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Perhaps the most fascinating political conundrum of the 2010 election is one faced by GOP senators, almost all of whom voted for TARP and supported some of the other bailouts in the thick of the financial crisis. The good news is that, for all their shortcomings, the bailouts did the trick, preventing a deeper economic crisis. The bad news is those bailouts are now considered political poison by the tea partying conservative base.
That puts Republicans in a strange position: unable to say the legislation failed, but at pains to distance themselves from their vote nonetheless. Over the past couple days, I’ve asked a number of GOP senators whether, nearly two years later, they think the bailout bill was effective. Their answers were revealing.
Sen. Judd Gregg (R-NH), who’s retiring at the end of the year and is therefore unencumbered by the need to defend himself from the GOP base, has nothing to run away from.
“It was extremely effective,” Gregg told me. “Not only was it effective and stabilized the financial industry, it also returned to the taxpayers almost $20 billion in interest and dividends that they would have otherwise not have.”
…Read the Rest…