Progressive Breakfast: Bernanke II

The daily Progressive Breakfast serves up what progressive movement members need to know to start their day.

Bernanke Re-Appointed to Head Fed

Baseline Scenario's Simon Johnson asks "Which Bernanke Are We Getting?" "1. The Bernanke who led the charge to rescue the US (and world’s) financial system after the Lehman-AIG collapse. If you accept that the choice from late September was 'Collapse or Rescue,' this Bernanke did a great job. 2. The Bernanke who argued for keeping interest rates low as the housing bubble developed. This Bernanke was part of the Greenspan Illusion – the Fed should ignore bubbles and 'just clean up afterwards.' Is that still Bernanke’s view? Surely, he has learned from that experience. 3. Then there is Bernanke-the-reformer. Given #1 and #2 above, shouldn’t he be pushing hard for tough re-regulation of the financial system – particularly those dodgy parts where markets meet banking? But is there any sign of such an agenda, even with regard to recently trampled consumers – let alone 'too big to fail' financial institutions? Most likely, we’re in for another bubble."

Brad DeLong approves: "I think Bernanke is one of the best in the world for this job--I cannot think of anyone clearly better. He has made only one big mistake--buckling under to pressure from all those yelling at him for enabling moral hazard and not finding a way to takeover Lehman Brothers, and he is not going to make the same mistake again."

Dean Baker remains concerned about Fed secrecy: "Bernanke has refused to make any information public about who has received loans under the various spending lending facilities created by the Fed over the last two years, or under what terms. This is the topic of a lawsuit by Bloomberg, which the Fed lost yesterday in district court. This secrecy has also been a big factor motivating most members of the House to sponsor a bill calling for a GAO audit of the Fed."

The Stash's Noam Scheiber credits Bernanke for averting Depression, forgives past mistakes: "Bernanke has been creative, even highly unorthodox, at precisely the moment when the economy demanded these qualities from the Fed, and when a conservative, by-the-book approach would have likely sent us into a depression. True, Bernanke's Fed didn't exactly distinguish itself on the regulatory side, particularly the consumer regulatory side, during the boom years--the Fed is by statute one of the nation's top consumer financial regulators. But that was the status quo Bernanke inherited from Alan Greenspan in 2006. And there wasn't exactly a ton of time between then and the onset of the financial crisis in 2007 to reorient the institution. (Which isn't to say Bernanke would have if he'd had more time, but still...)"

Conservatives Learn To Stop Worrying And Love Single-Payer Healthcare for Seniors

WSJ on new Republican Party attempt to turn seniors against health care reform: "The Republican Party issued a new salvo in the health debate Monday with a "seniors' health care bill of rights" that opposed any moves to trim Medicare spending ... the Republican National Committee manifesto marks a remarkable turnaround for a party that had once fought to trim the health program for the elderly and disabled, which last year cost taxpayers over $330 billion."

The Atlantic's Chris Good on AARP reaction: "... the AARP ... thanked and agreed with Steele on the points of his Bill of Rights--such as no cutting of Medicare and no dictating the terms of end-of-life care--and said the proposals from President Obama don't threaten to do any of the things Steele suggests seniors should be worried about."

Ezra Klein notes the 180 degree turn: "There's no real secret behind Michael Steele's sudden adoration of Medicare: Seniors are the age group most solidly opposed to health-care reform, they vote in particularly large numbers in midterm elections, and they are uniquely active on the local level. Still, what we're seeing here is the GOP swearing that they will protect, defend and preserve a single-payer health-care system. And this comes after months spent fighting a 'government takeover' of health care."

Major Grassroots Actions Planned

Politico on efforts by OFA and HCAN: "Reform supporters are planning to hold more than 500 events between Wednesday and when lawmakers return to Washington Sept. 8, ranging from neighborhood organized phone banks to professionally staffed rallies with hundreds of people. The Democratic National Committee and its grassroots arm, Organizing for America, are helping to organize the effort along with the Health Care for America Now...

HCAN Event Central is where you can find events near you.

Send a band-aid to Congress proposes Glynn Wilcox.

Reformers in Congress Dig In

The Hill reports recognition is growing that a effective bipartisan bill is not possible: "A leading House Democrat on Monday said Democrats are prepared to pass healthcare reform without Republican support, echoing comments made over the weekend by a leading Senate Democrat. 'I think that at some point everyone’s going to see that the Republicans simply are not going to agree to any kind of healthcare reform that the insurance industry isn’t supporting and that, reluctantly, we’re going to have to do it without them,' said Rep. Jan Schakowsky (D-Ill.)."

The Plum Line reports Sen. Schumer is encouraging fellow Dems to talk down prospects for bipartisanship: "Senator Chuck Schumer is privately urging fellow Dem Senators to aggressively argue in the media that the GOP is wholly committed to blocking reform, in order to lay the political groundwork should Dems have to do reform alone, senior Senate aides confirm to me."

House Progressive Caucus Chair writes in USA Today "Let's call it like it is. Most of what the Republicans want in the health care reform bill represents a victory for well-financed, private-interest greed. It's a gift to corporations, not consumers."

FireDogLake reports on fight between Blue Dog Dem Jim Cooper and Daily Kos poll: "My my my. After Markos published poll results indicating Jim Cooper had a 16% approval rating on his handling of health care from Democrats in his district and was ripe for a primary challenge, Cooper isn't too happy ... Cooper has said he'd vote no on H.R. 3200, which is the only bill out there with an even remotely viable public option."

Progressives Return Fire Against Climate Bill Attacks

Ads to run against House opponents to climate bill, to influence Senate. Politico: "Four independent groups are launching more than $1 million in attack ads Tuesday targeting five House Republicans who voted against energy legislation in June, spokespeople for the groups said. The ads from the League of Conservation Voters, the Sierra Club, MoveOn and Americans United for Change, will target Reps. Thaddeus McCotter (R-Mich.), Denny Rehberg (R- Mont.), Roy Blunt (R- Mo.) and two Virginia Republicans, Frank Wolf and House Minority Whip Eric Cantor ... [LCV] will also be taking out print ads attacking two House Democrats who voted against the cap-and-trade legislation, Rep. Jason Altmire (D-Penn.) and Rep. Ann Kirkpatrick (D-Ariz.) ... Though the ads nominally target members of the House, the real audience may be their Senate colleagues. The four states targeted – Michigan, Montana, Missouri, and Virginia – include Democrats sensitive to industrial and mining companies that bitterly oppose the bill."

Wonk Room's Brad Johnson reviews efforts in Senate to strengthen House climate bill in regards to emission limits, green jobs, renewable standards and more.

Breakfast Sides

Transportation Dept. extends deadline for car dealers to submit cash-for-clunker claims.

CQ reports Sen. Sanders looking to increase Soc Sec payments this year: "Because of the severe economic recession, Social Security trustees have already projected that there will be no cost of living increase, which is tied to an inflation index, for 2010 and 2011. For many recipients, the lack of an adjustment will mean that their monthly checks will actually go down because Medicare prescription drug payments deducted from Social Security are scheduled to increase next year. 'Faced with these realities, it would simply be unacceptable for seniors on fixed incomes to not receive additional income in the coming year, something that hasn’t happened in over three decades,' Sanders said in a statement. 'As soon as Congress gets back in session, I will be introducing emergency legislation that will provide seniors with financial support during this coming year.'"

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