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LOUISVILLE /JEFFERSON COUNTY

DEMOCRATIC PARTY NEWSLETTER

Week of March 20, 2009

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The Louisville/Jefferson County Democratic Executive Committee meets the 4th Wednesday of every month at 5:00 pm at Democratic Headquarters,
640 Barret Avenue .

The Answer To Everything

Can Democrats hang on to their current levels in the House and Senate? Depends on the economy. by Charlie Cook

No matter the political question these days, the answer invariably seems to be another question: "How will the economy be doing?" Can Democrats hang on to their current levels in the House and Senate? Depends on the economy. Can Democrats hold the governorships of New Jersey and Virginia this November? Again, depends on the economy. How long will President Obama's honeymoon last? Yes, it depends on the economy.

Historically, the party of a first-term president loses seats on Capitol Hill in the midterm election. In the House, postwar losses average about 16 seats, but outcomes have ranged from an eight-seat gain to a 52-seat loss. In the Senate, they have ranged from a gain of four to a loss of eight, with the average being pretty much a wash. In both chambers, the best year for the party holding the White House was 2002. That was President Bush's first midterm election and the first congressional election after 9/11. In contrast, the worst losses were both in 1994, President Clinton's first midterm election.

However, even though history argues for Democrats' losing a bit more than a dozen House seats and breaking even or losing a Senate seat, several factors point to continued Democratic gains. Party identification numbers, the relative popularity of the two major parties, and generic congressional ballot tests suggest that the GOP is not much healthier today than it was going into the last two elections. Still, the 2010 elections are a long way off. And a significant downturn in Obama's approval ratings combined with continued fear about the economy could reverse the outlook come election time.

In New Jersey, Democratic Gov. Jon Corzine has weak poll numbers, but the state has become a political graveyard for Republicans seeking statewide office. Given Corzine's great wealth and the tremendous cost of advertising in the New York City and Philadelphia media markets, it would probably take a plummet in Obama's numbers for Democrats to lose that governorship.

In Virginia, the past eight gubernatorial contests were lost by whichever party was holding the White House. That trend dates back to 1977. Is the Democratic Party gaining and the GOP hurting in Virginia? No question. The Democratic presidential nominee carried the state last year for the first time since 1964. Virginia is no longer a true Southern state but a mid-Atlantic one. Regardless, an unpopular Democratic president and a lousy economy could still cost Democrats the governorship this year.

At this point, Obama's job-approval ratings are holding at around 62 percent in the Gallup Poll, about average for presidents still in honeymoon mode. Americans seem to understand that the country didn't get into this economic mess overnight and won't get out of it quickly.

But how soon will Obama have to take ownership of the economy? In my opinion, voters will expect the economy to have bottomed out by sometime in the first half of 2010. At that point, they will be looking for some improvement and holding Obama and his party accountable if things are still in poor shape. If this were an average recession, lasting 10 or 11 months, the crisis would have been over around September or October of 2008. Obviously, we're suffering through something much worse than an average slump. The two longest recessions since the Depression each lasted 16 months. This month we are reaching that point.

In the midsummer of 2010, the Obama administration will have been in office 18 months, and the recession, if it's still around, will be more than 30 months old.

The econometric models of the ISI Group, one of the most respected economic consulting firms on Wall Street, project that the real gross domestic product will decline 5 percent in the current quarter, 3 percent in the second quarter, and 1 percent in each of the last two quarters of the year, before growing 3.5 percent in 2010.

These projections, of course, come with the caveat, "if we don't start seeing major financial institutions fail." If that happens, all bets are off and it's Depression time.

Therefore, at this point, handicapping individual races is a fun sport, but the big drivers will be Obama's job-approval ratings and how the economy is faring. The moment of truth will come a little more than a year from now.

Unionizing Fight Focuses on 3 States

By KRIS MAHER and BRODY MULLINS

The battle over a bill that would ease union organizing is zeroing in on lawmakers in three states -- Pennsylvania, Arkansas and Colorado.

Business and labor are pressuring three key senators who are up for re-election in 2010, sparing little expense as they ratchet up television and radio ads, and recruit well-connected lobbyists.

"This is truly one of those defining votes," said Terry Madonna, a professor of political science at Franklin & Marshall College in Lancaster, Pa. The senators, he said, "run the risk of incurring the wrath of the business community and labor in ways that are not likely to be forgiven."

In Arkansas, Wal-Mart Stores Inc., which is bitterly opposed to the bill, has hired a Democratic lobbyist -- and former staffer of Sen. Blanche Lincoln -- to help defeat the bill. Meanwhile, on Monday, the AFL-CIO hosted a candlelight vigil with union members, religious leaders and state politicians outside the Capitol building in Little Rock to urge passage of the bill.

In Pennsylvania, the state AFL-CIO has discussed having its members register as Republicans to back Sen. Arlen Specter in a tough primary fight he faces next year -- if he supports the bill.

Another target is newly appointed Sen. Michael Bennet of Colorado, who has no track record on the bill but who faces an election in 2010. Andy Stern, president of the Service Employees International Union, visited Sen. Bennet the day the bill was introduced last week to discuss its importance. The SEIU has said a "no" vote on the bill would affect its support for the Democrat in 2010.

Meanwhile, the Center for Union Facts, a business-backed group, has been running TV ads in Colorado arguing the bill would hurt job creation, and a state business group met with Sen. Bennet.

At this point, lawmakers don't seem to be getting an unmistakable message from the public. A Gallup poll released Tuesday showed that 53% of respondents backed the concept of increased unionization, with 39% opposed. But the poll also found only 12% are following the issue very closely, and an earlier Gallup poll last year found only 35% in favor of unions having greater influence.

The Employee Free Choice Act, introduced in the Senate and the House last week, would allow workers to choose unionization by signing cards, without the company's knowledge, rather than by voting in a union election. Now, companies can insist on an election and mount a campaign against the union.

The senators have said they will decide how to vote on the legislation based on its merits, and not allow election-year politics to influence their vote.

"I have had meetings with Wal-Mart representatives, as well as several constituent groups on both sides of this issue," said Sen. Lincoln. "I will continue to hear their views, and as I've stated previously, my first priority remains strengthening the economy and putting 90,000 Arkansans back to work."

Wal-Mart spokeswoman Daphne Moore said executives and managers from "across the country have voiced their concern to senators from several states, including Arkansas."

On Tuesday, Sen. Specter reiterated that he supports a labor-law overhaul, but that he has not voted for passage of the bill. In 2007, he voted to have debate on the bill. "This is the most hotly contested issue in a long time," he said. "I'll vote my conscience."

In Colorado, Sen. Bennet noted that the bill was introduced just last week. "I will work with all interested parties to make the best decision for Colorado," he said.

Pro-business organizations have spent millions on ads in key states in the past year. The Center for Union Facts ran $20 million in ads in 2008 against the bill. Labor unions have mounted their own media campaign, with the labor-backed American Rights at Work spending $10 million on ads backing the legislation since Labor Day.

YOUR COMMENTS

The current debate in Washington over President Obama's budget has made one thing clear -- ensuring our long-term prosperity won't come without a fight.

Partisan voices and special interests are showing real resistance to President Obama's call for making the necessary reforms and investments in energy, health care, and education. That's why we need to bring the conversation back into homes and communities across America.

Last week, thousands of you pledged your support for the President's economic plan and encouraged your friends and family to join you in a national display of support. Now I need you to take the next step.

This weekend, supporters like you are organizing Pledge Project Canvasses to talk to people in their communities about this plan and mobilize support in neighborhoods across the country.

Host or attend a Pledge Project Canvass in your neighborhood this weekend.

It's absolutely crucial that Americans hear from you about this plan -- we can't leave this important debate up to a Washington establishment that doesn't welcome change.

It's up to you to show Washington that Americans are demanding this new direction and won't stand on the sidelines while our country's future is at stake.

On these canvasses, you'll join fellow supporters in your community to:

• Talk with people about the President's plan

• Ask them to sign their names to the pledge

• Provide information on how to contact and urge their elected representatives to support the plan

Host or attend a canvass this weekend: http://my.barackobama.com/pledgecanvass

Nothing is more powerful than having people hear from ordinary Americans about the vision President Obama has laid out for our country. Join us this weekend.

Thanks,

Mitch Stewart, Director

Organizing for America

Have your comments printed here. Send them to LJCDP@louisvilledem.com

DAILY GRILL

"Joining us tonight is a man who has been against the AIG bailout since the very begin, Senator John McCain."
-- Fox News's Sean Hannity, 3/17/09

VERSUS

"I didn't want to do that. ... But there are literally millions of people whose retirement, whose investment, whose insurance were at risk here." -- McCain, 9/17/08, defending the AIG bailout

Quotes of the Day

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Recent Senate Votes

Cloture Motion; Omnibus Appropriations Act, 2009 - Vote Agreed to (62-35, 2 Not Voting)

The Senate reached the necessary sixty votes to end debate on this bill funding government programs. The bill was later approved by voice vote.

Sen. Mitch McConnell voted NO
Sen. Jim Bunning voted NO

Recent House Votes

Omnibus Public Land Management Act - Vote Failed (282-144, 6 Not Voting)

Because this bill required a 2/3 majority vote, the House failed to pass this package of legislation related to public lands, national parks and water development.

Rep. Brett Guthrie voted NO

Rep. John Yarmuth voted YES

Water Quality Investment Act of 2009 - Vote Passed (317-101, 13 Not Voting)

The House passed this legislation to authorize funding for the Clean Water State Revolving Fund, which helps states build water treatment facilities.

Rep. Brett Guthrie voted YES

Rep. John Yarmuth voted YES

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HUMOR

"President Obama is very upset with AIG. He said the problems at AIG were caused by greed, to which AIG said, 'Well, what do you think the 'G' stands for? Hello!'" --Jay Leno

"AIG, which already received $170 billion in taxpayers' money, paid $165 million in bonuses. But they say the bonuses are justified because the company made an extra $170 billion last year." --Jay Leno

"Well, yesterday, New York Attorney General Andrew Cuomo reported that 73 AIG executives were mailed bonus checks of a million dollars or more and 11 of those people don't even work for the company anymore. Imagine that, executives getting bonus checks for a company that lost billions. AIG? Sounds more like NBC, doesn't it?" --Jay Leno

"Earlier this week, Republican Senator Charles Grassley of Iowa said that AIG executives should follow the Japanese model by publicly apologizing and then doing one of two things — either resign or kill themselves. But why not have them resign, then kill themselves on pay per view, huh? That would raise enough money to pay off everybody they screwed." --Jay Leno

"And the government said they would like to prevent AIG from using taxpayer money to pay themselves these huge bonuses, but there's very little they can do legally. Well, duh, take a page from the Bush/Cheney book and do it illegally. Hey, we all watch '24.' You know how it works. Have Jack Bauer shoot them in the knee. Come on!" --Jay Leno

"Well, the exciting news, President Barack Obama will be on our show tomorrow night. Of course, NBC jumping on every opportunity. They say if the President does well, it could lead to his own series, '30 Barack.'" --Jay Leno

"Reese Witherspoon is on the show tonight. She has a new movie, 'Monsters vs. Aliens.' Now, don't confuse it with a show on CNN. That's 'Lou Dobbs vs. Aliens.'" --Jay Leno

"George Bush is writing a book. No, that's not the joke. It's a serious book about the 12 toughest decisions he made as President. It's called 'The Ten Toughest Decisions I Made As President.' It's a good book. It's a pop-up book."--Jimmy Fallon

"Kim Jong-il has demanded that North Korea open its first pizzeria. It will have pizza just like the kind we have over here, but their Crazy Bread will actually be crazy."--Jimmy Fallon

"I want to go to Papa Jong's, the new North Korean pizzeria. It is going to be good. The delivery policy at the North Korean pizzeria is a little different. If the pizza is not there in 30 minutes or less, the driver gets executed."--Jimmy Fallon

"In worthless drain on taxpayer money news, insurance giant AIG. is on the hot seat because after they took billions of dollars in bailout money, they gave $165 million out in bonuses to their executives. So now, lawmakers are demanding that they give the money back. The problem, though, is that legally they're entitled to the money so it's a dilemma. But I have an idea I think might satisfy all of us and also adhere to the letter of the law. I say, instead of mailing the bonus checks to their houses, we put rocks on them and we put them at the bottom of an enormous piranha tank. We set it up in the middle of Times Square. You want the money, swim. There it is." --Jimmy Kimmel

On Dick Cheney's TV interviews: "You know, I don't understand this. The guy is vice president for eight years, you barely see a whiff of him. He lives in some subterranean lair, literally has his house removed from Google Earth. Then, when he's no longer accountable to the American people, he's popping up everywhere, can't get him off my TV. He's like the Mario Lopez of doom now." --Jon Stewart

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ECONOMY -- SANFORD'S 'POLITICAL POSTURING' ON STIMULUS FUNDS COULD COST 7,500 TEACHERS THEIR JOBS: Earlier this week, South Carolina Gov. Mark Sanford (R) announced that he would seek to pay down the state's debt by redirecting $700 million of the state's stimulus money meant for school funding and public safety. Ironically, Sanford claimed that cutting school funding would ultimately benefit children. "[T]he idea of digging a $1.2 billion hole whose costs ultimately will be born by school-aged kids to me is not in their best interest," he said. However, Sanford's rejection of the money could cause up to 7,500 teachers to lose their jobs. John Cooley, deputy superintendent for finance and operations at the state's department of education, explained that the stimulus funds have helped fill a 15 percent budget cut already inflicted on the school system. "If those funds are not permitted to be used in that way, it will create a significant problem," he said, explaining that a resulting 15 percent of the state's 50,000 teachers could be negatively impacted. Both Democrats and Republicans have accused Sanford of playing politics with South Carolina's future. Rep. James Clyburn (D) called Sanford's decision "100 percent political posturing." Republican state senator Hugh K. Leatherman, Sr. -- who is leading efforts to override the governor -- said Sanford was trying to "gain national attention and position himself for a presidential run in 2012."

NATIONAL SECURITY -- CHENEY INSISTS OBAMA'S CHOICES 'RAISE THE RISK...OF ANOTHER ATTACK': In an interview with CNN's John King yesterday, former vice president Cheney declared that President Obama's decisions to close Guantanamo and end torture, among other policies, "raise the risk to the American people of another attack." When King asked whether Cheney thought Obama "has made Americans less safe," Cheney replied, "I do." He defended the Bush administration's torture and detention policies as "essential to the success we enjoyed of being able to collect the intelligence that" prevented new attacks after 9/11. "And now he [Obama] is making some choices that, in my mind, will, in fact, raise the risk to the American people of another attack," Cheney said. In February, Cheney told Politico that Obama's refusal to use torture meant "there's a high probability" of a nuclear attack on America, and he accused Obama of being "more concerned about reading the rights to an Al Qaeda terrorist than they are with protecting the United States." In reality, torture made Americans -- both at home and those serving overseas -- less safe. Former FBI special agent Jack Cloonan testified that the Bush-Cheney policies had convinced him that "revenge in the form of a catastrophic attack on the homeland is coming."

CONGRESS -- REPUBLICANS WHO BLOCKED SALARY CAPS NOW OUTRAGED OVER AIG BONUSES: As outrage mounts over the $165 million in executive bonuses paid to AIG staffers, many Republicans are trying to tap into the wellspring of public anger. Senate Minority Leader Mitch McConnell (R-KY) condemned the "outrageous situation" and boasted that he had been "complaining about the way AIG had been doing its business" since October. Sen. Richard Shelby (R-AL) agreed: "A lot of these people should be fired, not awarded bonuses. This is horrible. It’s outrageous." However, when Congress debated capping the salaries and bonuses for Wall Street executives whose firms accepted federal TARP funds, these same Republican leaders balked. "I really don't want the government to take over these businesses and start telling them everything about what they can do," McConnell said. "It should be up to the board of directors of a private corporation to set the compensation of an executive; it shouldn’t be Congress's role," Shelby agreed. McConnell's past opposition to capping Wall St. compensation didn't stop him from going on CNN and suggesting that he had favored such caps all along. When CNN's Wolf Blitzer asked whether Congress should "have passed salary caps on these bailed out companies," McConnell replied, "We certainly had a chance with the amendment by Senator Snowe to prevent this kind of bonuses from being paid."

THE BAD:
-- Through last Tuesday, 4,260 U.S. servicemen and women and hundreds more from coalition countries have been killed in Iraq since the war began. Tens of thousands have been physically and mentally wounded. In fact, suicides among Iraq and Afghanistan war veterans "may exceed the combat death toll because of inadequate mental health care."
-- According to Iraq Body Count, nearly 100,000 (maybe more) Iraqi civilians have lost their lives because of the war. Nearly 5 million Iraqis have either been internally displaced or left the country.
-- A U.N. report released last month found that more than 25 percent of Iraq's young men are out of work, "a situation that is likely to worsen and threatens the country's long-term stability. ... Overall, the country's unemployment rate is 18%, but an additional 10% of the labor force is employed part time and wanting to work more."
-- A study released last month found that "Iraq accounts for 1,067 suicide attacks" anywhere since 1981, "a number that accounts for more than half (54.8%) of all suicide attacks" since that time.
-- The situation in Afghanistan continues to deteriorate as precious American and allied resources are still being used in Iraq.

MEDIA -- FOX NEWS' VAN SUSTEREN'S HUSBAND IS A 'PROTECTOR OF THE PALIN BRAND': During the presidential campaign, Fox News's Greta Van Susteren had perhaps the best access to Alaska Gov. Sarah Palin (R) of any journalist. In September, she hosted a one-hour "documentary" on the GOP vice presidential candidate, titled "Governor Sarah Palin -- An American Woman." She also scored an exclusive interview with Todd Palin, in which she grilled him "on everything from the story behind the name 'First Dude' to how he feels about the name 'First Dude.'" Palin even chose Van Susteren for her first post-election national television interview. Since then, Van Susteren has consistently covered Palin, keeping an eye out for any potential slights of the governor and gushing over her popularity. On Monday, the Washington Post's Chris Cillizza revealed one of the reasons that Van Susteren may have so much interest in and access to Palin: it turns out that her husband, John Coale, is one of "the figures charged with guiding Palin's political image in Washington." In an interview with Cillizza, Coale "acknowledged that he suggested" Palin "start a leadership PAC and helped her navigate through some of the questions surrounding her family that lingered after the campaign." "Others familiar with Palin's political team insist that Coale has far more power than he is letting on -- essentially helping run Sarah PAC," reported Cillizza. According to a Nexis search, starting on the day that Sarah PAC was announced, Van Susteren has never disclosed her husband’s behind-the-scenes role on air. Ironically, just last week, Van Susteren decried people thinking she's "so close to the Palin family." "The only way that I've met them is by interviewing them," she said, never mentioning her husband's relationship to Palin.

Think Fast

In their much-anticipated face-off, The Daily Show host Jon Stewart told CNBC's Jim Cramer, "I understand that you want to make finance entertaining, but it's not a f**king game." Lobbing a series of tough questions at Cramer, Stewart got increasingly upset over CNBC’s complicity in sheltering a financial industry built on lies and deceit. "Who are you responsible to? The people with the 401(k)'s or the guys on Wall Street?" Stewart asked. (Watch the videos here, here, and here.)

The Federal Reserve said yesterday that the "wealth of American families plunged nearly 18% in 2008," a loss totaling $11 trillion. The bust follows an "extraordinary boom" that saw "household wealth more than [double] from 1990 to 2000, and then, after a pause, [rise] nearly 50% before the bust of 2008."

Democratic lawmakers in Texas have "vowed to try to overturn" Gov. Rick Perry's (R) decision to turn down $555 million or expanded unemployment benefits from the federal stimulus package. State senator Wendy Davis (D) said, "After declaring his unconscionable decision today...Gov. Perry will be resting comfortably tonight in a home paid for by Texas taxpayers."

Yesterday on CNN, former Crossfire co-host Tucker Carlson ripped The Daily Show's Jon Stewart, calling him a "partisan hack" and an operative for the Democratic party who only took on Jim Cramer and CNBC only because they criticized President Obama's budget. "I would like to see somebody have the stones to come out and say, Jon Stewart is kind of a pompous jerk, actually," Carlson added

Though paygo rules have been a rallying cry for fiscally conservative Democrats, the Blue Dogs "are not demanding strict offsets for healthcare reform." Instead, the group has endorsed the Obama administration’s request that healthcare reform legislation be deficit neutral, which gives "a significant boost to the chances of health reform passing the House this year."

According to the office of the New York Attorney General, AIG awarded bonuses to 418 employees last week "and included $33.6 million for 52 people who have left the failed insurance conglomerate." AIG paid the bonuses, "including more than $1 million each to 73 people, to almost all of the employees...responsible for creating the exotic derivatives that caused AIG’s near collapse."

A group of eight centrist Senate Democrats "is quietly maneuvering to keep open the option of vetoing two of President Barack Obama’s most ambitious agenda items this year -- climate change and health care reform." The group, which includes Sens. Mary Landrieu (D-LA) and Blanche Lincoln (D-AK), are seeking to kill efforts to pass climate and health care legislation through a budget reconciliation, which requires only 51 votes.

Mrs. Kucinich dances with the stars. Sen. John McCain (R-AZ) may have nixed his wife, Cindy’s, appearance on Dancing With The Stars, but Rep. Dennis Kucinich seems to be "a more supportive spouse." His wife, Elizabeth Kucinich, is now appearing as a contestant on "Cleveland's Dancing with the Stars."

President Bush's memoir will tentatively be called "Decision Points" and is scheduled for a 2010 release by Crown. "Bush will concentrate on about a dozen personal and presidential choices, from giving up drinking to picking Dick Cheney as his vice president to sending troops to Iraq." He will also write about "his religious faith and his highly criticized response to Hurricane Katrina."

Yesterday, Obama directed the Department of Veterans Affairs (VA) to drop a proposal to bill private insurance companies for the treatment that Veterans receive at VA hospitals for combat-related injuries," Press Secretary Robert Gibbs said in a statement. The measure was under consideration because it would have saved the VA approximately $530 million per year

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INTERESTING

OFF TO THE RACES

Traffic On The Road To Recovery, By Charlie Cook

Here are two good, but somewhat contradictory questions for consideration at the tables in the Longworth Cafeteria.

First, with the Dow Jones Industrial Average staging something of a comeback in the last week, is it too soon to say that the economy has begun to turn around?

Second, will politically tone-deaf executives at the American International Group make President Obama's efforts to rescue the economy from dropping to apocalyptic depths impossible?

Acknowledging that this is the worst economic downturn since the Great Depression, with millions out of work or facing the possibility of losing work and others hurting worse financially than at any time in most of our lives, how the economy is doing is critical in determining the outcome of the next midterm elections.

History argues that the party in the White House typically suffers congressional losses in first-term midterm elections on the average of 16 House seats and just short of a wash in the Senate. But in party identification, the relative favorable/unfavorable ratings for the two parties and the generic congressional ballot test, the Republican Party is in awful shape, arguably as bad as since Watergate.

This suggests the GOP is hardly in any shape to capture seats unless the economy puts Democrats in an even worse light.

But in answer to the first question, it is far too soon to say that the economy is turning around. There is still a steady diet of bad economic news, but the change is that it isn't as relentlessly negative as it has been. At least today, there is a mixture of good and bad news, perhaps a sign that a bottoming-out for this downturn might at least be in sight.

While the stock market is far from a perfect economic indicator, it is a measure of how people feel about the economy. If people feel better about things, they buy, and if they feel worse, they sell.

While it was hardly news to any homeowner or anyone with a retirement plan that Americans lost 18 percent of their net worth last year, it was yet another reminder of how horrible things have been.

The last few days, people seem to be clinging to the positive news about the markets, almost willing things to get better. Maybe Norman Vincent Peale's The Power of Positive Thinking will jump up the Amazon book sales list.

The Gallup Organization's tracking polls, three-night moving averages of about 1,000 interviews conducted each night -- with a 2-point error margin -- are showing an uptick in the public mood about the economy.

When they asked adults Friday, Saturday and Sunday whether economic conditions in the country were getting better or worse, 26 percent said better, compared with just 15 percent March 7-9 and the most positive finding since these tracking polls started in January 2008. Sixty-seven percent said worse, down from 78 percent in that period and the lowest in this series.

When asked to rate economic conditions, 9 percent said either "excellent" or "good," up nominally from 6 percent before and, sadly, the best since late January; 58 percent said either "fair" or "poor," down from 63 percent March 7-9 and the lowest in a month. These numbers are hardly sufficient to cause dancing in the streets, but they are better than we've seen and show some potential sign of progress.

One way to look at our economic challenges today is that one part of the problem is psychological, and another part is structural.

On the psychological side, as long as consumers aren't buying, employers aren't hiring and bankers aren't lending, the recession continues.

But when that cycle changes, that will bring us closer to recovery. So to the extent that we see some evidence of progress in terms of the stock market and public attitudes about the economy, that can be very helpful in bringing about a turnaround.

The structural problem, the balance-sheet weaknesses of many financial institutions, is the more obstinate challenge. Many economists suggest that if we can keep major financial institutions afloat, the economy will pull back into a recovery mode next year. But they argue that the failure of key financial institutions could trigger something more like a depression than the current recession.

Basically there are the wheels-on-the-bus and the wheels-coming-off-the-bus scenarios. The former results in a bumpy ride and a probable recovery later this year, and the latter is a horrible economy continuing long after 2009 is history.

That's where the bonuses offered by AIG to executives become a problem. If it becomes necessary for the Obama administration to come up with funds to rescue more financial institutions, will these executive compensation snafus make it harder or even impossible to do what it takes to keep us out of a depression?

The danger is that this incident could trigger a wave of populism and public outrage so great as to make further bailouts, necessary ones, politically impossible.

What we have is the equivalent of a drowning swimmer spitting into the face of a rescuer. That's why it is so key for Obama to come down on AIG with hobnailed boots, forcing them to back off

Buy American Mention of the Week, By Roger Simmermaker

None this week

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Roger Simmermaker is the author of How Americans Can Buy American: The Power of Consumer Patriotism and writes "Buy American Mention of the Week" articles for WorldNetDaily.com and his website www.howtobuyamerican.com. Roger is a member of the Machinists Union and National Writers Union, has been a frequent guest on Fox News, CNN, and MSNBC, and has been quoted in the USA Today, Wall Street Journal and Business Week among many other publications.

GOOD NEWS

Nothing this week

VIDEOS

None this week

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