Obama, McCain Duel Over The Economy

McCain Blames Wall Street Woes On Corporate Greed; Obama Tells Katie Couric Economy Could Be Back On Track By Next Year

(CBS/ AP)  Republican presidential candidate John McCain on Tuesday blamed Wall Street's financial turmoil on unchecked corporate greed. His Democratic opponent, Barack Obama, dismissed McCain's call for a high-level commission to study the economic crisis as "passing the buck."

The presidential campaigns argued over who would be best able to deal with the kinds of financial meltdowns that roiled the markets Monday and to prevent a similar crisis in the future.

In an interview with CBS Evening News anchor Katie Couric, Obama said "we have to overhaul our regulatory systems."

Obama told Couric that "if we can just stabilize things and ride out some tough few months and then overhaul the regulatory system, our tax code and start investing in things like clean energy, then I'm confident that we can get the economy back on track by next year."

McCain proposed a review on the order of the one led by the Sept. 11 commission, the bipartisan panel that studied the events leading to the 2001 terrorist attacks. Appearing on the three network morning shows, McCain also defended a remark he made on Monday that the "the fundamentals of our economy are strong."

"The economy is in crisis," McCain said on CBS News' The Early Show. "The fundamentals of our economy are the American worker. The American worker still the most productive and the hardest working, most industrious worker in the world and I am proud of them."

"They have been betrayed by Wall Street -- by greed, by excess and by corruption and they have been done a great disservice, but someone disagrees that American workers aren't the best in the world, we just have a disagreement," he added in the interview with Harry Smith. "We need to set up a 9/11 Commission in order to get to the bottom of this and get it fixed, and act to clean up this corruption… They've violated the social contract that capitalism and the citizen have, and we can't ever let this happen again. I'll make sure it never happens again." (Watch the whole interview)

Obama, campaigning in Golden, Colo., accused McCain of failing to offer concrete plans for dealing with economic issues.

"Sen. McCain offered up the oldest Washington stunt in the book. You pass the buck to a commission to study the problem," Obama said. "This isn't 9/11. We know how we got into this mess. What we need now is leadership that gets us out. I'll provide it. John McCain won't. And that's the choice for Americans in this election."

Obama also continued to criticize McCain's remark Monday that "the fundamentals of our economy are strong." In a television ad released Tuesday, Obama's campaign asks: "How can John McCain fix our economy if he doesn't understand it's broken?"

On Monday, a few hours after the remark about strong economic fundamentals, McCain backtracked and declared the economy to be in crisis. He also said that American workers and products - the "fundamentals" he claimed he was referring to earlier - were indeed sound but faced danger from greed and corruption.

"Those fundamentals are threatened, they are threatened and at risk, because some on Wall Street have treated Wall Street like a casino," McCain said Monday at a town-hall meeting in Orlando, Fla.

On the morning shows, McCain said he agreed with Treasury Secretary Henry Paulson that the government should not bail out American International Group Inc., the world's largest insurer.

Saying that the American taxpayer should not be "on the hook" for AIG, McCain said on "Good Morning America" on ABC: "We cannot have the taxpayers bail out AIG or anybody else. This is something that we're going to have to work through."

"I warned two years ago that this situation was deteriorating and unacceptable," McCain said. "And the old-boy network and the corruption in Washington is directly involved and one of the causes of this financial crisis that we're in today. And I know how to fix it and I know how to get things done."

Later, a McCain economics and policy adviser, Douglas Holtz-Eakin, said any plan should include regulation of all sorts of financial institutions, consumer protections, improved corporate governance and "systems stability" programs.

"There's no magic solution, and I don't think it's at this moment imperitive to write down exactly what the plan has to be," said Holtz-Eakin. "But there should be an understanding that when you walk out of the Congress with a piece of legislation in the next administration, those boxes are checked and those things are effectively accomplished."

Both candidates are likely to continue to focus on the economy as the crisis continues on Wall Street. But how they handle it presents risks for both of them, reports CBSNews.com's Brian Montopoli.

"The issue is fraught with peril for both of them," CBS News consultant and political strategist Joe Trippi told Montopoli. "Particularly with financial markets, you don't score points by creating panic. That's not what a presidential candidate does."

"You can make an alarmist statement and trigger an even bigger fall than is occurring," he continued. "Or you can go the way McCain did, which is try to help calm the markets, and be accused of not understanding how perilous the times are."

Democratic vice presidential candidate Joe Biden also got into the fray on several morning shows. He countered by saying that the economic policies of McCain and the Bush administration had led to any betrayal of American workers. He argued that the Republican campaign's message was at odds with itself with McCain saying the economy's fundamentals were sound but that urgent repairs were needed.

"It seems like John's had an epiphany. Nine o'clock yesterday morning, John thought the economy was going great guns and the Bush administration was doing well, and today he thinks it's in crisis," Biden said on The Early Show.

Responding to McCain's comments on workers, Biden said the American worker has been betrayed.

"They've been betrayed by a tax policy that absolutely screws them and, in fact, gives the money to the wealthiest among us. They've been betrayed by a policy of laissez-faire. They've been betrayed by the policies john has supported," Biden told Maggie Rodriguez.

Biden said the Democratic presidential campaign's solutions for the economic crisis include giving middle-class taxpayers a substantial tax break, putting an end to Bush administration tax cuts that favor the wealthy, investing in infrastructure, and changing bankruptcy laws to help people facing foreclosure.

"My lord, take a look at what - who got us in this hole, whose policies," Biden added. "This has been a Republican philosophy of letting Wall Street do what they want and the middle class be damned. It's about time we change it. If I sound like I'm angry, I am fighting mad for middle-class people who have been the scapegoat of this economy because of the policies of the McCains and the Bushes." (Watch the whole interview)

[skyk239]

What? A Commission? This from someone who voted FOR Gramn-Leach-Bliley Act? That was the act authored by Dr. Phil.. the guy who put together McSame''s Economic Stay the Course Plan. Well okay HE didn''t author it, Lobbyist for the Banking Industry did but I removed all the regulations on that industry and thus here we are. I guess McSame want''s to study the Mistakes he and his party have made...AGAIN!! Obama 08

[sleepyric]

oh,,,yeah,,,that''s what we need,,,a commission! Just make sure your buddy Graham isn''t on it. It''s his doing that help cause this crunch...Just let business do what they want...no oversight, God forbid any regulation. republicans caused this period. Lax rules, no oversight, no regulation.

[briannorwood]

Great idea, Grandpa! Just what we need. The financial markets are in freefall and you want a damned commission.

Why don''t you nominate Phil Graham to head it up!

[screan_name]

Yes McCain should call for a commission to investigate the reckless deregulation that his lobbyist campaign advisers bribed Congress for.

It''s amazing to me that McCain and his top advisers had roles in creating high oil prices and the banking crisis, yet there are still some Americans who actually trust him to fix these problems.

[painslapme]

Palin won''t cooperate with ''tainted'' probe!!

Palin won''t cooperate with ''tainted'' probe!!

LOOK on C-N-N top story!!

Just like GW Bush and Hillary!! This is what you idiots want? You''ve got this stinkin communist b-ho!!

[pain-b-slap]

Palin won''t cooperate with ''tainted'' probe!!

Palin won''t cooperate with ''tainted'' probe!!

LOOK on C-N-N top story!!

Just like GW Bush and Hillary!! This is what you idiots want? You''ve got this stinkin communist b-ho!!

[gop_will_win]

McCain heads the commerce committee. That means he helped get us into this situation so he is the man to get us out. McCain/Palin 08!

Yes, Republicans deal with things they don''t want to deal with by forming commissions. I''m sure that McCain''s economic disaster commission would have an opinion within a year or so.

[misha128-2009]

McCain seeks distance from the issue by making the solution rule by committee. This is not a 9/11 problem when the crisis is under control. This is an ongoing disaster that needs remediation to end the continuing meltdown. I have never heard such a stupid proposal to address an active crisis.

[holalanemeir]

Remember Gramm''s record as a reckless deregulator has not affected his rating as a Republican economic expert. Sen. John McCain has relied on him for policy advice, especially, according to the campaign, on housing matters. The two have been buddies ever since they served together in the House in the 1980s; in 1996, McCain chaired Gramm''s flop of a presidential campaign. (Gramm spent $21 million and earned only 10 delegates during the GOP primaries.) In 2005, McCain told a Wall Street Journal columnist that Gramm was his economic guru. Two years later, Gramm wrote a piece for the Journal extolling McCain as a modern-day Abraham Lincoln, and he''s hailed McCain''s love of tax cuts and free trade. Media accounts have identified Gramm as a contender for the top slot at the Treasury Department if McCain reaches the White House. "If McCain gets in," frets Lynn Turner, a former chief SEC accountant, "we''ll have more of the same deregulatory mess. I like John McCain, but given what I know about Phil Gramm, I wouldn''t vote for McCain."

[petro49l]

John McCain should consider new relations with Central and South America. They are reasonable people. They could solve our crisis with petroleum. Why fight George W. Bush''s mindless war over oil? It only fills Saudi banks with American money.

[ramos937]

McCain forgets he was part of this system for a very long time. Can anyone forget the Keating 5 affair? Also, last year he stated clearly that he understands nothing about economics.

And he has the right to suggest cures?

[antoniof123]

Wow, McCain knows nothing about the economy. We don''t need a commission what we need is for you idiots to leave Washington and policy making to adults.

God they are getting dumber and dumber by the minute.

"A patchwork of regulation designed for the 1930s" McCain.

That''s EXACTLY the same argument they used for de-regulation in the first place.
McCain is loopy!!

[dnsallday]

The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around $160 billion, about $124.6 billion of which was directly paid for by the U.S. government%u2014that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts[1]%u2014which contributed to the large budget deficits of the early 1990s.
There are several ways in which the Bush family plays into the Savings and Loan scandal, which involves not only many members of the Bush family but also many other politicians that are still in office and still part of the Bush Jr. administration today. Jeb Bush, George Bush Sr., and his son Neil Bush have all been implicated in the Savings and Loan Scandal, which cost American tax payers over $1.4 TRILLION dollars (note that this is about one quarter of our national debt).

What is important to note about the S&L scandal is that it was the largest theft in the history of the world and US tax payers are who was robbed.

The problems occurred in the Savings and Loan industry as they relate to theft because the industry was deregulated under the Reagan/Bush administration and restrictions were eased on the industry so much that abuse and misuse of funds became easy, rampant, and went unchecked.

[rf35]

I like Biden more and more every day. How about we kick Obama out and let Biden take the top spot?

[jjorcutt]

Typical Republican talking point. How many commissions have we had on the energy crisis over the last 30years. This is how they do it. They call for a commission and when the issue loses luster in the media they let it die and we all get screwed. What we need is more regulation that was removed by the Republicans when they were in power. This is what Obama is proposing. To those of you who say we don''t need these regulations. I say, they were put in place for a reason just because that reason has been fixed by the regulation doesn''t mean we don''t need it. Not all regulations are bad. They serve a purpose even if the issue has been resolved by that regulation.

[dnsallday]

The Keating 5 were 5 U. S. Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and 1990%u2019s.. The 5 Senators were accused of improperly aiding Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board .

McCain and Keating had become personal friends following their initial contacts in 1981.

Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating . McCain''s wife Cindy and her father Jim Hensley had invested $359,100 in a Keating shopping center in 1986, a year before McCain met with the regulators. McCain, his family, and baby-sitter had made NINE TRIPS AT KEATINGS EXPENSE,. Three of the trips were made during vacations to Keating''s opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.

McCain would write in 2002 that attending the two April 1987 meetings was "the worst mistake of my life"

One of the San Francisco bank regulators felt that McCain had gotten off too lightly, saying that Keating''s business involvement with Cindy McCain was an obvious conflict of interest.

McCain survived the political scandal by, in part, becoming friendly with the political press.

[sjbj2322]

Sure John McCain''s solution to solving the problems that he was influential in creating is to quickly call for a commission that you can bet would be largely controlled by people of his choosing. Sounds a bit like Palin refusing to be interviewed by any investigating group that she didn''t have direct authority in creating. Are people truly that naive that they can''t see this as little more than an effort to deflect responsibility by creating a commission that clearly won''t come to any conclusions or provide any recommendations until after the November elections. Fool me once, John, shame on me. You won''t get a second chance here. Makes me sick to think of all the hours I spent campaigning for you in the past. No More!!

[thevicar1]

Anyone know where the fvck the yellow bellied busbot Mclamely trash are ? ------------------------------------------------------ Posted by causeway_t


Show some respect, you hollow-cranium, knuckle-dragging human reject! In 49 days, John McCain will be President-Elect. IF you havent learned to say his name correctly by then, Im gonna rip your fingers off, and poke your eyes out with them!

[geneonlbk]

McCain''s feeble attempts to recover from being, as he put it, out of the loop when it comes to economics was sad. Please tell me how an unemployed worker on welfare and standing in a breadline is an asset to our economy. McCain has always voted against a living wage for the American worker. When you convey the GOP propaganda why don''t you also comment on its veracity?

[splainin2do]

McCain calling for a probe of the financial collapse
is like OJ calling for a hunt for the real killer. (I got that elsewhere).

[dnsallday]

McCain was chairman of the Commerce Committee. Unless he can stand up like a man and accept some responsibily for this mess, than he is doomed.

He is now saying he will make sure the taxpayers will never suffer again from corporate greed.
This is the exact same thing he said 17 years ago when he was involved in the Savings and Loan Scandal that ripped the American taxpayer off for over 150 BILLION DOLLARS.

What is important to note about the S&L scandal is that it was the largest theft in the history of the world and US tax payers are who was robbed.

The problems occurred in the Savings and Loan industry as they relate to theft because the industry was deregulated under the Reagan/Bush administration and restrictions were eased on the industry so much that abuse and misuse of funds became easy, rampant, and went unchecked.

[bubba027]

Go John McCain, the maverick reformer! Obama is a John McCain wanna-be. McCain/Palin have been calling for new reforms in regulation that will make a difference! The Democrats went along with the current regulation or lack of it, until everything went to hell.

[rf35]

Posted by TheVicar1 at 11:34 AM : Sep 16, 2008

Get back on your meds and go to sleep. Your shrill whining is becoming tiresome.

[splainin2do]

It is unfair to link McCain to Bush. If he were Bush he would have said "The fundamentals of our economy IS strong."

[bubba027]

McCain is certainly no god-send, but once again the Liberal/Media elitest couldn''t give us a better candidate to vote for. Even Hillary would have been 100 times better than Barack. Do the Democracts not have anyone else that has experience, grit, real pro-American values? Please? This is pitiful.

[ioweign]

McCain wants a 911 commission for the economy.

Republicans did not listen or follow the recommendations of the first 911 commission...

[geneonlbk]

To add to the information that appears above concerning the Bush family being really bad for the American taxpayer; the current economic crisis what will dwarf the S&L meltdown is again directly attributable to the Bush family. Certainly there were key players such a Bill Grahn and the GOP congress in general that allowed Bush to gut all regulatory agencies that might have averted the current crisis. The thought of making Bill Grahn the next Fed chairman or head of the Treasury is frightening; and as far as I know McCain will do just that. McCain really does represent four more years of Bush economics except even more so.

[thevicar1]

Get back on your meds and go to sleep. Your shrill whining is becoming tiresome ------------------------------------------------- Posted by rf35


The only thing tiring around here is the boring predictability of the lame, repetative playground comments that come from the fringe lefties!

Whats a matter, has your McLame, McSame, McPain silly name calling strategy of winning an election fallen of deaf ears? Perhaps if the majority of the voters were still in Kindergarten, name calling would be a more effective campaign strategy.

In 20-or-so years, if you guys manage to near puberty, perhaps you can resurface ABOVE ground, and see how nice it is to live in the real world.

Till then, shuddup and pay attention to grownups is the best advice I can give you.

[ioweign]

John McCain''s long history with bank failures and financial scandals makes him uniquely "qualified" to speak to the current crisis.

[tuckerdogavl]

McCain, McCain, McCain. Calls for this. Calls for that. Says this. Says that. The media darlin'' McCain. There isn''t even a PHOTO of Obama in this story. Yep. Liberal media alright. Looks like there''s no reason to attempt to find gas to go to the poll where they will have run out of paper ballots or the machine that doesn''t work, doesn''t work, in order to attempt to change the American insanity: Electing the same people over and over again. McCain. McCain. McCain.

[pirmin3]

Another commission?? Too funny. I''m enjoying this meltdown. Couldn''t happen to a dumber nation. America has the guvment it deserves.

[bfenerty]

Just what the country needs, another commission to study another problem we already know the solution to. Vote for Obama if you want any of the economic problems solved. Let McCain can spend his own money studying things, that''s Republican speak for "we ain''t going to do anything about it".

[tuckerdogavl]

To quote: "Democrats not have anyone else that has experience, grit, real pro-American values? Please? This is pitiful" You know, like Sarah Palin.Go read the Constitution, what''s left of it: The number one role of the VP is to be in the position to take over the presidency if needed. Yep. She''s highly qualified. She can see Russia from her back door! Palin was picked in order to Cheney to remain president. Done.

[ioweign]

all barry obama is doing is spending cash like crazy..
what would he do? NOTHING!! NO EXPERIENCE!!

Posted by funzie50 at 11:49 AM : Sep 16, 2008

And Bush/McCain are spending money like crazy too...outside this country!

Iraq, McCain''s 100 year "Earmark"

[dnsallday]

Do the Democracts not have anyone else that has experience, grit, real pro-American values? Please? This is pitiful.

Posted by bubba027
************************************************************* The Democrats have the best of the best. He has more grit than any Republican you can dig up. He has true pro-American values. (he cares about the country and the people) Unlike what we have seen for the past 8 years.
He has in depth knowlege and the ability to deal with people from all stripes. We have a chance to do what is right for the American people.

I understand that some of you have a very different agenda.

[mrmazerati]

Too much regulation stifles the economy. Too little regulation unleashes a cancer of predators on the economy. We need a progressive president who will calmly and methodically ensure a balance of both. Obama is closer to the mark on this than McCain.

With that de-regulation legislation, the republicans turned the fox loose in the hen house. Now feathers are about the only thing left in the hen house and the republicans want to "form a commission" to find out what happened and how to fix the problem.
The bit** of it is.......Stupid has worked before in this country (we elected the idiot-son, twice!), it could work again.

[dj292009]

You Republicans really just make me laugh. You guys keep bringing up this experience deal. You must be joking. I would put all my money on Obama any day. Why, because he has the balls to do what needs to be done. After all, the republicans had to still his platform so they had some kind of chance.

[nolalou]

How can anyone expect John McCain to have any answers to our economic problems , when he himself admined he dosn''t understand them!

Here are a few quotes by McCain!

From a 2005 interview with the Wall Street Journal on Nov. 26, 2005: "I''m going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated."

The Chicago Tribune quoted McCain talking to reporters on Dec. 18, 2007: "The issue of economics is something that I''ve really never understood as well as I should. I understand the basics, the fundamentals, the vision, all that kind of stuff."

[dj292009]

StormyOne,
DemoWhat? Lets see your Republicans are responsible for more money problems. You people want to spend 700 BILLION dollars for a war that we need not to be a part of. Two that country can certainly pay for the war, and three you party went after the Wrong GUY. So we may be democraps, but thats a better position than your rejecticans who can''t even worry about what there cause to the economy is. Look over history and tell me that when democrats are in office we are not better off. You lame wit

[oscarez]

"a high-level commission to study the current economic crisis and claimed that a corrupt and excessive Wall Street had betrayed American workers."

Just what we need more buck passing by a man with no platform.

[skyk239]

What kind of IDIOT votes to put the SAME people in charge who created this mess to begin with. It''s absolutely INSANE!!

[skyk239]

Obama is closer to the mark on this than McCain.

Posted by mrmazerati at 11:57 AM : Sep 16, 2008


McCain doesn''t have a clue and HE voted FOR the Bill that created the mess to begin with. Now add to that the FACT that the person who developed his Economic Policy was the SPONSOR of that bill and you have to believe you are right on this one.

[dj292009]

The price of fighting your enemies isn''''t cheap in $''''s or lives!!! And if you''''re naive enough to think Osama implemented 911 without the help of all the Islamofasts over there, you''''re naive! Saddam was training terrorists right under your nose!

The debt is NOT responsible for the collapse of the financial markets....YOUR BAND SPENDING HABITS DID!

Go get another credit card, max it out...then take out a stupid equity loan to pay it off and add to your debt which you cannot pay anyway....see how that works!

Give me a break!

Posted by StormeyOne at 12:11 PM : Sep 16, 2008

And your so naive to think that. Saddam is dead, we took him out well over three years ago. We are fighting a civil war you idiot. and yes I know that war takes money, but this war is well OVER BUDGET. and I am sick of you assuming that people are what broke the economy. NEWSFLASH: It is not only the dems fault I know republicans who are just a careless and greedy. So instead of pointing fingers at one party or another, lets agree that both republicans and democrats have caused the problems, and both parties need to work together to solve this issue.

[joker1944-2009]

The debt is NOT responsible for the collapse of the financial markets....YOUR BAND SPENDING HABITS DID!

Posted by StormeyOne at 12:11 PM : Sep 16, 2008

Hey! Leave my band out of this! Sure, we need practice and our drummer stinks - but blaming the collapse of the financial markets on us is going too far.

[skyk239]

NOBODY forced Americans to take our credit they can''''t pay for! If you were stupid enough to run up debt, and buy a house you can''''t pay for...when does that become the GOVERNMENT''''S fault???

Posted by StormeyOne at 12:13 PM : Sep 16, 2008

What grade did you get to in school? Most INTELLIGENT people know that the average person is NOT an accountant and knows very little about the rates they were sold. THAT''S why, after the Great Depression, our fathers put in place regulations that prevented those "Preditor''s" from taking advantage of the working stiff. When we bought our house those Regs were still on the books. We had to bring in OUR W-2''s plus all our outstanding debts and savings. That was reviewed by a Loan Examiner who determined if we could meet the payments or not. ALL those Regs were eliminated by the Republican''s and Phil Grhamn in 2001. Please try to educate yourself somewhat before posting?

[liberalme]

And I know how to fix it and I know how to get things done."

Same old verbage that goes with bridge to nowhere.

Will the "commission on crisis" replace the 911 commission that McCain was associating with the economy this morning--or will we have 911 commission to investigate all that went wrong with 911 and ADD the "commission on crisis" to "fix" the economy--or will the Ecomony on crisis be a "branch" of the 911 commission?

I know how to fix it and I know how to get things done."
Yeah--right!

[bubba027]

dj292009

Rewriting history a bit aren''t we? Reagan/Bush Sr. helped boost the economy to a point where Clinton enjoyed their success for much of his presidency until the last portion. The economy was actually in a recession (a real one by the numbers) when Bush Jr took over. The Democratic congress has done abosolutely nothing and proposed nothing to correct the economy but the Bush stimulus checks. I don''t guess you sent the money back because it came from Bush.