{"id":1362,"date":"2013-09-11T02:39:26","date_gmt":"2013-09-11T06:39:26","guid":{"rendered":"http:\/\/www.dougsbriefcase.com\/blog\/?p=1362"},"modified":"2013-09-12T03:12:36","modified_gmt":"2013-09-12T07:12:36","slug":"tarp-begat-obamacare","status":"publish","type":"post","link":"https:\/\/www.dougsbriefcase.com\/blog\/tarp-begat-obamacare\/","title":{"rendered":"How TARP<\/span> Begat Obamacare"},"content":{"rendered":"

<\/p>

\"Wall<\/a>

Wall Street titans suc\u00adcess\u00adful\u00adly lob\u00adbied Con\u00adgress for TARP<\/span> in 2008. Their suc\u00adcess made Oba\u00admacare pos\u00adsi\u00adble. [Cred\u00adit: UPI<\/span>]<\/p><\/div>Oba\u00admacare goes live on Octo\u00adber 1, when new\u00adly-cre\u00adat\u00aded gov\u00adern\u00adment exchanges are to begin sell\u00ading health insur\u00adance and enrolling peo\u00adple in Med\u00adic\u00adaid. The date car\u00adries an eerie sig\u00adnif\u00adi\u00adcance. Octo\u00adber 1 also is the fifth anniver\u00adsary of the Sen\u00adate vote that made Oba\u00admacare pos\u00adsi\u00adble: a 74\u201325<\/a> vote to cre\u00adate the Trou\u00adbled Asset Relief Pro\u00adgram, the $700 bil\u00adlion Wall Street bailout bill, more com\u00admon\u00adly known as TARP<\/span>.\n

Wall Street bailouts and the new health care law might seem worlds apart, but the mas\u00adsive and cost\u00adly changes to the health care sys\u00adtem were pos\u00adsi\u00adble only because Democ\u00adrats con\u00adtrolled 60 Sen\u00adate seats, enabling them to pass the new law over sol\u00adid GOP<\/span> oppo\u00adsi\u00adtion. Had they not vot\u00aded for TARP<\/span> just weeks before the elec\u00adtions, sev\u00ader\u00adal Repub\u00adli\u00adcan Sen\u00adate can\u00addi\u00addates who lost nar\u00adrow\u00adly might well have returned to the Sen\u00adate, hold\u00ading Democ\u00adrats below the crit\u00adi\u00adcal 60-vote benchmark.<\/p>\n

Some of the Sen\u00adate races were so close that they weren\u2019t for\u00admal\u00adly decid\u00aded until weeks or months after the elec\u00adtion. When the late Arlen Specter switched par\u00adties <\/a>the fol\u00adlow\u00ading April 29, he became the 59th Demo\u00adc\u00adrat.  Democ\u00adrats did not pick up their 60th seat until ear\u00adly July after a court declared that Al Franken (D\u2011MN<\/span>)<\/a> had nar\u00adrow\u00adly unseat\u00aded Norm Coleman.<\/p>\n

No soon\u00ader had Franken been sworn in than Chuck Schumer (D\u2011NY<\/span>) pro\u00adclaimed that there was no need for Democ\u00adrats to com\u00adpro\u00admise <\/a>on health care legislation.<\/p>\n

Coleman\u2019s was the tight\u00adest con\u00adtest and his vote in favor of TARP<\/span> may well have been the deci\u00adsive fac\u00adtor in his defeat. He had led Franken by 215 votes <\/a>in the ini\u00adtial count, but was sub\u00adse\u00adquent\u00adly declared the los\u00ader. Thou\u00adsands of vot\u00aders backed can\u00addi\u00addates run\u00adning to Coleman\u2019s right, many no doubt enraged that Repub\u00adli\u00adcans had helped enact a Wall Street bailout bill that they detested.<\/p>\n

Ted Stevens also was in a close race. Despite being dam\u00adaged by a con\u00advic\u00adtion for under\u00adstat\u00ading the val\u00adue of ren\u00ado\u00adva\u00adtions on his Alas\u00adka home \u2013 a con\u00advic\u00adtion that lat\u00ader was over\u00adturned<\/a> at the request of Jus\u00adtice Depart\u00adment pros\u00ade\u00adcu\u00adtors \u2013 it took vote coun\u00adters weeks <\/a>to con\u00adfirm that he\u2019d lost. The bogus felony con\u00advic\u00adtion undoubt\u00aded\u00adly loomed larg\u00ader in the out\u00adcome, but the mar\u00adgins were nonethe\u00adless razor-thin. A pha\u00adlanx of can\u00addi\u00addates to Stevens\u2019 right togeth\u00ader polled over 17,000 votes<\/a>,<\/span> sev\u00ader\u00adal times his mar\u00adgin of defeat. Many of these vot\u00aders were no doubt moti\u00advat\u00aded by their dis\u00adgust with TARP<\/span>.<\/p>\n

Then there were can\u00addi\u00addates who were unseat\u00aded by some\u00adwhat larg\u00ader mar\u00adgins. Oregon\u2019s Gor\u00addon Smith had led his oppo\u00adnent<\/a>,<\/span> Jeff Merkley (D\u2011OR<\/span>), in most polls until the mid-Sep\u00adtem\u00adber Wall Street melt\u00addown, when he fell behind by a few per\u00adcent\u00adage points. His vote in favor of TARP<\/span> like\u00adly sank what\u00adev\u00ader hopes he had of regain\u00ading momen\u00adtum. A can\u00addi\u00addate run\u00adning to his right won more than 92,000 votes<\/a>,<\/span> near\u00adly twice Smith\u2019s mar\u00adgin of defeat.<\/p>\n

John Sununu of New Hamp\u00adshire, anoth\u00ader TARP<\/span> backer, lost his seat to Jeanne Sha\u00adheen (D\u2011NH<\/span>). Sha\u00adheen would like\u00adly have best\u00aded Sununu in any case, although a Suf\u00adfolk Uni\u00adver\u00adsi\u00adty poll<\/a> tak\u00aden in late Sep\u00adtem\u00adber showed the race dead\u00adlocked and a Ras\u00admussen poll con\u00adduct\u00aded dur\u00ading the same peri\u00adod showed him lead\u00ading by 7 points.<\/p>\n

His vote in favor of TARP<\/span> a week lat\u00ader could not have helped his ill-fat\u00aded bid. TARP<\/span> still cast a shad\u00adow months after the elec\u00adtion. The new\u00adly-elect\u00aded Sha\u00adheen proud\u00adly boast\u00aded on her web\u00adsite that she\u2019d vot\u00aded against TARP<\/span><\/a>,<\/span> although she wasn\u2019t a Mem\u00adber of Con\u00adgress when the fate\u00adful votes were tak\u00aden. (She prob\u00ada\u00adbly was refer\u00adring to her vote in 2009 against releas\u00ading addi\u00adtion\u00adal TARP<\/span> funds.) Whether or not his TARP<\/span> vote cost Sununu his Sen\u00adate job, it won him anoth\u00ader. He was appoint\u00aded to the board to over\u00adsee TARP<\/span><\/a> spend\u00ading in Decem\u00adber 2008.<\/p>\n

Then there were the GOP<\/span> chal\u00adlengers who suf\u00adfered at the polls after defend\u00ading TARP<\/span>. Bob Schaf\u00adfer was run\u00adning for Colorado\u2019s open seat against Mark Udall (D\u2011CO<\/span>). Ras\u00admussen showed Schaf\u00adfer lag\u00adging Udall by just two points<\/a> in late Sep\u00adtem\u00adber until he curi\u00adous\u00adly called TARP<\/span> \u201cnec\u00ades\u00adsary,\u201d but \u201cessen\u00adtial\u00adly a tax<\/a>.\u201d It\u2019s hard to imag\u00adine a state\u00adment that would have alien\u00adat\u00aded Repub\u00adli\u00adcan vot\u00aders more. And alien\u00adate them he did, help\u00ading doom his Sen\u00adate bid.<\/p>\n

It\u2019s also worth look\u00ading at GOP<\/span> incum\u00adbents who vot\u00aded against TARP<\/span>. Roger Wick\u00ader (R\u2011MI<\/span>) was con\u00adsid\u00adered a top tar\u00adget of nation\u00adal Democ\u00adrats. Wick\u00ader had been appoint\u00aded by Mississippi\u2019s Gov\u00ader\u00adnor to the Sen\u00adate to tem\u00adporar\u00adi\u00adly fill in for Trent Lott, who had resigned his seat. In Novem\u00adber 2008, Wick\u00ader was run\u00adning statewide for the first time, seek\u00ading vot\u00ader approval to serve out the remain\u00adder of Lott\u2019s term. Polls showed a close race. Ras\u00admussen had Wick\u00ader lead\u00ading by just 2 points<\/a> on Sep\u00adtem\u00adber 30. The fol\u00adlow\u00ading day, Wick\u00ader vot\u00aded against TARP<\/span>.  He won his race by a com\u00adfort\u00adable margin.<\/p>\n

And though 11 of 13 Demo\u00adc\u00adra\u00adt\u00adic incum\u00adbents who stood for elec\u00adtion in 2008 vot\u00aded in favor of TARP<\/span>, the most vul\u00adner\u00ada\u00adble Demo\u00adc\u00adrat, Mary Lan\u00addrieu (D\u2011LA<\/span>), did not. Lan\u00addrieu, who always faces stiff elec\u00adtoral chal\u00adlenges, was in a com\u00adpet\u00adi\u00adtive race against Repub\u00adli\u00adcan John Kennedy. And while Kennedy nev\u00ader did get with\u00adin strik\u00ading dis\u00adtance, Lan\u00addrieu\u2019s oppo\u00adsi\u00adtion to TARP<\/span> denied him a poten\u00adtial opportunity.<\/p>\n

It would be inter\u00adest\u00ading to know whether Lan\u00addrieu, before vot\u00ading against TARP<\/span>, had a con\u00adver\u00adsa\u00adtion with the man who was head\u00ading up her party\u2019s nation\u00adal effort to win Sen\u00adate races: Chuck Schumer. \u201cThe Sen\u00ada\u00adtor from Wall Street<\/a>\u201d was unsur\u00adpris\u00ading\u00adly among TARP<\/span>\u2019s most vocal cheer\u00adlead\u00aders. But once the votes had been tak\u00aden and TARP<\/span> was enact\u00aded, Schumer\u2019s Demo\u00adc\u00adra\u00adt\u00adic Sen\u00ada\u00adto\u00adr\u00adi\u00adal Cam\u00adpaign Com\u00admit\u00adtee ran ads attack\u00ading Repub\u00adli\u00adcan incum\u00adbents<\/a> for vot\u00ading in favor of TARP<\/span>.<\/p>\n

If a shrewd polit\u00adi\u00adcal oper\u00ada\u00adtive like Schumer saw TARP<\/span> votes as a polit\u00adi\u00adcal lia\u00adbil\u00adi\u00adty for Repub\u00adli\u00adcans, it almost cer\u00adtain\u00adly was a fac\u00adtor in those close races. I can\u2019t prove that, of course. Elec\u00adtions are com\u00adplex events that defy analy\u00adsis, and it was a tox\u00adic envi\u00adron\u00adment for Repub\u00adli\u00adcan Sen\u00adate can\u00addi\u00addates even with\u00adout TARP<\/span>. But the tim\u00ading and mag\u00adni\u00adtude of the finan\u00adcial melt\u00addown undoubt\u00aded\u00adly made it one of the biggest things on vot\u00aders\u2019 minds in Novem\u00adber 2008. Opin\u00adion polls on the Wall Street bailout tak\u00aden in the run-up to the elec\u00adtion var\u00adied depend\u00ading on how the ques\u00adtion was word\u00aded. When the sur\u00advey ques\u00adtion men\u00adtioned that TARP<\/span> spent $700 bil\u00adlion<\/a>,<\/span> most vot\u00aders expressed disapproval.<\/p>\n

That dis\u00adap\u00adproval ran deep\u00adest among the GOP<\/span>\u2019s con\u00adser\u00adv\u00ada\u00adtive base, which saw TARP<\/span> as an act of crony cap\u00adi\u00adtal\u00adism that bailed out wealthy invest\u00adment hous\u00ades while leav\u00ading ordi\u00adnary Amer\u00adi\u00adcans to suf\u00adfer the con\u00adse\u00adquences of Wall Street excess\u00ades. Those vot\u00aders are espe\u00adcial\u00adly crit\u00adi\u00adcal in close races. It is impos\u00adsi\u00adble to deter\u00admine how many of them may have vot\u00aded for third par\u00adty can\u00addi\u00addates or just stayed home in Novem\u00adber 2008, but it wouldn\u2019t have tak\u00aden many to turn even two or three of the tight\u00adest Sen\u00adate elections.<\/p>\n

And that \u2014 along with Specter\u2019s par\u00adty switch \u2014 was enough to pro\u00advide Democ\u00adrats with the 60 Sen\u00adate seats they need\u00aded to enact Oba\u00admacare. Had they cap\u00adtured few\u00ader seats, they would have had to nego\u00adti\u00adate the specifics of a bill with their GOP<\/span> col\u00adleagues. A com\u00adpro\u00admise may or may not have been pos\u00adsi\u00adble dur\u00ading 2009 but, as Schumer not\u00aded, com\u00adpro\u00admise became unnec\u00ades\u00adsary once his par\u00adty con\u00adtrolled 60 seats. The process for gain\u00ading the sup\u00adport of every Sen\u00adate Demo\u00adc\u00adrat was crude and polit\u00adi\u00adcal\u00adly ham-hand\u00aded, with votes pro\u00adcured through spe\u00adcial pro\u00advi\u00adsions for Louisiana\u2019s Mary Lan\u00addrieu (the \u201cLoiuisana Pur\u00adchase\u201d) and Florida\u2019s Bill Nel\u00adson (\u201cGator Aid\u201d). The 60th vote came from for\u00admer Nebras\u00adka Sen\u00ada\u00adtor Ben Nel\u00adson, whose \u201cCorn\u00adhusker Kick\u00adback\u201d tanked his polit\u00adi\u00adcal career.<\/p>\n

Sen\u00adti\u00adment ran so deeply against the law and the par\u00adti\u00adsan process that pro\u00adduced it that Mass\u00ada\u00adchu\u00adsetts vot\u00aders did the unthink\u00adable in Jan\u00adu\u00adary 2010, award\u00ading the late Ted Kennedy\u2019s seat to a Repub\u00adli\u00adcan, Scott Brown.  When Brown took the oath of office in Feb\u00adru\u00adary, he closed a 7\u2011month win\u00addow dur\u00ading which Democ\u00adrats con\u00adtrolled 60 Sen\u00adate seats.<\/p>\n

With just 59 Sen\u00ada\u00adtors and hav\u00ading irre\u00adtriev\u00adably alien\u00adat\u00aded their GOP<\/span> col\u00adleagues, House Democ\u00adrats were forced to approve the Sen\u00adate bill with\u00adout changes, for\u00adfeit\u00ading any chance to repair it in a House-Sen\u00adate con\u00adfer\u00adence. Stuck with mak\u00ading a poor\u00adly-draft\u00aded, \u201cas is\u201d law work\u00adable, the Admin\u00adis\u00adtra\u00adtion sub\u00adse\u00adquent\u00adly approved var\u00adi\u00adous waivers, exemp\u00adtions and delays, some\u00adtimes ignor\u00ading or con\u00adtra\u00addict\u00ading the law\u2019s clear stip\u00adu\u00adla\u00adtions. The spe\u00adcial deals it made for Mem\u00adbers of Con\u00adgress, big cor\u00adpo\u00adra\u00adtions, labor unions, insur\u00adance com\u00adpa\u00adnies, and oth\u00aders with influ\u00aden\u00adtial lob\u00adbies con\u00adtributed to pop\u00adu\u00adlar dis\u00adtaste for the product.<\/p>\n

Oba\u00admacare will go for\u00adward despite that pop\u00adu\u00adlar dis\u00adtaste. Over time, peo\u00adple may come to accept it even if they nev\u00ader ful\u00adly embrace it \u2013 just as they did with TARP<\/span>, the law that made Oba\u00admacare possible.<\/p>\n","protected":false},"excerpt":{"rendered":"

Oba\u00admacare goes live on Octo\u00adber 1, when new\u00ad\u00adly-cre\u00adat\u00aded gov\u00adern\u00adment exchanges are to begin sell\u00ading health insur\u00adance and enrolling peo\u00adple in Med\u00adic\u00adaid. The date car\u00adries an eerie sig\u00adnif\u00adi\u00adcance. Octo\u00adber 1 also is the fifth anniver\u00adsary of the Sen\u00adate vote that made \u2026 Con\u00adtin\u00adue read\u00ading \u2192<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":1370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","wp_typography_post_enhancements_disabled":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"nfd_image_url":"","nfd_onboarding_generated":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[560,18,124,19,99],"tags":[571,570,578,573,585,584,574,577,575,582,576,583,579,581,572,1188,580,1186,492,568,26,569],"class_list":["post-1362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-economy","category-obamacare","category-politics","category-tarp","tag-al-franken","tag-arlen-specter","tag-bob-schaffer","tag-chuck-schumer","tag-cornhusker-kickback","tag-gator-aid","tag-gordon-smith","tag-jeanne-shaheen","tag-jeff-merkley","tag-john-kennedy","tag-john-sununu","tag-louisiana-purchase","tag-mark-udall","tag-mary-landrieu","tag-norm-coleman","tag-obamacare","tag-roger-wicker","tag-tarp","tag-ted-stevens","tag-troubled-asset-relief-program","tag-wall-street","tag-wall-street-bailout"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t