July 12, 2008
-- by Dave Johnson
The right is orchestrating a campaign to blame Democrats for the economic collapse. In cases like this it is often a matter of being the first out there with a story. For example, Progressives and Democrats could have been explaining the economic collapse on the cost of the war, or the huge borrowing that resulted from the tax cuts. But now the right is out there with a story, and the ability to get that story to the public. So we'll see which narrative takes over.
Here's the story. A major bank failed yesterday, and a Bush appointee in the government put out a statement directly blaming Democratic Senator Schumer. So the narrative the right is pumping out is that "the government" says Schumer is at fault for the bank failure. (What Schumer did was say that the bank appears to be insolvent because it was. Republicans say this "caused" a run on the bank. The fact is the bank was closed because it was insolvent, not because people were taking their money out. But facts don't matter.) I suspect you'll be hearing a lot more of this from Limbaugh Monday.
here's a sample of the right's messaging on this:
Schumer, whose self-serving publicity hounding is legendary, decided to go public with information that he knew or should have known would be detrimental to the process -- and now he arrogantly refuses to accept any blame for his own politically motivated actions that were the proximate cause of the institution's downfall -- and blames the regulatory process that he created in legislation that he largely wrote back in 1999.
Now the question is, did Senator Chuck Schumer cause IndyMac's collapse? The Office of Thrift Supervision, that regulates entities like IndyMac, says "the immediate cause" of IndyMac's collapse was Senator Chuck Schumer.
Two weeks ago, Schumer publicly released a letter he had written to regulatory agencies, demanding action to prevent IndyMac’s collapse. Instead of shoring up the bank, the letter induced depositors to make a run on the bank. Within days, over $1.3 billion in deposits disappeared, forcing the FDIC to close the bank and pay off the insured deposits.
That move cost American taxpayers billions of dollars. Don’t forget to thank Uncle Chuck when you have a chance.
Maybe, just maybe, things like this could be avoided if the Democrats would stop meddling with the free market. The more Democrats try to interfere with our economy, the more it crashes. And the more it crashes, the more government intervention Democrats think is necessary. And somehow, Americans keep voting Chuck Schumer & Co. into office.
How much money can we afford to lose before we wise up?
LA Times: The chairman of the Democratic Senatorial Campaign Committee caused the second-largest bank collapse in USA history.Update - One more comment: The Fed provides liquidity to banks in this situation. If they are SOLVENT the Fed provides all the cash they need to meet demands of depositors. So a "run" can't cause a bank to close. If they are NOT solvent the FDIC shuts them down right away to prevent a run from draining remaining equity.
... Are Democrats so desperate for power that they are willing to cause bank panics that cost people billions?
Or are they just that incompetent?
... Democratic Sen. Chuck Schumer cost the public more than a billion.
Where did the money go?
This casts a huge — $1.3 billion worth — cloud of suspicion over the Democratic Party’s point man in the Senate elections this year.
Posted by Dave Johnson at July 12, 2008 10:43 AM
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I see across the liberal blogosphere stories about the repuglies do this and they do that. I've friends who where people of honesty and integrity, and now won't listen to anyone pointing out repuglie crap. The repuglies are all pieces of shit, from bush on down to the smartest of the bitter 23%. They listen to rush, just another piece of trash, and any number of the cookie cutter pieces of trash. Whatever happened to honesty, integrity, love of country? What kind of people put ideology and party ahead of the country? What kind of people listen to lies and decide that is best for the country? What kind of people think that rove and all the other pieces of the shit pile are those that they look up to? What happened to respect for your fellow man, that you have to trash him for political gain? What happened to America? I was a Republican once (notice capital "R") and would be again, but never would I ever join what the repuglies of today (the 23%). They are just pieces of shit.
Posted by: jimbo at July 12, 2008 7:31 PM
Ok. Well of the rethugs are going to blame Schumer for Indymac's collapse, then let us put other blame where it legitmately lies with the prices of oil. There are those in the rethuglican party who say that the speculators are not responsible for the high cost of oil. If they can blame Schumer for a financial institutions collapse just because of something he may have said, then doesn't it fit that the speculators with their predictions of higher oil prices could also cause the oil market to go nuts as well?
Posted by: fubar at July 13, 2008 9:05 AM
I have one word: gramm leach bliley.
Introduced by Gramm (the same man acting a economic advisor to McCain). This repealed Glass-Steagall separating banks and investment banks making the current situation possible. Republicans in congress wrote it and then the rest of the lap dogs including Clinton approved it. If you vote for McCain it will be more of the same.
Posted by: muffler at July 13, 2008 9:11 AM
Pleez. This is ridiculous. More politics and self serving bullcrap that keeps us in the toilet.
The bank was already insolvent.
Why wasn't that letter sent to shareholders instead the criminals in congress? Hmmm I wonder? Well not really. They expected the good ole boy club to keep it quiet and help em out.
No one else was saying it, but they should have been.
As these CEO's, talking heads and congressmen always do, they lie through either silence or just plain lie outright.
Schumer did the right thing. He called the bank insolvent and informed the public. Something that should have been done by the lenders own leadership when signs of trouble started. Liars all of them.
Thank you Schumer for being honest with the public.
Idiots. This dishonesty and treasonous actions are what is causing everyone to lose faith in everything America. Call a spade a spade. The bank was already insolvent.
Schumer didn't cause it.
Posted by: Chris at July 13, 2008 9:57 AM
yeah, right, Chuck Schumer wrote legislation in 1999, and that's what caused this financial disaster
cept I seem to remember that the repuglitards controlled congress in 1999
and I seem to remember that Democrats were not allowed to introduce ANY legislation when congress was controlled by the repuglitards
and phil gramm wrote a shitload of laws that have his name and the word "deregulation" in the titles
so who do you blame, Chuck Schumer for pointing out that a bank is insolvent, or phil gramm, who wrote the deregulation laws that caused the bank to become insolvent
and do the repuglitards really think we're that stupid ???
Posted by: freepatriot at July 13, 2008 1:47 PM
BLEEP these republicans up the BLEEP with a 10 grit sandpaper BLEEP!
RepubliCONS are lying bastards.
[comment edited by dj]
Posted by: Wheeee at July 13, 2008 2:22 PM
Screw Schumer, king of talking the big game and backstabbing the progressive base from his "safe" senate seat.
Schumer needs to be replaced with a real democrat, not just someone who talks like one.
He loudly argued against the Iraq war and then went and voted for it.
And don't get me started on him and traitor feinstein's approval of "we don't do congressional oversight" Mukasey.
We can do without Schumer, let the media sharks have him.
piss on this turd.
Posted by: feckless at July 14, 2008 8:43 AM
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