Phil Gramm said it. McCain denies it. But it could be huge--Obama could ride it right into the White House.

In an interview with the Washington Times--therefore friendly territory for him--Gramm really put his foot in it:   " You've heard of mental depression; this is a mental recession"... "We have sort of become a nation of whiners...."

This confirms all the worst stereotypes people have about Republicans being totally out of touch with workers--these workers specifically including the blue collar workers whose support Obama has been lacking up to now. And I can confirm that some Republicans do feel this way--I've read several columns in the WSJ editorial page, the home of Neanderthals for decades, trying to make the case the US is doing fine. Written by typical workers like a former Federal Reserve governor or a writer for a conservative think-tank, etc.

Everybody already knows McCain has several homes--and no money worries, to say the least, courtesy of his second wife, the beer heiress. (And how he treated the first wife is also an issue, to put it mildly).

But people may not know that Gramm is not just any McCain mouthpiece. He is in fact one of McCain's most respected spokesmen on the economy--a subject on which McCain has himself admitted a lack of expertise.   While on the campaign trail,McCain has already referred questions on the economy to Gramm, who is also a strong proponent of the kind of deregulation many think has contributed heavily to the current banking and mortgage crisis.


Fortune 19 Feb 2008: "But economic conservatives should take heart. McCain's chief economic advisor--and perhaps his closest political friend--is the ultimate play in free market faith, former Texas Senator Phil Gramm. If McCain follows Gramm's counsel, and most of his current positions are vintage Gramm indeed..."

Gramm now represents a Swiss bank, UBS.

Gramm and McCain have been friends and allies for over 25 years.

Has he cut himself off from Gramm--a la Obama with Rev Wright?   Nope.

And he should be aware that of course the standard this year is well known--you must "reject and denounce".

Of course it's far better for Obama if McCain does not cut Gramm off. Obama can use this, to put it mildly--it could be red meat for all sorts of non-millionaire audiences from now til November.

As a poster on MSNBC put it:   "McCain can spin as much as he likes, but Gramm is speaking an economic perspective that McCain has long supported. This is classic Republican elitism: the people are whining, let them eat cake. Some bread, circuses and flag pins will stop them from thinking about how lousy their situation really is."

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