CBC holds financial reform hostage as Congress gets angry with Obama over economy

posted at 9:30 am on November 20, 2009 by Ed Morrissey

The Obama administration may have to learn to deal with an unfriendly Congress long before the Republicans have a chance to win control of the House in the midterm elections.  Angry over the failure of the administration to slow unemployment and get real growth started in the US, Congress lashed out at Treasury Secretary Tim Geithner yesterday, with Democrats and Republicans demanding his resignation for poor oversight of the bailout funds in 2009.  And the Congressional Black Caucus unexpectedly froze Barack Obama’s high priority of finance-sector reform over lost jobs:

Growing discontent over the economy and frustration with efforts to speed its recovery boiled over Thursday on Capitol Hill in a wave of criticism and outright anger directed at the Obama administration.

Episodes in both houses of Congress exposed the raw nerves of lawmakers flooded with stories of unemployment and economic hardship back home. They also underscored the stiff headwinds that the administration faces as it pushes to enact sweeping changes to the financial regulatory system while also trying to create jobs for ordinary Americans.

President Obama’s allies in the Congressional Black Caucus, exasperated by the administration’s handling of the economy, unexpectedly blocked one his top priorities, using a legislative maneuver to postpone the approval of financial reform legislation by a key House committee.

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.  Obama has already announced a jobs summit and the Senate has started to turn its attention to a new jobs package — which no one wants to call a “stimulus” after the failure of Porkulus — but Maxine Waters wants something more specific to the black communities.  The CBC has apparently attempted to get the attention of the White House for several weeks, but didn’t get enough of a response.  Now they have decided to hold the financial-reform package hostage to make a point.

Others made the point more directly with Geithner.  Republicans Kevin Brady and Michael Burgess demanded that Geithner resign, as did Democratic Rep. Peter de Fazio, who hardly represents a blue-dog district, coming from Oregon.  Burgess underscored his unhappiness by telling Geithner, “I thought you should have never been hired.”

If Obama wants to free his financial-reform package, he may have to give up Geithner.  In one sense, that is the role of Cabinet officials: act as lightning rods for controversy and be expendable to protect a President’s standing and agenda.  Obama has not exactly been shy about throwing people under the bus when they become a liability.  Geithner started off as a liability with his history of tax evasion, and has done nothing since to improve his standing.

But Congress has a problem, too.  They have done little to focus on jobs in the nine months since passing the $787 billion flop of a stimulus package.  They’re so afraid of making its failure obvious that they have to strategize a way to pass another stimulus package without calling it “stimulus.”  This “anger” on Capitol Hill, especially by Democrats who have controlled this process, is at least in part a show for the constituents back home, who have wondered when Congress would stop looking for ways to spend money and control their lives (ie, health-care reform) and get the nation back to work.


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Shakedown. What’s new?

faraway on November 20, 2009 at 9:34 AM

Angry over the failure of the administration to slow unemployment and get real growth started in the US, Congress lashed out at Treasury Secretary Tim Geithner yesterday…

Wait a minute… I’m no fan of President Obama but I thought Congress controlled the nation’s purse strings, created regulation and determined the taxes.

myrenovations on November 20, 2009 at 9:35 AM

We’re in for more trouble if Maxine gets involved. Didn’t she get enough of our money from the first stim? Since they have only spent about 14%, why not take the money from stim 1 and put it into stim2. Oh yeah, fire the doofus in charge and hire a new wealth redistributor.

Kissmygrits on November 20, 2009 at 9:38 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

Well, gosh, let’s raise the minimum wage another dollar, that’ll fix the problem. Or better yet, let’s get the high school drop out rate in the inner city to 80-90 percent, that will surely fix the problem.

Skandia Recluse on November 20, 2009 at 9:38 AM

The CBC only cares about jobs for their constituents????
Raaaaaaaacist!

Oh, and news flash….Geithner’s incompetent. What a shocker.

search4truth on November 20, 2009 at 9:39 AM

This is what happens when there is a leadership vacuum. So is this a case of the inmates running the asylum, or are the natives getting restless?

singlemalt_18 on November 20, 2009 at 9:40 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

I know this is probably a dumb question, but how would the CBC feel if there was a CWC?

Rovin on November 20, 2009 at 9:40 AM

myrenovations on November 20, 2009 at 9:35 AM

congress creates laws, the executive branch beurocracy creates regulations.

MarkTheGreat on November 20, 2009 at 9:40 AM

Obama has already announced a jobs summit and the Senate has started to turn its attention to a new jobs package — which no one wants to call a “stimulus” after the failure of Porkulus — but Maxine Waters wants something more specific to the black communities.

Isn’t that a little dangerous to be crafting economic legislation aimed specifically at one demographic?

Doughboy on November 20, 2009 at 9:41 AM

So now the CBC is racist? Well, yes, actually. They’ve always been racist.

Pssst, if you want job growth, cut government spending, stop trying to have government take over the private sector, and keep taxes and regulations low.

Government does not create jobs, business does.

rbj on November 20, 2009 at 9:41 AM

Message to the CBC, Obama isn’t the messiah.

fourdeucer on November 20, 2009 at 9:41 AM

congress creates laws, the executive branch beurocracy creates regulations.

MarkTheGreat on November 20, 2009 at 9:40 AM

Right, thank you for the correction.

myrenovations on November 20, 2009 at 9:45 AM

It’s good to see that at least some (if not most) of Congress is not on board with the Cloward-Piven strategy. In fact, I bet most of them are too stupid to even know it’s being played.

Daggett on November 20, 2009 at 9:45 AM

Geithner started off as a liability with his history of tax evasion, and has done nothing since to improve his standing.

Geithner’s started off with far more liabilities than just tax evasion. This is his life: He fails utterly, then he gets a promotion.

“Mr. Geithner, the job of the New York Fed is to — now I am quoting its own web site — ‘supervise and regulate financial institutions in the Second District [Wall Street]. Its primary objective is to maintain safe and competitive U.S. and global banking systems.’ You have been in your current post since 2003 and during that time the U.S. financial system has come close to complete disintegration. Why do you deserve a promotion?”

Jim Rogers: Mr. Geithner has been bombing for 15 years. Mr. Geithner caused this problem. Mr. Geithner’s been head of the NY Fed for several years, the office that was supposed to be supervising Wall Street and the banking system. He caused the problem. Then all last year, he came up with TARP, he came up with all these absurd bailouts. Mr. Geithner has never known what he’s doing, he doesn’t know what he’s doing now, and pretty soon everyone is going to find out including Mr. Obama.

Rae on November 20, 2009 at 9:45 AM

Pssst, if you want job growth, cut government spending, stop trying to have government take over the private sector, and keep taxes and regulations low.

Government does not create jobs, business does.

rbj on November 20, 2009 at 9:41 AM

What?! You mean Obama and Congress have to pull a Costanza and do the exact opposite of what their instinct tells them? Fat chance.

Doughboy on November 20, 2009 at 9:46 AM

Obama should be attacked…He put himself out there as all knowing and all doing.

You should be held accountable for you rhetoric.

tomas on November 20, 2009 at 9:46 AM

Interesting thing about DeFazio calling for Giethner’s reesignation. Portlsnd is no where near as devestated as some areas of the country but they are finally starting to feel the pinch, they are also dealing with a far left mind set, the same that has devestated other far left cities. The interesting part is that Portlanders area bit snobby and have felt, up until now, that they do far left better than anyone and that the realities will not hit here, but they have.
It will likely never result in a Republican or Conservative Portland but it is nice to see a bit of a crack in the deep denial of the far left and the Obamamania mindset.

ORconservative on November 20, 2009 at 9:46 AM

TIMMAH!

Mr. Joe on November 20, 2009 at 9:46 AM

A tipping point is reached.

Much sooner than I anticipated.

drjohn on November 20, 2009 at 9:48 AM

Wait a minute… I’m no fan of President Obama but I thought Congress controlled the nation’s purse strings, created regulation and determined the taxes.

myrenovations on November 20, 2009 at 9:35 AM

Unless your name is Bush.

Tom

marinetbryant on November 20, 2009 at 9:49 AM

So now the crooks in Congress are mad at Osama Obama for not being as crooked as they want him to be?

I sense a competition coming between the CBC, Congress as a whole, and the Chicago Jesus to see who can pander and throw nonexistent at their protected constituencies money fastest.

Forget the midterm elections, Ed. The damage these totalitarian, race-hustling incompetents can do, even while thrashing around wildly and hurling accusations at each other, will have run us into financial meltdown by mid-2010.

MrScribbler on November 20, 2009 at 9:50 AM

But Congress has a problem, too. They have done little to focus on jobs in the nine months since passing the $787 billion flop of a stimulus package. They’re so afraid of making its failure obvious that they have to strategize a way to pass another stimulus package without calling it “stimulus.” This “anger” on Capitol Hill, especially by Democrats who have controlled this process, is at least in part a show for the constituents back home, who have wondered when Congress would stop looking for ways to spend money and control their lives (ie, health-care reform) and get the nation back to work.

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

As an aside, I’m waiting for the moment when Republicans shift from whining about the deficit to calling for tax cuts that will add hundreds billions of dollars to the deficit, in the name of “job creation.”

Bleeds Blue on November 20, 2009 at 9:50 AM

President Obama’s allies in the Congressional Black Caucus, exasperated by the administration’s handling of the economy, unexpectedly blocked one his top priorities, using a legislative maneuver to postpone the approval of financial reform legislation by a key House committee

This evidence surely proves that the CBC, by it’s unexpected blocking, must be racist if it stands in the way of the first black president…..

ted c on November 20, 2009 at 9:51 AM

Why should a racist special interest group be able to demand anything? Is there a White Congressional Caucus that represents the Majority of American Taxpayers? Nope. Would there be Equal Protection under the Law for a WCC? Nope.

The perpetuity of racism is guaranteed by the CBC and the likes of Maxine Waters and the rest of that group. It is time for Hyphenated America to go away.

old trooper2 on November 20, 2009 at 9:51 AM

Isn’t there ANYONE with the balls to start suggesting that we are about to hand over one-sixth of our economy to these same incompetent fools???

I think the real problem here is that the CBC and other Dems realized that none of this bailout money went to the SEIU or their other union pals.

rockmom on November 20, 2009 at 9:52 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

There’s rampant unemployment throughout all racial demographics, and the current POTUS was supposed to be the great uniter of everyone; why is there a racial separation in a jobs package?

Besides, Ogabe has already admitted his “Mega Jobs Summit” isn’t about actually finding solutions, but rather pressuring businesses to hire again whether they want to or not.

Bishop on November 20, 2009 at 9:54 AM

If Obama wants to free his financial-reform package, he may have to give up Geithner.

Awesome! Geithner should never have been confirmed once it was determined that he is a tax cheat. Anything that puts this bastard on the street is good.

highhopes on November 20, 2009 at 9:54 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

As an aside, I’m waiting for the moment when Republicans shift from whining about the deficit to calling for tax cuts that will add hundreds billions of dollars to the deficit, in the name of “job creation.”

Bleeds Blue on November 20, 2009 at 9:50 AM

The talking points are getting lamer and lamer, pal. Democrats have 60 votes in the Senate and an overwhelming majority in the House.

Your party OWNS this economy now. If Congress is dithering over it, you canNOT blame the Republicans. Good grief.

rockmom on November 20, 2009 at 9:55 AM

I simply can’t quite figure this one out. Yes, the bailout is messy. Yes, there’s a sense of irritation. However, Geithner headed the one part of the economic recovery plan that has actually yielded success. The DOW is fine, and millions of people’s pension funds were NOT reduced to complete rubble.

I don’t get why Geithner is being targeted on this. The stimulus bill is the problem, since it really wasn’t one. It was a state bailout bill and election payoff bill to various groups. It’s, of course, not helped in creating jobs.

I gotta be missing something here.

AnninCA on November 20, 2009 at 9:56 AM

As an aside, I’m waiting for the moment when Republicans shift from whining about the deficit to calling for tax cuts that will add hundreds billions of dollars to the deficit, in the name of “job creation.”

Bleeds Blue on November 20, 2009 at 9:50 AM

Tax cuts do not add to the deficit. Usually tax cuts lead to more business investment, leading to job growth and tax revenue increasement.

What needs to happen is to cut government spending, including not having the government take over 1/6 of the US economy.

rbj on November 20, 2009 at 9:56 AM

They’re so afraid of making its failure obvious that they have to strategize a way to pass another stimulus package without calling it “stimulus.”

They might try calling it hocus-pocus.

John the Libertarian on November 20, 2009 at 9:56 AM

Besides, Obama has improved our image all over the world! He is too busy doing that to worry about a few black folks without jobs!

rockmom on November 20, 2009 at 9:56 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

Bleeds Blue on November 20, 2009 at 9:50 AM

You mean just like the Democrats did from Jan 2001 to Jan 2007?

WashJeff on November 20, 2009 at 9:57 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

The CBC doesn’t want jobs for blacks, they want even more generous government benefits. Think about it. Unless we are talking about simply putting these people on some bureaucratic payroll, the filthy lying coward can’t offer up jobs- just programs that presumably creates jobs and we all know what a screw-up this President has been when it comes to creating jobs.

highhopes on November 20, 2009 at 9:58 AM

“More fake jobs please.”

LibTired on November 20, 2009 at 9:58 AM

Heh.

The first reality, of course, is that the CBC doesn’t have a functioning brain in its member ranks, so their combined opinions on the economy are about as valuable as an Oliphant cartoon.

That they have figured out that unemployment is a bit of a problem right now is impressive; that they think beating up Little Timmy will correct the problem is less so.

Which brings us to the second reality: unemployment is merely a tool that this socialist administration is using to achieve their socialist goals. They are effing it all up, of course, because job creation can only be achieved by reversing all of the rest of their policy positions, but no matter.

Happily, our unemployment will continue to rise, and will soon crush the small investors who have been suckered back into the market, causing widespread panic and anger toward O’Bonehead on a level not recently imagined.

Now…if only we had a two party political system! Then we could vote for the other party and give them control of our economy — that would be so great!

Jaibones on November 20, 2009 at 9:58 AM

This is great news…
Have a couple of points:
1>We will call any new package stimulus-II. What was the Democrat congress doing with it for 9 months?
2>Democrat Joe Biden, Democrat Congress and Democrat President Obama said Stimulus-I was working.
3>Democrat President Obama appointed this incompetent tool as Treasury Secretary. We did warn.
4>Is this an effort by Democrat President Obama (via Democrat Congress) to throw HIS Treasury Secretary under the BUS, to save face and deflect blame.

antisocial on November 20, 2009 at 9:58 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

Bleeds Blue on November 20, 2009 at 9:50 AM

Well thank you for your suggestion. It’s so cute when little people think they are part of the adult’s conversation.

highhopes on November 20, 2009 at 9:59 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

You must be unaware of who exactly controls the majority in Congress, and thus most of the power. The demorats didn’t seem to mind filibusters when they were the minority, and it is a perfectly legal approach as the founders intended; why do you hate the Constitution?

I have a better idea. How about the Republicans request that Nancy Pelosi resurrect her “Minority Bill of Rights” that she demanded when the demorats were the minority, and allow the GOP to have a bigger say in Congress? Waddya think?

Bishop on November 20, 2009 at 10:00 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

Bleeds Blue on November 20, 2009 at 9:50 AM

Why should they? So far Congress getting things done has resulted in hundreds of billions of wasted and untracked dollars, the confirmation of cabinet members who have been found woefully incompetent, and passing legislation that was supposed to stop unemployment at 8% (it’s 10.2% now!).

amerpundit on November 20, 2009 at 10:00 AM

Here is the problem with unemployment, from Obama’s perspective…any employment will come almost entirely from non-union jobs, and from the private sector, and from small business…all of those are not part of his base.
So if he re-vitalizes employment quickly, he will be giving his adversaries jobs and momentum.
I think he would rather try to get re-elected, then really fix the problem.

right2bright on November 20, 2009 at 10:01 AM

Rovin on November 20, 2009 at 9:40 AM

I know you meant Congressional Womens Caucus, right?

Cybergeezer on November 20, 2009 at 10:01 AM

RE: highhopes:

Yes, Geithner indeed never should have been hired!

Well, you’d better grab one of these now – they may become a collector’s item:

Logic on November 20, 2009 at 10:02 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

Isn’t that racism.

the_nile on November 20, 2009 at 10:02 AM

I simply can’t quite figure this one out. Yes, the bailout is messy. Yes, there’s a sense of irritation. However, Geithner headed the one part of the economic recovery plan that has actually yielded success. The DOW is fine, and millions of people’s pension funds were NOT reduced to complete rubble.

I don’t get why Geithner is being targeted on this. The stimulus bill is the problem, since it really wasn’t one. It was a state bailout bill and election payoff bill to various groups. It’s, of course, not helped in creating jobs.

I gotta be missing something here.

AnninCA on November 20, 2009 at 9:56 AM

It is more of a general sense that “Wall Street” has recovered, thanks to billions in taxpayer dollars poured into the big banks, but “Main Street” is still hurting and getting more hurt every day. If you have been out of work for a year or more, you aren’t really caring too much that your meager pension or 401(k) hasn’t been completely wiped out, or really understand that without all this you might have lost everything.

rockmom on November 20, 2009 at 10:02 AM

Go ahead. Terminate Turbo Tax Tim.

kingsjester on November 20, 2009 at 10:04 AM

but Maxine Waters wants something more specific to the black communities.

They do, it’s called ACORN…how is that program working out for you?

right2bright on November 20, 2009 at 10:04 AM

“I have a suggestion”

blustering-bleeding-bopper-of-the-day!

Why not just have Harry and the Democrats exercise the nuclear option that requires only 51 votes? That way skyrocketing healthcare cost to businesses, (that will be taxed to the point where they will lay off more workers), will speed up the impeachment process.

Rovin on November 20, 2009 at 10:04 AM

Putting a tax cheat who was right in the middle of the bank failures and subprime mess in charge of the Treasury was tantamount to putting Jamie (the wall) Gorelick on the 9/11 commission.
How better to cover up the corruption than to keep the lead players in positions of power and review.
Dems and Repubs let him slide through without much of a fight so it would be nice to see both sides put his “Bush blaming” whinny a$$ out on the street.

Of course we know that Geithner and friends made out like bandits while we scrape by or sit unemployed:


Geithner aides made millions on Wall Street

By Tom Braithwaite in Washington
http://www.ft.com/cms/s/0/f012c4b2-b8f6-11de-98ee-00144feab49a.html

Obama administration officials now working on fixing and regulating the financial system were beneficiaries of several million dollars in pay from Wall Street and private equity companies, it has been revealed.

Wow!!!
What a complete surprise.
It’s like Barney Frank and Chris Dodd making out like bandits by covering for Fannie/Freddie all these years.

Democrats making money off of screwing the public is nothing new though,and nobody knows that better than Timmy:


Where Was Geithner in Turmoil?

By ANDREW ROSS SORKIN
http://www.nytimes.com/2008/11/25/business/25sorkin.html?_r=1&dbk

But Mr. Geithner’s involvement in several ultimately ill-fated efforts to buttress the American financial system is the very reason some Wall Street C.E.O.’s — a number of whom spoke on the condition of anonymity for fear of piquing the man who regulates them — question whether he’s up to the challenge.

“We have only two things to say about Tim Geithner, who we do not know: A.I.G. and Lehman Brothers,” said Christopher Whalen of Institutional Risk Analytics. “Throw in the Bear Stearns/Maiden Lane fiasco for good measure,” he said.

“All of these ‘rescues’ are a disaster for the taxpayer, for the financial markets and also for the Federal Reserve System as an organization. Geithner, in our view, deserves retirement, not promotion.”

Ouch.


“He was in the room at every turn of the crisis,” said another executive who participated in several such confidential meetings with Mr. Geithner. “You can look at that both ways.”


Besides the fact that the tax cheat Geithner was right in the middle of these financial failures, history shows us that he is nothing more than an incompetent crook:

Obama’s economic saviour savaged as Keating lets rip
Peter Hartcher
March 7, 2009 – 12:54AM

This story was found at: http://www.smh.com.au/opinion/obamas-economic-saviour-savaged-as-keating-lets-rip-20090306-8rk7.html

In a speech to a closed gathering at the Lowy Institute in Sydney on Thursday, Paul Keating gave a starkly different account of Geithner’s record in handling the Asian crisis: “Tim Geithner was the Treasury line officer who wrote the IMF [International Monetary Fund] program for Indonesia in 1997-98, which was to apply current account solutions to a capital account crisis.”

In other words, Geithner fundamentally misdiagnosed the problem. And his misdiagnosis led to a dreadfully wrong prescription.

Keating continued: “Soeharto’s government delivered 21 years of 7 per cent compound growth. It takes a gigantic fool to mess that up. But the IMF messed it up. The end result was the biggest fall in GDP in the 20th century. That dubious distinction went to Indonesia. And, of course, Soeharto lost power.”

Exactly who was the “gigantic fool”? It was, obviously, the man who wrote the program, Geithner, although Keating is prepared to put the then managing director of the IMF, the Frenchman Michel Camdessus, in the same category.

…and of course when a leading democrat said this,it apparently only applied to the “little people” and Republicans:


“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter. ” Sen. Tom Daschle, Congressional Record, May 7, 1998, p. S4507.

The Chinese are not impressed either:


“‘Chinese assets are very safe,’ Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

Tim Geithner
Speech in China, 2009


“It will be helpful if Geithner can show us some arithmetic.”

Chinese response to Geithner concerning their assets

Well we are seeing his numbers like 10.2% unemployment,trillions of dollars of debt,borrowing over 5 billion a day……………

Geithner should have never been put as head of the Treasury to begin with.
Just more absolute failure coming from the Obama administration.

Baxter Greene on November 20, 2009 at 10:05 AM

CBC wants a racially targeted stimulus? Surely they can’t be serious.

p0s3r on November 20, 2009 at 10:05 AM

Wait a minute… I’m no fan of President Obama but I thought Congress controlled the nation’s purse strings, created regulation and determined the taxes.

myrenovations on November 20, 2009 at 9:35 AM

CONgress abdicated their Constitutional responsibility and willingly handed the purse strings over to the Treasury and the Fed, so they wouldn’t face electoral backlash over the continuing Banksta Bailouts, which are now in the trillions (TARP is small potatoes).

The Banksta Bailouts will go down as the greatest theft of the people’s money and the biggest scandal in the history of the republic.

Audit the Fed, then end it!

Rae on November 20, 2009 at 10:05 AM

but Maxine Waters wants something more specific to the black communities.

Racist.

labrat on November 20, 2009 at 10:07 AM

This “get Geithner” thing has really caught fire over the last few days.

I have no doubt that the Goober in Chief will dump him like yesterday’s trash but his conundrum will be contriving a way to do so that doesn’t look bad on him. Wouldn’t want to hihglight a lack of experience or judgement on the Wun’s part, no.

Right now, WH hacks are photoshopping pics of Timmy with farm animals and hookers that will wind up with the NY Times in short order……..

JoeinTX on November 20, 2009 at 10:07 AM

When you represent an entitlement segment – you will have to learn a tough lesson… growth, job creation and investmetns dont materialize out of thin air, they can only be forced, due to capitalistic success.

i.e. CBC and their concerns are a result of always waiting to raid others wealth. When others no longer have that wealth, there goes the entitlement segments handout.

Anti Keynesian 101.

Odie1941 on November 20, 2009 at 10:07 AM

Isn’t it still Bush’s fault?

Attila (Pillage Idiot) on November 20, 2009 at 10:07 AM

The CBC is a racist organization and it’s about time people start referring to it as such.

WisCon on November 20, 2009 at 10:08 AM

Gee those Bush years ( worst economy in 40 years ) don’t look so bad now do they?

Just wait til those evil Bush tax cuts expire.

Raising the minimum wage (twice ) was a GREAT IDEA wasn’t it? Right in the midst of a recession , lets RAISE the cost of doing business.

The knockout punch would be cap and tax or just raising the corporate income tax rate.

Maybe we can get all Democrats in the country a remedial course in economics, then we can avoid this stupidity in the future.

DavidM on November 20, 2009 at 10:08 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

Idiots. Do you think he cares or needs you? He’s black. He’s got their vote already.

rogerb on November 20, 2009 at 10:09 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

Bleeds Blue on November 20, 2009 at 9:50 AM

Coming from the same party that did the SAME thing when the evil Boosh tried to nominate and fill judicial positions. It’s called come-uppins.

search4truth on November 20, 2009 at 10:09 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

MLK must be rolling over in his grave.

Wine_N_Dine on November 20, 2009 at 10:09 AM

It is more of a general sense that “Wall Street” has recovered, thanks to billions in taxpayer dollars poured into the big banks, but “Main Street” is still hurting and getting more hurt every day. If you have been out of work for a year or more, you aren’t really caring too much that your meager pension or 401(k) hasn’t been completely wiped out, or really understand that without all this you might have lost everything.

rockmom on November 20, 2009 at 10:02 AM

That part I definitely get. The one aspect of Geithner’s job that hasn’t worked as planned was that credit is still way, way too tight. That hurts smaller businesses.

BUT, big but, in my mind…the bailout part did definitely work. We have so many baby boomers right now who were asked to retire early, and their 401K plans aren’t just an idea about the future. They are living off of it.

The rebound in the market was vital for a huge group.

As for the credit crunch, I presume this is due to NOT yet having dealt with the toxic assets. Congress put a moratorium on foreclosures. Those properties can’t be reabsorbed through sales until this coming year. But that wasn’t Geithner’s doing. That was Frank.

Geithner’s gotten bad press because of the whole executive compensation deal. I would think conservatives would agree with him, though, that we don’t really need to be overly heavy-handed determining exec salary caps, etc. That’s government interference into shareholder business.

Geithner probably encouraged the stimulus bill to help flood some money into the system. But it was Pelosi/Obama who did so through payouts to their base and scammed the private sector, really.

So I’m still perplexed as to why the one piece that actually is working is the guy to be scrapped.

Oddly enough, he’s also the only bi-partisan guy. He continued the Bush answer to the crisis. I still think it was stinky for us all, but necessary to prevent a complete collapse of the global economy. Some disagree on that, I know. I personally think it was, indeed, just that bad.

AnninCA on November 20, 2009 at 10:09 AM

but Maxine Waters wants something more specific to the black communities.

Good Gravy. What about unemployed whites and hispanics?

Racist old twat.

OmahaConservative on November 20, 2009 at 10:09 AM

“The DOW is fine,”

Got some news for ya Ann. The dow is nothing but a balloon ready to pop, funded fully by a government infusion of cash THAT WILL RUN OUT REAL SOON. There is no, (NONE, ZERO), independent capital investment in the markets. When the pipeline of government funds run out, the DOW will crash faster than the ballon-boy story.

Rovin on November 20, 2009 at 10:10 AM

rogerb on November 20, 2009 at 10:09 AM

True, unfortunetly – they are worried about their own asses in 2010, ala McKinney in Georgia 2006…

Odie1941 on November 20, 2009 at 10:10 AM

Geithner headed the one part of the economic recovery plan that has actually yielded success.

AnninCA, you have a new career as a comedy writer waiting for you!

The stock market is “healthy” because it can essentially set its own path, one totally unrelated to the reality of what’s happening in the real world. It is propped up by phony money, and so fixated on unrealistic indicators (what rational person would think “only” a half-million job losses in a week was a “sign of improvement?”) that it is essentially a Ponzi scheme which the taxpayers will ultimately be called upon to bail out, just as we have done with Geithner’s other pets.

Yes, things could be worse. And they will be, thanks to Osama Obama, his crooked cronies and Congress.

MrScribbler on November 20, 2009 at 10:12 AM

THAT WILL RUN OUT REAL SOON

What do you mean? They have already gotten all the TARP funds and are repaying it back.

AnninCA on November 20, 2009 at 10:12 AM

This is simply posturing. Make it look like Timmy G is getting some heat when they’re really just patting him on the back when he heads out the door.

Timmy G was not supposed to be confirmed. Obama was lucky to get him, now the karma beeatch is coming back around and he’ll be lucky to keep him.

That’s what you get Congress when you confirm a crook and a tax cheat. Where was this level of outrage back in FEB? You effing jackasses that confirmed him can eat this crapola sandwich and assume half the blame for Timmy G. If you voted for him, then take a nice big steamy bite there guys…

MMM MMM MMM Timmy Geithner, your boy had to have him…. MMM MMM MM

ted c on November 20, 2009 at 10:13 AM

Rovin on November 20, 2009 at 10:10 AM

It’s also buoyed by rising energy prices which is going to make things really fun in the near future as oil and gasoline become extremely expensive.

Bishop on November 20, 2009 at 10:13 AM

one totally unrelated to the reality of what’s happening in the real world. It is propped up by phony money

It definitely is separate from other indicators. But remember, it’s not just 401K programs. We’re talking about every single pension plan in this country as well as municipal investments, state investments.

That’s SUPER relelvant.

AnninCA on November 20, 2009 at 10:14 AM

This week’s fanfare over Obama’s insight that overspending during a recession brings a double-dip should make note that Obama’s simply establishing his “record” for having “warned” everyone before “necessarily raising taxes” to fill his blackhole of compounded debt to China.

maverick muse on November 20, 2009 at 10:16 AM

This week’s fanfare over Obama’s insight that overspending during a recession brings a double-dip should make note that Obama’s simply establishing his “record” for having “warned” everyone before “necessarily raising taxes” to fill his blackhole of compounded debt to China.

maverick muse on November 20, 2009 at 10:16 AM

Absolutely. But then, we knew that would be coming.

AnninCA on November 20, 2009 at 10:18 AM

This week’s fanfare over Obama’s insight that overspending during a recession brings a double-dip should make note that Obama’s simply establishing his “record” for having “warned” everyone before “necessarily raising taxes” to fill his blackhole of compounded debt to China.

maverick muse on November 20, 2009 at 10:16 AM

The message from multiple sources is inevitably leading to that conclusion. The ground work for tax increases started in earnest a couple of weeks ago.

ICBM on November 20, 2009 at 10:19 AM

Obama has already announced a jobs summit and the Senate has started to turn its attention to a new jobs package — which no one wants to call a “stimulus” after the failure of Porkulus —…

While listening to Rush two days ago, he mentioned this. He also mentioned that the “job summit” will have nothing to do with creating jobs, according to BHO.

This is beyond cutting off one’s nose to spite his face. This is a travesty of our political process.

madmonkphotog on November 20, 2009 at 10:20 AM

AnninCA on November 20, 2009 at 10:09 AM

If you owned a bank and your personal forture was on the line, would you loan to a business right now?

Here are some issues that your would have to consider:

1) Inflation. If inflation happend, creditors lose, debtors win. It is quite clear that the actions the federal government have taken have historical caused inflation (e.g., loose money). Also, it is clear that since the federal government is hugely in debt, it benefits from inflation.

2) Economic outlook. As a business owner I am concerned about regulation and taxes, especially local taxes. My business is coliision repair, the amoutn of things we have to do to conform with OSHA and EPA regulations is constantly getting more burdensum (i.e., expensive). Local governments are in severe financial squeeze right now, mainly due to the pension obligations they have. They keep jacking up business property taxes cause we are an easy target. BUSINESSES DO NOT VOTE IN ELECTIONS.

Do you want to make any loans to businesses?

WashJeff on November 20, 2009 at 10:20 AM

I have a suggestion. Why don’t Senate Republicans give health care, judges and everything else they’ve been filibustering (or threatening to filibuster) an up or down vote so that business in Congress can get done a little quicker and there will be more time to focus on jobs?

Bleeds Blue on November 20, 2009 at 9:50 AM

Harry and Nancy control whether votes are brought to the floor of both houses. If they want to call for a vote all the have to do is bang the gavel. The problem is they either don’t have the votes or they want at least one Republican in their pocket to call these votes “bi-partisan”. Majority control of both houses means that they don’t need Republicans so why are the not calling for up or down votes?

thomasaur on November 20, 2009 at 10:21 AM

I got away for the CBC to help black unemployment….back amnesty for more illegal aliens.

BruceB on November 20, 2009 at 10:22 AM

What I do see happening is that Geithner is having a hard time twisting financial insitution arms. He’s got to squeeze the mid-sized banks into a noncompetitive position. I don’t blame them for resisting.

But they have to start lending or else the TARP will have done nothing more than delayed the collapse.

AnninCA on November 20, 2009 at 10:22 AM

What do you mean? They have already gotten all the TARP funds and are repaying it back.

AnninCA on November 20, 2009 at 10:12 AM

You really need to lay off the crack pipe. Seriously.

Johnnyreb on November 20, 2009 at 10:24 AM

Do you want to make any loans to businesses?

WashJeff on November 20, 2009 at 10:20 AM

That is their business, though, Jeff. They don’t make loans? They are just a placeholder trying to live off of overdraft charges. *haha

That isn’t a real business plan, either.

AnninCA on November 20, 2009 at 10:24 AM

I dont know what everyone is worried about. There is going to be a jobs summit. A jobs summit – helllloooo! Problem solved people. (sarc)

Jussi on November 20, 2009 at 10:24 AM

You really need to lay off the crack pipe. Seriously.

Johnnyreb on November 20, 2009 at 10:24 AM

I believe I’m right about that. A lot of the funds have been paid back.

AnninCA on November 20, 2009 at 10:25 AM

Dump Geithner for the obvious corruption.

Geithner was among the most illegitimate choices for US Treasury Secretary.

So is a worse thief than Geithner waiting in the wings for that job?

Refuse nominees from the likes of Goldman Sachs and JPMorgan, corrupt banking institutions or schools that enable thievery and organized crime within our government.

NEVER CONFIRM A CROOK. CONVICT THE CROOK.

Where are the disciples of Milton Freedman?

maverick muse on November 20, 2009 at 10:25 AM

CONgress abdicated their Constitutional responsibility and willingly handed the purse strings over to the Treasury and the Fed, so they wouldn’t face electoral backlash over the continuing Banksta Bailouts, which are now in the trillions (TARP is small potatoes).

The Banksta Bailouts will go down as the greatest theft of the people’s money and the biggest scandal in the history of the republic.

Audit the Fed, then end it!

Rae on November 20, 2009 at 10:05 AM

It’s okay,it’s not “their” money,it’s “our” money:


It’s official. TARP is just theft.

Fabius Maximus @ 12:01 am
http://fabiusmaximus.wordpress.com/2009/05/01/tarp/

These reports about the TARP must be read to be believed.  Since you are reading this on a screen, I have highlighted in red where you would scrawl WTF! on printed material.  This is best read somewhere you can scream without attracting undue attention.

1.“Thievery Under TARP“, Robert Scheer, The Nation, 22 April 2009

2.Initial Report to the Congress, SIGTARP, 6 February 2009

3.Quarterly Report to Congress, SIGTARP, 21 April 2009


But…But…But what happened to all that “transparency” and “accountability” that Mr. Hope and Change kept promising.

TARP: The Looming Debacle
http://www.powerlineblog.com/archives/2009/04/023420.php

April 27, 2009 Posted by John at 8:00 AM

On April 21, the Special Inspector General for the Troubled Asset Relief Program Act of 2009–”SIGTARP”–submitted his quarterly report to Congress on his office’s activities in relation to the TARP program. The report is a disquieting document that should be read by every American–certainly be every taxpayer.

The Inspector General’s report documents the stunning and at least partly illegal expansion of TARP from the $700 billion originally allocated by Congress to what is now a $3 trillion complex of programs. This chart shows the various programs that are now included within SIGTARP’s oversight, and how they have expanded from the initial $700 billion. Note that some of the programs are still incipient; $3 trillion is by no means a final number. Click to enlarge:


….and it’s all Bush’s fault because you see when he was President, the buck stopped at the Presidents desk.
But now that Obama is President….well…the buck still stops at Bush’s desk in Crawford according to the “smart ones”.

Could See This Coming!
posted at 5:00 pm on October 25, 2009 by Dafydd ab Hugh
http://hotair.com/archives/2009/10/25/could-see-this-coming/

We ended that post with the by now familiar bleat (which I shamelessly stole from Patterico, though I added the adverb, which Patterico began copying — God, how incestuous the two of us are!) the pathetic bleat of “What could possibly go wrong?” Now, with a tip of the hat to Rich “Mullings” Galen, we learn exactly what can possibly go wrong:

At the Federal Reserve, Chairman Ben S. Bernanke proposed a broader but less proscribed plan to restrict pay at banks. The aim is to prevent them from rewarding employees for actions that could endanger the firms’ long-term financial health. Unlike Feinberg’s more limited plan, the Fed’s guidance would cover all banks it regulates — even those that never received a bailout — as well as U.S. subsidiaries of foreign companies.

But hey, it’s not like the federal government is, like, you know, taking over the private sector; they’re not actually setting wages for all banks — they merely get the final say on what those wages will be:

However, the Fed’s proposed rules have wiggle room: The guidelines would let banks set their own compensation but give the Fed veto power over pay practices that it determines could threaten the safety and soundness of a bank. They would extend the regulators’ reach into pay practices affecting tens of thousands of bank employees, from senior executives to traders of complex securities.

Thank goodness the government of Barack H. Obama dodged the temptation to allow the Party — sorry, I mean the State — to own all industries; that would be Marxism

That’s right..
Even thought China,Europe,Venezuela,Russia all call Obama a marxist and his administration is taking over banks,healthcare,and other private industry the super smart liberals and their friends in the press just don’t see where those “crazy” “extremist” come up with all this “Obama is a socialist” stuff.

Baxter Greene on November 20, 2009 at 10:26 AM

See, Baxter, I thought the call to nationalize the banks was exactly what Geithner avoided.

A lot of liberal writers were calling for that.

AnninCA on November 20, 2009 at 10:28 AM

That is their business, though, Jeff. They don’t make loans? They are just a placeholder trying to live off of overdraft charges. *haha

That isn’t a real business plan, either.

AnninCA on November 20, 2009 at 10:24 AM

There business is to make a profit. If banks think making loans will not make them a profit, they wont do it. No smart business owner would do something that will cause their business to lose money.

Right now they are making their profit on the difference between the feds artificially low interest rates and the interest rates they charge. Also, for business, the charge fees for everything.

WashJeff on November 20, 2009 at 10:30 AM

I hear zero wants another stimlus package that would create jobs and bring down the unemployment. I think this whole admin should step down and quit. Everything they touch makes things worse.

Brat4life on November 20, 2009 at 10:31 AM

The CBC only cares about jobs for their constituents????
Raaaaaaaacist!

Oh, and news flash….Geithner’s incompetent. What a shocker.

search4truth on November 20, 2009 at 9:39 AM

Just having a CBC is racist. And along with Obama they are the plantation owners that are keeping their constituents in slavery to the dole, addicted to abortion, prone to single-mother families, living in high crime areas, etc. all under the guise of I’m your Daddy.

Christian Conservative on November 20, 2009 at 10:32 AM

That is their business, though, Jeff. They don’t make loans? They are just a placeholder trying to live off of overdraft charges. *haha

That isn’t a real business plan, either.

AnninCA on November 20, 2009 at 10:24 AM

Ann, a lending institution only lends money when they think they will get their money back, with a little bit extra. The fact that these institutions are not lending is a message that they do not trust people to pay back. And why is that, have people suddenly started to become super criminals and with abscond with the money rather than turn their hobby into a business? No. It is because the lenders do not think the new/expanded businesses will be able to pay back the loans, because the lenders do not think the economy will get better. This is a repeat of the 1970s. The lenders, those whose very existence is dependent on reading the economy right, have no faith in our economy, which can be laid at the feet of having a far left president and congress. Higher taxes & more government control equals a weaker economy.

rbj on November 20, 2009 at 10:33 AM

Right now they are making their profit on the difference between the feds artificially low interest rates and the interest rates they charge

True. I still think a lot has to do with ridding the portfolios of the current toxic assets.

They have to start dumping.

AnninCA on November 20, 2009 at 10:33 AM

Rovin on November 20, 2009 at 10:10 AM
It’s also buoyed by rising energy prices which is going to make things really fun in the near future as oil and gasoline become extremely expensive.

Bishop on November 20, 2009 at 10:13 AM

True Bishop, but this is just the continuing burden that will include healthcare taxes for the next three years, (before one benefit is paid), further home forclosers that will have to be subsidized by “our” government,(TARP-2 / PORKULUS-2 ANN),etc. It’s a big cluster-f**k not waiting for an epidemic, but breeding on the art of unrestrained socialism. (sidenote: Ladies, get your pap-smears before they’re also eliminated by Harry, Nancy, and company)

Rovin on November 20, 2009 at 10:34 AM

Soooooooooooooooooo

Who cares about the economy? The most important thing for this administration is the government take-over of healthcare. EVERYTHING ELSE IS SECONDARY! As has been stated previously, if the government controls your healthcare, they control your body; if they control you and your body, can you really say you live in a free country?

olesparkie on November 20, 2009 at 10:34 AM

No. It is because the lenders do not think the new/expanded businesses will be able to pay back the loans, because the lenders do not think the economy will get better.

You guys are probably right. I think, however, that everything is artifically inflated right now. Dump the assets, commercial properties will drop in price.

That makes small businesses much better positioned. Less start-up money is required.

Until they see the prices reflect actual value, in other words, they are holding off lending.

AnninCA on November 20, 2009 at 10:36 AM

Further,why does the CBC give a rats pitooty about the economy? Unemployment in their districts could hit 50% or greater, yet none of them would be in serious jeapordy of not being re-elected. What’s the real reason they’re putting up a stink?

olesparkie on November 20, 2009 at 10:38 AM

Of course this is an attempt to throw the Treasury Secretary under the bus. And he belongs there. He’s one of the clowns who believe in inflating asset bubbles, and then refuse to admit that they eventually collapse.

All you need to know about Geithner was summed up in his effort to sell his house in Larchmont (Westchester county, NY). He bought it for $705,000 in 1998 and had it on the market in March 2009, asking $1,635,000. It didn’t sell. (He finally rented it out for $7,500 a month.)

Emperor Norton on November 20, 2009 at 10:39 AM

Left Coast Business Plans:

1. Spread the wealth of bankruptcy by mandating trickle up poverty. Absorb all profit in taxes.

2. Go non-profit floating on tax funds mandated from those who produce a profit and siphoned from government pork grants that are all directed for liberal causes. Based on the twin frauds of “Equal Opportunity, Strictly Non-Partisan” no conservative grant proposal is acceptable, and no conservative ideas or people are tolerated.

maverick muse on November 20, 2009 at 10:40 AM

The CBC wants Obama to offer a jobs package aimed at curbing rampant unemployment among African-Americans.

Well you know if it’s not the women and children who are hardest hit, it’s going to be blacks. When they organize a Congressional White Caucus I’ll give a damn about what the CBC thinks.

orlandocajun on November 20, 2009 at 10:40 AM

2) Economic outlook. As a business owner I am concerned about regulation and taxes, especially local taxes. My business is coliision repair, the amoutn of things we have to do to conform with OSHA and EPA regulations is constantly getting more burdensum (i.e., expensive). Local governments are in severe financial squeeze right now, mainly due to the pension obligations they have. They keep jacking up business property taxes cause we are an easy target. BUSINESSES DO NOT VOTE IN ELECTIONS.

WashJeff on November 20, 2009 at 10:20 AM

This is why a large amount of dealerships in NC have dropped Bodyshops from their franchise stores and now sublet the work out.

To expensive to run it inhouse.

My business is in Automotive Recon work (PDR) and the increased taxes, regulations,and operating expenses combined with a serious decrease in business are killing the smaller guys who cannot weather the storm.

I know several bodyshops and independent car dealers who are just trying to get their business’s back into to black so that they can get out without to much of a loss.

Close to 50% of my accounts(franchise and independent) have told me that another few months like Sept.08-Feb.-09
and they are finished.

Watching Obama’s economic policies has not installed any confidence in them and most are seriously worried.

Hope and Change has delivered no rainbows or unicorns to the private sector that I or anybody else I know can see.

Baxter Greene on November 20, 2009 at 10:40 AM

True. I still think a lot has to do with ridding the portfolios of the current toxic assets.

They have to start dumping.

AnninCA on November 20, 2009 at 10:33 AM

This would have happened if the government did not interfere in the free market. Banks would have gone bankrupt, investors in those banks would lose their investments, and the loans “dumped” since they are sold for “pennies” on the dollar.

The government did NOT want this happen since teh downturn would have been much worse, but, IMHO, much shorter. The government is trying let the pain trickle out slowly over years. I was told this by my brother in the Summer of 2008, before any Sh*t was hitting the fan. Why would my brother know? He is a PhD in accounting focused on taxes at a VERY well know university. And he was told this in the summer of 2008 at one of those meetings where profs and politcians get together. I wish I listened to hium and bailed on the market when he told me this.

WashJeff on November 20, 2009 at 10:43 AM

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