Another Collision

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Yesterday in Guns and Butter, I asked if there was a a problem that ONLY John McCain could solve, even if he didn't understand it.

Apologies, I had the question wrong. The question should have been: Can ONLY John McCain CAUSE a problem, even if he doesn't understand it? And the answer is a resounding yes.

WaMu collapsed late yesterday. This was not unexpected, they were high on the FDIC list of potential failure, and there is no way to directly blame John for that. However, the collapse of the bailout program, which potentially could prevent additional bank collapses, can be laid at his feet.

Yesterday, there appeared to be a deal. "Deals" are how legislation gets done. While elections hold interest for many people, the business of governing is often a mystery to many. But that process, too, is fascinating. The deal involved bi-partisan agreement on principle, with the best parts of the Paulson plan amended by consumer/taxpayer protections. There were still details to be worked out, but it would have been a done deal before the markets opened on Monday.

And then John met with a few renegade Republicans, before that photo-op meeting at the WaffleWhite House. They had a plan which involved LESS regulation, instead the government would insure the buying up by individuals of bad paper. Their proposal was typed on a piece of paper.

No one who wasn't there knows exactly what happened at the White House, but suffice it to say that the sides were further apart after it ended.

An emergency session was called. The Republicans sent over the typed piece of paper, and no one willing or able to negotiate.

Nancy Pelosi will not bring legislation to the floor without bipartisan support. The work done this week seems to be for naught.

HAD McShame rallied his troops, the deal would be done now. The GOP legislators had to choose between supporting Bush, or following McShame. They chose the latter, and he either couldn't or wouldn't lead. Even Paulson knew that the Republicans broke the deal.

The really sad part was that McShame bet on the American people being idiots, and it was a good bet.

If you haven't yet called your Rep and Senators -- today is the day to point out to them that they need to go with the Democratic plan and run screaming from the insanity of the McShame plan. As always www.house.gov and www.senate.gov.

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