Letting the Other Guy Run With the Issue

When the credit crisis peaked and John McCain was several points ahead in the National and battleground polls.  Things were looking good.  Then the “economy” was brought front and center with the crash of the markets.  McCain suspended his campaign and went to Washington.  If he had played his cards right, he could have shown true leadership and solidified his chances at becoming president.  Instead, he stumbled, and with the media’s help, Barack Obama was seen as the champion of the economic crisis.  It was a 10 point swing in favor of Obama.  Here is what McCain should have done

 

1)      Expose  the policies and regulations that forced lending to unqualified borroweres.  McCain should have pinned the housing bubble and the credit crisis on the Democrat led Congress, speciifally Chris Dodd and Barney Frank.  The corruption of these two politicians is evident as both are involved in dubious affairs.  The comittees that Dodd and Frank chaired were directly responsible for the problems with the Community Reinvestment Act, the Fannie Mae and Freddie Mac collapse, the securitization of unqualified mortgages.  It was lending to unqualified borrowers that created the bubble on main street.  Unfrortunatley, McCain did not take an aggressive stance on this and the American public was convinced that the Democrats were the solution and not the problem.

 

2)      Call for the firing of the Chairman of the SEC.  McCain did this, but he was laughed at.  I read an article today  about just how bad the oversight at the SEC was.  Calling for the firing of Chirs Cox was a true maverick move that would distance himself from the Bush adminstration.  I think it is an honest position that McCain would not tolerate the type of greed and corruption that the current adminstration seems to surround itself with.   “[The report] also gives damaging evidence that the SEC’s hands-off approach helped cause the credit bubble to dangerously inflate.” Time will prove McCain right on his call to fire Cox.  His failure is in not trumpeting his correct assesment that the man that oversaw the markets during this times needs to be gone.

 

3)      Fight any Pork in the Bailout:  By all accounts, McCains presence in Washington allowed the House Republicans a seat at the negotiation table.  Previous to this, the Bush Pelosi adminstration was ready to hand over Secretary Paulson $700B based on a 3 page document.  Unfortuantely, the bargaining was less about principle, and more about bribery.  Eventually both McCain and Obama supported the bailout, and there seemed to be a great deal of pork and unnecessary elements to the package.   

 

4)      Explain to America why the Government Bailout is the right thing to do.  McCain’s coservative constituents believe in free markets and many are wholly replused by the taxpayer bailout and socialization of the financial institutions on Wall Street.  Everyone is angered that taxpayer money is being given to people so they can go to fancy resorts and spas.  If the balout is necessary, a leader should be able to explain why.    

 

5)      Explain to Wall Street that it aint a free ride.  The day a company takes taxpayer dolloars is the day that CEO needs to be scared to death that the government is going to crush him for any wrongdoing, abuse, waste, or fraud.  The fact that fat cats were still business as usual is appalling.  The should be on their hands and knees licking the boots of the American taxpayer, and we should own them, their prospects and the future, until every dime is paid back, with appropriate interest.   

 

 

The housing bubble should be a winning issue for Republicans.   McCain can distance himself from the Bush Wall Street policies.   It is frustrating to see the other party capitalize on something that could benefit you.