“Ending a Standoff, Congress on Friday Extended the Payroll Tax Cut.”

How has this happen? Have no idea. But this quick and simple resolution of extending payroll tax cut seems to be a sudden christmas gift from Santa to middle class for two months.  

Huffington Excerpt:”Ending a standoff that left the Republican Party battered and its House leader with tears in his eyes, Congress on Friday extended the payroll tax cut for another two months, sending the package to President Barack Obama’s desk just in time for the holidays. The House passed the measure within a matter of minutes by unanimous consent, which meant only two lawmakers were present for a voice vote. The Senate had already cleared passage of the bill, contingent upon House passage. Both chambers were virtually empty of lawmakers as Friday’s business was largely procedural in manner. Shortly after the bill passed, Obama thanked Congress for “ending the stalemate” and said that while passage of the short-term bill is a victory for the economy, lawmakers still have more work to do…..”Speaker Boehner did not make this mess. I think it was forced upon him. He had to try to clean it up. He’s the front person and he’s here alone,” Cohen told reporters. They always say victory has a thousand allies, defeat is an orphan. And today, he was an orphan.”

“Passage of the two-month deal headed off what was seen as a public relations disaster by many veteran Republicans, including Arizona Sen. John McCain, who said that House Republicans’ opposition to the deal was hurting the party and that Democrats were winning.”

“Everything we do around here doesn’t have to wind up in a fight. … Legislation is the art of compromise.”

http://www.huffingtonpost.com/2011/12/23/payroll-tax-cut-bill-house-congress_n_1167203.html

And behind this sudden settlement of extending the payroll tax cut, there had been the warning of senior republican Sen. McCain to save his party:

Excerpt: “Sen. John McCain said Thursday that Congress’ failure to reach agreement on legislation extending a payroll tax cut for working Americans “hurts the Republican Party.” The GOP’s 2008 presidential nominee said his party made a mistake in voting down the Senate-passed version of a bill that would have kept the current payroll tax relief intact for at least two more months.…he feels badly for 160 million Americans, whom he called “innocent bystanders caught in the crossfire.… McCain also said, “This is really tragic for the American people, and I would say that next November, no incumbent is safe, nor should they be.“

http://news.yahoo.com/mccain-republican-stance-payroll-tax-mistake-122334329.html

Elizabeth Warren Running for Massachusetts Senate.

Is Professor Elizabeth Warren, a long-time advocate of consumer and middle class and Harvard law faculty, running for the Senate seat of Massachusetts? I think it’s a good thing to see people like her, with passion, devotion, and being driven-to good causes, in the race. (Source: http://news.yahoo.com/elizabeth-warren-enters-mass-senate-race-192519562.html)

Have a laugh at a feature of Senate.

Today, I had good laugh at an interesting expression of a Huffpost blog by Chris Weigant. I wish you to read below and have a good laugh on this weekend.

“………The Senate has been debating the Wall Street reform bill all week, and we’ve had some action both ways on competing amendments. The Republicans, as expected, offered a “Let’s water the whole thing down!” amendment, which was soundly defeated (with the help of two Republicans who broke party lines — a good sign for the overall bill). However, a Democratic amendment which had been growing in popularity was also voted down (more on this in a minute). Next week, there may be a big bipartisan vote for an idea which Ron Paul initially pushed in the House — auditing the Federal Reserve’s TARP funds. What exactly did all that “bailout” money go for? Hey, let’s find out! But since the amendment hasn’t come up for a vote yet, we’ll address it (and the tricky question of whether Bernie Sanders is eligible for a MIDOTW award, since he isn’t really a Democrat) next time around.

Senate Majority Leader Harry Reid threatened the Senate with the one thing which truly terrifies Democrats and Republicans alike — the possible loss of some of their vacation time in August. Laugh if you must, but this is the single most effective threat which leadership can use to get Congresscritters (especially those in the Senate) to act, instead of delaying things forever. Reid, by “showing some steel” on this issue early on has now put Republicans on notice — if you do nothing but endlessly delay things, then we are just going to sit right here until you eat your vegetables, young man! So to speak. We’ll see how this all plays out, but Reid deserves at least an Honorable Mention this week, for wielding this very powerful tool exactly how it is supposed to be used………”

Full Text: http: “Friday Talking Points – Bikini Bottom Update”,  //www.huffingtonpost.com/chris-weigant/friday-talking-points-122_b_568661.html

“What should Chris Dodd Do?” – Response to Huffpost’s “Volcker Rule Dead? Lawmakers Say Key Reform To Shrink Banks Is Unlikely To Pass Senate”"

Regarding the remark, “”Chris is retiring so he wants to end his career with an important regulatory reform bill and he wants to make the bill bipartisan,” the staffer said. “He is not going to risk bipartisan support to make the White House happy.”

I believe, Mr Dodd should worry about how not to further anger “The Public” with a toothless financial reform bill, not “the White House.” The White House has been flexible and willing to compromise to certain level to pass bills. Actually, this very attitude of White House being willing to compromise, giving up some important features of health care bill and being too soft to financial sector/big banks, along with others, have been one of major causes of public anger and making them perceive the White House not being tough enough to do the job.

I am not sure the major issue here is supposed to be “bipartisanship,” which nobody believes that it will work, after seeing both parties’ political attitude and “opposition for the sake of opposition for whatever” political strategy. Rather Mr. Dodd should be careful not too much compromise to come up with a toothless financial reform bill, which may end up furthering public anger toward financial reform and disgrace his retirement. Though the effect of Scott Brown’s winning of senate seat will be further devastating on Senate’s functioning.
Read the Article at HuffingtonPost

Finally, the White House is Determined to Break Down the Monopoly Power of “Too Big to Fail” Banks.

Finally, the White House decided to break down the “Too Big to Fail” banks in ways below.

“(1) separating the functions of investment banking from commercial banking (basically, resurrecting the Depression-era Glass-Steagall Act) so investment banks can’t gamble with insured commercial deposits, and

(2) giving regulatory authorities power to limit the size of big banks so they don’t become “too big to fail,” as antitrust laws do with every other capitalist entity”

Source: http://www.huffingtonpost.com/robert-reich/why-obama-is-finally-taki_b_432841.html

I am glad that the White House changed, toughened its stance toward “Too Big To Fail” banks. Otherwise, it could have made serious damage on President’s standing on public view. I don’t think we can find anyone better than Mr. Obama who can exert strong enough influence to fix the chronicle problems that this country faces.

Skipping economics-wise and purely focusing on politics-wise, I bet it’s a tough balancing act for President between maintaining public trust, which was the original source of his power, and not eliminating potential, big financial sources of future campaign from big corporate hands. Losing original, tested, support base and relying on unknown, untested future support base seems to be too big experiment. I wish him to wisely wither the tough political water and stay in right courses to maintain public trust on him.

It is disappointing to read Dr. Reich’s statement below. Is it true that there are few chances to move Congress forward? Why does Senator Chris Dodd want to compromise with Wall Street on various issues before dropping out of politics? Is he planning to become another “SHADOW ELLITE” to earn “MILLION BUCKS”???

“The Senate is in disarray since Chris Dodd, chair of the Banking Committee, announced recently he wouldn’t seek reelection, and is poised to compromise with Wall Street on a number of big issues. Neither chamber has shown any interest whatsoever in resurrecting Glass-Steagall or limiting the size and risk of big banks. In other words, much of the game is over.”

“Is US Senate Dysfunctional?”

Having some form of health care reform is of course better than giving it up completely. Prof. Paul Krugman is right in his NY Times article “A Dangerous Dysfunction” of December 21, 2009. Under the current  Senate rule, there is no way to achieve any meaningful work done in Senate. Definitely, it is necessary to introduce a new rule that requires  simple majority to pass a bill in Senate. On the other hand, it is puzzlesome that Senate Majority leader Harry Reid didn’t opt to use budget reconciliation to pass the health care reform bill “With Public Plan”, instead of securing filibuster-free 60 votes “Without Public Plan,” dropping the core of the health care reform in the negotiation process. He had a choice of keeping “Public Plan” in the final bill if he had been willing to push it hard. Why did he decide not to choose that option?

My Comment on NY Times Opinion “A Dangerous Dysfuction” by Paul Krugmann (12/20/2009).

http://community.nytimes.com/comments/www.nytimes.com/2009/12/21/opinion/21krugman.html?sort=oldest&offset=6

http://www.nytimes.com/2009/12/21/opinion/21krugman.html?src=twt&twt=NytimesKrugman