Rep Roy Blunt (R-MO): McCain Stopped The Deal

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Here’s the vid…

A partial transcript…

I do think that John McCain was very helpful in what he did. I saw him this morning, we’ve been talking with his staff. Clearly, yesterday, his position in that discussion yesterday was one that stopped a deal from, uh, finalizing that no House Republican, in my view, would’ve been for. Which means it probably wouldn’t have passed the House.

Here’s the thing…

House Republicans have obviously acted in a very ideological manner and essentially said, “No dice!” to a deal because it goes against their core economic philosophy. There’s no getting around that because that’s exactly what happened.

Meanwhile, the bill that Chris Dodd had developed was enjoying bi-partisan support from 40 of the 49 GOP Senators (give or take a few). Obama was on board, but McCain played coy because he got wind that House Republicans would revolt.

So then, if you think catering to the whims of 100 Republicans means you’re being a “bi-partisan” leader, then maybe you need to explain to me what that term means to you. Because I’m at a loss at how he’s going to spin that.

Also, do know that my opinion of Eric Cantor’s plan isn’t fully informed yet, but it seems to me that all he’s really proposing is increasing the amount of tax-payer funded insurance on mortgage backed securities…something we’re already doing in the first place to the tune of trillions of dollars. So I don’t see how this will help the market become liquid again AT ALL because it hinges on the idea that the “free market” will pick up the slack and start buying these assets and we’ll get paid back via insurance premiums.

So I’m sure you see the inherent logic gap there. The reason we need a bailout is because the free market ISN’T buying perfectly good securities. I discussed this “perfectly good” notion in a previous post, so if you thought that all of these mortgages were garbage, well, they’re not. 80% of them are actually perfectly fine, but because the free market is freaked, nobody will touch them. And thus we have the liquidity problem.

In any event, feel free to disagree and/or inform me of why I’m wrong.