Administration Official: Bailout Likely, McCain Lost PR Battle

[LakeShow]

Administration Official: Bailout Likely, McCain Lost PR Battle


Concerned that the public relations battle had turned against their favor, John McCain and the group of conservatives who opposed the outlines of the compromise financial bailout package will likely back away from their recalcitrance, an official close to the Administration tells the Huffington Post.

The Republican source, with direct knowledge of the negotiations, said that GOPers and McCain were "scared about the press perception" that they were at fault for "blowing the thing up." The takeover of Washington Mutual on Thursday combined with the continued downturn in the futures and credit markets "also scared them," to the point that a bailout deal seemed within the realm of possibility "over the weekend."

The official's tone - more optimistic than that of key figures just last night - signals an end may be in sight on a bailout negotiations. McCain has generally avoided taking a stance on the set of compromise principles agreed to by the administration, Democrats and many Republicans in Congress. But talks stalled during a White House meeting last night, in large part, sources say, because of a power struggle within the House Republican caucus.

McCain had left the campaign trail mid-week with a promise to force a consensus. But it seems, at this point, that he will have done relatively little during the negotiations - save for possibly killing the earlier arrangement and providing an opening for the opposition.

"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," House Republican Whip Roy Blunt told Andrea Mitc on MSNBC. "Clearly, yesterday, his position in that discussion yesterday [at the White House] was one that stopped a deal from finalizing that no House Republican, in my view, would've been for."

According to one Democratic aide familiar with the negotiations, House GOP leadership was hoping to save face with more conservative members on Friday by forcing consideration (at the very least) of some of the alternative proposals - primarily, having the government sell insurance to companies that buy mortgage-backed securities. The leadership would then turn around and praise McCain for greasing the wheels on this front. But the course is problematic. McCain has left town. And during the White House meeting on Thursday night, Barack Obama reportedly brought up discussion of the conservative counterproposal only to have Treasury Secretary Hank Paulson declare it wouldn't work.

[Aggie Hoopsfan]

Concerned that the public relations battle had turned against their favor, John McCain and the group of conservatives who opposed the outlines of the compromise financial bailout package will likely back away from their recalcitrance, an official close to the Administration tells the Huffington Post.

They better get the Boehner on the phone, he was just on my TV five minutes ago saying this thing wasn't over.

[Yonivore]

Ah, Huffington Post.

Well Powerline Blog (one of the places from which I steal stuff) got an e-mail from Blunt

I linked below to an article by Morris (I linked again just in case you can't stomach going to a conservative blog to read it yourself. To be honest though, one of the three on Powerline is a moderate leaning liberal -Y.) which argues that John McCain will reap great benefit from being seen as the broker of a better deal when the Democrats cave in to the House Republicans on the terms of the bailout or whatever it turns out to be. I was skeptical, in part because I hadn't seen any indication that McCain has aligned himself with the House Republicans' position.

In rapid succession, though, I got an email from Republican Whip Roy Blunt, the Republicans' lead negotiator, that included this exchange from an interview:

Yellin: Well, Secretary Paulson and the Democrats could reach an agreement and they can reach without you being there in the room at all.
Blunt: I think we need to be together on this and work together on this, but it means more than take it or leave it. We have been down the take it or leave it road, and you know, until John McCain came back to Washington this week, the House Republicans were very much on the leave it side of it and we were arguing for more insurance or loans and protections, but everyone else is rushing for a deal and frankly John McCain came back and said, the House Republicans have the taxpayers in mind and I am with them.

And an email from Congressman John Shadegg:

For the first time since the potential crisis confronting our nation’s banking system arose, I am cautiously optimistic. The proposal initially offered by Secretary Paulson was irresponsible and woefully lacking in safeguards for American taxpayers. Thanks to intervention by Senator McCain, both the White House and Congressional Democrats appear to be moving toward a more responsible rescue plan.

So maybe McCain is better positioned to deserve credit for improvements in the legislation than, to my knowledge, has been reported publicly.

PAUL adds: Note John's careful wording of his last sentence, particularly his use of "deserve," as opposed to "receive." Whatever credit McCain may end up deserving, he will receive considerably less (if any) in the reporting of the MSM.

Apparently not everything is being reported.

[ChumpDumper]

McCain didn't say anything.

Hasn't said anything.

He's hoping to take credit for anything that happens.

[whottt]

McCain didn't say anything.

Hasn't said anything.

He's hoping to take credit for anything that happens.

I don't think that was the motivation behind this at all...I think this was entirely about denying Obama time to cram.

[ploto]

So some Republicans wrote some stuff trying to give credit to John McCain- big news! I am sure they have no bias in attempting to make him look better in this PR mess he created.

The Democrats proposed safeguards long before McCain ever got there.

[ploto]

I don't think that was the motivation behind this at all...I think this was entirely about denying Obama time to cram.

He does not need to cram. You must have him confused with Sarah Palin.

[ChumpDumper]

I don't think that was the motivation behind this at all...I think this was entirely about denying Obama time to cram.

So it was all a political stunt.

Ok.

[JohnnyMarzetti]

Damn right it was nothing but a political stunt and a pathetic one at that.

[whottt]

So it was all a political stunt.

Ok.

Yes, if only McCain was more like Obama and didn't attempt political stunts.

[ChumpDumper]

Yes, if only McCain was more like Obama and didn't attempt political stunts.

Like what?

Anything involving declaring a national emergency then putting it off for a day?

[whottt]

Obviously Obama didn't feel it was a National Emergency or he wouldn't have to have been forced to participate.

[ChumpDumper]

Obviously Obama didn't feel it was a National Emergency or he wouldn't have to have been forced to participate.

But it's not that much of an emergency according to McCain, because he showed up late and left early --

-- after he said it was a national emergency and that he wouldn't leave until it was resolved.

[whottt]

It's different when Obama does it

[ChumpDumper]

I couldn't think of an equivalent example.

And I can't believe Palin looks like such an idiot now.

[whottt]

McCain bad Obama good!

[whottt]

Plus, I'm sexist

[ChumpDumper]

McCain good.

Obama bad.

[ChumpDumper]

Plus, I fell for Palin because I like the way she looks.

[whottt]

:yawn

[ChumpDumper]

Indeed, where is that example of Obama's national emercency political stunt?

[whottt]

By all appearances Obama wouldn't know a National Emergency if he had one stuck up his ass.

[ChumpDumper]

So you're admitting you can't come up with an equivalent stunt from Obama.

Ok.

[whottt]

What I'm saying is that for Obama to pull a stunt during a National Emergency he'd first actually have to know what one was.

Meanwhile...thank god W was there to let him know

[ChumpDumper]

What I'm saying is that for Obama to pull a stunt during a National Emergency he'd first actually have to know what one was.

Meanwhile...thank god W was there to let him know

Which means he has not pulled a political stunt equivalent to McCain's.

Thanks.