Very Bad Things
Bush now (from CNN):

One reporter cited the swift boat ads and asked, "When you say that you want to stop all --" "All of them," Bush responded. "That means that ad, every other ad. Absolutely. I don't think we ought to have 527s."

"I hope my opponent joins me in condemning these activities of the 527 -- I think they're bad for the system," Bush said.

While Bush has called on Kerry to criticize the harsh campaign ads of 527s in general, the Democratic nominee has not done so. He did recently, however, criticize one MoveOn.org ad that charged Bush used family connections to get into the Texas National Guard and then failed to fulfill his obligations.

Bush before (from the White House press release):

However, the bill does have flaws. Certain provisions present serious constitutional concerns. In particular, H.R. 2356 goes farther than I originally proposed by preventing all individuals, not just unions and corporations, from making donations to political parties in connection with Federal elections.

I believe individual freedom to participate in elections should be expanded, not diminished; and when individual freedoms are restricted, questions arise under the First Amendment.

I also have reservations about the constitutionality of the broad ban on issue advertising, which restrains the speech of a wide variety of groups on issues of public import in the months closest to an election. I expect that the courts will resolve these legitimate legal questions as appropriate under the law.