Modeling Journey

The Bush plan to use $700 billion to staunch the bloodletting of financial institutions from the still falling housing market disaster, has run into problems, with even Republican Senators and Congress representatives balking (no doubt because they have received an earful from their constituents).

Why?

Partly because the Administration has done a terrible job of framing the debate. They have talked of markets, and credit and other things. And people are hurting, and not buying into what Bush’s boys are saying.

Jim Cramer has done a good job of pointing out how they have botched the framing job (Stephane Dion, perhaps you should read this?):

“Memo to Hank Paulson and everyone from the administration who is trying to get this plan passed, as well as Mr. Academic, Ben Bernanke: You are selling this plan all wrong.
Here's what this plan is about: Keeping people in their homes. It is not about "liquidity." Here's what the plan is about: having the loans to send your kids to college, not "a freezing up of the credit markets."

Here's what the plan is about: being able to buy a new car with a car loan. It is not about trying to free up commercial paper.

Here's what the plan is about: making it so when you go to your ATM, there is cash. It is not about making sure banks are made whole from their own mortgage mistakes.

Here's what the plan is about: making it so you will not have to work two jobs to keep your house. It is not about the need to keep Libor down.

Here's what this plan is about: making sure unemployment does not skyrocket to 20% or 30%. It is not about freeing up capital for more overnight repos.

I listen to these tone-deaf proposers of the plan, and they are killing it. They are all about trying to explain how illiquid assets could be valued. They are not about trying to explain how if you ever want to have a shot of retiring ever again within your lifetime, you need to be with the plan.”

http://www.thestreet.com/story/10439182/1/cramer-bailout-sales-pitch-botched.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

Cramer gets it.

Politics is 90% framing; not 10% framing and 90% policy.

Politics is getting your plans agreed to and implemented.

Politics is winning elections.

Hear that, Mr Dion?