Obama Sets a Wall St. Reform Trap for the GOP

Obama and the Democrats Set a Wall Street Reform Trap for the GOP
Obama and the Dems are setting up the GOP.

President Barack Obama and Senate Democrats are absolutely giddy today to be losing a procedural vote on Wall Street reform. Why are they so happy? If the Senate Republicans stand together and vote no, Democrats are prepared to rake them over the coals on the issue, as 2/3 of all Americans support financial reform. By being the Party of No, the GOP is painting themselves as the party of Pro Wall St.

According to LA Times’ D.C. Now blog, Senate Majority Leader Harry Reid’s spokesman Jim Manley laid out the frame, “We remain eager to work with Republicans who are sincere about reforming Wall Street, and we are hopeful for bipartisan agreement on this important effort. But there are no two ways about it: A vote against even opening debate on holding Wall Street accountable is a vote to protect Wall Street.”

It doesn’t take a rocket scientist to see what the Democrats are up to here. If the Republicans continue to oppose Wall St. reform, they had best be prepared to be battered on the issue by Democrats all summer long. This is a similar strategy to what the Republicans used last summer on health care reform, but the difference being that the Democrats have overwhelming public support on their side. According to a new ABC News/ Washington Post poll, almost 66% of Americans favor federal oversight of loans and industry paid fund that would cover the cost of dismantling failed firms.

Obama has strong support on this issue, as 52% of those surveyed trust him most compared to 35% who trust the Republicans in Congress on financial reform. Independents also prefer Obama on this issue, 47%-35%. Seventy five percent of Democrats, 57% of Independents, and 44% of Republicans favor federal reform. It is no wonder that the Democrats are salivating at the prospect of the Republicans pulling out their Party of No shtick.

After spending days, lying about the bill and referring to it as another bailout, GOP Senate Minority Leader Mitch McConnell (R-KY) just may be starting to understand that he and his merry choir of negativity are being set up for big blow. McConnell’s media talking point had been, “In fact, if you look at it carefully, it will lead to endless taxpayer bailouts of Wall Street banks. It actually guarantees future bailouts of Wall Street banks” and that it sets up “in perpetuity the potential for additional taxpayer bailouts of large institutions.” Polifact rated this claim as false, and yesterday on ABC Paul Krugman called it one of the most dishonest claims in political history.

McConnell should be aware that this issue is a minefield for the GOP, but the Republicans have revealed their expertise in the art of self destruction. Obama and the Democrats have the GOP cornered, and have set up a masterful strategy where they will actually win by losing today’s vote. Financial reform will get passed because the issue is too popular with the public for the Republicans to allow Obama to have another victory. In the end, I suspect that Democrats will make some small tweaks as concessions and the bill will pass with 60-70 votes, because if it doesn’t Congressional Republicans and their candidates will be in for a long, long, summer.

12 Replies to “Obama Sets a Wall St. Reform Trap for the GOP”

  1. Hopefully the public is finally getting a clear understanding of who Mitch McConnell, GOP senate minority leader, really is. When has he ever had the main stream as his focus other than to feed them lies and lead the way in stopping any beneficial progress for those who are struggling in this time period as a result of the previous administration’s greed?

  2. I am a little bit nervous about this. The Republicans seem to be catching on to the fact that they are behind the eight ball almost 2 years too early. In fact, there may even be a couple of Republicans who see the handwriting on the wall that the party of no is definitely not in their favor.

    They appear to have lost public support for their campaign of making sure that nothing that Obama does goes through. With the health care bill passing I think they fell right into the ice fishing hole and their brains are frozen.

    Let’s hope that the majority of Republicans don’t wake up until 2014. The actions of the Republican party in being the party of no indicates that they are far far out of touch with America. America expects action, and while the Democrats may not always be right the Republicans have always been wrong since Obama was elected.

  3. @Shiva, I think some of them are catching on, but they have taken positions written in concrete, so even if they want to get out they can’t, and the water level continues to rise around them.

  4. @F Joy, I think McConnell really overplayed this one. From the beginning he should have seen the trap coming. I think this bill needs to be even tougher, but there is no way any Republican should the bill in order to help some of the biggest villains in our society, but it just to goes to show how little attention most people are paying to what their leaders are doing.

  5. Obama Sets a Wall St. Reform Trap for the GOP and Senator Ben Nelson gets stuck in it proving yet again he never gave a damn about any of his constituents. so a big GO FUCK YOURSELF to Ben Nelson.

  6. It is disturbing that republicans are always voting against everything that would help Americans. These republican lawmakers think that republicans/tea partiers are just as determined as they are that they always oppose President Obama and his efforts for this country. We live in a very scary time when the republican party is led by radicals who don’t care about the public and the republican base that doesn’t care about themselves. If people don’t wake up and pay attention we will keep putting idiots to work in our government. Many of these corrupt thugs need to be sent home.

  7. If Obama is championing Financial Reform, why has he not lead the fight to put financial criminals in jail? There was outright fraud and criminal behaviors that are not being held accountable, and the American people have to pick up the bill. Obama’s larget campaign contributor was Goldman Sachs (same for most in Congress, all captured and paid for by financial interests/banks). This is a “slap on the hand” financial reform and politics as usual. In the meantime nothing really changes and the American people continue in our stupid daze, like the sheep we are. This is about the politician’s asses and holding onto their seats, not doing what is right and representing Main Street. Im so disgusted with this puppet President. I have been deceived, and Im a pissed liberal. Repeal Glass Steagall. Banks should be banks and NOT brokerage houses using our savings and tax dollars to speculate in risky deriviatives based on smoke and mirrors accounting and fraud. One day this whole market is gonna collapse— they have propped it up into a bubble. Just watch. It will be ugly and there will be real pain. Perhaps only then a real leader of integrity will rise, or God help us, a charismatic Hitler. Wake up America !

  8. @Kristen,

    The market did crash. It was Oct of 2008 and many average Americans were hurt as we lost our life savings and IRAs in the Bush crash.

    Do you have a link re GS being Obama’s biggest campaign contributor?

    Because the people were actually his biggest campaign contributors — 50 dollars here and there, all across this country. That’s a fact.

    All politicians are in bed with the banks and Wall Street- they have to be. This is how this country functions right now and one of our largest exports is actually banking commodities. That doesn’t make it right, but it does make it a fact of life we all need to come to grips with.

    Blaming Obama for this might be easy, but it’s not accurate or practical.

    What needs to happen is we need to create a way for the SEC to actually monitor these guys– but the SEC chairman has worked with or will work with these guys in the future so you can’t count on them to be a watchdog.

    The ratings companies are also in bed with Wall Street companies, which allows deception of investors. This needs to end.

    Goldman Sachs should be in jail you say? For what exactly? Guess what, we will be lucky if they charges even stick– the charges are exceptionally hard to prove and thanks to the GOP’s 40 years of reckless deregulation, it was LEGAL to screw everyone over.

    You can’t go to jail for finding the loopholes the GOP put into place so your company could make them rich.

    If you want people to “go to jail” the laws need to change. That takes time and it takes people who care about the people…Like, I dunno, the Democrats who are trying to pass financial reform RIGHT NOW but are being filibustered by the GOP.

  9. Just checked the front page of most national newspapers. No headlines saying GOP obstructs vote to rein in Wall st. Maddening.

  10. @Susan, That’s why this blog is not a newspaper. I suggest the LA Times, Roll Call, CNN, and the Washington Post. They all featured stories on the GOP obstructing Wall St. reform. If you go back 2 weeks this story is everywhere, so I don’t understand your point unless it is that you really don’t keep up with the news.

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