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Posted Friday, September 26, 2008 1:48 PM

The Bull Leaves the China Shop

Andrew Romano

(Gerald Herbert / AP)

In a statement emailed to reporters at 11:24 this morning, John McCain spokesman Brian Rogers announced that the "McCain campaign is resuming all activities and the Senator will travel to the debate this afternoon."

I'm thinking of suing for whiplash.

At first, I was willing to give McCain the benefit of the doubt on his "amazing gambit." As I wrote yesterday, if he, Obama and Bush had emerged from Thursday's White House summit having ratified the fragile preliminary agreement between Treasury Secretary Henry Paulson, the Administration, congressional Democrats and Senate Republicans--four of the five parties necessary for consensus--I would've said "no harm, no foul." McCain may have been irrelevant, but at least he wouldn't have been a destructive force. In that case, debate away. But instead he's proven to be a bull in a china shop--or, more accurately, a bull that 1) misleadingly says the china shop is in disarray before he enters; 2) vows not to leave until he cleans up; 3) enters and shatters everything in sight; 4) blames everyone else for the damage and 5) leaves, claiming a job well done.

Here's what happened yesterday, according to the chronology I've cobbled together from news reports.

By 2:00 p.m. on Wednesday, "the House and Senate Democrats had settled their most important differences, the White House had caved on CEO pays, and the two sides were coming close to dealing with the bailout's oversight mechanism, its posture toward homeowners, and whether taxpayers would get ownership stakes in taken-over companies." As many as 40 of the 49 Senate Republicans were ready to support the bailout. House Republicans were grumbling, but without anyone to legitimate their revolt, they weren't making much noise. House Minority Leader John Boehner even issued a joint statement with Speaker Nancy Pelosi on Wednesday night declaring bipartisan progress.

Then McCain arrived, uninvited, in Washington, loudly announcing that "no consensus has developed" and that "the plan on the table will [not] pass." Emboldened, the House Republicans raised the volume of their objections, possibly to save face for McCain and create the impression that he had come to the rescue. As Boehner's top aide told the New York Times this morning, "Republicans revolted, in part, because they were chafing at what they saw as an attempt by Democrats to jam through an agreement on the bailout early Thursday and deny Mr. McCain an opportunity to participate in the agreement"--even though Bush and Senate Republicans also favored the renegotiated bailout plan.

At this point, McCain could've attempted to bring the House Republicans on board. He could've explained that government intervention was unfortunate but necessary. That would have given him cover to claim that he'd helped restore equilibrium (even if he had also helped disrupt it). But when the Arizona senator arrived at the White House summit arranged for his benefit, he "sat silently for more than 40 minutes, more observer than leader, and then offered only a vague sense of where he stood."  He did little else to forge a compromise. As the Washington Post reported, "McCain shuttled between meetings and his Senate office but rarely came close to the Capitol suites and committee rooms where the talks were taking place."

After hours of phone calls and huddles on Capitol Hill, Congressional negotiators finally gave up for the night. It was about 10:30 p.m. The bill's fate was more uncertain than it had been midweek, and the level of rancor among legislators had reached a new high. The Beltway was back at Square One--or Square Negative One. And McCain was the variable.

Then he declares "Mission Accomplished."

When suspending his campaign on Wednesday and threatening not to debate, McCain defined his goal as "achiev[ing] consensus on legislation." But at 11:24 this morning, consensus was conspicuously absent on Capitol Hill. Which meant, as the New Republic's Michael Crowley puts it, that "by McCain's original logic, the argument for staying in Washington ha[d] gotten stronger [since his arrival], not weaker." As a result, McCain's announcement that he's now flying to Ole Miss--a stark reversal from his earlier insistence on not debating unless a deal is done--only reinforces the impression that suspending his campaign was a stunt (even if it wasn't). First he'd settle for nothing short of "consensus" and "legislation." Now being "optimistic" that "significant progress" has taken place---not certain, but "optimistic"--is enough to declare victory. After insisting that it would be unpatriotic to debate before the deal was done, McCain is debating anyway--even though a deal seems more distant than when he suspended his campaign. McCain wanted to look strong and apolitical. He wound up looking weak and opportunistic instead.

In the Rogers statement, McCain goes so far as to imply that Obama's "political posturing" was the reason he left D.C.--immediately after denouncing "Washington" for "play[ing] the blame game rather than work[ing] together to find a solution." Some should get the man a mirror.

As far as how this will play, Crowley took the words right out of my mouth--so I'll just pass the mic:

In these situations I'm inclined to think most voters... will only have an impressionistic sense of what's going on. Initially I think the impression was likely to be that McCain showed leadership and took charge of the situation after a stretch when both candidates looked passive. Even if McCain parachuted in just as a deal was passing and played no role, it seemed possible that he could steal some credit. But now the low-information voter, if you will, probably has a sense that the minute McCain hit the ground everything in Washington went to hell in a familiar, absurd, system-is-broken kind of way. And now he's getting out of Dodge. Hard to see how that's a net gain for him.

Congressional negotiators could hammer out a deal before the markets close today. They could settle on a framework that has the support of House Republicans. Or this fragile situation could devolve into a protracted stalemate. Obviously, the first option is better for McCain--who will return this weekend to Washington--than the third. But given that the nominee "got out of Dodge" before the shattered china was reassembled--his stated reason, after all, for putting "politics before country" and suspending his campaign--it's hard to see why voters should give him credit for anything other than making things worse.

UPDATE, 3:34 p.m.:  Eve Fairbanks dissects "How McCain's Gambit Could Work"--and explains why it shouldn't:

[Republicans will say that] McCain understood the anti-bailout-bill sentiment outside of Washington and then gave House Republicans the political backup to buck the pressure to compromise. In a vacuum, it's an appealing populist narrative, and in a vacuum I even think it works -- witness the success of the Republicans' "we understand what the country really wants, unlike you Democrat stuffed suits" posturing on oil drilling this summer.

It doesn't work if Democrats point out -- again and again and again -- the 180 degree turn this represents from McCain's original, anti-populist rationale for going to Washington: to support the compromise and to lend his expertise at bipartisan, smoke-filled-room negotiations, not to undermine them on behalf of "the taxpayers." McCain's motivational switcheroo -- and the reporting that he passed Bush's "summit" yesterday with Paulson in silence...-- ought to cement his reputation as a chaos-creating, erratic, back-and-forth decisionmaker.

Thoughts?

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Member Comments

Posted By: kimberlyp (September 27, 2008 at 5:08 PM)

John McCain has not in my opinion communicated his economic positions well. Below is my attempt to clarify them.

McCain believes in Jeffersonian Democracy.  What does that mean?  Thomas Jefferson argued against Federalism, as he felt that it posed a risk and infringement to the liberty of Americans.   The Federal government is a necessary evil, which should operate on the common benefit, security, and protection of Citizens, and should be watched closely and its powers should be minimized.

Science recently has determined that there is a scientific reason why this is the best possible configuration. Networks of all types, financial, government, electrical, communicative, all behave under certain laws. These laws have been described well in layman’s terms by Lazlo Barabasi in his book “Linked.”  These laws argue against centralized networks as they are prone to cascade failures and that distributed adaptable networks are much more robust and capable of sustaining damage to one part of the network and reconfiguring themselves and continue to function.  What this tells you is that democracy and capitalism, is inherently more stable than other types of systems of economic distribution and governance.

Capitalism has been moving towards big business, since the industrial revolution, and this has led to a centralization of Wealth which has placed our economy in the current economic crisis we face today.  It is not accurate to place the blame on Wall Street, or on homeowners, for the current financial crisis. The crisis was driven by the centralized wealth and dynamics of the networked global economy.  

The solution to the problem is to move toward decentralization of all critical networks such as Government and Financial.  

McCain holds that we need to move from Big Business to many competing companies run on Main Street, and incentivize investment in small business over big business.

McCain also holds that regulation much like Big government needs to be circumscribed in its powers, but that it’s a necessary evil. The idea is that centralized standards, and regulation, reduce the cost of compliance and lead to greater efficiency.    

McCain understands we need regulation and standards, but regulation and standards must be able to evolve and adapt, while cost of compliance must be the same for individuals as for big business on a basis that places the individual or small business with an equal footing to gig government or big business.

(In my opinion, this needs to be slanted towards small business and individuals. That it’s better to err on the side of smaller concerns.)

McCain is against Obama’s tax plan, because increasing capital gains tax on business, and investment, because it acts as a barrier to deploying monies to generate wealth formation.  A simple way to understand this is as friction to the speed at which capital flows through the system.   This matters to every American, not just the wealthy, as McCain critics say. This matters to every American because if assets are not deployed, and or leveraged, then entrepreneurial activities are curtailed, and with this comes a reduction in jobs, and a decrease in wealth distribution, and most importantly to wealth concentration which makes the average American a indentured servant to the concentrated wealth.

McCain understands that we need alter wealth distribution in this country such that it benefits the middle class and grows it. He also understands that in a free society you do not accomplish this by confiscating another’s wealth and redistribute it to others on the government’s whim.  This was the approach of the old Soviet Union.  What we need to do is provide incentives for people to place their wealth into the system so that others can become wealthy in their own right.  

For those that think but I just want a job, and this does not matter to you, more business creation, leads to more jobs, and in today’s world with equity participation, greater wealth.


Posted By: williambanzai7 (September 27, 2008 at 9:38 AM)

A RARE OPPORTUNITY TO VIEW A CRISIS PERFORMANCE; YIKES!

(WilliamBanzai7)

Putting aside all the political posturing over the TARP summit

(the Torpedoed Asset Recovery Plan), among the

astonishing events of the past week was the

rare opportunity to glimpse both of our Presidential candidates

shaking and baking in a genuine national crisis. As a result of

Sage McCain's grand gesture of pushing the campaign

pause button for a powder break, both he and Mr. Obama were hauled into

the TARP snake pit. Barack Obama never made any

pretense of being able to Rambo the situation. So I will cut him the slack he deserves. After all

he is very busy running for President.

On the other hand, Mr. "All Hands on Deck" insinuated that it was

imperative for him to indefinitely suspend the Presidential

campaign so he could save TARP, the financial markets and his deteriorating standing in

the Polls. Well, if you do a little web searching, you

will learn what observers from both political parties reported

regarding Mr. McCain's rousing performance. Apparently he

kept his hatch tight for most of the meeting. Finally, when asked

for his view, he babbled some incomprehensible

platitudes. What more could we expect from a guy whose

claim to fame is seeing the big picture,

managing a contentious political meeting and getting the job done for the

good of country . Something that

by all accounts was already being handled by certain

Democrat and GOP leaders.

I'll tell you what I expect. If you are a candidate for

President and you publicly insert yourself into an

emergency situation (yes, when the largest bank failure

in US history is simultaneously unfolding it is sort of an emergency), you better have something interesting or

important to say. That is what a President is supposed to do. No?

Well, Mr. "All Hands What the Heck" blew it out the blow hatch.

He apparently had no grand wisdom to impart to the room full of experts, President's, partisans and bipartisans.

You know something is up when even Bush is rolling his

eyeballs. Its says a lot about Mr. McCain as well as the quality of the

advice he is getting.

I learned a long time ago,

never ever go to a meeting unless you know what you

are going to say when called upon. And more importantly,

make sure its relevant. Otherwise, don't bother showing.

I also believe in respect for your elders. But it would be

foolish to count that maxim as a good reason for

electing someone like this for President. Its

a mistake similar to a similar mistake this country has already made twice in

8 years, to wit "vote for the guy you'd like to drink beer with."

I hear the spread on McCain election default swaps has

shot through the roof.


Posted By: williambanzai7 (September 27, 2008 at 9:37 AM)

A RARE OPPORTUNITY TO VIEW A CRISIS PERFORMANCE; YIKES!

(WilliamBanzai7)

Putting aside all the political posturing over the TARP summit

(the Torpedoed Asset Recovery Plan), among the

astonishing events of the past week was the

rare opportunity to glimpse both of our Presidential candidates

shaking and baking in a genuine national crisis. As a result of

Sage McCain's grand gesture of pushing the campaign

pause button for a powder break, both he and Mr. Obama were hauled into

the TARP snake pit. Barack Obama never made any

pretense of being able to Rambo the situation. So I will cut him the slack he deserves. After all

he is very busy running for President.

On the other hand, Mr. "All Hands on Deck" insinuated that it was

imperative for him to indefinitely suspend the Presidential

campaign so he could save TARP, the financial markets and his deteriorating standing in

the Polls. Well, if you do a little web searching, you

will learn what observers from both political parties reported

regarding Mr. McCain's rousing performance. Apparently he

kept his hatch tight for most of the meeting. Finally, when asked

for his view, he babbled some incomprehensible

platitudes. What more could we expect from a guy whose

claim to fame is seeing the big picture,

managing a contentious political meeting and getting the job done for the

good of country . Something that

by all accounts was already being handled by certain

Democrat and GOP leaders.

I'll tell you what I expect. If you are a candidate for

President and you publicly insert yourself into an

emergency situation (yes, when the largest bank failure

in US history is simultaneously unfolding it is sort of an emergency), you better have something interesting or

important to say. That is what a President is supposed to do. No?

Well, Mr. "All Hands What the Heck" blew it out the blow hatch.

He apparently had no grand wisdom to impart to the room full of experts, President's, partisans and bipartisans.

You know something is up when even Bush is rolling his

eyeballs. Its says a lot about Mr. McCain as well as the quality of the

advice he is getting.

I learned a long time ago,

never ever go to a meeting unless you know what you

are going to say when called upon. And more importantly,

make sure its relevant. Otherwise, don't bother showing.

I also believe in respect for your elders. But it would be

foolish to count that maxim as a good reason for

electing someone like this for President. Its

a mistake similar to a similar mistake this country has already made twice in

8 years, to wit "vote for the guy you'd like to drink beer with."

I hear the spread on McCain election default swaps has

shot through the roof.