Talking the talk often Depends on defining situations in a way that is advantageous to you. Obama specializes in this.
Take the first part of the debate in which the economic situation was the topic. The financial crisis in which we find ourselves has been successfully defined by Obama as a problem of unregulated capitalism. This framing of the issue has allowed him to make the argument that deregulation is the true culprit, that Republicans like McCain, by reducing government involvement in the economy, allowed corporate greed to run amok.
What does framing of the issue fails to explain is why, if corporate greed is at the root of the problem, is the problem centered on mortgage backed securities? Are the Wall Street bankers that issue corporate bonds or car loans any less rapacious than those involved in the housing market? What makes the housing market different is the presence, not the absence of government. it was government backing for Fannie Mae and Freddie Mac that allow these entities to grow so large and to make risky loans that greedy capitalists playing with their own money would never have made. Rashness on such a scale is never long tolerated by the market unless the government stands behind it.
I was the Democrats who are the prime, and proud, movers. Fannie and Freddie were their babies. The Democrats gave them the implicit governmental guarantee and the mandate to extend credit to otherwise on credit worthy borrowers that lie at the heart of this crisis. The boards of Fannie and Freddie were populated by Democratic pols. Their campaign contributions directed primarily at Democratic coffers (Obama was that a second greatest beneficiary -- not bad for a freshman senator). Yet the culprits have managed to define themselves as saviors. John McCain was actually one of the few in Congress who made a serious effort to rein in Fannie and Freddie in. But now, the issue having successfully been defined by Obama as deregulation, McCain is the one hurt politically the crisis.
Take the first part of the debate in which the economic situation was the topic. The financial crisis in which we find ourselves has been successfully defined by Obama as a problem of unregulated capitalism. This framing of the issue has allowed him to make the argument that deregulation is the true culprit, that Republicans like McCain, by reducing government involvement in the economy, allowed corporate greed to run amok.
What does framing of the issue fails to explain is why, if corporate greed is at the root of the problem, is the problem centered on mortgage backed securities? Are the Wall Street bankers that issue corporate bonds or car loans any less rapacious than those involved in the housing market? What makes the housing market different is the presence, not the absence of government. it was government backing for Fannie Mae and Freddie Mac that allow these entities to grow so large and to make risky loans that greedy capitalists playing with their own money would never have made. Rashness on such a scale is never long tolerated by the market unless the government stands behind it.
I was the Democrats who are the prime, and proud, movers. Fannie and Freddie were their babies. The Democrats gave them the implicit governmental guarantee and the mandate to extend credit to otherwise on credit worthy borrowers that lie at the heart of this crisis. The boards of Fannie and Freddie were populated by Democratic pols. Their campaign contributions directed primarily at Democratic coffers (Obama was that a second greatest beneficiary -- not bad for a freshman senator). Yet the culprits have managed to define themselves as saviors. John McCain was actually one of the few in Congress who made a serious effort to rein in Fannie and Freddie in. But now, the issue having successfully been defined by Obama as deregulation, McCain is the one hurt politically the crisis.
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