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The real thing holding up the deal on the “bail out” is a lack of guts by Nancy Pelosi. She will not bring any bill to the floor unless it has at least 100 Republican’s in the house supporting it. She knows the bail out is unpopular and does not want the Democrats to be blamed for it.

According to Marc Ambinder at the Atlantic. John McCain tried to act as the “Peacemaker in the meeting”

“McCain has not attacked the Paulson deal,” said a third Republican who was briefed by McCain directly. “Unlike the [Democrats] in the [White House] meeting, he didn’t raise his voice or cause a ruckus. He is urging all sides to come together.”Republicans like John Boehner brought up the concerns of House GOPers and McCain acknowledged hearing about their concerns. And McCain, and staffers, did seek to gauge the level of support of the GOP working group’s white paper. The Democrats were left with the impression that McCain endorsed the GOP efforts, but they concede that he did not raise them directly. The fact is that Boehner doesn’t have 100 votes from his conference — 100 votes that Nancy Pelosi really wants. And that’s not McCain’s fault.

Dick Morris says that a deal will be made and when it does it will be a MAJOR victory for John McCain

By DICK MORRIS & EILEEN MCGANN
McCain has transformed a minority in both houses of Congress and a losing position in the polls into the key role in the bailout package, the main man around whom the final package will take shape. He arrived in Washington to find the Democrats working with the Bush Administration to pass an unpopular $700 billion bailout. The Democrats had already cut their deal with Bush. The Dems agreed to the price tag while Bush agreed to special aid to families facing foreclosure, equity for the taxpayers, and limits on executive compensation. But no sooner had McCain arrived than he derailed the deal.
Knowing how unpopular the bailout is with the American people, the Democrats are not about to pass anything without broad Republican support even though their majorities permit them to act alone. Instead of signing on with the Democratic/Bush package, the House Republicans are insisting on replacing the purchase of corporate debt with loans to companies and insurance paid for by the companies, not by the taxpayers. That, of course, is a popular position. McCain would be comfortable to debate this issue division all day. And, if the Dems don’t cave into the Republican position, that’s probably exactly what he’ll do on Friday night’s scheduled debate in Mississippi.
But the Democrats are not about to be stubborn. They know their package is a lemon and need the political cover of Republican support. So the Republicans can write their own ticket…and they will. John McCain will be at the center of the emerging compromise while Obama is out on the campaign trail kissing babies. If the deal is cut before Friday’s debate, my bet is that McCain shows up in triumph. If it isn’t, he shows up anyway and flagellates Obama over the differences between the Democratic package and McCain’s.
By Monday, at the latest, the Democrats have to cave in and pass the Republican version. They don’t dare pass their own without GOP support, so they will have to cave in to the Republican version.
Then McCain comes out of the process as the hero who made it happen when the president couldn’t and Obama wouldn’t. He becomes the bailout expert.
And, of course, the bailout will work. With the feds standing behind the bad debt, whether by purchase or loans and insurance, Wall Street will breathe a sigh of relief. Bears won’t dare bet against the economy with the entire weight of the federal government on the other side. They may be bears but they are not rabid.
Finally, McCain, as the reigning expert on bailouts, then can take the tax issue to Obama, saying that a tax increase, such as the Democrat is pushing, would destroy the bailout, ruin the economy, and trigger a collapse.
This bold move by McCain is about to work. Big time.

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