Obama, McCain Weigh In On Wall Street Woes

Obama Blames Crisis On GOP Policies, McCain Calls For Overhaul Of Regulatory Oversight

(CBS/ AP)  Both Barack Obama and John McCain on Monday turned their attention to the turmoil on Wall Street after the shock-wave announcements that financial giant Lehman Brothers was filing for Chapter 11 bankruptcy while titan Merrill Lynch was being bought by Bank of America for about $50 billion.

Obama said the upheaval was "the most serious financial crisis since the Great Depression" and blamed it on policies that he said McCain supports.

"This country cannot afford four more years of this failed philsophy," Obama told a cheering outdoor rally in western Colorado.

Meanwhile, McCain said in a statement that the Wall Street turmoil underscores the need to overhaul "the outdated and ineffective patchwork quilt of regulatory oversight in Washington." (Read the latest on the Wall Street crisis)

"It is essential for us to make sure that the U.S. remains the pre-eminent financial market of the world. This will be a highest priority of my administration. In order to do this, major reform must be made in Washington and on Wall Street," McCain said in his statement.

He added: "The McCain-Palin administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street. We will rebuild confidence in our markets and restore our leadership in the financial world."

Later, at a rally in Jacksonville, Fla., McCain said he still believes the fundamentals of the nation's economy are strong. "Our economy, I believe, still, the fundamentals of our economy are strong, but these are very very difficult times, so I promise you: We will never put America in this position again. We will clean up Wall Street," McCain said.

Obama's statement, issued as he prepared to fly to Colorado to begin a swing through contested Western states, was intended to serve two purposes: to link McCain with the unpopular presidency of George W. Bush and to express sympathy with the anxiety of most Americans who say the economy is issue No. 1 in the election.

"The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren't minding the store," Obama said in a statement. "Eight years of policies that have shredded consumer protections, loosened oversight and regulation, and encouraged outsized bonuses to CEOs while ignoring middle-class Americans have brought us to the most serious financial crisis since the Great Depression."

"I certainly don't fault Sen. McCain for these problems," Obama said, "but I do fault the economic philosophy he subscribes to."

Over the weekend, advisers both to McCain and Obama said they did not favor a government bailout of Lehman Brothers like that previously provided to Fannie Mae and Freddie Mac. The government also help engineer the recent sale of Bear Stearns Cos. to J.P. Morgan & Co.

"I am glad to see that the Federal Reserve and the Treasury Department have said no to using taxpayer money to bailout Lehman Brothers, a position I have spoken about throughout this campaign," said McCain. "We are carefully monitoring the financial markets, including the duress at Lehman Brothers that is the latest reminder of ineffective regulation and management. Efforts must also be focused on ensuring that the deposits of hardworking Americans are protected."

During his speech, McCain reiterated that position, saying, "We believe that time has come and gone that taxpayers should be viewed as the solution to problems not of their making."

McCain also underscored his message with a new campaign television commercial titled, "Crisis."

It said, "Our economy in crisis. Only proven reformers John McCain and Sarah Palin can fix it. Tougher rules on Wall Street to protect your life savings. No special interest giveaways. Lower taxes to create new jobs. Offshore drilling to reduce gas prices."

At the rally in Colorado, Obama attacked McCain for the ad which promises "change that we need."

"Sound familiar?" said Obama, who has made change the central theme of his campaign. "Let me tell you, instead of borrowing my lines he needs to borrow some of my ideas. Change isn't about slogans. It's about substance."

[jab232]

Take everything John McCain says with a grain of salt. McCain and his main economic adviser, Phil Gramm, voted for the act that removed the post-depression banking regulations and set the stage for all of this. As a banking lobbyist, Gramm fought against re-establishing sensible banking regulation which could have helped head off this meltdown. John McCain helped Gramm in that effort. John McCain''s straight talk express is derailed. Don''t listen to John McCain''s talk. He has a 26 year record of fighting any kind of sensible banking regulation, and that record has helped lead to this meltdown.

[jab232]

Take everything John McCain says with a grain of salt. McCain and his main economic adviser, Phil Gramm, voted for the act that removed the post-depression banking regulations and set the stage for all of this. As a banking lobbyist, Gramm fought against re-establishing sensible banking regulation which could have helped head off this meltdown. John McCain helped Gramm in that effort. John McCain''s straight talk express is derailed. Don''t listen to John McCain''s talk. He has a 26 year record of fighting any kind of sensible banking regulation, and that record has helped lead to this meltdown.

[truthspeak1]

John Mccain and his guru Phil Gramm have been the leading proponents of deregulation and no regulation,
it has been the Republican mantra. Newt Gingrich and the contract on America deregulate utilities and competition will lower your rate.Deregulate the banking industry and let American banking know how rule the markets.Reagonomics is a failure the markets just said so.

[samsel3]

The folks who brought you War without end also bring you Global financial collapse. McCains economic policies will bring disaster.

They include industry deregulation, less oversight of government for Big Business. This is what created the problem. Do you really want to repeat the past ?

McCain is an outright Liar and will say anything to continue the party s policies. Just examine the views of his campaign advisors. Lobyist, Lobyist, Lobyist, Lobyist, and another Lobyist.

If you want a nuclear war vote McCain..............

[steeepe]

Thankfully, McCain and Palin will clean up this financial crisis, created by the lib-Democrat, financial deregulation-signed-by-Bill-Clinton, mess we are in. The Democrats have moved America to a ''''''''''''''''anything goes'''''''''''''''' moral, financial and political ideology over the past 45 years that is finally coming to a head. America needs a stronger conservative identity.
Posted by whatwhy001 at 01:40 PM : Sep 15, 2008

You''ve got it exactly backwards. It was Gramm and the GOP philosophy of de-regulation, lack of federal oversight, and absolute laissez-faire economic policies that rotted the apple. The economy has almost always performed better under Democrats. Look it up. What does McBush bring to the table except for more of the same *** we''ve suffered for 8 years. And as for morality, haven''t most of the scandals, financial and otherwise, involved Republicans??

[pastdue1]

We grinned when McCain said that Palin was the greatest energy expert ~ in the world.
Yesterday, we sighed when McCain announced that the economy is "fundamentally sound" and later tried to change it to saying American workers have strengths.
Today, we await, with unblinking eyes to hear more profound statements.
Of course, we don''t have to wait to hear what Palin will say, we have that memorized.

[abbe91]

"Wasn''''t 1929 also the year Hoover gave the rich the most lopsided tax cut in history saying it would boost the economy?
Posted by dinkydog1 at 02:38 PM : Sep 15, 2008"

Had to wait FDR to fix things ... You always need a democrat to clean the republican mess. Keating 5 McCain won''t have a "getter judgment" this time.

[ofbyfor2]

An individual making $250,000 pays about $70,000 in income tax currently.

An individual making $50,000 pays about $9,000.

What''''s not fair?

Posted by pmsnbc1 at 01:23 PM : Sep 15, 2008

An individual making $250,000 probably has significantly more deductions and loopholes than the individual making $50,000, and therefore may actually be paying a lower percentage of their income in taxes.

Even if they don''t, they still end up with $180,000 free and clear, while the other guy has $41,000. Again, that''s all fine and good, but since I doubt that the $250,000 earners have to worry about how to pay their heating bills or put food on the table, please don''t expect me to shed any tears for them.

[jab232]

We do understand, don''t we, that McCain''s adviser Phil Gramm was a major sponsor of the Gramm-Leach-Bliley Act which repealed banking and investment safeguards and made this meltdown possible? This is the same Phil Gramm who,, as a lobbyist fought against regulation of the banking industry to keep such meltdowns from happening. And even more than that, John McCain voted for the Gramm-Leach-Billy act. In the Senate, at least, Democrats voted overwhelmingly against the repeal. I didn''t look up the House. Chickens are coming home to roost on Republican heads.

[kansas1946]

John McCain knows nothing about the economy and hasn''t a clue about how to fix it. In fact, he is delusional about it. Choosing to ignore the problem and making inane statments that show his ignorance on the subject. If you like this economy, housing collapse, jobs going overseas, the deficit, etc., then vote for John McCain.

[misha128-2009]

After John "Herbert Hoover" McCain is informed we the people are not economic fundamentals. The voters clearly viewing the prospect of John "Liar" McCain as Bush 44 / Hoover 44 indicted even by Fox News and Sarah "Stonewall" Palin as Cheney 44 / Nixon 44 voters will be flocking away from Worse than Worse Than Watergate ticket very soon.

[caldwellptr]

"if institutions need to be rescued like banks, they should be regulated like banks" - Paul Krugman - New York Times

[caldwellptr]

What does the Savings and Loan meltdown in the 80''s in Texas and the U.S. Financial Crisis of 2008 have in common?

[caldwellptr]

%u201CWhen life hands you Lehman, make Lehman aid.%u201D Paul Krugman - New York Times

[ragnar30066]

Both Obama and McCain are wrong on this one.

The financial crisis was made in Washington, D.C. The democrats wanted to extend loans to people who traditionally could not qualify. Nothing wrong with that sentiment. Accordingly, the republicans supported it. The government pressured the banks to make loans that they would have not normally made. And guess what, the people with inadequate income, inadequate security, and inadequate experience in financial responsibility (paying bills) defaulted.
Here''s the bad news. Everyone went along with this well intentioned but poorly thought out idea because the government would guarantee it - nobody was at risk. Except the taxpayer.

Palin is the only one who had that figured out. She needs to teach economics to Obama, Biden and McCain.

So what to do now that the Government''s own mortgage banking operations, Fannie Mae and Freddie Mac are going belly up? Raid the taxpayers for even more money to pay for someone else''s stupid mistakes and lack of responsibility?

Are we going to increase regulations? If so, we need to increase the amount of regulation on government, because that is where this problem came from. It is time for Obama and McCain both to begin explaining how we are going to end taxpayer "guarantees" of stupid policy decisions that originate in Congress and imposed on business in contradiction to basic economic principles and common sense.

[homespunlady]

McCain''s KEATING 5 Savings and Loan Financial Collapse was a DRESS REHEARSAL for NOW.

Opening Night to the NEO-DEPRESSION has ARRIVED!!!

[misha128-2009]

Why do LIBS always think Washington needs MORE of our tax dollars. Geez.

Posted by pmsnbc1 at 02:20 PM : Sep 15, 2008

..................

Maybe it''''s to pay off the enormous dept run up by conservatives.

Posted by dinkydog1 at 02:28 PM

At best those alleged conservatives are PSEUDO-CONSERVATIVES.

[misha128-2009]

McCain claims a change of heart and will increase regulation and government oversight of Wall Street. Why then does his party''s policy still call for less regulation and less government. Because McCain lies about Palin accepting earmarks. McCain lies about Palin selling a plane on E-bay at a profit. McCain will continuing lying in order to become president. Clearly the Richard Nixon Liar Gene has yet to be bred out of the Republican Party.

[jjreding-2009]

luvusa - so, if corporate tax cuts equal more jobs, then why have so many jobs gone away since Bush gave out his lavish gifts to corporations in the previous set of tax cuts? Did the tax cuts to the oil companies create new jobs at the new refineries that the record tens of billions of dollars in profits have yet be invested in? Month after month we continue to hear about how hundreds of jobs at this company or that company are being eliminated. What do you think is gonna happen with the buyout of Merrill Lynch? Hundreds, perhaps thousands, of jobs will be gone due to duplication. George Bush has presided over the slowest job creation period in modern history - and don''t forget that when he came into office he presided over the largest job LOSS in modern history.

[walt1944-2009]

John McBush McCain has promised that under his rule as Great Emperor, he and "Moose-Hunter" Palin will enforce "accountability" on Wall Street and bring stability to the financial world.

This from an old fossil who is ABSOLUTELY CLUELESS on anything economic and is proud to say so!

McCain is much more interested in re-telling for the umpteenth time, his POW experiences at the Hanoi Hilton 35 years ago, amending the story with each retelling.

Palin, however, is more concerned about the moose population and making it legal for citizns to own automatic weapons like M-16''s and AK-47''s!

Once again: Are we stupid or are we STUUPPIIDD?????

SIG HEIL, BUSH!!!!!
sig heil, THE ECONOMIC "GENIUS", McCain!!!!
sig heil, PISTOL-PACKIN'' MAMA, Palin!!!!!