Turner and Kucinich Agreement Shows Victory Of Ideology, Bankruptcy Of Democracy

Why did it happen?  The House of Representatives rejected the strong pleas of both Republican and Democratic leadership and voted “No” on emergency legislation described as crucial to the nation’s well being. Why?

We call the U.S. House the “People’s House.” The design of the Constitution created many more members of the House, compared to the Senate, and required direct election of members of the House at short intervals, every  two years.

The House is the legislative branch that is suppose to be closest to the people.  But gerrymandering has defeated the Constitution’s design, and now 90% of members of the House are in Districts considered “safe.”  These “safe” Districts are both Republican and Democratic and members of these Districts usually can count on easily winning by margins of 65% or better.  Members of these  gerrymandered Districts seldom have serious competition from the opposing party and, therefore, tend to cater to the “base,” the most partisan element of their party.  They are much more ideological in their thinking and much more partisan in their actions, than if they were required to answer to a more evenly balanced electorate.

The bail out legislation offended both the Right and the Left.  Conservative constituencies demanded their representatives vote “No,” echoing talk radio, Lou Dobbs, etc.  Liberal constituencies also demanded a “No” vote, saying that more help be given to “Main Street,” rather than so much help to “Wall Street.”

The 95 Democrats voting “No,” I’m sure, were mostly considered “Liberals,” while the 133 Republicans voting “No,” were mostly “Conservatives.”  In Ohio Democrat Dennis Kucinich voted “No,” and Republican Mike Turner also voted “No.”  Kucinich will defend his “No” vote based on Liberal principles, and Turner will defend his “No” based on his Conservative principles.  And in their gerrymandered districts, probably neither Representative in the “People’s House” will need to really account for their vote in any in-depth way.

Kucinich and Turner found agreement to vote “No” by putting ideology above practicality.  And in the wake of their vote, over $1.2 Trillion of wealth of stock market value vaporized.

The “People’s House,” should be all about making hard choices for the people’s good.  The fact that Kucinich and Turner agreed in voting “No” is disturbing.  Their unanimity demonstrates the triumph of ideology and partisanship over sound reasoning.  It demonstrates the bankrupt state of our democracy.

Posted in M Bock, Opinion | 6 Comments

Mike Turner Votes “No” On Bailout ; Boehner Blames Pelosi For Bill’s Defeat

Mike Turner joined 132 other Republican Representatives today and voted “No” on approving the $700 Billion Bailout.  The bill failed by a vote of 205 Yes to 228 No.  Altogether, 65 Republicans voted “Yes,” and 133 Republicans voted “No,” while 140 Democrats voted “Yes” and 95 Democrats voted “No.”

John Boehner, House Republican Leader, blamed Speaker Nancy Pelosi for the defeat of the bill saying that her speech was so partisan that it caused some Republican congressman, who otherwise would have supported the vote, to vote “No.”

This is what Pelosi said in her speech:  “It is a number that is staggering, but tells us only the costs of the Bush Administration’s failed economic policies — policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system.”

Here is how Ohio’s Representatives voted (from Slate):

Steve Chabot (R) No Ohio – 1 Lean Rep.
Jean Schmidt (R) No Ohio – 2 Lean Rep.
Michael Turner (R) No Ohio – 3 Safe Rep.
Jim Jordan (R) No Ohio – 4 Safe Rep.
Robert Latta (R) No Ohio – 5 Safe Rep.
Charles Wilson (D) Yes Ohio – 6 Safe Dem.
David Hobson (R) Yes Ohio – 7 Rep. Favored*
John Boehner (R) Yes Ohio – 8 Safe Rep.
Marcy Kaptur (D) No Ohio – 9 Safe Dem.
Dennis Kucinich (D) No Ohio – 10 Safe Dem.
Pat Tiberi (R) No Ohio – 12 Safe Rep.
Betty Sutton (D) No Ohio – 13 Safe Dem.
Steven LaTourette (R) No Ohio – 14 Rep. Favored
Deborah Pryce (R) Yes Ohio – 15 Tossup*
Ralph Regula (R) Yes Ohio – 16 Tossup*
Tim Ryan (D) Yes Ohio – 17 Safe Dem.
Zachary Space (D) Yes Ohio – 18
Posted in Special Reports | 2 Comments

Nouriel Roubini Warns Of Possible “Mother Of All Bank Runs,” Urges Morgan Stanley and Goldmam Sachs To Find Foreign Buyers

There’s an old song that warns about nuclear destruction that says, “Brother, when Einstein gets worried, you’d better get worried.”

It has been proven lately, that if the economics professor Nouriel Roubini, “Dr. Doom,” is worried we should also be worried. Today, Roubini has comments on his web-site that shows he is very worried.  His comments are alarming.  Excerpts:

  • It is obvious that the current financial crisis is becoming more severe …
  • This is not just a US financial crisis; it is a global financial crisis hitting institutions in the US, UK, Eurozone and other advanced economies (Iceland, Australia, New Zealand, Canada etc.).
  • In a solvency crisis and credit crisis that goes well beyond illiquidity no one is lending to counterparties as no one trusts any counterparty (even the safest ones) and everyone is hoarding the liquidity that is injected by central banks.
  • Both institutions (Morgan Stanley and Goldman Sachs) are highly recommended to stop dithering and playing for time as delay will be destructive: they should merge now with a large foreign financial institution as no US institution is sound enough and large enough to be a sound merger partner.
  • When investors don’t trust any more even venerable institutions such as Morgan Stanley and Goldman Sachs you know that the financial crisis is as severe as ever and the fear of collapse of counterparties does not spare anyone. When a nuclear option of a monster $700 billion rescue plan is not even able to rally stock markets (as they are all in free fall today) you know this is a global crisis of confidence in the financial system.
  • There is a generalized loss of confidence in financial markets and in financial institutions that no policy action seem to be able to control.
  • The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions;
  • We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next.
Posted in Special Reports | 1 Comment