(07.05.09) "Washington Democrats set to bail out Chris Dodd" (Politico)

[Laura Cereta]

With Sen. Chris Dodd (D-Conn.) facing an uphill battle to win reelection next year after a series of Washington scandals battered his popularity back home, President Obama and other national Democrats are sparing no effort to help him.

Despite the scandals which left his ethics called into question, the three-decade Senate veteran is not trying to shake his Beltway image. Instead, Dodd is working furiously to show the impact of his long service by racking up big legislative accomplishments - including, potentially, a health care reform bill - before the midterm elections. And some of the national Democratic Party's biggest names are coming in to back him up.

Sen. Ted Kennedy (D-Mass.) has cut a television commercial for him. Connecticut's independent junior senator, Joe Lieberman, penned a column in the Hartford Courant calling Dodd "an agent of productive change." The White House has honored him at four bill signings and President Obama even sent an email to 100,000 Democrats in Dodd's home state praising him for his "outstanding work on behalf of families in Connecticut and across the country."

This offensive hasn't yet revived Dodd's flagging poll numbers, though there's been some improvement. But it has given the longtime incumbent an argument for reelection that Connecticut voters just might be willing to consider: Chris Dodd may be a Washington insider, but he's their Washington insider.

"I think most people know Chris at this point, and know how they feel about him, not to be particularly moved one way or another by the president's support," said state Rep. Steve Fontana, who serves as vice chair of the Connecticut Democratic Party.

But, he said, Dodd's intimate familiarity with Washington is one of the senator's strongest assets: "You've got to believe that he's got the ability to get the ear of very powerful people if he needs it, for something we need in the state."


More @
http://i649.photobucket.com/albums/uu212/2059911/politicoicon.gif (http://www.politico.com/news/stories/0709/24520.html)

http://www.politico.com/news/stories/0709/24520.html

[Kbentleyis]

This is just too funny! Yup, we just can't afford to lose one more corrupt politician in this country! You GO DEMS! We're all for padding the votes so you all can have big off shore accounts and get sweetheart deals!

Only in America.

[Tybee]

Only in America.


And, Iran.

[TheTaoOfBill]

Give me Chris Dodd over the republican alternatives anyday. I might just have to donate to Dodd's campaign if he's in that much trouble.

[Kbentleyis]

Give me Chris Dodd over the republican alternatives anyday. I might just have to donate to Dodd's campaign if he's in that much trouble.

(I'm still laughing)!! Guess you're right. We just have to pick the "less corrupted politician". I think I'd rather put my money on the less popular one.

[Laura Cereta]

Give me Chris Dodd over the republican alternatives anyday. I might just have to donate to Dodd's campaign if he's in that much trouble.

Personally, I would pick a random person off the street and support them before I backed Dodd. This isn't a matter of party politics; I don't care what party the guys from or how much time he's spent in Washington, he is corrupt, unethical, and therefore unqualified to work as a public servant.

[TheTaoOfBill]

Actually I'm reading more on Rob Simmons and I kinda like him for a republican.

Pro choice...
Pro gay rights...


I'd still rather have dodd in though because Dodd is pro stimulus and he understands that you have to invest in America to bring America to prosperity.

[TheTaoOfBill]

Personally, I would pick a random person off the street and support them before I backed Dodd. This isn't a matter of party politics; I don't care what party the guys from or how much time he's spent in Washington, he is corrupt, unethical, and therefore unqualified to work as a public servant.

Unfortunately we're only given 2 choices in this race. And I'm not sure I'm willing to give up a stimulus/healthcare vote over the things Dodd has done.

[Kbentleyis]

Unfortunately we're only given 2 choices in this race. And I'm not sure I'm willing to give up a stimulus/healthcare vote over the things Dodd has done.

Unfortunately, nothing is free. We'll all pay treamendous taxes and out of control inflation if the spending keeps up. No one has ever spent their way into prosperity. It's been tried before and failed. We have to rely on history and what has happened to other countries to prove the point.

[TheTaoOfBill]

Unfortunately, nothing is free. We'll all pay treamendous taxes and out of control inflation if the spending keeps up. No one has ever spent their way into prosperity. It's been tried before and failed. We have to rely on history and what has happened to other countries to prove the point.

We spent our way out of the depression.

[Tybee]

We spent our way out of the depression.


Conclusion. The governmental response to the 1921 economic downturn shows what happens when ailing economies are allowed to heal free of government help. Conversely, the federal government’s 1933 compounding of past legislative mistakes shows how ineffective government spending is when it comes to jumpstarting an economy that is unproductive.

The mistakes of the 1930s reveal for us how very unequal government is to the challenge of coping with economic decline—rather than being a facilitator of economic growth. Governments are the instigators of most recessions. It’s the height of folly to presume that they have the answers to dig us out of them.

By the late 1930s it was already apparent that the New Deal had not worked, and more legislation of its kind ceased. The war years gave us a less economically intrusive government whose relative absence made possible a great deal of productivity once the Bretton Woods monetary agreement was passed. In short, World War II and spending more generally did nothing to end the Great Depression.


http://www.realclearmarkets.com/articles/2009/06/world_war_ii_did_not_end_the_g.html

[TheTaoOfBill]

http://www.realclearmarkets.com/articles/2009/06/world_war_ii_did_not_end_the_g.html

As if what happened in 1921 is comparable at all to what happened in the 30s. We had a lot more problems than a simple stock market crash. Just like today's problems are a lot more complicated than a stock market crash.

[Tybee]

As if what happened in 1921 is comparable at all to what happened in the 30s. We had a lot more problems than a simple stock market crash. Just like today's problems are a lot more complicated than a stock market crash.


We spent our way out of the depression.

Explain your quote.


And, please explain how to borrow your way out of debt.

[Laura Cereta]

Unfortunately we're only given 2 choices in this race. And I'm not sure I'm willing to give up a stimulus/healthcare vote over the things Dodd has done.

I know issues are important, very important, but when people refuse to hold their representatives (whether they be legislative, executive, or judicial) accountable for ALL of their behavior, then the status quo continues. That's not change I can believe in.

If those in Connecticut want a Dem in Dodd's place then someone with some ethics needs to challenge him.

[Ikasu]

Dodd is better than any Republican.

[NativeSun]

Dodd is better than any Republican.

Chris Dodd has cost the American taxpayers a lot of money, including those in Connecticut.

[Tybee]

Dodd is better than any Republican.



Really? You're saying all Republicans are all bad and the same. That's really insulting. Are all Liberals like Pelosi?

[Suzan]

Actually I'm reading more on Rob Simmons and I kinda like him for a republican.

Pro choice...
Pro gay rights...


I'd still rather have dodd in though because Dodd is pro stimulus and he understands that you have to invest in America to bring America to prosperity.
Dodd's up for re-election in 2010 and Rob Simmons is likely to be the Repub running against him? Simmons sounds like a moderate. That's promising.

[Ikasu]

Really? You're saying all Republicans are all bad and the same. That's really insulting.

I'm not sorry.

[PA_Voter]

As if what happened in 1921 is comparable at all to what happened in the 30s. We had a lot more problems than a simple stock market crash. Just like today's problems are a lot more complicated than a stock market crash.

Unfortunately you are speaking in the past tense. If you really believe we're in a recovery now, I think you're sadly mistaken. Stay tuned as I believe you're in for a rude awakening in 2010, 2011 and probably 2012.

[TheTaoOfBill]

Unfortunately you are speaking in the past tense. If you really believe we're in a recovery now, I think you're sadly mistaken. Stay tuned as I believe you're in for a rude awakening in 2010, 2011 and probably 2012.

There isn't any indication that we are getting any worse. I think most everyone will agree we are better off economically today than we were on 1-20-09

[PA_Voter]

Chris Dodd has cost the American taxpayers a lot of money, including those in Connecticut.

I agree... Putting in that amendment at the last minute to allow those bonuses is unforgivable!

[NativeSun]

There isn't any indication that we are getting any worse. I think most everyone will agree we are better off economically today than we were on 1-20-09

I can't even begin to imagine what factors are involved with that reasoning. And like PA_Voter mentioned earlier, I don't think you'll be able to make that staement in a year or two, especially if Cap and Trade passes.

[hillary4change]

Dodd is better than any Republican.

Give me Chris Dodd over the republican alternatives anyday. I might just have to donate to Dodd's campaign if he's in that much trouble.

Partisanship is a negative for our nation, whether it comes from Washington, or the voting booth.

That is the number one thing I learned this election! I will never be like that again. I thought the dems could do no wrong, I was so far passed wrong!:)>-**==

[hillary4change]

I can't even begin to imagine what factors are involved with that reasoning. And like PA_Voter mentioned earlier, I don't think you'll be able to make that staement in a year or two, especially if Cap and Trade passes.

genericstamp!

[Laura Cereta]

There isn't any indication that we are getting any worse. I think most everyone will agree we are better off economically today than we were on 1-20-09

Maybe... but I'll have to be one of those controversial ones who disagrees.

I'm glad the citizens of Connecticut seem fed up with Dodd's antics. I understand that some people don't want a Repub taking his place, but again, there's got to be a better Democrat in Connecticut who has the guts to challenge him.

[PA_Voter]

There isn't any indication that we are getting any worse. I think most everyone will agree we are better off economically today than we were on 1-20-09

Sorry I cannot agree with you. We are trillions of dollars MORE in debt, you haven't even seen the trickle down effects of all that spending and I think the market will be reacting shortly which will put people back into a savings rather than spending mode. Jobs being created are at the Federal Government level and States & Locals must continue to shrink. Markets may react positively the last quarter of 2009 but again, just wait until 2010 comes and all those new taxes are in full effect, inflation becomes a real part of our lives and the market begins to tumble again....

I was brought up that you don't spend more than you can afford and I don't know how each American is going to repay the 10K we've each ALREADY spent under the Obama administration!

[TheTaoOfBill]

Maybe... but I'll have to be one of those controversial ones who disagrees.

I'm glad the citizens of Connecticut seem fed up with Dodd's antics. I understand that some people don't want a Repub taking his place, but again, there's got to be a better Democrat in Connecticut who has the guts to challenge him.

If a democrat challenges Dodd I would definitely support that.

[TheTaoOfBill]

Sorry I cannot agree with you. We are trillions of dollars MORE in debt, you haven't even seen the trickle down effects of all that spending and I think the market will be reacting shortly which will put people back into a savings rather than spending mode. Jobs being created are at the Federal Government level and States & Locals must continue to shrink. Markets may react positively the last quarter of 2009 but again, just wait until 2010 comes and all those new taxes are in full effect, inflation becomes a real part of our lives and the market begins to tumble again....

I was brought up that you don't spend more than you can afford and I don't know how each American is going to repay the 10K we've each ALREADY spent under the Obama administration!

Inflation isn't going to be as bad as you seem to think it will be. We will definitely have inflation. That's a given. But right now a lot of that would be inflation is being canceled out by the fact that this is a global recession and the dollar is actually gaining value as most other countries are going through

Inflation isn't (http://www.fintrend.com/ftf/images/charts/MIP/Moore_Inflation_Predictor.htm) expected to go much (http://cxoadvisory.com/inflation/) higher than 5%

Actually all this spending and lax monetary policy of the fed might be the only thing saving us from a massive deflation period. We are actually in the midst of the largest drop in inflation in 60 years.

Part of the reason is consumer spending is so far down.

[NativeSun]

Inflation isn't going to be as bad as you seem to think it will be. We will definitely have inflation. That's a given. But right now a lot of that would be inflation is being canceled out by the fact that this is a global recession and the dollar is actually gaining value as most other countries are going through

Inflation isn't (http://www.fintrend.com/ftf/images/charts/MIP/Moore_Inflation_Predictor.htm) expected to go much (http://cxoadvisory.com/inflation/) higher than 5%

Actually all this spending and lax monetary policy of the fed might be the only thing saving us from a massive deflation period. We are actually in the midst of the largest drop in inflation in 60 years.

Part of the reason is consumer spending is so far down.

I'm very much aware of the value of the dollar because I travel outside of the country a lot. And it is not getting stronger. Yes, there a a few curriencies getting weaker against the dollar, but the important ones such as the Euro, Pound, and Yen have been getting stronger against the dollar in the past 6 months. As for inflation, it will be a lot higher than 5%. We cannot economically grow our way out of this massive debt that Obama is creating, so interest rates will have to increase dramatically in order to incentivize others to continue to purchase our debt. And remember this kind of debt is putting more money in the system than should actually be there. Cap and Trade will have an across the board increase in the cost of items because everyone's cost of doing business will increase. And most importantly, the savings rate is now at about 5%, whereas it used to be around zero. That's a lot of money that's temporarily "out of the system". Once than money gets put back in (when people feel more comfortable about spending) prices will go up sharply.

[TheTaoOfBill]

I'm very much aware of the value of the dollar because I travel outside of the country a lot. And it is not getting stronger. Yes, there a a few curriencies getting weaker against the dollar, but the important ones such as the Euro, Pound, and Yen have been getting stronger against the dollar in the past 6 months. As for inflation, it will be a lot higher than 5%. We cannot economically grow our way out of this massive debt that Obama is creating, so interest rates will have to increase dramatically in order to incentivize others to continue to purchase our debt. And remember this kind of debt is putting more money in the system than should actually be there. Cap and Trade will have an across the board increase in the cost of items because everyone's cost of doing business will increase. And most importantly, the savings rate is now at about 5%, whereas it used to be around zero. That's a lot of money that's temporarily "out of the system". Once than money gets put back in (when people feel more comfortable about spending) prices will go up sharply.

That money isn't going to be put in the system all at once. It will be leaked out gradually.

There is no doubt inflation is on the market but it is definitely doubt-able that it will be as severe as you say.

[NativeSun]

That money isn't going to be put in the system all at once. It will be leaked out gradually.

There is no doubt inflation is on the market but it is definitely doubt-able that it will be as severe as you say.

So Obama is going to regulate how and when people can spend their money?

[TheTaoOfBill]

So Obama is going to regulate how and when people can spend their money?

No...that's just the nature of things...people aren't going to just unload their savings in the same time frame. And even the stimulus will take awhile to be fully spent.

It will all end up in our system eventually but the fed is able to control that sort of thing by raising interest rates.

[PA_Voter]

Inflation isn't going to be as bad as you seem to think it will be. We will definitely have inflation. That's a given. But right now a lot of that would be inflation is being canceled out by the fact that this is a global recession and the dollar is actually gaining value as most other countries are going through

Inflation isn't (http://www.fintrend.com/ftf/images/charts/MIP/Moore_Inflation_Predictor.htm) expected to go much (http://cxoadvisory.com/inflation/) higher than 5%

Actually all this spending and lax monetary policy of the fed might be the only thing saving us from a massive deflation period. We are actually in the midst of the largest drop in inflation in 60 years.

Part of the reason is consumer spending is so far down.

I strongly disagree that the US dollar is gaining strength and printing more money for a 2nd stimulus will alter your inflation numbers as well.... I'd bet on gold before I'd bet on the US Dollar!!! And even if inflation goes shortly to 5%, that's a 7% increase from where we're at now. Also, have you considered all of the additional taxes that haven't even made their way into the system yet? Wages will remain stagnant for some time to come (if you have a job), so why are people going to increase their spending except that to pay for essentials required because of the inflation and increased taxes and/or government interference?

[Laura Cereta]

During the summer of 2008, Dodd was among the legislators tied to former Countrywide CEO Angelo Mozilo's sweetheart mortgage program for politicians. When the financial crisis struck, Dodd was involved in crafting an unpopular measure that allowed insurance giant AIG to pay out executive bonuses while receiving huge amounts of taxpayer support through the Troubled Assets Relief Program. Later, questions arose about the reported value of a cottage Dodd purchased in Ireland.

Not helping matters are memories of Dodd's futile campaign last year for his party's presidential nomination, as the senator relocated his family to Iowa for months before dropping out after a poor showing in the state's primary, the first of the Democratic contest.

By the beginning of March, a Quinnipiac poll showed the senator - who five years ago won reelection by a 24-points margin - losing a matchup with former Republican Congressman Rob Simmons by one percentage point. Just a few weeks later, the same survey placed Dodd 16 points back, winning only 34 percent of respondents.

Sensing opportunity, a growing field of Republicans has assembled to take on Dodd, including not only Simmons, but also state Sen. Sam Caligiuri and former Ambassador to Ireland Tom Foley. Libertarian-leaning investment banker Peter Schiff may join the race as well and Connecticut politicos say the field could grow even further.


I think I'm going to do some research on who this Peter Schiff is, and what his positions are. I don't live in Connecticut, but I'm curious.

[TheTaoOfBill]

I think I'm going to do some research on who this Peter Schiff is, and what his positions are. I don't live in Connecticut, but I'm curious.

If you know Ron Paul you know Peter Schiff. Pretty much the same policies in a younger body.

[jlynne]

There isn't any indication that we are getting any worse. I think most everyone will agree we are better off economically today than we were on 1-20-09

I don't think we're better off economically since Obama took office. The more that Obama and his team meddle in the economy the more I see people who have the ability to invest in America hold on to their funds or invest their funds in foreign countries. I believe it is very possible that the Obama administration will harm the US credit rating if it continues to spend at the rate that it is and if it continues to buy US treasury bonds with freshly minted dollars.

[TheTaoOfBill]

I don't think we're better off economically since Obama took office. The more that Obama and his team meddle in the economy the more I see people who have the ability to invest in America hold onto their funds or invest thier funds in foreign countries. I believe it is very possible that the Obama administration will harm the US credit rating if it continues to spend at the rate that it is and if it continues to buy US treasury bonds with freshly minted dollars.

Foreign investment is something that goes down in deflationary times. The increased spending will lower the dollar enough to encourage additional foreign investment.

[jlynne]

Buffett also noted that he had a cataract operation on his left eye about a month ago. He joked that he thought it might help him see "green shoots" for the economy, but so far he hasn't seen any hopeful signs.

Taking a firm position in an ongoing debate in the financial markets, Buffett says he's not concerned about deflation, but thinks inflation will be a problem in coming years.

Buffett repeated his criticism of "cap and trade" as a method to control pollution, saying it would be a huge, regressive tax.

http://www.cnbc.com/id/31526130

Seems like Warren Buffet doesn't think the economy has stabilized or that inflation won't be a problem for the U.S. His opinion seemed to matter to alot before the election.

[NativeSun]

Foreign investment is something that goes down in deflationary times. The increased spending will lower the dollar enough to encourage additional foreign investment.

People aren't going to invest if they aren't going to get a decent rate of return. And inflation kind of throws a wet towel on that. There are two main factors that dictate the strength/weakness of the dollar: The price of oil and the accumulated federal debt levels.

[Laura Cereta]

If you know Ron Paul you know Peter Schiff. Pretty much the same policies in a younger body.

I've seen different Libertarians who believed different things, like Bob Barr who wanted to keep drugs illegal-- most Libertarians don't.

From Peter Schiff's (http://www.peter-schiff.com/) website:

Economic views

In an August 2006 interview Schiff generated much controversy when he repeated his long-held investment thesis: "The United States economy is like the Titanic and I am here with the lifeboat trying to get people to leave the ship ...I see a real financial crisis coming for the United States." On May 16, 2006 in debate on Fox News, Schiff accurately forecast that the U.S. housing market was a bubble that would soon burst. On December 13, 2007 in a Bloomberg interview on the show Open Exchange, Schiff further added that he felt that the crisis would extend to the credit card lending industry. Following this observation, it was soon reported on December 23, 2007 by the Associated Press that "The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP... At the same time, defaults -- when lenders essentially give up hope of ever being repaid and write off the debt -- rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission."

Schiff also discusses the role of the US consumer in the world, saying that the US consumer thinks he's doing the world a favor by consuming what the rest of the world produces. He is quick to point out that this relationship will come to an end, in his view, much sooner than people imagine, and with negative consequences for the US. Schiff has been quoted as saying: "Consumption is its own reward for Production" -- meaning that without production, the US cannot indefinitely sustain its ongoing consumption. Schiff, and other adherents of Austrian economics, promote savings and production as "the engine of economic growth -- not consumption".

Schiff has said on numerous occasions that the current economic crisis is not the problem; it is the solution. According to him, the transition from borrowing and spending to saving and producing cannot be accomplished without a severe recession, given the current imbalances of the US economy. But according to him, that transition needs to happen. He also thinks the government is doing no one a favor by trying to "ease the pain" with stimulus packages, bailouts and such. Schiff believes these actions will only make the situation worse and possibly result in hyperinflation if the government continues to "replace legitimate savings with a printing press."

Schiff is a firm believer in reducing government regulation of the economy. Schiff worries that Barack Obama will increase such regulation.

He seems like a good alternative to Dodd and someone with the knowledge and experience in the financial sector that we could really use in Congress right now. He's not a stimulus guy, though, Tao. Sorry.

[TheTaoOfBill]

I've seen different Libertarians who believed different things, like Bob Barr who wanted to keep drugs illegal-- most Libertarians don't.

From Peter Schiff's (http://www.peter-schiff.com/) website:

Economic views



He seems like a good alternative to Dodd and someone with the knowledge and experience in the financial sector that we could really use in Congress right now. He's not a stimulus guy, though, Tao. Sorry.

Bob Barr was as close to republican as libertarians get.

Peter Schiff really is just about everything Ron Paul is. I'm hard pressed to think of anything they disagree on.

[Tybee]

Bob Barr was as close to republican as libertarians get.

Peter Schiff really is just about everything Ron Paul is. I'm hard pressed to think of anything they disagree on.


Bob Barr was a republican.

[Alces95]

I think we as a country and economy will be better off when we stop thinking of consumer spending as a primary sign or economic growth. Consumer investment would be much better for us. The largest consumers we have in this country are people who can't afford it. Being poor in this country comes with air conditioning, cable and new cars... all on credit. We all seem to be talking about only the government racking up debt and that is only half of the equation; the debt that private citizens rack up affects the whole more so. That is a lesson we all just learned the hard way. I was very careful with debt since 2000 and I still got punished. It wasn't the governments fault- it ws my neighbors! (May I should repost this isn the TEA thread too.)

Having Dodd gone wouldn't be a bad thing. If there is one thing that the country needs in DC it is trust. I am not sure that Dodd could do anything that could regain trust without leaving at least for a while.