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Obama's Bad Bank Plan Could Destroy His Promising Presidency -- How Do We Push Him in the Right Direction?

By Robert Kuttner, Huffington Post. Posted April 14, 2009.


It ain't easy to play the role of loyal opposition to a progressive president who seems determined at times to be captured by Wall Street.

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"Part of the Way with LBJ"  --Students for a Democratic Society button, circa 1964

Progressives now find themselves in an awkward position of simultaneously wishing Barack Obama well, but feeling dismayed by his policies on some key issues, most notably the banking bailout. If this were a normal economic situation, the posture of semi-opposition would not be that big a deal. We would simply gratefully accept the decent policies and keep pressing for bolder ones. But a failure to revive the banking system would be Obama's Vietnam. It would wreck everything else.

It's a too-familiar position for progressives, one that winds back through all of the postwar Democratic administrations of my adulthood. We wanted Lyndon Johnson to push harder for civil rights and anti-poverty and not ruin it all in Vietnam. We were appalled at Jimmy Carter's attacks on government, his failure to use his large Democratic majority in Congress to press for progressive legislation, his refusal to lift a finger on behalf of labor law reform. The memories of Bill Clinton are sufficiently recent that we need little reminder of the needless tilt to the right on economic issues from NAFTA to welfare reform to financial deregulation.

What makes this situation different is, first, our gratitude on so many fronts combined with the very high stakes of the financial rescue. Barack Obama is an exemplary leader in so many ways, the leader we've been waiting for. His commitment to restore constitutional government is no small achievement. Those fighting for anti-poverty efforts and children's initiatives have never seen increases in federal resources comparable to the present ones. His foreign policy initiatives, from his reaching out to Iran to his efforts on behalf of nuclear non-proliferation are a breath of fresh air. And speaking of which, Obama seems serious about reducing the carbon footprint.

But all of this promise could come to naught if the economy remains mired in recession. And despite large scale stimulus spending, the economy will remain stuck in first gear until the banking system is revived.

The economists whom I most respect, such as Joseph Stiglitz, Jeff Sachs, Simon Johnson, and Paul Krugman, all have grave doubts about whether the Geithner-Summers plan can work. The more details are revealed, the more curious it looks. If the plan did succeed in bringing zombie banks back to life, we might hold our noses at the fact that hedge funds and private equity companies were profiting, while taxpayers and the Federal Reserve bore the risk.

The problem, however, is that the plan is not just outrageous in terms of promoting a form of gambling with public subsidy, in which taxpayers bear most of the downside risk while the speculators get most of the upside gain. Nor is it problematic just because of the recently exposed conflicts of interest, which range from the large speaking fees given Larry Summers by some of the very firms that benefit from the bailout to the fact that the Geithner approach was literally designed not by the government but by Goldman Sachs, Pimco, and others that will directly benefit.

The more serious problem is that the plan is conceptually flawed. It presumes that it's possible to create a market that will bid up the value of securities that have lost most of their worth because the mortgages on which they were based will never be repaid at anything like their par value. Banks can play all kinds of games to try to increase the prices at which these securities trade. But unless the taxpayers and the Fed make up virtually the entire loss in banks' balance sheets, the trading games will not serve to recapitalize the banks.

And if a total taxpayer bailout is the real plan, it would be far better to do it straightforwardly with something like a Reconstruction Finance Corporation. A new RFC would conduct real audits of troubled banks (not "stress tests), determine how much capital they needed, and decide what combination of taxpayer and Federal Reserve assistance, coupled with sacrifices from bondholders and shareholders, would make up the gap.

The administration's approach to the auto rescue suggests the more robust strategy needed for the banks: take a hard look at the company's books; fire incumbent management; make all stakeholders take some sacrifices; and involve government directly in the design of a leaner and more efficient successor firm. But nothing of the sort is being done with the banks.


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See more stories tagged with: bank, obama, bailout, larry summers, geithner, tarp

Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos. His recent book is "Obama's Challenge: America's Economic Crisis and the Power of a Transformative Presidency."

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Without Nationalization Obama Fails ...
Posted by: mmckinl on Apr 14, 2009 12:23 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Noone will trust these banks until they have been put through a tough audit, NOT a prebaked "Stress Test".

Then tough action need ensue. Obama needs to show the bankers and indeed the country that justice will be done for the financial system AND the tax payer.

Hundreds of billions if not trillions of dollars have been wasted already. There is NO appetite for hemming and hawing while hundreds of thousands of houses are being foreclosed and millions upon millions become unemployed and desperate ....

Yet Obama shouts out his support for the perpetrators of this malignant situation, Geithner and Summers. Obama had better smell the coffee or be a one term President.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Without Nationalization B of A, Citi, Goldman... Posted by: SeattlePackedSnowandCollidedCars
» RE: Sorry... Posted by: Cybershaman
» RE: Webofdebt Posted by: Cybershaman
» Obama shouts out..... Posted by: David/Daoud
» Obama = fascist Posted by: rafaeltoral
Progressive President?
Posted by: DrBrian on Apr 14, 2009 12:24 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Kuttner is intoxicated on Obama's Koolaid. Progressive president? Whether it's his slow-motion pseudo-withdrawal from Iraq, his hawkishness on Afghanistan and Pakistan, his support for Bush's secretiveness, his attempts to deny rights to Bagram detainees, his obstruction of justice in preventing investigations and prosecutions of war criminals, his lavish military spending,or his multitrillion dollar largesse to his campaign contributors from Wall Street at the expense of future generations, Obama doesn't look very progressive to me.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Progressive President? Posted by: Tom Tele
» Yeah, this article is real kiss ass. Posted by: and_abottleofrum
Too much carrot, not enough stick
Posted by: 24&somuchmore on Apr 14, 2009 12:37 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The devotees of Wall Street and their ilk should be removed from having any further access to the political process. Not as individual citizens, of course, but the financial industry / corporate influences on policy that have de-railed the economic health of the U.S. over the last 30 years must be stopped. No PACs , no lobbyists, no more political money. Zero.

Change you can believe in can be incremental, but it has to be based on a fundamental belief that what has gotten us to THIS POINT will not be sufficient ( and is not desirable) to rescue us from the ledge we are on now. We should not rebuild a financial system that has, for the mass of Americans, resulted in the financial terrorism and ruin that we have just experienced.

Rebuild the American capacity to produce THINGS / PRODUCTS in America by slashing taxes to record low levels on that activity. Create economic manufacturing zones in urban areas like Detroit, Cleveland, Buffalo, Indianpolis, and similar towns across the nation, and tax income from short term financial manipulations so that long term investment replaces speculation as the activity on Wall Street.

We were once smarter than this.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Transparency Now!!!!!
Posted by: EJW on Apr 14, 2009 12:55 AM   
Current rating: 5    [1 = poor; 5 = excellent]
While these A**holes are hiding their piles of plunder,the rest of us are being screwed.

Complete and Total Financial Transparency NOW!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» come tea party Posted by: SeattlePackedSnowandCollidedCars
» RE: come tea party Posted by: photon's feather
» KRUGMAN = Non Factor Posted by: SeattlePackedSnowandCollidedCars
» RE: KRUGMAN = Non Factor Posted by: freelyb
» RE: Transparency Now!!!!! Posted by: peacefullaim1
A national strike will get Mr. Obama's attention
Posted by: LeftWright on Apr 14, 2009 1:04 AM   
Current rating: 5    [1 = poor; 5 = excellent]
(and his bosses, too).

Yes, brothers and sisters, that's what it's going to take and it's way past time that we began organizing one and forming a consensus on our demands. Here are a few suggestions:

1) Immediate repeal of the Patriot Act and a full restoration of all our civil rights.

2) An immediate halt to all foreclosures until they can be properly reviewed and adjusted to reflect current market value.

3) A complete and transparent investigation of the financial system before any more taxpayer money is used to bailout people who gambled on totally non-productive "financial instruments" followed by a thorough re-regulation of the industry, as needed.

4) A phased transition to a single-payer national health care system with universal coverage.

5) A complete and transparent investigation into the election irregularities of the last 10 years.

6) A complete and transparent investigation into the events of 9/11/01.

7) An end to the war on drugs and a complete review of national drug policy.

8) A phased reduction in the military budget and downsizing of the armed forces to no more than 30% of present levels.

9) Good faith negotiations with the Afghani and Iraqi people as to the future of U.S. forces in their countries. Similar negotiations regarding the status of all military bases on foreign soil, beginning with Guantanamo Bay in Cuba.

(That should be more than enough to start a lively debate!)

It's our country and it's time we started taking control of it back.

Love is a verb, brothers and sisters, let's get busy!

The truth shall set us free. Love is the only way forward.

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Sorry, this comment has been removed from the system.
obama's defense will be duress when the fraud is revealed and understood
Posted by: Suzon on Apr 14, 2009 2:15 AM   
Current rating: 3    [1 = poor; 5 = excellent]
Whatever his shortcomings, Obama accomplished a great deal by just getting elected because a solid majority of Americans chose the positive message. (Had McCain/Palin won, hatred would have triumphed.)

The banksters have a criminal history and an MO, but (thanks largely to the corporate media) the president isn't strong enough at this point to expose them for what they are.

Fraud, however, unravels everything. I suggest that we can help Obama by letting him and our congresscritters know that we know the score and that it would be wise for them to prepare themselves for the exposure of blackmail and fraud.

Corporations are anti-democratic and anti-American, run by elites to benefit themselves. Together we can take back our constitution and our country!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Good post, but Posted by: weathered
» RE: Aiding and abetting or ignorant Posted by: Sister_Lauren
» RE: Aiding and abetting or ignorant Posted by: photon's feather
Dismaying
Posted by: Perry Logan on Apr 14, 2009 2:33 AM   
Current rating: 2    [1 = poor; 5 = excellent]
It's dismaying that Kuttner calls Obama a "progressive" with a straight face.

There is nothing progressive about stealing the nomination.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Dismaying Posted by: Sister_Lauren
» RE: Dismaying Posted by: weathered
» Yes he did Posted by: james108
» Hillary LOST MONTHS AGO... Posted by: EncinoM
» You almost make sense Posted by: james108
» RE: Dismaying Posted by: pjnaltykins
» BZZZZZZ Posted by: james108
» RE: BZZZZZZ Posted by: Benn_Miller
» RE: BZZZZZZ Posted by: james108
» RE: BZZZZZZ Posted by: james108
How do we push Obama's puppet Masters in the right..
Posted by: SvenAlbert on Apr 14, 2009 4:05 AM   
Current rating: 4    [1 = poor; 5 = excellent]
It is interesting that Alternet still is in denial and avoid speaking the truth in regards to leadership of the western world.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Sick Puppies, Vent Your Hate Somewhere Else
Posted by: phshafe on Apr 14, 2009 4:21 AM   
Current rating: 3    [1 = poor; 5 = excellent]
The comment by ardoin61 above, which scapegoats Zionism for the world's economic malaise, is sick, dangerous, and all too analogous to the dynamics of the 1930's that took the whole world into war. If Alternet consents to becoming a sounding board for such horseshit, I'm done with it.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» What's sick is Goldman Sachs Posted by: weathered
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» Conspiracy? A conspiracy of one?! Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» RE: What's sick is Goldman Sachs Posted by: photon's feather
» RE: What's sick is Goldman Sachs Posted by: Benn_Miller
» Wrong. Posted by: GuitarBill
» RE: Wrong. Posted by: Illuminatus- Enlightend Classic Liberal
» RE: Wrong. Posted by: Dr. Watson
» RE: Wrong. Posted by: GuitarBill
» CONGRESS Posted by: sunnywater
» MILITARY LEADERS Posted by: sunnywater
» SCIENTISTS Posted by: sunnywater
» RE: SCIENTISTS Posted by: sunnywater
» LEGAL SCHOLARS Posted by: sunnywater
» RE: LEGAL SCHOLARS Posted by: sunnywater
» Source? Posted by: GuitarBill
» RE: Source? Posted by: parrhesia
» RE: Source? Posted by: GuitarBill
» RE: Source? Posted by: parrhesia
» RE: Source? Posted by: GuitarBill
» RE: Source? Posted by: parrhesia
» RE: Source? Posted by: james108
» RE: Wrong. Posted by: Dr. Watson
IMPEACH OBAMA ALREADY !
Posted by: JenniferBedingfield on Apr 14, 2009 4:38 AM   
Current rating: 4    [1 = poor; 5 = excellent]
I'm sorry but Obama made himself and his intentions crystal clear last year on the campaign trail and even when he did vote in the Senate. The problem with the progressive movement for the last 50 years is no matter what, we have to shut up and vote Democrat or there will be no progressive policies in place. For anyone to tell me that progressives are now having concerns about Obama's handling on the economy or foreign policy is like rubbing salt on our wounds. We 3rd party voters tried to warn the public about Obama being a conservative Trojan horse but nooooooooooooooooooooo, we were "Cassandras" and "closet rightwingers" for telling the truth ! Even as Obama flip-flopped to the rightwing issue after issue all through the campaign trail and even joined McSame in bailing out Wall $treet, I could not stand it that people would still vote for one of these two weasels and not give 3rd parties a chance ! 2008 was supposed to be the year of the INDEPENDENTS even more than 1968, 1980, or 1992 and yet I had to put up with even a few potential Nader/Mckinney supporters suddenly switching to Obama simply because they feared Palin ! I was utterly fed up on Election Night as I helplessly watched our nation once again voted for more status quo even when it was sick and tired of it. But what pisses me off even more is when Obama and his Obamabots want to preach "personal responsibility blah-blah-blah" and tell us "well, make him do it" ! What ?!?!? When a regular citizen gets hired to do a job, he or she does it or gets fired. Why should we treat leaders any differently? In fact, why should we give them our tax dollars if they want us to do their dirty work ?!? Obama isn't a leader. He's just a weasel and a puppet for the corporate and military criminals. I wished he would improve but the worse things get and the more Obama betrays us, the more I can't stand that man just like I couldn't stand Dubya !

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» RE: IMPEACH OBAMA ALREADY ! Posted by: photon's feather
» RE: Pastafarians unite!!! Posted by: Karlh
» RE: IMPEACH OBAMA ALREADY ! Posted by: photon's feather
» RE: IMPEACH OBAMA ALREADY ! Posted by: JenniferBedingfield
» RE: IMPEACH OBAMA ALREADY ! Posted by: photon's feather
» RE: IMPEACH OBAMA ALREADY ! Posted by: Benn_Miller
» RE: IMPEACH OBAMA ALREADY ! Posted by: photon's feather
» RE: IMPEACH OBAMA ALREADY ! Posted by: Benn_Miller
» RE: IMPEACH OBAMA ALREADY ! Posted by: photon's feather
» RE: IMPEACH OBAMA ALREADY ! Posted by: JenniferBedingfield
» RE: IMPEACH OBAMA ALREADY ! Posted by: peacefullaim1
» do ya wanna tea party too? Posted by: SeattlePackedSnowandCollidedCars
» The truth hurts Posted by: SeattlePackedSnowandCollidedCars
Change the Banksters Can Believe In
Posted by: lorenbliss on Apr 14, 2009 4:57 AM   
Current rating: 4    [1 = poor; 5 = excellent]
In an early paragraph Mr. Kuttner describes the essence of life in the United States -- "taxpayers bear most of the downside risk while the speculators get most of the upside gain" -- but nullifies the accuracy of his summation of capitalist government and governance by immediately falling prey to a common dementia: the increasingly clinical fantasy that ANY president of such a definitively oppressive nation might somehow offer the "promise" of progressive reforms.

Obviously Mr. Kuttner has forgotten the three basic facts about the U.S. -- facts that explain all the Democratic betrayals he decries. These are (1) that for the past 46 years the U.S. has been and remains a one-party state, with charade elections structured in advance to ensure the ruling class retains power; (2) that no true progressive can possibly pass the ruling-class screening that ensures the election charade will always have the same outcome regardless of which party wins; and (3) that the one true purpose of government and governance at all levels of the U.S. is the propagation of capitalism -- that is, the absolute protection of the ruling class and the total subjugation of all the rest of us, by any available means and precisely as was accomplished by the bailout: endless rewards for the banksters achieved by looting the public treasury; the de facto imprisonment of taxpayers in the slave-pens of the resultant debt -- all this while a growing number of us lose our jobs in a nation that due to terminal climate change and the exhaustion of fossil fuels will never see anything approaching full employment ever again.

Meanwhile any analysis of our present circumstances that doesn’t start with acknowledgment of these bitter truths is at best nothing more then mental masturbation and at worst a particularly glib and devious form of capitalist enablement: criticism that conceals or obfuscates the core problem and thus furthers the necessarily theocratic and fascistic expressions of national purpose even as it fosters euphemistic variants of capitalism’s credo of infinite greed elevated to maximum virtue.

This is what we are up against and what we are witnessing in the new administration: not a savior come to resurrect our long-dead liberty but rather a master manipulator whose ultimate purpose is -- just as the so-called bailout proves beyond any doubt -- to facilitate the unprecedented looting by which the ruling class is preparing itself (at our maximum expense) to survive the forthcoming environmental apocalypse. All of which would be logically obvious were we ever to awaken from our Moron Nation stupor, acknowledge the historical truth of class-struggle, and begin examining its very specific manifestations in the post-New Deal, post-Kennedy United States.

Until such an awakening occurs -- and I am ever more strongly persuaded it will never happen -- we will continue drowning in a sea of words that increasingly signify nothing.

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» Thank you lorenbliss. Posted by: JenniferBedingfield
» Damn Right. Posted by: Wayne Etheridge
» I was going to post … Posted by: DJC11
» I have bad news for them Posted by: sunspot
» RE: Change the Banksters Can Believe In Posted by: surfeitndearth
» Well put. Posted by: angry_liberal
Vietnam Poly-redux
Posted by: ProgressiveManiac on Apr 14, 2009 5:25 AM   
Current rating: 5    [1 = poor; 5 = excellent]
But a failure to revive the banking system would be Obama's Vietnam.

I also worry that Afghanistan and maybe even Iraq could be Obama's Vietnam.

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This comment has been removed from the site due to non-compliance with AlterNet's community policies.
» LOL ! True. :) Posted by: JenniferBedingfield
» You left out Dr. Brzezinski, Posted by: LeftWright
» RE: MasS Media Posted by: oregoncharles
» MainStream Media = MSM (n/t) Posted by: LeftWright
Yep
Posted by: Yankeeinexile on Apr 14, 2009 5:33 AM   
Current rating: 3    [1 = poor; 5 = excellent]
in his first 100 days our change candidate has decided to stand by the two most problematic issues for our country: banksters and Iraq. Passing a few toy issues to his progressive wing that helped elect him is not going to cut it. I refuse to make excuses for this guy by claiming he's somehow being held hostage by interests. He's made the decision. it's now every citizen for himself when the hyperinflation kicks in.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Why should we push him? He was hired to do his job for those big banks.
Posted by: Wayne Etheridge on Apr 14, 2009 5:44 AM   
Current rating: 2    [1 = poor; 5 = excellent]
Too late, suckers ! LOL !

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Incubents are dirty Posted by: weathered
» Political parties are very important! Posted by: photon's feather
» Why don't you stalk someone else? Posted by: photon's feather
Impeach! LOL! This issue will bring Obama down!
Posted by: Beck on Apr 14, 2009 5:50 AM   
Current rating: 4    [1 = poor; 5 = excellent]
I may have forgotten the most important thing.

But, noooooooooooo!

However, LOL sums it all up nicely.

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come tea party!
Posted by: SeattlePackedSnowandCollidedCars on Apr 14, 2009 6:15 AM   
Current rating: 2    [1 = poor; 5 = excellent]
Dont be a mole just be an American.

tomorrow April 15 its going down accost the nation.

You know you don't like it when the Dems cozy up to Wall Street.

You know you don't like the bailouts

You know you are not a fan of the IMF, G-20 or whatever new world Oligarchy is next

so...

Drop that smugness, hop in your Toyota Pruis and joPrius. We can argue the merits of UHC later however right now Washington is robbing you blind and is ready to send your kids the bill.

The future is now!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» Oh, [t]roll on out of here! Posted by: photon's feather
» Stalker! Posted by: photon's feather
» Dude you are pissed off at the wrong person Posted by: SeattlePackedSnowandCollidedCars
» RE: I find... Posted by: Cybershaman
» better late than never Posted by: SeattlePackedSnowandCollidedCars
» RE: come tea party! Posted by: pawheel
» err thats called Capitalism Posted by: SeattlePackedSnowandCollidedCars
Grand Theft America
Posted by: pawheel on Apr 14, 2009 6:21 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Right off the bat this article shows it's willingness to follow mainstream thought, "Progressives now find themselves in an awkward position of simultaneously wishing Barack Obama well, but feeling dismayed by his policies on some key issues, most notably the banking bailout."

Real progressives have left the Democratic/Republican party behind. Yes, the reference to one party is deliberate. The so called 2 party system is owned by the Financial, Insurance and Real Estate industries. Anyone who doesn't see this, keep trying, it will come to you eventually. As long as we debate the tired old Liberal vs. Conservative argument that is just helping buy time for the Financial industry to bankrupt us for enerations to come, no real change will occur. The planned theft of the countries wealth that was initiated under the umbrella term "The Reagan Revolution" is reaching its logical conclusion now and when they finally steal Social Security.
Pirates in Somalia? We have 2 of the biggest pirates our country has ever seen running the theft, Geithner and his partner Larry Summers.

Please consider a political party that actually cares about this country, our communities, and future generations; the Green Party, which takes NO corporate money.
www.gp.org

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» RE: Grand Theft America Posted by: leafsong1
for starters...
Posted by: james108 on Apr 14, 2009 6:24 AM   
Current rating: 3    [1 = poor; 5 = excellent]
Before you can push Obama in the right direction, you need to realize who he is and where you're pushing him from.
He is a big bank, lobbyist-ridden imperialist with a nice face, warm smile and smooth talk.
If you try to frame him as some sort of "misguided progressive", you will be lied to and used. He talked his way out of accountability for his "sicko style" tort reform, gutting nuclear regulation for his backers and voting for unwarranted spying on citizens, and even declared prerogative for the president to be above the constitution at will. He's doubling the troops to Afghanistan that Bush had, and added 50,000 troops long term plus a corporate mercenary base to the Iraq plan, and soothed his "progressive" base by calling it a withdraw. He pushed the biggest single billionaire giveaways (as well as voting for the Bush one he decried), by saying he was doing for "main street", not "wall street". So he paints an image of a bi-partisan, semi-socialist for the ignorant and softhearted, while pushing an elite, imperialist agenda.

So how would you push a smarter, charismatic Bush, who reads and do his homework, in the right direction?

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» Detach Obama from his handlers. Posted by: weathered
» RE: for starters... Posted by: christianslayer1955
» RE: Grim... Posted by: oregoncharles
He hasn't broken a law
Posted by: noalternative on Apr 14, 2009 6:41 AM   
Current rating: 4    [1 = poor; 5 = excellent]
He is just persuing unprogressive policies. He won't last more than one term, so he doesn't have to be impeached.

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» RE: He hasn't broken a law Posted by: angry_liberal
Like the wild west
Posted by: Gregory Kruse on Apr 14, 2009 6:48 AM   
Current rating: 3    [1 = poor; 5 = excellent]
The banks have been robbed and AIG provided the insurance. Insurance firms are the only way to replace the money. Everybody has to chip in. The only way to get some of the money back into the public pocket is to tax it away from those who robbed the banks.

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» RE: Huh? Posted by: oregoncharles
as long as..
Posted by: christianslayer1955 on Apr 14, 2009 6:58 AM   
Current rating: 3    [1 = poor; 5 = excellent]
As long as so called progressives keep blaming others than Obama for the pillage of our treaury,it's going to continue.Americans have a beggar mentality when it comes to their political leaders.Instead of demamding that the governement delivers services they need,they rather beg and give thanks for any little crumb they can pick up off the floor.Damn it,Obama is responsible for geithner and Summers and he is responsible for everythin they do...Whatever they do,they do under his leadership....I do not understand the basis for this fear to criticize Obama.Could it be that white people are afraid to be called racist if they do?Hell,you are a racist anyway...Might as well face up to it and start worrying about defending the future of your children.

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Carrot and stick
Posted by: leafsong1 on Apr 14, 2009 7:33 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
This figure of speech is used incorrectly by many. It is not a carrot for a reward and a stick for punishment. It is a carrot dangling from a stick by a string, held always just in front of a beast of burden's face but just out of reach, compelling the animal forward. This is the "carrot and stick" approach.

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» RE: Carrot and stick Posted by: Cybershaman
Progressive President? Really?
Posted by: Urgelt on Apr 14, 2009 7:39 AM   
Current rating: 5    [1 = poor; 5 = excellent]
I'm not seeing very much progressive movement in the Obama Presidency, unless it's by comparison to the thugs who just left, and that's not saying a lot.

This President has not earned my progressive loyalty. He talks a good game - he's a terrific public speaker. But he is not on my side.

The progressive agenda includes (not an exhaustive list):

* Single-payer health care. You want to reduce health care costs? Get the 35% surcharge imposed by insurance companies out of the equation.

* An end to deprivation of rights in the name of national security.

* An end to spying on Americans.

* An end to the revolving door between large corporations and government.

* An end to pointless wars that damage our national security. War against a non-nation is an oxymoron. Terrorism is a criminal matter.

* Fair trade, not Free Trade.

* Reconstruction of the financial system, not reverse socialism.

* A simplified, progressive tax code with no loopholes for the wealthy to wiggle through.

* An end to subsidies for wealthy corporations in agriculture and energy and elsewhere.

* Trust busting, especially in media empires, energy, and finance.

* Taxes on carbon emissions; you emit, you pay. (Cap-and-trade is a Wall Street give-away, complicated, and might not work.)

* Elimination of corporate "personhood."

* An end to the drug war and a reduction in our prison population.

I could go on, but why bother? Obama is on the wrong side of most the issues I care about.

Loyal opposition, hell. Progressives are in the opposition, period. Again. And we'll stay in the opposition until we stop supporting politicians who oppose us and elect one of our own.

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» RE: Thanks. Great List. Posted by: oregoncharles
» Dont hold your breath, tea party Posted by: SeattlePackedSnowandCollidedCars
Why "must" we wish Obama well?
Posted by: jooljetkmae on Apr 14, 2009 7:41 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The memories of Bill Clinton are sufficiently recent that we need little reminder of the needless tilt to the right on economic issues from NAFTA to welfare reform to financial deregulation...

...and most of the left responded to Clinton's back stabbing by going out and campaigning for him and voting for him in '96. They'll do the same thing again with Obama in 2012.

a new administration that progressives must wish well

This drivel from Kuttner is the heart of the problem with the Cult of Obama . What deterrent is there to Obama doing what ever he wants to do for his real constituency, Wall Street, when his liberal supporters will go out and campaign and vote for him again, regardless of what he does?

By 2012 Kuttner and other liberals will be saying we "must" vote for the "attractive progressive president", no matter how bad his policies are. I don't wish Obama well. Why should I? He's a Wall Street tool, and I'm tired of liberals pretending this represents some kind of "betrayal". Obama has always made it clear that he is a pro-Wall Street centrist democrat. Why "must" we support him, as his cult following insists?

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Don't Mourn, Organize!
Posted by: Blueprelude on Apr 14, 2009 7:42 AM   
Current rating: 5    [1 = poor; 5 = excellent]
IWW labor organizer Joe Hill's exhortation is as true today as it was one hundred years ago in his day. President Obama understands the process of community organizing, and it is through community organizing that we have any chance of influencing him.

Change is always accomplished by social movements, not by presidents who act on behalf of the people from the top. Power, after all, still corrupts. In Obama's case, it seems to have corrupted him in record time!

The President has told us repeatedly that this is the path to change that we want. It's time we took him up on it.

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» RE: Don't Mourn, Organize! Posted by: chorton
» Organize a national strike! Posted by: LeftWright
The fall
Posted by: solrev on Apr 14, 2009 8:18 AM   
Current rating: 2    [1 = poor; 5 = excellent]
You progressives need to ask yourselves this question. Am I a globalist or am I a nationalist? What Obama et al is doing makes perfect sense if you are a globalist. It makes no sense if you are a nationalist. The cost of a nationalist agenda at this time is very high, and I doubt that most Americans are ready to pay the price. The US is an economic toxic asset for the world; our debt is worth nothing. Obama is trying to prevent the world from writing off that toxic asset with a song and dance, to buy time. I am not sure Obama knows what he would do if he were successful, he better be careful not to sell his soul at the company store. We nationalists would just as soon go to zero and start over, the shortest distance between two points is a straight line. Is the goal of America, to maintain a high standard of living for we the people or to create wealth for the few, chasing cheap global labor? As Greenspan keeps saying, the lost of the American standard of living is more than justified by moving people from starvation to subsistence globally. We nationalists believe that we can do better as long as the people of other lands are nationalists also. All we have to do is let the people of other lands define what is in their best interest and help them achieve that. Are you progressives’ nationalists or globalists?

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» RE: The fall of integrity Posted by: weathered
» RE: The fall Posted by: chorton
Now that someone brought this up, here's a question to all of you that deserves to be answered.
Posted by: Benn_Miller on Apr 14, 2009 8:57 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Obama was a fighting progressive when he was a pol in IL and yet he became different when he entered the US Senate in 2005. How can we help bring back the old Obama pre 2005 and I'm gonna need a hell of a lot of help since I'm not sure I can do this alone?

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And I thought I was a doofus for voting for Nader !
Posted by: FLYING DOOFUS on Apr 14, 2009 9:18 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Looks like I'm not alone so maybe I'm not a doofus after all. LOL !

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And one more thing that's needed. MORE FOOD and MORE TAX CUTS !
Posted by: FLYING DOOFUS on Apr 14, 2009 9:20 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Now there's a bailout for the American people, LOL !

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Why Not Send My Tax Check Directly to Wall Street Execs?
Posted by: FLYING DOOFUS on Apr 14, 2009 9:22 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Why Not Send My Tax Check Directly to Wall Street Execs?
by Sarah Anderson

http://www.commondreams.org/view/2009/04/14-1

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Old enough to know better.
Posted by: oregoncharles on Apr 14, 2009 9:25 AM   
Current rating: 4    [1 = poor; 5 = excellent]
"His commitment to restore constitutional government is no small achievement."

Doesn't read Glenn Greenwald, does he? This isn't even funny.

That "awkward position" he says progressives who support Obama are in? Let me describe it:

Bend over, grab your ankles, and say "thank you for using lube."

Given Kuttner's list of betrayals by Democratic presidents, I can only say that some of us never learn.

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bar5608
Posted by: bar5608 on Apr 14, 2009 9:26 AM   
Current rating: 1    [1 = poor; 5 = excellent]
I too am thoroughly disgusted with the present direction of this so-called rescue plan for the economy. We need to Nationalize the big Banks and forget those Toxic Assets. If the Banks don't want them, what makes Giethner and Summers think I would want them? Those two guys are the problem now, not the solution. The money spent on saving the Banks should have gone to contractors buiding new infrastructure, and repairing the old, to provide jobs and green energy. We have to get the Country back to work so folks can pay their mortgages and grocery bills. Then those Toxic assets may not be quite so toxic.

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The Real Problem With the Economy
Posted by: Rpoon7 on Apr 14, 2009 9:31 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
There are two major factors that have really hurt our economy and they are linked together, making the devastating concoction that is the economy. Firstly banks and lenders have unfairly taken advantage of average citizens. Writing bad loans or mortgages has created a lack of cash flow because people are unable to pay. Banks need this money for capital and now it is scarce. Investors made these loans knowing that they were unfair, hoping that the customer would take the bait and they did. Secondly those receiving the loans should have been more aware of finance. Look at it this way, would you want someone to fly an airplane who hasn't been to pilot school? No. It's the same thing in this case, if people had actually took the time to learn about finance, just briefly this might have been avoided. Business is always going to take advantage of ill informed clients, thats how it works. If they know more than you it's easy to manipulate a desirable outcome. Americans need to stop being so apathetic, otherwise we are going to continue to get what we deserve, a valuable lesson in finance at the expense of our economy.

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Lighten up
Posted by: TexasCowboy on Apr 14, 2009 10:22 AM   
Current rating: 2    [1 = poor; 5 = excellent]
I enjoy seeing everyone who wants instant gratification on the economy and throw stones because they would rather rant and rave instead of being proactive in working to help solve these issues. It is way too early to judge the outcome of Obama's economic plans. I have every confidence we now have a leader who is engaging, does his homework, and presents a multi-prong approach to address this issue which took years to get America to this point.
I would rather see positive efforts to ensure Americans can afford health care, that our troops get 21 century defense systems, that our kids get affordable education, and dependence on foreign oil is reduced.
Dogging a 3 month old Presidency is not my way of supporting America. I leave the flag burning and anti-American rhetoric to Colter, Hannity, Limbaugh and Palin.

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» RE: Lighten up Posted by: Tweck9
Here is the correct link to the JEC Hearing 4-21-09
Posted by: Earthian on Apr 14, 2009 10:26 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The link in the article to the Stiglitz/Johnson/Hoenig hearing on April 21st is not accurate and goes nowhere.

Here is the correct link (combine the three sections to make it work):

http://jec.senate.gov/index.cfm?

FuseAction=Hearings.HearingsCalendar&ContentRecord_id=

90aa4fb4-5056-8059-763a-a45c5849b73b

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» Clickable link here Posted by: Defenestrator
» RE: Clickable link here Posted by: Earthian
Ownership society
Posted by: willymack on Apr 14, 2009 10:31 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
One of the few times the former chump-in-charge told the truth was when he mentioned his enthusiastic support for what he called an "ownership society". What he neglected to mention was that rather than owning our lives and destines, we would be OWNED by Wall Street crooks.

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And after trusting all of those other politicians why trust this one?
Posted by: EHarold on Apr 14, 2009 10:38 AM   
Current rating: 5    [1 = poor; 5 = excellent]
The first part of your article basically goes "we had hoped x president wouldn't fuck everything up and actually help the people, but he didn't"

"We then hoped again that the new president wouldn't fuck everything up and actually help the people, but he didn't"

and it continues

So....why are we *hoping* he doesn't fuck us when we know from history that well.. He will.
All presidents,black,white,democrat,republican fuck the people it's in their genes.. That's why big businesses back them that's why they are nothing more than a business party..Not a Democrat or Republican party but the party of Citibank,Chase,Pfizer,AIG etc..

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What's next for the banks?
Posted by: Defenestrator on Apr 14, 2009 10:44 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
What's next for the banks?

This is an article written by Simon Johnson, now an MIT economist and formerly the chief economist at the IMF. His blog, BaselineScenario is a really good resource. He also recently wrote an article for The Atlantic, which includes this pithy soundbite:

"The challenges the United States faces are familiar territory to the people at the IMF. If you hid the name of the country and just showed them the numbers, there is no doubt what old IMF hands would say: nationalize troubled banks and break them up as necessary."

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It's working
Posted by: Royt6 on Apr 14, 2009 10:57 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
It is quite clear that the media is full of doom and gloom. The plan is working, and maybe too well. I bet we have crazy inflation coem late 2010.

Roy
Swoopo site

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What's so "awkward" about it?
Posted by: Tweck9 on Apr 14, 2009 11:04 AM   
Current rating: 5    [1 = poor; 5 = excellent]
There's nothing at all awkward about disagreeing with Obama's policies while simultaneously hoping that he does the right thing.

I don't get the author's assertion that somehow we on the left are in some kind of tight or contradictory position.

No President is going to do exactly what I want, so obviously I'm going to disagree. His bank bailout plan is more smarmy capitulation and gross coffer-filling for rich people.

But I support his presidency and hope he does well.

Okay, great. How hard was that?

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dick
Posted by: rtmyth on Apr 14, 2009 11:20 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Find :"Facts About Goldman Sachs" on the web. most informative site.

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This comment has been removed from the site due to non-compliance with AlterNet's community policies.
» Thank You, Dr. Goebbels... Posted by: phshafe
Obama's an opportunist
Posted by: liz-at-blackrose on Apr 14, 2009 1:50 PM   
Current rating: 5    [1 = poor; 5 = excellent]
I don't think Obama is a hard-core corporatist conservative, but he is an opportunist. He's pulling for Wall Street and the war industry now because they're the ones buttering his bread. If he's persuaded that the labor movement or some other social force will keep him in power, I bet he'll switch sides pretty quickly. Unlike Bush -- a true ideologue -- Obama can be swayed, but only by a massive, no-mistaking-the-message uprising from the grassroots.

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This is your brain on two-party plutocracy...
Posted by: DaBear on Apr 14, 2009 2:25 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
How to turn an owning classer against himself? I dunno, tap his greed and promise him the moon if he'll only go against everything he holds dear to be divine, unalterable truth?

Sounds like a total political-fail if you ask me.

'Merkins are stoopid. Owning class 'Merkaaners are six ways from beyond batshit stoopid. But you want a dog to fly pigs over the moon.... mmkay... drugs are bad.

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We all must change
Posted by: kiwijohn on Apr 14, 2009 3:00 PM   
Current rating: 4    [1 = poor; 5 = excellent]
President Obama alone does not have the answers. We as a nation are in denial over the real state of our nation. The economic system we live in has a momentum of its own, driven by questionable ethic, callous greed and consumerism gone haywire. This sytem will not fix itself nor will Bank bailouts deliver the real change that is needed. The inevitable collapse of the Banking System as we know it will occur with or without bailouts. For long-term economic survival we as a nation must change.

Unfortunately, the extraordinarily complex gambit of self-serving religious, social and politically driven motives and self-righteous rationalization clouds the picture. The, for many people probably, uncomfortable approach to the solution is in a space that lies between us and a new ‘cosmology’.

To begin to re-connect with that space, we need to perfect three very personal disciplines. The solution is akin to having to acquire a clean, blank, white canvas to paint on. The perfection of these disciplines is an essential prerequisite; it will prepare us for the more tangible commercial and business related tasks ahead. However, one need not wait for the clean canvas. The canvas gets cleaned as one progresses. The three disciplines are: Charity, Morality and Mind Development.

Charity encompasses both the materialistic and the psychological aspects of giving. Materialistic charity is not giving to accrue some benefit or satisfaction by the act of giving. It is an unconditioned act which leads to increasingly balanced human behaviour.

Morality demands a strict ethical code that avoids antisocial activity. Compassion should be the only key note. Truthfulness is essential.

Mind development demands practice and starts with simple attention to the present `as is'. It is a practice of passionless observation. The mind is held steady on the object of attention. The ability to achieve the focus and attention required for rational, unconditioned thought develops with practice.

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IS IT NOT IN
Posted by: wormfarmer on Apr 14, 2009 3:35 PM   
Current rating: 5    [1 = poor; 5 = excellent]
The constitution that THE PEOPLE HAVE THE POWER OF RECALL? I think the time for indecision is past, the corporations have tightened the screws on THE PEOPLE, and our representatives hide! Re-enact Glass - Stegall, stop funding this debacle, and hold the violators of our financial system accountable!

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Obama a "progressive"? Huh???
Posted by: susanhathaway on Apr 14, 2009 3:36 PM   
Current rating: 5    [1 = poor; 5 = excellent]
You refer to Obama as an "attractive progressive President," but where is the evidence that he's progressive? He leaves Bush's defense secretary in place, plans to ratchet up the war on Afhghanistan, expresses support for Bush's "faith-based" programs, and makes clear that he will give Wall Street all the money it demands to keep those bankers in private jets until unemployment hits 50% or more. Meanwhile, closing Gitmo and pulling out of Iraq remain nothing more than promises.

I knew when I voted for him that Obama was not a progressive, but I had no idea that he was as far to the right as he is turning out to be. If no one can make him listen to reason instead of Geithner, there will be no economic recovery, and the Republicans will have their foot in the door for 2012, to come in and finish the destruction the Bush/Cheney crime syndicate started.

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» You're catching on. :) Posted by: JenniferBedingfield
» RE: You're catching on. :) Posted by: susanhathaway
» RE: You're catching on. :) Posted by: JenniferBedingfield
He IS Being Pushed in the RIGHT Direction
Posted by: rastaman on Apr 14, 2009 3:41 PM   
Current rating: 3    [1 = poor; 5 = excellent]
He IS Being Pushed in the RIGHT Direction...but not the CORRECT direction.


you think you're going to start now? hahahaha.....Obama's "CHANGE" is nothing more than cowardice and has already set the wheels of economic destruction in motion and it's too late to push now.

better hang on....this isn't going to be pretty.


KUCINICH 2012

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» RE: He IS Being Pushed in the RIGHT Direction Posted by: JenniferBedingfield
We, the Government
Posted by: Revolutionary (Direct) Democracy on Apr 14, 2009 4:11 PM   
Current rating: 5    [1 = poor; 5 = excellent]
A Vote of Confidence Amendment will give American voters the power to dismiss any elected official at any time.


VOCA, NOW


FREE AMERICA


REVOLUTIONARY (DIRECT) DEMOCRACY

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I like Obama, but he mades the Worst Possible Choices
Posted by: Pop on Apr 14, 2009 7:10 PM   
Current rating: 5    [1 = poor; 5 = excellent]
As stated, Obama is a likable guy, but he made very bad choices in selecting his advisors. And the fact is that defending the ex-President crimes against humanity and Crimes of War, and carrying forward the Patriot Act and other so called national security BS when the attacks of 9-11 were so obviously a demolition job, and an inside covert operation is not restoring our Constitution. The US criminal invasionary wars on the Middle East that were in fact based on lies are still being pushed forward by Obama. God Bless him, but, if Obama can't do the job to the satisfaction of our Constitutional law he should move on to a job he can handle.

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John Kennedy stood up to the New World Order
Posted by: ron heringhauser on Apr 14, 2009 7:15 PM   
Current rating: 4    [1 = poor; 5 = excellent]
JFK was the last President who was willing to take on the banksters, Federal Reserve (New World Order). This powerful group will stop at nothing to achieve their goal of total world domination. After the dust settles after the destruction of the world economy, maybe, just maybe another Ron Paul, Jesse Ventura, or some other brave soul will emerge to lead us back. In the meantime, over the next few years, my only advise to my fellow Americans is: stay close to your family, friends and neighbors; help each other as best you can. Pray and resist this dark evil.

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Sorry, this comment has been removed from the system.
OBAMA LACKS EXPERIENCE AND KNOWLEDGE, HE NEEDS A CUP OF TEA
Posted by: ds1st on Apr 14, 2009 7:31 PM   
Current rating: 1    [1 = poor; 5 = excellent]
Obama has no practical experience and knowledge.

He was a COMMUNITY ORGANIZER. He ordered coffee, donuts, saw horses, and buses.

He is a BIG MISTAKE. Trillions in debt will be his LEGACY (he is a FOOL).

OBAMA is CARTERS second term.

Someone please give OBAMA a CUP OF TEA!!!

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???Promising Presidency - WHAT???
Posted by: ds1st on Apr 14, 2009 8:19 PM   
Current rating: 1    [1 = poor; 5 = excellent]
OBAMA hardly has a "Promising Presidency".

The author must be snorting COCAINE like OBAMA did to have that type of opinion.

YOU NEED A CUP OF TEA!

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Time to accept what many knew months ago.
Posted by: rafaeltoral on Apr 15, 2009 7:01 AM   
Current rating: 3    [1 = poor; 5 = excellent]
Obama doesnt give a fuck about change.

"His commitment to restore constitutional government is no small achievement."

Uhmm do you have something to back up that claim? From everything Ive seen Obama cares nothing about the constitution, and everything about his corporate handlers.

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"commitment to restore constitutional government"
Posted by: angry_liberal on Apr 19, 2009 5:52 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I stopped reading here.

The country is now being run as a parliamentary monarchy, where the Executive tells the Congress what to do and it is done. Vide the bailout.

That's not a constitutional government. It's a benign dictatorship.

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