McCain's Assett Stripper

By Cernig

Shaun Mullen has a must-read today in which he takes a hard look at Phil Gramm - lobbtist, McCain campaign point-man and "terrorist in pinstripes".

Phil Gramm, who is co-chair of McCain’s campaign, is not just another lobbyist. He is the man most responsible for the repeal of Depression-era banking regulations that have led directly and inextricably to much of today’s economic turmoil, and parlayed that classic example of legislative legerdemain into a lucrative lobbying career for the very people who scratched the smug Texan’s back — as well as McCain’s — on Capitol Hill.

Gramm was the biggest of the big guns behind the 1999 repeal of the banking regulations — the Gramm-Leach-Bliley Act — which was officially called The Financial Services Modernization Act. (Don’t you just love the name!)

Passage of the law was greased with an astonishing $300 million in lobbying money, and it encountered little opposition other than from those old-fashioned banks that actually insure your deposits, while receiving the enthusiastic blessing of the Bill and Hillary Clinton co-presidency. And you had better believe that the so hands-on First Lady was all for it.

One of many consequences of the repeal was that a year later the Swiss bank UBS gobbled up brokerage house Paine Weber. A year after that, Gramm settled in as a vice chairman of UBS’s new investment banking arm and has since energetically lobbied Congress, the Federal Reserve and the Treasury Department on banking and mortgage issues.

This has included rolling back state rules that sought to stem the rise of predatory tactics used by lenders and brokers that led directly to the subprime mortrage meltdown, which cost USB more than $19 billion in writedowns this week and the prospect of massive job cuts.

McCain and Gramm go way back.

In 1992, the two worked closely as senators to defeat Hillary Clinton’s 1993 health care plan, and in 1996 McCain was national chairman of Gramm’s unsuccessful presidential run.

What does it say about a possible McCain presidency that his campaign co-chair is the man who, above all others, is responsible for pushing lackadaisical rules that led to the current mortgage meltdown and economic crisis? That we can expect more of the McSame assett stripping of America Inc. that's been going on the last seven years.

We can be certain that even more wrack and ruin will be in the offing with a McCain presidency. This includes more of the Rich Come First economic voodoo that the Bush administration has visited upon Main Street while Wall Street investment banks got fat and happy until their greed bit them in their collective ass and they had to come begging for taxpayer bailouts. Which of course they are getting, no (serious) questions asked.

Considering the pain and suffering that Gramm’s masterwork has caused ordinary Americans, it is not hyperbolic to say that he is a terrorist, he just doesn’t wear funny looking headgear and carry a Kalashikov.

McCain acknowledges that he’s “no expert” and “doesn’t understand” the economy. That is worrisome enough, but that he is relying on a terrorist in pinstripes to figure things out for him is . . . well, terrifying.

Only if you're someone who cares about fiscal responsibility in government or about those who wouldn't gain from the financial shennanigans of the likes of Gramm - that is, 95% of Americans.