AIG Bailout Takes Campaign's Center Stage

McCain Says Government "Forced" Into Action; Obama Blames McCain, GOP For The Crisis

(CBS/AP)  Republican presidential candidate John McCain, a day after flatly rejecting the idea of a taxpayer bailout for American International Group Inc., said Wednesday that the government had been "forced" into proposing an $85 billion loan to the nation's largest insurer.

McCain appeared to soften his opposition to the bailout proposed by the Federal Reserve, treating the plan as a necessary evil to protect ordinary Americans with financial ties to AIG - and asserting that such a financial collapse should not be allowed to happen again. He also called for an investigation to uncover any wrongdoing.

"The government was forced to commit $85 billion," McCain said in a statement. "These actions stem from failed regulation, reckless management and a casino culture on Wall Street that has crippled one of the most important companies in America," McCain said in a statement.

"The focus of any such action should be to protect the millions of Americans who hold insurance policies, retirement plans and other accounts with AIG," he added. "We must not bail out the management and speculators who created this mess."

Democratic rival Barack Obama blamed the Republican anti-regulatory fervor of recent years for part of the mess, saying the crisis is "a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary."

"Despite his eleventh hour conversion to the language of reform, Senator McCain has subscribed to this philosophy for twenty-six years in Washington and the events of this week have rendered it a colossal failure," Obama said in a statement.

"The fact that we have reached a point where the Federal Reserve felt it had to take this unprecedented step with the American Insurance Group is the final verdict on the failed economic philosophy of the last eight years," Obama added. "While we do not know all the details of this arrangement, the Fed must ensure that the plan protects the families that count on insurance. It should bolster our economy's ability to create good-paying jobs and help working Americans pay their bills and save their money. It must not bail out the shareholders or management of AIG."

Neither candidate said how regulation should be improved.

Campaigning in Cleveland, McCain running mate Sarah Palin expressed disappointment that the federal government needed to inject tax money into yet another financial institution.

"The shot that has been called by the feds - it's understandable but very, very disappointing that taxpayers are called upon for another one," Palin said during a visit to a deli.

McCain noted that Obama now talks about possibly delaying his planned tax increases on wealthy Americans if he wins the election and the economy is still in recession when he takes office. McCain said that, in essence, was an acknowledgment that Obama's tax plan as written "will hurt our economy, not help it."

The Arizona senator visited a GM plant that employs 3,900 and vowed: "We're not going to leave the workers here in Michigan hung out to dry while we give billions in taxpayers dollars to Wall Street."

Indeed, both McCain and Obama support sending billions to the auto industry in what critics call yet another bailout by taxpayers. McCain, who lost Michigan primary after saying some U.S. jobs will never come back from overseas, now is behind a plan in Congress to give automakers $25 billion in federal loans to help them retool for cleaner cars.

"It's time to get our auto industry back on its feet," McCain said. "And it's time for a new generation of cars and for loans to build the facilities to make them."

Although McCain has stepped up criticism of government regulators as he seeks the presidency, he has long favored a reduction in corporate regulation.

McCain had a hand in economic matters as a member of the Senate Commerce Committee, which he once chaired. His campaign has noted that McCain was heavily involved in telecommunications regulation and deregulation.

McCain said in an interview that he didn't want the government to bail out AIG. "But there are literally millions of people whose retirement, whose investment, whose insurance were at risk here," he said on ABC's "Good Morning America." "They were going to have their lives destroyed because of the greed and excess and corruption."

Elaborating on the charge of corruption, McCain said that many Wall Street executives had claimed "everything's fine, not to worry" and that Congress and regulators had paid no attention. "All of them were asleep at the switch," he said, and went on to blame special interests and lobbyists as well.

Asked for specific examples of corruption regarding AIG, senior McCain campaign adviser Steve Schmidt offered none.

In two new television ads Wednesday, McCain asserts that he is the right leader to keep Americans' savings safe.

"I'll meet this financial crisis head on," he says in one ad. "Reform Wall Street. New rules for fairness and honesty. I won't tolerate a system that puts you and your family at risk. Your savings, your jobs - I'll keep them safe."

[kopana]

BUSH''s legacy and ''s MCSame future

Nearly 61 percent of local and state homeless coalitions say they''ve experienced a rise in homelessness since the foreclosure crisis began in 2007, according to a report by the National Coalition for the Homeless. The group says the problem has worsened since the report''s release in April, with foreclosures mounting, gas and food prices rising and the job market tightening.

FOR your sake

Vote OBAMA!!!!

[homespunlady]

Wasn''t it George W. Bush that RIGHT AFTER the 9/11 ATTACKS told Americans that wanted to "DO SOMETHING" to hit back at the BILLIONAIRE SAUDI TERRORIST LEADER that "claimed responsibility for that attack-

That they should "GO SHOPPING" to prove their PATRIOTISM????

Guess THEY DID!!!

[pastdue1]

Simply because we elected ,twice, a president, not too qualified, but appealing and folksy ~ "just like ordinary average middle class folk", the US government has now had to rescue Wall St to the tune of $800 billion. Does that seem a bit pricey for a "just like me" folk in charge. Wait, to get this money, the government must sell bonds ~ OK ~ wait again, who buys most of these bonds ~ China and the Middle East. Now , our payment for a "folksy, just like me" president who rarely would answer a specific question when he was running for president and until recently rarely listened to anyone unless they agreed with him, really does tend to get a little bit too pricey.

[boatdocster]

"In recent weeks, the federal government has taken extraordinary measures to address the challenges confronting our financial markets," Bush said Thursday.

The president''s remarks were his first on the economic earthquake since Monday. He canceled a statement planned for Tuesday on the developments and has spurned all attempts by reporters to ask him about it this week.

Good Old George - He has doubled our Federal Debt, allowed rich CEO''s to profit at our expense and now wants to "print a couple hundred Billion" more dollars (because the USA savings account is empty, just like Wall Street).

"Quick, Dicck, I need some new credit cards - these old ones don''t work anymore!"

Meanwhile, he hides from reporters who want to know the status of our country''s economic health, driven in to the ground on his watch....

W - Worst Ever!

[pastdue1]

Posted by LOOK_______ at 09:28 PM : Sep 17, 2008

Yes, remember 9/11, remember that the majority of the terrorists were from , guess where, Saudi Arabia, whose leader is a dear friend of the Bush family. Remember 9/11, and how the Bush administration turned that holocaust into a plan to gather up all the oil in Iraq, a definite unAmerican and un thinking approach to fighting terrorism.
Does it seem odd to anyone that in this time or economic turmoil, Halliburton continues to avoid any financial woes and, in fact, continues to bloom as a result of all its no-bid contracts in Iraq. Now , that the Bush administration has allowed the market to almost collapse, guess where Halliburton is moving ~ to the middle east
Again, if you like the way this country has gone in the past 8 years, vote for McCain/Palin.

[jbnola56]

Let''s be clear. The US government now owns controlling interests in these institutions. This is Nationalization not a loan and should not be called bailout.

[jbnola56]

Let''s be clear. The US government now owns controlling interests in these institutions. This is Nationalization not a loan and should not be called bailout.

[sleepyric]

Total cost of the bailouts of Freddie/Fannie; AIG; BearStearns = $800 billion. Try to visualize that much money, and before it''s all over, the figures might be in the TRILLIONS!...I want somebody''s head of a stick for this. Anyone who was involved in changing of the post 30''s regulations should be rounded up and put in a pen.

[clovisbuford]

Before you pass this post think on it a moment or two. Toss it around in your head and just remember the day of 911 too.
Posted by LOOK_______ at 09:28 PM : Sep 17, 2008
I remember a president looking totally out of his element as he went back to reading a book called "my pet goat " i remember a military that responded boldly with great effect in the county that the terrorists had as their home base , I remember watching the world rally behind us . I watched the world abandon us and shake their head in disbelief as 2 yrs later we invaded a country that had not attacked us , or been part of the terrorists who had attacked us and we took our eyes off the ball .I watched as the same president through the appointment of industry lobyists and friends , to watch the very industries they represented ,gave us Enron , mine disasters , tainted foods , the katrina response,An admistration which thinks torture is an American value .I often think about it LOOK_____

[clovisbuford]

If it wasn''t so tragic in its effect on real american families it would almost be funny . Republicans and conservatives push this pro corporation agenda where if Government would get out of the way of the "free market " big buisiness would prosper and America would prosper and the economy would be stronger . The "free market " adresses all inequities and Darin would rule in the financial markets , even if its not quiote up to the same speed as creationism in our public schools.The deal is all these "theories " about how the free market works , have huge stakes in it , so its free market capitalism on profits , but when they screw up ,badly ,in some cses criminally,then its not a free market , the tax payer has to bail tehm out like they were communists , so profits= "free markets " losses ="taxpayers share " pretty good system for the Ceo''s , but you know republicans keep voting the same , and expecting different , cause that has worked so well the last 8 years. The repulicans have the very same economic platform in 2008 they had in 2004 and 2000. itss working well eh , CEO pay is still high and that is what counts .

[noloyalisti]

The Republicon wet dream in action. Socialism for the rich and capitalism for the middle class and poor. Time to rise up people and take back out country from the fascists. Time for general strikes until they work for us again. Before they get everything.

[nearl4511]

What is occurring is not communism, but continuation of Corporatism.

Large Corporations are too important to fail because our economic system would collapse -- is the rationale.

Wonder how much of the National debt I owe now? Can we please reregulate rationally and not call for commissions to study the issue ad nauseum, please?

As long as the economy stays in the headlines, Dems win.
It is

[pastdue1]

It is odd to watch this slide, what with all the government takeovers and the government loans that give the US some ownership. There is a bit of communism beginning to show in all this Bush administration financial policy. Or, I guess you can just call it "welfare for the corporations". Again, if you like what you''ve gotten during the past 8 years, you need to vote for McCain.

[dj292009]

"Obama is now stoking racism in the country," Limbaugh wrote in an email. "Obama is a disgrace - he wants the public to think he is Mr. Nice Guy while his thugs are in Alaska looking for dirt on Palin and he runs race-baiting ads and lies about what he has done and what McCain has done."

You listen to Rush you idiot. Of course you do, why not he is the only one you people can talk to that has the same dumb idea''s. I wonder if he is the one telling you all this *** of the Massiah. If so tell him DJ in Il. says he is full of BS and he needs to be off the AIR

[dj292009]

New headline:

Poll: Obama Retakes Lead Over McCain


HURRAY!! Thats the way to go

[homespunlady]

More PROOF that the NEO-DEPRESSION has begun:


Another nightmare on Wall Street: Dow down 450
Sep 17, 5:54 PM (ET)
By ELLEN SIMON

(AP) Trader Joseph Acquafredda, left, check the numbers near the close of trading on the floor of the...
Full Image



NEW YORK (AP) - The stock market took another nosedive Wednesday as the American banking system appeared even shakier and investors worried that the financial crisis is spinning so far out of control that even government rescues can''t stop it.

The Dow Jones industrial average, which only two days earlier had suffered its steepest drop since the days after the Sept. 11 attacks, lost another 450 points. About $700 billion in investments vanished.

[u-r-right]

I''m thinking, we already had a VP shoot his friend in the face. I''m concerned Palin may shoot herself in the foot!

[dj292009]

Nobama is a two faced liar and hypocrite. Every one knows that he backed tricky math to get the poor in Illinois into homes they could not afford the mortgage on. Then bragged to every one how he was able to help the poor masses. LMAO! This is just the beginning, wait till he is in the white house.

Yea wait till he is in the white house. He may fix the problems of the republicans. Gee won''t that be a biotch for you guys when obama saves the day

[gfuss2]

I don''t support Sarah but----------Go here and see the terrible recent abuse of Sweet Sarah. Disgusting to say the least! http://www.cnn.com/2008/US/09/16/abused.pigs.ap/index.html?iref=mpstoryview

[hugochavez9]

Typically a republican believes that:

1)The 2nd Amendment of the Constitution takes precidence over the rest of the Constitution.

2)The rich should be tax-exempt, and that the middle and lower classes should have to foot the bill, also, a person who *** when an under-funded government agency is unable to carry out its assigned task.

3)Thinks that programs such as welfare, medicare/medicaid and minimum wage are unconstitutional and should be banned.

4)Labels everything and everyone they disagree with as being -Communist- or -Anti-American- or -French.