Wednesday, June 08, 2011

FannieGate: Weapon of mass Democrat destruction?

Walter Russell Mead  reviews  a fascinating new book about the Fannie Freddie disaster.  He argues that regardless of the details, the narrative of reckless Clinton/Kerry/Obama cronies milking billions from these companies just as they collapsed and blew up the housing market is an immense, potentially existential threat to the Democrat coalition.

The story builds GOP unity even as it divides the Democrats, allowing GOP populists and establishment figures to find some common ground.  For one thing, it builds the idea that Wall Street is a liberal Democratic institution rather than a conservative Republican one.  In fact, Wall Street is in love with power and cuts deals with whoever can make them, but for years Democrats have prospered by making running on Franklin D. Roosevelt’s platform against ‘the malefactors of great wealth’.  There are many powerful Wall Street figures who are closely linked to the Democrats, however, and the James Johnson story puts a face on that alliance.  Socially and culturally, most of Wall Street stands closer to the Democratic establishment than to the Republican Party these days; linking the Democrats to Wall Street, teacher unions and race hustlers is an easy and compelling way to push the Democrats closer to the cliff even as it allows GOP candidates to lace their speeches with populist anti-Wall Street rhetoric without embracing anti-business policy.
The question is really whether the establishment press retains a sufficient residual of its rapidly fading clout to keep a lid on this one.

Must read internet, gang.

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