From the outset, let me be clear about where I'm coming from.
I was among those who, after Monday's vote, argued there might be a golden opportunity for a progressive alternative. Such an opportunity arose under similar circumstances in 1932, and I suggested it might happen again in 2008 with a Wall Street transaction tax.
That didn't happen. The progressive caucus turned its attention to a "no bailouts" alternative that involved no infusion of money, and -- whatever its merits -- it was a non-starter on the Hill, and it was hard to explain to the public (unlike the "make Wall Street pay for Wall Street's bailout" message of the transaction tax).
Against that background, here's what Obama did: (1) he used his campaign megaphone judiciously to influence the debate and make the final bill better; (2) he did it without making himself the center of attention or grandstanding at the expense of the nation; and (3) he framed the larger debate around the need for tough "rules of the road" and a requirement that Wall Street pay its fair share, including a Wall Street tax if the rescue funds are not recouped.
From Obama's speech in Wisconsin this morning:
From the moment I take office, my top priority will be to do everything I can to make sure that your tax dollars are protected....
If we do have losses, I’ve proposed a Financial Stability Fee on the financial services industry so Wall Street foots the bill – not the American taxpayer. And as I modernize the financial system to create new rules of the road to prevent another crisis, we will continue this fee to build up a reserve so that if this happens again, it will be the money contributed by banks that’s put at risk.
This will only work if there is real enforcement and real accountability. And that starts with presidential leadership. So let me be very clear: when I am President, financial institutions will do their part and pay their share, and American taxpayers will never again have to put their money on the line to pay for the greed and irresponsibility of Wall Street. That’s a pledge that I’ll make to you today, and it’s one that I’ll keep as President of the United States.
Over the past two weeks, Obama managed to frame the larger debate in these terms without being perceived as a wild partisan.
Just the opposite.
While John McCain was lurching from one position to the next, Barack Obama was a rock.
Steady leadership, with no drama, culminating in his floor statement in the Senate this evening:
I do not think this is going to be easy. It's not going to come without costs. We are all going to need to sacrifice. We're all going to need to pull our weight. Because now, more than ever, we are all in this together....
During the great financial crisis of the last century, in his first fireside chat, F.D.R. told his fellow Americans that, "There is an element in the readjustment of our financial system more important than currency, more important than gold and that is the confidence of the people themselves. Confidence and courage are the essentials of success in carrying out our plan. Let us unite in banishing fear." Today we cannot fail. We cannot fail -- not now, not tomorrow, not next year.
Under fire, on a politically unpopular bill that generated outrage, and despite the resistance of many in his base, Obama did not fail.
He's the leader of the Democratic Party.
He's a Democratic Senator.
And the Democratic Senate just acted decisively to end the confusion that was further undermining confidence and fueling fear in the midst of this Republican economic crisis.
And, lest one think that final point will get lost, Obama made it clear this morning that it won't:
This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years. It’s the result of speculators who gamed the system, regulators who looked the other way, and lobbyists who bought their way into our government. It’s the result of an economic philosophy that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else; a philosophy that views even the most common-sense regulations as unwise and unnecessary. And this crisis is the final verdict on this failed philosophy – a philosophy that we cannot afford to continue.
Sen. Obama has been making this point consistently over the past two weeks, and here's the remarkable thing:
During that time, he has managed to indict the overall Republican economy in the most forceful terms while still helping to foster a bipartisan approach to the acute, short-term crisis in the credit market.
A remarkable combination of political leadership and statesmanship on the eve of the Presidential election.
That's tonight's story.