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Pelosi: A Public Option Is Essential...For the Moment


Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid

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After a meeting with President Obama, Speaker Nancy Pelosi said that she believes a public option will be essential to passing a bill in the House of Representatives...for the time being anyhow.

"I believe that the public option will be essential to our passing a bill in the House of Representatives," Pelosi said. "[President Obama] said, if you have a better idea, put it on the table. So if somebody has a better idea of how to do that, put it on the table. For the moment, however, as far as our house members are concerned, the overwhelming majority of them support a public option."

Pelosi appeared with Senate Majority Leader Harry Reid who said the public option "or something like" a public option will survive the legislative process.

Two things stand out. The first is that this is Pelosi's sounding less resolute about the need for a public option than she was last week when she said "[a] bill without a strong public option will not pass the House."

The second is that Pelosi's explicitly leaving open the possibility that, down the line, support will exist in the House to pass something that falls short of a strong public option. Seems like there may be a bit of wiggle room emerging.

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55 comments

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September 8, 2009 4:14 PM   

I think the big deal is what you can get for the public option. If you can get better subsidies to help people comply with the mandate and a stronger community rating, it's worth the tradeoff.

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September 8, 2009 4:23 PM    in reply to jimbomoron

Sure. More money for Insurance companies. Hell, healthcare is teh only growing sector of the economy these days. Lets reward em!

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September 8, 2009 4:35 PM    in reply to Saladin

So do you want to give up that tax subsidy you get for obtaining health insurance through your employer? That, according to you, is a tax subsidy to insurance companies.

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September 8, 2009 4:41 PM    in reply to jimbomoron

Self employed. I want to take away your subsidy cause I am tired of paying for it. Ain't fair. Also it impedes the mobility of labor, and makes our companies less competitive internationally.

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September 8, 2009 5:46 PM    in reply to jimbomoron

That's disingenuous; tax break doesn't go to the provider of the service. A subsidy does, and so it equates an incentive to increase the price since the higher the price the higher the subsidy.

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September 8, 2009 5:33 PM    in reply to Saladin

As much as I'd like to see a strong public option to contain costs, the number one priority is getting everyone or almost everyone in the system. Many people seem driven more by desire for vengeance against insurers than by concern for people's health.

Cost containment will come later. It has to. Even a robust public option only saves $15B a year.

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September 8, 2009 5:45 PM    in reply to dcdanny

you either work for the insurance industry or against the dems.

There are few worse positions than this. As costs continue to grow, as Obama says they will, with no competition, more and more tax dollars will go to the insurance industry.

Then we'll be talking about how this reform is bankrupting America, and we'll be right back here at this fight. Saying we need a public option, but we'll be Poorer.

and the Dems will be the blame, because they gave up fighting for what was good and right when they controlled both houses and the presidency.

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September 8, 2009 5:49 PM    in reply to dcdanny

For my part, I disagree with that. Not containing costs will adversely affect all Americans. Covering everyone is very, very important. But the country will go broke at the rate healthcare costs are going up. Gov't debt is going to get so big that private debt will no longer be able to compete. This will drive up interest rates and slow or reverse growth. In the meantime, businesses will have cut back on employee health benefits, wages will stagnate, Medicare benefits will be cut...it's a bad cycle that we need to cut off NOW. Waiting to control costs in not an option in my opinion.

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September 8, 2009 6:17 PM    in reply to dcdanny

A billion here and a billion there, eventually you're talking about real money.

The compromise in the works won't contain costs or insure more people. It simply transfers more wealth from those who can't afford it to corporations. It is worse than nothing, so that's what we'll end up with.

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September 8, 2009 5:46 PM    in reply to Saladin

That's disingenuous; tax break doesn't go to the provider of the service. A subsidy does, and so it equates an incentive to increase the price since the higher the price the higher the subsidy.

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September 8, 2009 4:25 PM    in reply to jimbomoron

Subsidies don't achieve any cost containment, which should be the primary goal of any reform effort.

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September 8, 2009 4:33 PM    in reply to Rich in NJ

So preventing medical bankruptcies isn't the top goal?

If cost containment is your goal, let me show you the McCain/DeMint plan, which replaces the employer-based system with a $5,000 subsidy to purchase a $10,000-$20,000 deductible plan. And if you've got a diabetic child, you go to the state-run high risk pool, and still pay $20,000-$35,000/yr. on health care. While I acknowledge the McCain/DeMint plan will control costs, I think there's a more humane way to do this.

Which is why I'm a Democrat.

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September 8, 2009 5:43 PM    in reply to jimbomoron

Subsides alone are a band-aid that won't do much for people that can afford health insurance now, but may not be able to in the future given the current level of medical-related inflation.

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September 8, 2009 4:37 PM    in reply to Rich in NJ

Exactly, Rich in NJ. What exactly is it that insurance companies and providers are being asked to give up in this deal? When the regulations go into effect forbidding them from denying coverage to sick people with pre-existing conditions, those costs are just going to be passed onto the rest of us. Unless there are mechanism in place to drive aggregate costs down,a lot of us are going to be worse off than before.

Is it possible that Washington might eventually wrap their heads around the notion that is is impossible to reduce our nation's health care costs without inflicting pain on some of the golden goose stakeholders in the current, inefficient system?

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September 8, 2009 6:19 PM    in reply to Rich in NJ

The primary goal of reform is insuring more people. The means to that objective may be to contain costs.

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September 8, 2009 8:05 PM    in reply to asdf

No, the primary goal of insurance reform is to keep costs down for individuals (and businesses) that already have it, including those on Medicare, because it will be bankrupting the country over time.. Part of the way to do that is to encourage people who don't have it to buy it, a good portion of which don't need subsidies (e.g., young and feeling invulnerable). The best way to do that is offer a cheap, public option. Subsidies for those that can't afford is a worthwhile endeavor, but it is a secondary policy goal given the additional cost.

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September 8, 2009 4:28 PM    in reply to jimbomoron

Absolutely disagree. Insurance companies need to produce ever greater profits for their shareholders. In addition they need to advertise, lobby Congress, pay for lawyers, etc. They inherently need to charge more per patient to provide care than a government system would.

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September 8, 2009 4:37 PM    in reply to jimbomoron

Health care costs are driven by the cost of delivering health care not by the share that insurance companies take out of the system. That people do not seem to understand that is the biggest disappointment with the debate here.

If that were not the case the share of premium going to actual health care would be ever increasing. Instead it's pretty stable.

If that were not the case then the cost growth in Medicare, would not be so high and inexorable.

Intelligent cost containment cannot come from simply ratcheting down reimbursement rates. If you think insurance companies are powerful wait until everyone's doctor gets in on the act. Intelligent cost control comes from making the health care delivery sector--doctors and hospital--much more efficient. Think of it as making GM work like Toyota.

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September 8, 2009 5:33 PM    in reply to Economides

Right. I always enjoy your comments - even if you do get grief for trying to introduce reality in to the debate. If we don't drive down the actual cost of overall healthcare, we have solved nothing. More and more companies will ditch employee healthcare. Wages will continue to stagnate. And the defecit will continue to explode as Medicare eats up more and more of the budget.

Yes, universal coverage is very, very important. Eliminating medical bankruptcies is very, very important. But the reality is that those things are small potatoes compared to skyrocketing costs that affect EVERYONE.

Medicare is single payer. Everyone could be on Medicare tomorrow and it still wouldn't change the fact that Medicare patients spend twice as much in El Paso, TX as they do in Seattle, WA.

There has got to be a way to force insurance companies to actually regulate delivery costs rather than just passing the cost on to the consumer. If they couldn't pass the cost on, they would be happy to work with the gov't to lower costs and therefore, increase their profits.

My first choice is to eliminate the entire for profit model, but that's not one of my choices this go round.

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September 8, 2009 7:48 PM    in reply to TaraV

I think insurers do have an incentive to help re-engineer the delivery system. Frankly the understanding of how to structure payments to encourage integrated, evidence-based organized care is still in the developmental stage. What we know is fee for service does not work. Trying to limit excessive spending except through better clinical process doesn't work. But there are people working on it.

Under a market regime where insurers cannot profit from denying coverage, it makes sense that they will have to compete based on forming the largest risk pools. I am not sure what form the exchanges will take. Obviously the larger the population it serves (assuming there is 1 exchange, or a few regional exchanges, but not 50 1-state only exchanges) the better chance there will be significant competition. If you cannot manipulate your clientele then you turn to cost cutting. That's a real possibility.

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September 8, 2009 6:18 PM    in reply to Economides

I have appreciated your comments throughout this debate and noticed the non-answers you get. If you ever consider blogging this, I truly look forward to reading your insights.

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September 8, 2009 5:13 PM    in reply to jimbomoron

subsidies alone won't cut it.

Even if you could get them.

Even if you could keep them from being cut later.

The problem with that approach is according to Obama, costs are only going to grow. Which means only more of your tax money is diverted to the Insurance industry. This would be a big big giveaway to the Insurance industry. Not reform.

Then when you implement the other cost savings components of "reform", insurance companies with no "real competition" from a public plan are free to move all those cost savings into their profits. Quick and neat.

let's repeat that:

Then when you implement the other cost savings components of "reform", insurance companies with no "real competition" from a public plan are free to move all those cost savings into their profits. Quick and neat.

There is a public option in reform for a reason.

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September 8, 2009 9:34 PM    in reply to jimbomoron

Not so fast. They'll give up the public option during reconciliation, if not before. But not before a lot of hand-wringing and lamenting that they just couldn't pull it off with the paramount bipartisanship. Oh, woe.

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September 8, 2009 4:14 PM   

Is this place dailykos or something? I mean good God. Why is every word parsed in every statement an official makes? She's stating a public option is best, but they're open to others. I'd like to see one that could be as good.

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September 8, 2009 4:16 PM   

Every word is parsed because it's a slow news day.

It's looking like the trigger is going to be what comes out of this. But it's a delicate dance.

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September 8, 2009 5:49 PM    in reply to Alex39

It's a delicate farce.

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September 8, 2009 4:19 PM   

Every word? How about every word, punctuation mark, and spaces between words? Sheesh! There's reading between the lines, but this is ridiculous. Rant over.

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September 8, 2009 4:20 PM   

My best guess - the House will pass a bill with a public option, the Senate will pass a bill without a public option. The House-Senate conference committee will come up with a bill that has a trigger mechanism for a public option and that bill will very narrowly pass both houses. A victory for the Democrats and the American public

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September 8, 2009 5:22 PM    in reply to richard f

Ummmm, how is that a victory for the American Public? A trigger that will never be pulled? I'm not even sure the political win holds, either. Half-assed health reform that accomplishes nothing but further enriching insurance companies will be hung around Democrats' necks like an albatross in the next election cycle.

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September 8, 2009 6:13 PM    in reply to richard f

"A victory for Democrats and the American People"

what a bunch of bullshit

we will have forced 40 million people to pay greedy Corporatons for poor coverage that they can't afford, along with more taxpayer money going to "subsidize" the greedy Corporations.

The public option will only be available to certain people, (not people with crappy insurance from their job), and won't go into effect until 5 years after the 5 year triggers. The triggers are designed to never be met, and will have no enforcement mechanism. So basically, nothing will change for 10 years, and after another 180,000 people have died from not being able to afford healthcare, we will have nothing much to show.

But Obama's backroom deals with Phrma will let them continue to gouge the American People, and the Health Insurance Monopolies will have 10 years to get more money, to buy more politicians.

So either you are ignorant, don't really care, or you work for Blue Cross. If you see this as a win-win.

This is EPIC FAIL for Democrats, especially Obama - who will yet again cave to the minority party, and bow to his corporate masters that he campaigned SPECIFICALLY against.

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September 8, 2009 7:07 PM    in reply to Captain Obvious

So either you are ignorant, don't really care, or you work for Blue Cross. If you see this as a win-win.


So if you want to convince someone that their views are wrong, I think a good tactic is to insult and belittle them. Oh, you tried that. Let me tell you something, you arrogant prick, I don't work for Blue Cross, am pretty well-educated and care about this issue. What I am not is an idiot who, if things aren't going the way he wants, takes his ball home and insults everyone at the playground. There is still a chance of a bill passing which will be a good bill. Will it have a public option as part of the first go round - probably not because the votes aren't there. Will it have a trigger that will mandate a public option if certain conditions are met - very possible.

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September 8, 2009 4:22 PM   

The worst of all possibilities is the "something like it" if that means a public option so badly weakened that it's worse than nothing. That's a distinct possibility. If reimbursement rates are pegged to prevailing insurance company rates then the only saving is in administrative costs (not insignificant, but not nearly enough to make it affordable). That's no competition at all and just provides another high cost option. We may be better off with a real public option with a trigger, providing the trigger is real.

It's all in the details.

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September 8, 2009 4:22 PM   

JOSH, you have got to sit down with Brian and get him to calm himself. Word parsing is a tough pursuit, but especially when it's wrong.

Read the quote. Pelosi is clearly responding to her first statement in the string of phrases -- the idea is that the public option is the best available UNLESS someone can come up with a better idea. The "moment" will be ETERNAL because the ONLY better idea is full single-payer and it has been made clear to the masses that single-payer will never happen.

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September 8, 2009 4:23 PM   

The trigger option is like saying.." we'll have a new drug developed sometime in the future but for you right now...we got nothing.."

Mandates without a public option that drives people by fear of a hefty fine to the insurance companies is the KISS OF DEATH for democrats. If they don't know or see that...well that says about all we need to know about our elected officials. It is insane policy!

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September 8, 2009 4:49 PM    in reply to Obama1st

The "trigger" is just a way for centrists to say to the industry, "Hey, I've got a bunch of annoying progressives on my hands who seem to want real reform. I'm going to vote for this BS trigger right now to placate them, and then we can both scuttle the public option more quietly later, when the progressives are not paying as much attention."

The "trigger" is just the trigger on the gun built to kill the public option. But instead of killing it right out in the open, they want to drag it into a back alley, and put a bullet in its head with a silencer, hiding in the shadows.

The private health industry has had half a century to prove they can deliver health care efficiently, without generating colossal, expensive waste and without gouging massive CEO salaries out of our premiums and wages. They really aren't entitled to another two-year probationary period to prove they can do better.

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September 8, 2009 4:50 PM    in reply to Obama1st

I thought the trigger was more like: if you don't get your act together then we will operate the non-profit public plan. There is no reason why it cannot be very specific as to where when and how it will come into effect.

And since when is making people buy insurance that cannot be refused for pre-existing conditions, cannot be dropped and cannot limit covered expenses a loss. I think for anyone with a chronic condition who ears losing a job or who is uncovered now, this is an enormous improvement. Health insurance that cannot be denied or taken away or lost due to health or changing jobs-- hasn't that been the primary goal for democrats for 70 years?

Many people are assuming costs will not come down even though the whole structure of the insurance market will be changed. First, you are getting a much more secure product so is this worth more? Not sure how you evaluate what it should cost? Second, companies cannot make profits based on denying coverage to sick folks, and instead they will have to compete (against the other participants in the exchange) by creating the biggest risk pools and pressuring providers of care to lower costs (hopefully through payment incentives for efficiency rather than just lower rates). How that nets out I am not sure, but I don't think the result is so obvious.

And if you think insurers will face no competitive pressures I will bet you $34 that Walmart, who now offers cut rate prescriptions and just started offering very low fee check cashing services, will be happy to get in the game. Just watch.

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September 8, 2009 4:37 PM   

Ahhh, there's the Nancy Pelosi I know and do not love. She'll cave to Obama just as she did to President Bush. The public option is a goner.

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September 8, 2009 5:09 PM    in reply to dijamo

if she was as good as she would liek us to believe, we would all be fighting for single payer.

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September 8, 2009 5:15 PM    in reply to dijamo

Uh-huh, riight. Nancy so supported the Bush brat that she voted for the Iraq War--oops, she voted against it.

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September 8, 2009 5:29 PM    in reply to cube3u

she also took impeachment, and any investigations off the table.

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September 8, 2009 6:57 PM    in reply to Indie Pro

Shrug. The American public is known for recognizing a bad decision and just moving right on past it.

One of the great lessons of my life was my quest for revenge bumping up against the concrete American wall of moving right on past the bad stuff. I despised Nixon and wanted him behind bars. Ford pardoned him and lost a Presidential election because of it. After that election, the American public moved right on and it took me a few years to do the same.

This is the same sort of thing. The American public doesn't do well in exacting revenge on past political deeds. They participate in the correction and then move on.

Shrug. No one said lessons would be easy for everyone. But the public will not get into this revenge stuff.

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September 9, 2009 12:02 AM    in reply to cube3u

yeah. shrug. Law? that's for little people on the street, not the elite.

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September 8, 2009 6:25 PM    in reply to cube3u

Yeah, the AUMF is the only vote that has mattered in the history of the world. Why don't you go build her a shrine or something? I'd prefer to hold her accountable for caving to GWB on FISA, torture, warrantless wiretapping, continued funding for the Iraq War without deadlines or accountability for benchmarks etc etc.

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September 8, 2009 6:52 PM    in reply to dijamo

Nope, little one, that vote was the consequential one in the last ten years. It was for war and that really matters. The light thinkers (or perhaps non-thinkers) want to believe that a country breaks up another country (literally with bombs) and then says "oops" and leaves. That's not the way reality works for countries whose people have a bit of a conscience.

It was a huge waste for our country--Nancy knew that and so did Obama. In fact, the majority of Democrats knew that and voted accordingly. It matters in my accounting of things.

The other policy issues you list got a real receptive yawn from the American public. As a political leader for the country and not just a narrow sliver, Nancy has to recognize that and move on. That's also reality.

The health reform bill will be the most consequential vote since the 1960's. And it seems to me that Nancy will be on the right side of that, too.

Gee, votes matter. Who knew?

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September 8, 2009 9:34 PM    in reply to cube3u

1. Ahem. I am not your little one.

2. The war in Iraq was critical and Pelosi was on the right side of that vote. It does not give her a pass for caving right and moderate going forward. It does not give her a pass on not speaking up against torture (or lying about when she learned of it). It is still one vote from 2002. If that's as far back as you have to stretch to give Pelosi credit for having political courage, that proves my point.

Rahm is now de facto Speaker of the House. Obama negotiates with Bauchus and friends in the Senate while the House is sidelined. Pelosi is just a sideshow to wrangle up votes for the administration. It is pathetic.

And if you think the right side of history is caving to a "trigger" whereby we give another huge subsidy to the health care industry like Medicare Part D and call that a victory, you need to find someone more gullible to peddle that crap to.

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September 8, 2009 4:54 PM   

This is going the trigger route. I can see this coming from a mile away.

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September 8, 2009 4:55 PM   

Geez. We're worse than John Cusack in the movie "High Fidelity." What's the meaning of the word 'yet'?

What does it mean if I said, "I haven't seen the movie 'Evil Dead 2' yet"?

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September 8, 2009 5:14 PM   

For the moment is bold in YOUR version, not the video.

I'm tired of the parsing of every word, all day, every day. It's not called being a poltical junkie to obsess about possible betrayal every day. It's called being a loser. A big problem with the left is a lack of faith in it's elected leaders. They aren't the world's greatest but maybe a thimbleful of faith in them would help more than bludgeoning them every day for some possible future betrayal that you divined through a lens of your own insecurities.

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September 8, 2009 5:26 PM   

We lost single payer. We're about to lose public option. I think bashing Pelosi, Reid and Obama is deserved.

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September 8, 2009 6:02 PM    in reply to traitorjoe

"We lost single payer." I kinda look at that like saying Joe the Plumber lost out on going to Harvard. Single payer was never on the table.

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September 8, 2009 5:41 PM   

The Democrats in Congress are letting the public down easy.....no public option.

The MINORITY Republicans win another one.

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September 8, 2009 6:01 PM   

Speaking of let down, I've emailed help@talkingpointsmemo about my problem logging in at least a half a dozen times this year.
I have yet to receive a single response. WTF? When you solicit a clicks for links or youtube subscriptions I'm happy to help.

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September 8, 2009 6:03 PM   

Would flagging my self for abuse would help?

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September 8, 2009 6:26 PM   

I have a very general and simple question regarding Harry Reid. I apologize if it is not appropriate here. He may be a nice man, that said, does anyone have any respect for him? He sux at his job. He is worthless. Does anyone disagree? Please someone, tell me why he is "politically" alive? Majority leader of what? I'm a Dem, spent 4 hours yesterday standing outside for Martha Cokely in downtown Boston [Go Red Sox]. And wondering why she wants to work for this whimp?

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September 8, 2009 6:43 PM   

Well it looks like it is going to be the trigger...

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