“A Deep Irony”: The Tea Party Has Done Serious Damage To Republicans’ Hopes Of Being The Majority
There are those who say that the tea party is fading in influence, but nothing could be further from the truth. In fact, the movement is on the cusp of achieving what once seemed nearly impossible: keeping the Senate Democratic.
A year ago, famed political handicapper Charlie Cook gave Republicans a 60 percent to 70 percent likelihood of capturing control of the Senate; now, he tells me the likelihood of it remaining Democratic is 60 percent.
The switch in fortunes can be attributed to many causes — a slate of lackluster Republican candidates high among them — but one thing is beyond serious dispute: If not for a series of tea party upsets in Republican primaries, the Republicans would be taking over the Senate majority in January.
In the 2010 cycle, tea party candidates caused the Republicans to lose three Senate seats easily within their grasp: Sharron Angle allowed Democratic leader Harry Reid to keep his seat in Nevada, Christine O’Donnell handed Joe Biden’s former seat right back to the Democrats in Delaware, and a tea party favorite in Colorado, Ken Buck, lost a seat that was his to lose.
Now, tea party picks are in jeopardy of losing two more races that heavily favored Republicans: Richard Mourdock, who beat longtime Sen. Richard Lugar in the Indiana Republican primary, is struggling against Democrat Joe Donnelly; and Todd Akin, who bested the Republican establishment’s favorite in the Missouri Senate primary, is expected to lose to the onetime underdog, Democratic Sen. Claire McCaskill, because of Akin’s infamous comments on “legitimate rape.”
Democrats and affiliated independents now have 53 seats to the Republicans’ 47. The way things look now, they seem likely to end up with 51 or 52 after the election; if President Obama is reelected, they would keep control of the chamber with 50 seats because Vice President Biden would have the tiebreaker vote. This would mean that the seats the tea party cost the Republicans — between three and five, depending on the outcomes in Indiana and Missouri — will have kept the Democrats in charge.
For the tea party cause, the consequences should be fairly obvious. If Obama wins reelection, this would deny Republicans unified control of Congress (GOP control of the House is virtually certain) and diminish their leverage in negotiations with the White House. If Romney wins, it would give Democrats the ability to thwart his agenda and to launch probes of the administration.
But there’s a case to be made that the outcome is bad for everybody because it could continue the paralysis for another two years. Divided government can be quite effective when one party controls the White House and the other controls Congress, as was the case in the mid-1990s when Bill Clinton and the Republican Congress balanced the budget. This outcome, however, would perpetuate a split between a Democratic Senate and a Republican House, which has produced mostly finger-pointing over the past two years.
There is a deep irony here: The tea party faithful, who claimed they wanted to shake up Washington, have wound up perpetuating the old system. In fighting for ideological purity in primaries regardless of the consequences, they have set back their own cause of limited government and expanded freedom.
High among those putting Republican Senate control in jeopardy is Mourdock, who eviscerated Lugar, the longtime chairman of the Senate Foreign Relations Committee, by running to his right in the primary. Now realizing they are in danger of losing a seat that Lugar kept Republican for 36 years, Indiana Republicans used a super PAC to send out a direct-mail piece quoting favorable remarks Lugar made about Mourdock. But Lugar’s Senate office let it be known that it did not authorize the mailing and that Lugar would not campaign for Mourdock.
While Mourdock still has a shot at the Senate, Missouri’s Akin appears to be squandering an easy win for Republicans because of his remarks about rape. Akin beat the preferred candidate of the GOP establishment, businessman John Brunner, in the primary, but his candidacy floundered after he voiced his bizarre thoughts about a woman’s body being able to reject the sperm of a rapist.
In a situation even worse than Mourdock’s, the party establishment abandoned Akin. “I’m convinced now they don’t want Akin to win,” Akin adviser Rick Tyler complained this week to the Daily Caller, a conservative Web site.
Of course they want him to win. But they know that in Missouri, as in Indiana, Delaware, Colorado and Nevada, the tea party has done serious damage to Republicans’ hopes of being the majority.
By: Dana Milbank, Opinion Writer, The Washington Post, October 19, 2012
“Invisible And Untaxed”: How Mitt Romney Made A Fortune Off The Auto Bailout
Faced with the hard facts that “bin Laden is dead and General Motors is alive,” as Vice President Biden always says, Mitt Romney has resorted to claiming that Obama followed his lead on the auto industry bailout. “I know [Obama] keeps saying, you wanted to take Detroit bankrupt,” he said during this week’s debate at Hofstra University. “Well, the president took Detroit bankrupt.” Romney’s right, in a way — both his plan and Obama’s plan envisioned the auto companies going through a period of bankruptcy restructuring. But there’s a key difference: Obama’s approach was to use government dollars to prop up the auto companies until they could stand on their own again — something that Romney, like other Republicans in the Tea Party’s anti-spending thrall, adamantly opposed as dangerous government intervention in private industry.
But it turns out that Romney should know firsthand that this kind of intervention can be successful, as a new report shows that he and his wife made at least $15.3 million courtesy of Obama’s auto bailout. According to a Greg Palast, who followed the paper trail for the Nation, Romney and his wife made the money via an investment in a hedge fund that saw astronomical returns on its investments in an auto parts maker that would have gone under absent the president’s rescue operation.
Delphi, the auto parts company, was once part of General Motors but was spun off in 1999. It foundered on its own and declared bankruptcy in 2005, at which point hedge funds came in and bought up the company’s old debt. Among them was Elliott Management, a giant in the industry run by GOP mega-donor Paul Singer. Romney was an investor. Elliott and the other hedge funds were able to buy Delphi’s toxic debt for a fraction of their face value, around 20 cents on the dollar. In 2009, as bailout negotiations were underway, Elliott used their bonds to buy large shares in the company, again for pennies (this time for about 67 cents per share). Not only would Delphi have gone out of business along with its largest customer, GM, but the parts maker got at least $2.8 billion directly from the taxpayer-funded Troubled Assets Relief Program (TARP). In 2011, Elliott and the other hedge funds took Delphi public at $22 a share, making a whopping 3,000 percent return on their investment of less than 70 cents a share.
So how much did Romney make? His personal financial disclosure forms say he and Ann Romney had at least $1 million invested, but the disclosure rules are so vague that it could be far more. Palast sketches out the possible windfall:
It is reasonable to assume that Singer treated the Romneys the same as his other investors, with a third of their portfolio invested in Delphi by the time of the 2011 initial public offering. This means that with an investment of at least $1 million, their smallest possible gain when Delphi went public would have been $10.2 million, plus another $10.2 million for each million handed to Singer — all gains made possible by the auto bailout.
But that’s just the beginning. Since the November 2011 IPO, Delphi’s stock has roared upward, boosting the Romneys’ Delphi windfall from $10.2 million to $15.3 million for each million they invested with Singer… The Romneys’ exact gain, however, remains nearly invisible—and untaxed—because Singer cashed out only a fragment of the windfall in 2011.
By: Alex Seitz-Wald, Salon, October 19, 2012
“More Problems For Romney”: After Sabotaging The Economy, Republicans Now Desperate For An “America Under Siege”
One reason the Benghazi controversy has always seemed so bogus to me is that I’ve never bought the core premise, which is that the administration had any clear political reason or advantage to gain by claiming the attack was tied to the video as opposed to a pre-planned assault. (Here’s our look at how Benghazi evolved into a GOP talking point.) In addition to a great number of hacks peddling this idea, some people I respect a great deal seem to credit the idea too. But again, it doesn’t add up to me.
However that may be, the factual premise itself now seems to be coming apart. In this morning’s Washington Post, David Ignatius comes forward with new evidence suggesting that Susan Rice’s now notorious claims about the centrality of the video were pretty much verbatim from CIA talking points prepared that day for administration officials.
From Ignatius …
The Romney campaign may have misfired with its suggestion that statements by President Obama and U.N. Ambassador Susan Rice about the Benghazi attack last month weren’t supported by intelligence, according to documents provided by a senior U.S. intelligence official.“Talking points” prepared by the CIA on Sept. 15, the same day that Rice taped three television appearances, support her description of the Sept. 11 attack on the U.S. Consulate as a reaction to Arab anger about an anti-Muslim video prepared in the United States. According to the CIA account, “The currently available information suggests that the demonstrations in Benghazi were spontaneously inspired by the protests at the U.S. Embassy in Cairo and evolved into a direct assault against the U.S. Consulate and subsequently its annex. There are indications that extremists participated in the violent demonstrations.”
Meanwhile, an article published yesterday afternoon in the LA Times suggests that these initial reports remain what US intelligence still believes happened: an attack with relatively little advanced planning, a high degree of disorganization and at least some level of triggering by the riots in Cairo earlier that day.
From the LAT …
The attack was “carried out following a minimum amount of planning,” said a U.S. intelligence official, who, like others, spoke on condition of anonymity to discuss a matter still under investigation. “The attackers exhibited a high degree of disorganization. Some joined the attack in progress, some did not have weapons and others just seemed interested in looting.”A second U.S. official added, “There isn’t any intelligence that the attackers pre-planned their assault days or weeks in advance.” Most of the evidence so far suggests that “the attackers launched their assault opportunistically after they learned about the violence at the U.S. Embassy in Cairo” earlier that day, the official said.
It would be wrong to think we now know what happened in any definitive sense. Maybe it was triggered by the video. Maybe it was planned months in advance. For me, the main issue is that a US diplomatic team was killed — and whether it was a relatively unplanned haphazard attack or one with a lot of advanced planning is operationally significant but sort of beside the point in political or policy terms. It underscores that Libya is an incredibly dangerous place right now and the Ambassador lacked the protection he should have had.
As I mentioned after the debate last week, Romney totally got hoisted on his own petard by the ridiculous hyperfocus on the word “terror”. But really the whole focus on this word only makes sense in a hyper-ideological mindset in which using the ‘terror’ buzzword signifies you fully understand some global war on Islamofascism which Romney’s advisors are trying to bring back from the middle years of the Bush era.
My global take remains the same: only in the final weeks or a presidential campaign, with one candidate desperate for a America under siege Carteresque tableau to play against, would this ever remotely have been treated like a scandal. A bunch of reporters basically got played and punk’d.
By: Josh Marshall, Editors Blog, Talking Points Memo, October 20, 2012
“No Deal Here Mr. Romney”: Why America Doesn’t Need A “Financier In Chief”
During the second presidential debate, Mitt Romney returned to one of the original themes of his campaign – namely that his financial experience at Bain Capital qualifies him to solve the problems of a nation plagued by unemployment and debt. Ridiculed and reviled in millions of dollars of advertising by his political rivals, from Newt Gingrich to Rick Perry to President Obama, Romney’s private sector career remains his central argument for electing him on November 6.
Today Peter A. Joseph, a respected and experienced figure in the private equity business as well as a civic activist, scrupulously debunks that argument on the New York Times website.
Over the past three decades, Joseph founded two private equity firms, gaining considerable insight into Romney’s success at Bain as well as the differences between political leadership and investment savvy. While not unsympathetic to the pressures Romney faced at Bain or his industriousness in overcoming them, Joseph says those financial triumphs have no special relevance to the Oval Office.
The role of the private-equity financier, he notes, has very little to do with being a “job creator”:
A businessman seeking to optimize profitability will look to lower labor costs by reducing headcount, whether through technology, outsourcing, or rationalization. This is right out of the basic playbook. It is not the mission of the financier to create jobs. In fact, his mission is often to do just the opposite.
Joseph gently tweaks Romney for indulging in harsh anti-government rhetoric when so much of his and Bain’s wealth derive from investing the pensions of teachers, cops, firefighters and other public-sector employees. (He might also have noted Romney’s venomous hatred of the very unions whose contractual power enabled him to get his hands on their accumulated assets.) He also suggests that Bain and other private-equity outfits have ripped off their clients, including the workers, through inflated fees:
Romney constantly derides big government, but government is made up of individuals, whose pension funds helped make him and Bain unimaginably rich. There is no doubt that these pension funds sought the higher returns offered by private-equity investing. But as the private equity business grew, the public pension funds and other capital providers have gotten the short end of the stick. They have not completely shared in the value of the franchise that is created in part by their investment in the industry. It seems odd to hear Romney criticize big government without any acknowledgment that he has made much of his fortune managing the retirement funds of many public employees.
Joseph concludes by contrasting the qualifications of a private-equity financier with what is required from a president of the United States, which don’t have much in common:
Romney’s financial success is admirable and enviable, but it came by following the mantra of increasing cash flow, cutting jobs and minimizing taxable income. Though the Obama campaign has tried to exploit this with millions of dollars in anti-Bain ads, the real issue is how Romney’s experience relates to a president’s need to balance budgetary responsibility with the heavy lifting required to address our collective concerns, our common obligations. We have heard a lot about pragmatism and practicality, but I can assure you that compassion and broader social concerns rarely make it into an investment memo. If Romney really wants to push his Bain experience, Americans will have to decide whether the answers to the problems facing them are best provided by a financier president.
By: Joe Conason, The National Memo, October 19, 2012
“Another Miscalculation”: Romney’s Odd Insistence On Using Bill Clinton As A De Facto Spokesperson
I’ve written before about the Romney campaign’s odd insistence on using Bill Clinton as a de facto spokesperson. Every so often, Team Romney highlights a comment by Clinton as a critique of President Obama, as if Clinton wasn’t an avowed and enthusiastic supporter of the president. The rationale, I suppose, is to be able to claim bipartisan discontent with Obama. The problem is that this does nothing more but boost Clinton’s credibility by turning him into a nonpartisan figure of repute. And as we saw during the Democratic National Convention, he can use this “referee” status to effectively hammer Mitt Romney and the Republican Party.
Indeed, it was after Clinton’s devastating speech that I expected Republicans to leave the former president out of the election. Turns out, they couldn’t resist: Today, Team Romney is distributing a clip of Clinton in Ohio, where he said that the economy has not been “fixed” under President Obama.
In their eagerness to use Clinton against Obama, it’s obvious that the Romney campaign failed to listen to what came after that statement.
Here’s the transcript:
“This guy ran Bain Capital and is a business guy, and he’s hiding his budget? That ought to tell you something. Well, he’s hiding his taxes, too, but he’s hiding his taxes in the years when he earned ordinary income. He’s given us two years when he was just running for president. And, he’s hiding whether he would have signed the Lilly Ledbetter act. He’s hiding everything. He doesn’t want you to think about him. He wants you to think, ‘Oh this economy is terrible. I’m a jobs guy.’ And as President Obama said in the debate, if I brought you a deal to Bain Capital and I said, fund my new business, I’ll give you the budget sometime in the future, just trust me on that, you wouldn’t give me one red cent, and we should not give him one vote on that.”
This is a potent message—it’s a variation on the “sketchy deal” language adopted by Obama—and by giving credibility to Clinton, Romney is making it stronger.
By: Jamelle Bouie, The American Prospect, October 19, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 