The Palin bounce (down the stairs) effect is now confirmed. After seeing acts like this, Dems no long need to point out Palin’s total lack of qualification to be veep, because the R’s are doing it for them. Palin is now an anchor on John McCain’s boat, no longer the helium helping him rise. The McCain/Palin numbers will only drop from here, and the downtrend will be due both to McCain’s economy-managing fiasco as much as from Palin’s stunning unsuitability for the job. The McCain campaign is clearly shielding her from further public interviews and contact with the press as they can’t afford more Couric-type interviews.
As far as the markets, the left/right divide on the $700B Paulson power grab has been fascinating to watch. In Colorado the voting outcome was mixed. Those on the left and right in safe seats voted Y (Degette, Perlmutter and Tancredo) and neither of these players are necessarily considered moderates. The Nay votes were both from contested races (Udall and Musgrave) and from a D (Salazar) and R (Lamborn) in safe seats. In other words, there’s no real pattern here. The media has made much of the fact that rank-and-file R’s voted against the plan across the country (and they did by 2-1) just as 40% of rank-and-file D’s did, showing (supposedly) that conservatives and liberals both are in agreement on hating the compromise Paulson Power Grab, just for different reasons.
Are the reasons really that different? R’s, D’s and moderates all around see the same things here: just two weeks ago Paulson, Bernanke, Bush, McCain, etc. were all spouting that the fundamentals of the economy were strong and that everything was roses. Now they are asking for $700 billion in taxpayer money in a panic rush, telling us that if they don’t get it the economy is gonzo. Voters are very rationally asking the WTF question while their reps are squirming around, ready to push the nuclear button after about two days of debate. Again, it’s times like this I am thankful we have a slow Congress designed to make sure we don’t make panic decisions.
Finally, speaking of the Paulson Power Grab, if you thought the weekend compromise bill ameliorated the No Longer Invisible Hand provisions, think again:
What attracted far less notice in the bill was a set of provisions that would have given Treasury Secretary Henry Paulson virtually unfettered authority to set up and run the new organization designed to stabilize the financial system — bypassing federal acquisition rules and competitive hiring procedures in the process.
The 2008 Emergency Economic Stabilization Act would have allowed Paulson and his eventual successor to waive provisions of the Federal Acquisition Regulation “upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest.”
“It’s unprecedented in American history and American government,” said Donald F. Kettl, a political analyst and professor at the University of Pennsylvania. “The blank check is blanker still given that we don’t know who will be signing dollar bills on Jan. 21.”
The department would have had to notify the House Financial Services and Oversight and Government Reform committees, as well as the Senate Homeland Security and Governmental Affairs and Banking, Housing, and Urban Affairs committees of any waiver within seven days. But the bill would not have granted the panels explicit power to block any such contract.
And it goes on and on….
