adoration'...whoooooo, sure you meant that??? how 'bout you other pl's do you adore this man??? this is scary....did you adore John Edwards?

[chucks]

Good grief
My damned Boston Terrier puppy's promote adoration. First graders in a school play or concert promote adoration.
Obambam promotes deception and distrust. He is a Chicago machine politician acting like a gypsy used car salesman putting a bunch of naive nitwhits in a coma preparing to fleece an entire nation.
Tony Rezco is starting to sing. Be ready for some truth. I just hope that it is not too late.

[nevets]

Killer Puts. Pure gold.

[KS]

McCain vs. Obama is the real life tortoise vs. the hare. Guess who wins that race in the end ?

With that said, I am out of here, visiting other websites and not responding to the many intellectually dishonest comments here that have little or no accountability .

[joanie]

An economist on Randi's show just said he didn't know of a single economist that thought this bailout was the right way to go.

It is a social program for the rich. Nothing more.

Yes, I, too, have a 4.75 interest rate. I agree, chucks, liberals are smart. You, on the other hand, are lucky.

I wonder how many foreclusures could be stopped if WAMU's seventeen-day CEO gave back the $20 million he earned?

Yes, the bailout should go back into helping the average guy afford his house. Small banks are doing quite well. If we're on the edge of disaster, it is because the rich want to stay rich and see everyone else fall over the edge.

But, that makes sense to you. I wonder if that would have made sense before you threw the dice and won? Good on you. (When will you learn to use proper English? It is getting tiresome.)

The problem was corruption. When, pray tell, was the last time you read every single line of any contract? You are unbelievably disingenuous. Either that, or ignorant. Or bigoted. Probably all three.

God, duff, why don't you stay at SP? This blog is too smart for you. Just accept it.

You are the most repetitive parrot I've ever heard.

Gary is superfluous. Who reads him anymore...except you.

[Gay Gary]

Gary is superfluous. Who reads him anymore...except you.

"Anymore", Joan-Joan? I've only made 1 post since my abusive comments toward you a week ago. But it sounds like you're still thinking about me, my angel, longing for the Gay Gary you once loved but never existed.

Your Imaginary Friend,

Gigi

[Gay Gary]

Hey, does anyone remember that once when Geov Parrish tried to pull a "gotchya!" on me on a question of geography and was forced to promptly withdraw in embarrassment?
LMAO. I saved a print-out of that one - heehee!

[Gay Gary]

An economist on Randi's show just said he didn't know of a single economist that thought this bailout was the right way to go.

Ugh. I have no idea who Randi is but I hate to say I agree with them. One way or the other there will be a depression with 30% unemployment, food riots, raping sprees and everything else I warned everyone about 3 weeks ago - why pay $700B for all that when we can get it for free? (Besides, as I've previously noted, none of those shenanigans are likely to impact me - what with my guns and such, etc. - and I have no desire to pay money to the intellectual peasants. We need what's coming. We need it bad. We need the ranks of this country thinned out a bit. It will make us stronger and more unified as a nation.)

[joanie]

"A Bailout We Don't Need

By James K. Galbraith
Thursday, September 25, 2008; A19

Now that all five big investment banks -- Bear Stearns, Merrill Lynch, Lehman Brothers, Goldman Sachs and Morgan Stanley -- have disappeared or morphed into regular banks, a question arises.

Is this bailout still necessary?

The point of the bailout is to buy assets that are illiquid but not worthless. But regular banks hold assets like that all the time. They're called "loans."

With banks, runs occur only when depositors panic, because they fear the loan book is bad. Deposit insurance takes care of that. So why not eliminate the pointless $100,000 cap on federal deposit insurance and go take inventory? If a bank is solvent, money market funds would flow in, eliminating the need to insure those separately. If it isn't, the FDIC has the bridge bank facility to take care of that.

Next, put half a trillion dollars into the Federal Deposit Insurance Corp. fund -- a cosmetic gesture -- and as much money into that agency and the FBI as is needed for examiners, auditors and investigators. Keep $200 billion or more in reserve, so the Treasury can recapitalize banks by buying preferred shares if necessary -- as Warren Buffett did this week with Goldman Sachs. Review the situation in three months, when Congress comes back. Hedge funds should be left on their own. You can't save everyone, and those investors aren't poor.

With this solution, the systemic financial threat should go away..."

Gee, I wonder who I should listen to...chucks or Galbraith. Or gigi... Hard to choose, isn't it?

[joanie]

...food riots and raping sprees...

Wishful thinking, gigi. Unfortunate wishful thinking.