Stimulus Package Support's Sinking......

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Jiro

Jiro

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Borger: Where's the White House's tipping point?

# Story Highlights
# Gloria Borger: Revelations about AIG bonuses puts White House in difficult position
# Borger: Cynicism and outrage over banks could transfer to President Obama
# Obama has to make convincing case for rescuing the bad guys, analyst says
# Obama needs track record if he has to go to Congress for more money, she says
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WASHINGTON (CNN) -- When the White House first got wind of the executive bonuses at American International Group, the disbelief was palpable.

"You smack your head and you say 'You've gotta be kidding me,' " senior presidential adviser David Axelrod tells me. "It put another brick on the load we're carrying."

Or a concrete block.

Just as the White House readies its long-awaited plan to bail out the banks -- having presented its plans for housing and small business -- a new wave of anger is precisely what it doesn't need. And to make matters worse, it's a widespread anger that is not grounded in the more ordinary resentments between economic classes.

In fact, this new populism is almost unanimous: The banks were greedy and reckless. They took us down with them. So why do the bad guys deserve a government cushion?

President Obama now has his economic team on the hunt for a way to scale back those egregious bonuses. But the president's problem goes beyond that: He has to make a convincing case for bailing out the bad guys. He has to take the long view -- explaining why it would hurt us to allow the banks to fail.

"People would call it a bailout; I would call it a ransom," the American Enterprise Institute's Vincent Reinhart told CNN. "Because Wall Street is holding the great economy hostage. As long as the financial institutions need funds, they won't make loans ... so what we have to do is pay them to get beyond this."

But it may not be enough to say, "If we don't do this, we will face an economic Armageddon." Why?

"The model in people's heads right now is extortion," Robert Reich, President Clinton's former labor secretary, tells me. "In order to reduce that anxiety and paranoia, the president has to assure the public that the benefit is not going to the bankers." -- that, in the end, it's going to benefit us.

But, given the AIG bonuses, the public might well ask: "Why should we believe you? You lectured Wall Street before the first bailout -- and you told us you were going to hold them accountable."

Reich says, "It makes them [the administration] look clueless. So not only does the administration have to explain exactly why this money is necessary, but also explain what is in place to keep the banks from doing this again."

If that doesn't happen, the cynicism, skepticism, outrage and anger toward the banks will remain -- and could potentially transfer to the White House itself.

In a new CNN /Opinion Research Corp. poll, Obama remains very popular (64 percent approval rating), but most of the public said it disapproves of how he is handling the banks (by 52 percent to 47 percent). iReport.com: 'Who runs U.S.: AIG or Obama?'

"At some tipping point in the future," warns Reich, "the administration could be seen as part of the problem."

That's the last thing the White House wants -- or needs. "We need the financial community to understand that the days of Gordon Gekko are over," presidential adviser Axelrod says, referring to Michael Douglas' greedy tycoon in the 1987 movie "Wall Street."

How? "We need transparency and accountability and regulatory reform. ... And we have always said that. It's frustrating to be in this position."

You bet it is. Particularly as the world literally awaits the banking bailout. And if Obama needs to go to Congress again for more money, he needs to have a track record. iReport.com: Share your AIG reaction

"We have to establish a level of credibility on this issue," Axelrod says. "People are outraged, and they have a reason to be."

Sure, the president needs to feel our pain and anxiety. The trick is to avoid becoming a new outlet for it.
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:hmm:
 
Support for stimulus plan slips, poll finds
# Story Highlights
# Poll: Support for $787 billion stimulus package drops 6 percentage points in month
# Americans have almost no support for more taxpayer money for banks, poll indicates
# Two-thirds of those polled say they back President Obama's overall economic plan
# Support wanes for aid to homeowners in danger of foreclosure, according to poll
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WASHINGTON (CNN) -- A new national poll indicates that support for the stimulus plan that passed Congress last month is dropping and suggests that there is no appetite among Americans for another spending bill.

But the CNN/Opinion Research Corp. survey released Tuesday finds that most Americans favor President Obama's overall economic proposals.

Sixty-five percent of those questioned in the poll said they support Obama's economic plan, with 34 percent opposed. But support for the $787 billion stimulus package, which aims to pump up the economy and create jobs by increasing federal spending and cutting taxes, now stands at 54 percent. That's a drop of 6 percentage points from last month.

Americans appear to be split on whether the stimulus will improve the economy significantly, and two-thirds of those polled said they're opposed to a second stimulus if the first one doesn't boost economic conditions.

"Spending government money is growing less and less popular as time goes on, but it comes as no surprise that Democrats and Republicans have different views on that matter," said Keating Holland, CNN's polling director. "Democrats still favor the stimulus bill, and Republicans continue to oppose it. Independents are now evenly divided -- 48 percent favor it and 50 percent oppose."

The poll also indicates almost no support for another round of taxpayer money to help out banks in trouble. Roughly four in 10 would prefer to see the federal government completely take over some banks, and another four in 10 favor letting the banks fail if they are in dire straits.

"Support for all the spending programs is down for two reasons," said Bill Schneider, a CNN senior political analyst. "One, the total money the Obama administration wants to spend has grown to mind-boggling amounts. No. 2, every day people hear stories about how the government bailout money is being wasted or misused."

Holland added, "Obama gets his lowest marks on how he is handling the problems banks and other financial institutions are facing. Our poll was taken before the latest firestorm over AIG bonuses, but even before that became a major issue, a majority said they disapproved of how Obama has reacted to the financial crisis."

Some conservative governors are pushing back against accepting portions of the federal stimulus dollars headed to their states. Some of these governors said the stimulus may only make matters worse.

The poll indicates that Americans are split on the issue, with 47 percent saying those governors are acting appropriately and 52 percent feeling those governors are acting inappropriately.

Support also is down for assistance to homeowners in danger of foreclosure, from 63 percent in February to 56 percent now.

"People see helping distressed homeowners as helping people who got in trouble," Schneider said. "That's very different from bailing out institutions like banks and auto companies because of reckless behavior. The number is down, but it's still a majority."

Eight in 10 people questioned also oppose any assistance for countries whose economies are in danger of collapsing.

The CNN/Opinion Research poll was conducted Thursday through Sunday, with 1,019 adult Americans questioned by telephone. The survey's sampling error is plus or minus 3 percentage points.
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oh well....
 
On one front, he did say, yesterday, that he's gonna try to block AIG from handing out some 165 millon bucks to its executives after taking some billions in federal bail out money. He calls it "selfishness and greed". Let's hope he and his supporters in Dee Cee succeed at this because if they don't, how would they be able to muster up the nerve for some more bail out money in the future?
 
World is full of greedy.

I wouldn't let to send my taxes to AIG and let AIG goes to bankruptcy.
 
Either Obama is an accomplished liar or he isn't the smartest President ever.

He states he is overseeing and in constant contact with his man Geitner. Geitner set this stuff up. AIG must honor it's obligations to employees and contracts, which may include these bonuses.

One of the bigger points should be how much of this stimulus money has been stimulating foreign banks and enterprises instead of working here in America.
 
ASLGAL said:
Either Obama is an accomplished liar or he isn't the smartest President ever.

He states he is overseeing and in constant contact with his man Geitner. Geitner set this stuff up. AIG must honor it's obligations to employees and contracts, which may include these bonuses.

One of the bigger points should be how much of this stimulus money has been stimulating foreign banks and enterprises instead of working here in America.
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We don't have to honor the AIG's contracts in regards to the bonuses. It was mentioned on the news that the government is going to either withdrawl the money from AIG, tax heavily on those that received the bonuses, and/or draft legislation to make sure that none of the stimulus money goes out for bonuses.

The sad thing is that the former CEO's of AIG are suing the company for loss of value in their stocks in the company.

They are suing us -the taxpayers since we own AIG! *smh*
 
True, we don't have to Byrdie but AIG does.

What a mess all this non-stimulus stuff is, Makes me cringe.
 
I would wonders that who gave federal funds to AIG in several month ago?
 
ASLGAL said:
True, we don't have to Byrdie but AIG does.

What a mess all this non-stimulus stuff is, Makes me cringe.
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Personally I think we should withdraw all of our money from AIG and let them go under.

Sometimes companies have to go under in order to re-invent themselves.
 
Personally I think we should withdraw all of our money from AIG and let them go under.

Sometimes companies have to go under in order to re-invent themselves.
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I agree for all companies being bailed out.
 
I was pissed off like a bug with a vibrating alarm when I saw the news a while ago about the bonuses to the excutives. Obama said he would cap them if they earn more than 100000 a year. Geez, people out there are so corrupt and greedy.
 
On yet another front, I see where GM has declined 2 billion of this stimulus money.....
 
Have you answer my question at #8?
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Sorry, I did not realize it was a question for me.

I have been against this from the start, whether under the Bush Administration or Obama Administration.
President Bush was just as wrong about this then as President Obama is now.
 
Byrdie714 said:
Personally I think we should withdraw all of our money from AIG and let them go under.

Sometimes companies have to go under in order to re-invent themselves.
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I couldn't agree more, Byrdie.
 
Hear Again said:
Babyblue,

I don't understand your post. <confused>
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in the picture,

Uncle sam took out of his pocket wallet along with cashes with his frown face, handing over to the robber who holds a gun pointing at the uncle sam. The robber's sweat shirt displayed " AIG". The robber said "...Now my bonus."
 
Frisky Feline said:
in the picture,

Uncle sam took out of his pocket wallet along with cashes with his frown face, handing over to the robber who holds a gun pointing at the uncle sam. The robber's sweat shirt displayed " AIG". The robber said "...Now my bonus."
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:ty: Frisky.
 
Byrdie714 said:
Personally I think we should withdraw all of our money from AIG and let them go under.

Sometimes companies have to go under in order to re-invent themselves.
Click to expand...

I agree with u...
 
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