CORAL GABLES, Fla., Sept. 19, 2008
Obama Backs "Broad Authority" For Treasury
Says He Supports Efforts To Deal With Credit Crisis, But Does Not Want To "Bail Out Bad Decisions"
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Play CBS Video Video Obama, McCain On Recession In separate interviews, both Sen. Barack Obama and Sen. John McCain agree that the term "recession" describes the country's current economic woes.
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Video Biden On Obama's Economic Plan Barack Obama's running mate Joe Biden tells Katie Couric three things an Obama administration would do to calm the panicky financial markets.
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Video Romney, Corzine On Economy Mitt Romney, a John McCain supporter and Gov. John Corzine, a Barack Obama supporter, react to the candidates' remarks on the economy. They speak to Harry Smith and Maggie Rodriguez.
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Democratic presidential candidate Sen. Barack Obama, D-Ill. center, talks with his top economic advisers, Friday, Sept. 19, 2008, in Coral Gables, Fla. Facing camera, from left are, former Federal Reserve Board Chairman Paul Volcker, Obama, former Treasury Secretary Robert Rubin and former Treasury Secretary Lawrence Summers. (AP)
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Democratic presidential candidate, Sen. Barack Obama, D-Ill., waves to supporters after a rally in Espanola, N.M., Thursday, Sept. 18, 2008. (AP)
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Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
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Photo Essay Barack Obama The junior senator from Illinois is making his name known.
Obama said at a Florida news conference that given the gravity of the situation, he will refrain for now from presenting a more detailed blueprint. He said any recovery plan should be guided by not rewarding reckless business leaders.
"What we have to do is make sure taxpayer money is not being used to bail out bad decisions," he said. He refused to put a pricetag on a bailout he could support, but said it would not bar him from pushing for middle-class tax cuts that have been central to his campaign.
"I think now more than ever we have to have the broad-based middle-class tax cuts," Obama said.
Obama huddled with key economic advisers to talk about a burgeoning credit crisis that is rapidly moving to the front of this competitive election season, seeking a balance between offering stability and blaming the crisis on what he said were failed economic policies that John McCain would continue.
"We have an immediate emergency situation in the capital markets and it is important to provide the Treasury and the Fed broad authority to make sure the credit markets work, that bills are paid, that payrolls are made, that there's liquidity in the system," Obama said. "We have an institutional problem that has to do with a regulatory system that's inadequate to the new global marketplace."
In an interview with CBS Minutes correspondent Steve Kroft to be aired on Sunday, Obama said he thinks the country is in a recession.
"Oh, I think there's no doubt that…when the numbers come out, that we are officially in recession," Obama said. "I think, for a lot of people, they've been feeling like we've been in a recession for years now. When their wages and incomes don't go up, and the cost of gas and groceries and home heating oil and prescription drugs are all going up, that feels awfully like a recession to them."
In a separate interview with 60 Minutes, McCain also agreed the country is in a recession.
On Friday in Green Bay, Wisconsin, McCain outlined his plan for stopping the floundering economy and crisis on Wall Street. He said the Federal Reserve needs to get out of the business of bailouts but government has a responsibility to act and defend the public interest. McCain said the Fed should get back to "its core business of responsibly managing our money supply and inflation."
Watch interviews of Obama and McCain during a special edition of 60 Minutes, this Sunday at 7 p.m. ET/PT.
Later, Obama spoke to a generally friendly crowd of nearly 8,000 people who roared approval. His speech was interrupted at one point by a group of protesters who chanted and waved signs in the upper deck of the basketball arena. They were shouted down by the crowd chanting "Yes we can" and were escorted from the room.
Obama said he wouldn't go into precise details of what he would offer if elected, because that could lead to financial turmoil. While backing the authority to move quickly on the credit crisis, Obama made it clear that he laid blame at the feet of the Bush administration.
"For too long this administration has been willing to hit the fast-forward button when it comes to helping distressed Wall Street firms, while pressing pause when it comes to saving jobs and keeping people in their homes," he said. While he backed what he acknowledged would be a huge bailout, he argued for a targeted approach.
"I think what has to be clear is that whatever we set up is not a bailout for shareholders and CEOs," said Obama. "They need to take their losses because they were enjoying the upside while times were good."
Obama renewed his call for a new economic stimulus package he said could reverse economic policies gone askew, while at the same time bailing out the financial markets.
"There is a relationship between economic stimulus that I think needs to take place right now and long-term tax cuts for the middle class," said Obama. "So that now more than ever we've got to have the kind of broad-based middle-class cuts that I've talked about for 95 percent of working families. Effectively, the stimulus package is a down payment on that long-term shift in our tax code."
He argued for strict limits on the bailout.
"This plan must be temporary and coupled with tough new oversight and regulation in our financial institutions," said Obama, coupling his plan with a call to involve other nations.
"This is a worldwide issue and while the United States can and will lead in stabilizing the credit markets, we should ask that other nations who share in the crisis be a part of the solution as well," said Obama.
He urged balance in a recovery plan he said should be balanced.
"As taxpayers are asked to take extraordinary steps to protect our financial system, it's only appropriate that those who benefit are expected to contribute to the protection of American homeowners and the American economy," said Obama.
Obama focused on the economy and its effect on women in particular at a rally at Miami University, warning that women have suffered most in the economic downturn.
"We can't steer ourselves out of the crisis by going in the same direction," said Obama. "That's what this election is all about."
Obama made it clear he would give both Federal Reserve and Treasury Department officials a lot of slack to deal with the credit crisis.
"In the coming days, I'll work closely to examine the details of the Treasury and Fed proposals and as I do, I'll work to ensure that it provides an effective emergency response," said Obama. While laying blame for the crisis at the feet of Republicans, Obama said he would steer away from partisanship.
"I think it's critical at this point that the markets and the public have confidence that their work will be unimpeded by partisan wrangling, that leaders in both parties work in concert to solve the problems at hand," said Obama.
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See all 53 CommentsThe guy actually sees Americans as little chirping birds in a nest hoping mommie comes back with some food.
These middle class people are mostly employed by the BUSINESSES youre taxing the hell out of to line YOUR pockets with power!
How stupid would they have to be to let you buy their vote for PITTANCE and lose their jobs to outsourcing and companies flying the coop???
What good is a thousand buck refund to the ECONOMY if were all living in a cardboard box?
Posted by zeroKnots at 01:37 PM : Sep 20, 2008
The other question I have is tax cuts are good for the wealthiest Americans but not for middle class Americans because it hurts the richer Americans is your argument ? they will fire all of us if they have to pay more taxes? really ? those really wealthy Americans are usually CEO''s of publicly held companies , they are going to go to their board and say " I am having to pay more in personal taxes , i know we need these workers , but I am piqued my taxes went up and I am firing them" on average even at 250 grand your taxes go up $12 under Obama''s plan, and everyone below that gets a cut . i think if you are making 250 grand a yr , you can kick in another 12 bucks ,Just me I guess . Zero knots when you get back from your private helicopter hunt(now thats sporting) with Palin tell us what you think
The guy actually sees Americans as little chirping birds in a nest hoping mommie comes back with some food.
These middle class people are mostly employed by the BUSINESSES youre taxing the hell out of to line YOUR pockets with power!
How stupid would they have to be to let you buy their vote for PITTANCE and lose their jobs to outsourcing and companies flying the coop???
What good is a thousand buck refund to the ECONOMY if were all living in a cardboard box?
Posted by zeroKnots at 01:37 PM : Sep 20, 2008
Did you take that 600 to 1800 dollar check bush sent you as a stimulus check? nuff said.In 1940 the tax rate on the top 1% was 94% to pay for WW2, real American patriots back then , Republicans are fighting this one at 10 billion $ a month on chinese credit , to be paid by our grandchildren. makes you want to go out and shop like Bush said to show you are a true patriot .
"Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation." Let see with the fannie mae /freddie mac corp bail out , the AIG bail out a financial crisis as big as the great depression , and John Mccain promises to do the same thing for us in health care ,man I feel better now
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When was that interview?? Last I heard, this week, McCain was saying that American economic fundamentals were strong. He guy really has no clue whatsover about the economy. The one thing that is most important to all of us. The one thing that affects all of us. He is bored by it and has no answers to any of our major problems. His only agenda is to stay in Iraq and to lob pebbles at Iran.
Senator Obama has recently announced that the Bush tax cuts will not be suspended until the economy improves. According to Senator Obama, economic times are too precarious to allow taxes to increase -- even on individuals making more than $250,000 a year. Senator Obama acts as though he believes tax cuts are the most important policy for overcoming economic adversity. This does not sound like change. In fact, it sounds a lot like current Bush economic policy.
Senator Obama showed his willingness to resemble the Bush administration in his understanding of the situation in Iraq. In August 2008, he described the Bush administration surge in Iraq as succeeding "beyond anyone''s expectations." It seems that Senator Obama is comfortable taking President Bush''s positions on Iraq at moments that suit his own political designs.
Senator Obama characterizes his campaign as being about change. On at least five major issues including Iraq and economic policy, Obama has shown himself to be enough of a political chameleon to match President Bush whenever it suited his immediate purposes. Is that what he means by change?
To this end, LaRouche specified four necessary steps:
Step #1: Put the present international monetary system into bankruptcy reorganization. Step #2: Create a new system, a credit system, rather than a monetary system, in the form of an appropriately modern version of President Franklin Roosevelt%u2019s intention for a Bretton Woods system. Step #3: Organize the new system on the basis of an extended form of the 1648 Peace of Westphalia system, rather than a conflict-system. The IMF must be replaced by a treaty organization among participating sovereign nation-states with complementary long-term economic missions of scientific and related progress per-capita and per-square kilometer of territory. Step #4: Define a common, long-term mission-orientation of two or more generations%u2019 span for increase of the productive powers of labor among nations generally.
To this end, LaRouche specified four necessary steps:
Step #1: Put the present international monetary system into bankruptcy reorganization. Step #2: Create a new system, a credit system, rather than a monetary system, in the form of an appropriately modern version of President Franklin Roosevelt%u2019s intention for a Bretton Woods system. Step #3: Organize the new system on the basis of an extended form of the 1648 Peace of Westphalia system, rather than a conflict-system. The IMF must be replaced by a treaty organization among participating sovereign nation-states with complementary long-term economic missions of scientific and related progress per-capita and per-square kilometer of territory. Step #4: Define a common, long-term mission-orientation of two or more generations%u2019 span for increase of the productive powers of labor among nations generally.
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Posted by gun_tower
Name 3 things he''s done beyond being born black and rubbing elbows with the right people...until they become a stone around his neck.
While it''''s impossible to know what policies any candidate would implement in the future, as described by his public statements, Obama''''s tax plan would increase taxes in 2009 on the wealthiest 20 percent of households, while offering tax cuts for the other 80 percent. The largest increases would be on the top one-percent of earners. That''''s according to analysis by the Tax Policy Center, a nonpartisan research group whose staff of experts includes former economic advisers to the White House and Congress under both Republicans and Democrats.
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Posted by gun_tower
Simply put...socialism. Take from the wealthy and give to the poor...
NObama_SUX!!!
Posted by NObama_SUX at 04:19 PM : Sep 19, 2008
so, you''re saying yourself sux.......by the way, maybe a few more posts from you... LMFAO!
Why am I not surprised. Obama is the biggest do-nothing, say-nothing, rock-nothing ever to run. Weasle...wait until someone DOES say something and then point and laugh at them. Oh Goodie...another spineless straw boss wants a job. The first big crisis on his watch will find him squeezing ideas out of anyone willing to put out and he''ll run with the idea that makes him look the best....so long as it doesn''t p.iss anyone off!!! Eck.
Which is exactly what a faultering economy needs....
Posted by NObama_SUX at 04:12 PM : Sep 19, 2008
I guess...IF YOU WERE A CAPITAL INVESTOR!!! However, the majority of us aren''t. We may have some retirement monies bound up in this mess, but the middle class has been pressed for too long. The economy doesn''t need more capital investment right now...it needs more workforce investment. People need to feel safe because ultimately it''s not the big whig hot shots sitting in some high rise office drinking latte that this society depends on, it''s the people who''s paycheck he signs. Trickle down theory is a farce and a scam.
Your still ranting about obama supporters are half american? And what was that pathetic answer you gave me again.
I can hear Obama now the first crisis he has to face.
Joe what are we going to do now? You make the call and I will vote present, that way Joe I can be the Monday morning quaterback.You can take the heat if it don''t work out right because I am really good at getting away from the ones that make me look bad.Just look at the rev.Wright. Sounds like a sitcom.
http://www.rallycongress.com/ame
ricansentinel/1223/a-call-for-hearings-i
nto-senator-barack-obamas-violation-of-t
he-logan-act/
Go Worship your god McCain
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