Clinton: Obama Better For Post-Bailout

Former Prez Says Obama's Policies Better To Restore Prosperity; Says A Top Bailout Aim Should Be Protection From Foreclosures

(CBS)  Bill Clinton says he'd bank on Barack Obama over John McCain to lead the country back to economic prosperity once the bailout being worked on in Washington is in place.

He also says keeping people in their homes should be among the top goals in that bailout package, for their own good, and that of the economy.

In an interview on The Early Show Thursday with co-anchor Harry Smith, the former president said, "I think that he (Obama) personally, and our party generally, tend to produce better economic results for ordinary people. And I think that, while Sen. McCain -- I like him and he's a friend of mine, and I trust him in many ways -- but the Democratic economic philosophy and Obama's specific proposals, I think, will produce better results for ordinary Americans."

Mr. Clinton said he doesn't think the election will hinge on the fate of the bailout package "because President Bush invited both Sen. Obama and Sen. McCain to come back and be part of the congressional briefings, work on this together. I think they need to be attentive to it and fulfill their responsibilities in the Senate and as the nominees of their party.

"But the larger issue is, how are we going to bring the economy back? How are we going to create jobs and raise incomes? That's the long-term stability. That is, there was too much investment in housing alone. We need a strategy here that will get America back across the board that includes dealing with the energy issues, dealing in the bills people are paying for that and the job opportunities there, and dealing with health care. That, I think, those big issues I think will tend to overcome the international issues."

And it's on that "larger issue" that Mr. Clinton thinks Obama would steer the nation down a better course than McCain.

Referring to McCain saying the economic peril the nation is in is the worst crisis since World War II, Smith asked Mr. Clinton, "Is it that bad?"

"I think it has the potential to be this bad," Mr. Clinton replied, "because, in the end, all financial transactions in all countries rest, in part, on confidence, that is, your local bank, for example, will insure your account up to $100,000, but they are only required by federal rules, and never have been required to keep more than a certain amount of, if you will, cash reserves, which is much less than it would take to cover all the outstanding obligations of the bank. This facilitates economic growth. This is not risky sub-prime mortgages and derivatives and all that funny stuff. When people lose confidence in everything, down to the point where money market accounts seem unstable and banks won't loan each other money, that's bad.

"We need to do some things to insert confidence back into the entire financial system, part of which is the stock market, but it also includes the financial system. And I thought actually -- I listened to the president's speech last night, and I thought it was well-constructed to explain to people why there was a problem today with all of the financial system and why, therefore, we needed to act."

Smith noted that many members of Congress are reporting resentment among their constituents over the prospect of bailing out the very companies and executives who caused the economic mess in the first place, and Mr. Clinton observed, "Well, you don't want to do that. We have to be careful not to have unjust enrichment. And I think the members of Congress have made that clear, and both candidates for president have made that clear. They put out a joint statement, I thought, which was encouraging last night, but here's how it would work: If you want to keep a company afloat that's made some improvident investments, some of them, one, Lehman Brothers, was allowed to fail and go into bankruptcy, and some of those same people you're worried about are taking up their assets at bargain basement prices.

"With AIG, the big insurance giant, I think that's going to be more typical. The government did loan them a lot of money, but they took an 80 percent ownership interest in the company, and they have to pay back with a pretty hefty interest rate.

"So, I think that, by stabilizing that company, the taxpayers will actually end up making money. We made money when we helped Mexico. we made money in the Chrysler bailout and, more to the point, in the Great Depression, when we kept a million people in their homes, the taxpayers made money. That's why I think the Congress should take a day or two to analyze this to make sure that's the way it's done -- that, instead of subsidizing the undeserving, we use this to stabilize the economy as a whole and help those homeowners that are hard working people."

Is there really as much urgency to getting a bailout approved as administration officials say?

"I don't have a stopwatch but, because it's a confidence issue, like Warren Buffett yesterday put $5 billion in investment into Goldman Sachs -- that's a confidence builder. People think he knows what he is doing."

"He got a pretty good deal, too!" Smith interjected.

"He got a real good deal," Mr. Clinton agreed, "but people think he knows what he is doing. Maybe that bought them (bailout negotiators) another day, but the point is it has to be done in a timely fashion.

"I think what they want to do is to guard against unjust enrichment, protect the taxpayers, maximize the stability, and keep as many people in their homes as they possibly can, because that will really save the economy and turn us around again if we don't have -- we're going to have 2 million homes foreclosed on this year. We don't want that again next year."

Mr. Clinton spoke to Smith at the site in Manhattan of his fourth annual Clinton Global Initiative.

[tbuckl]

I want to vote to the person who will follow this GREAT American idea and concept and return my America to me and my fellow citizens forthwith..."We hold these truths to be sacred & undeniable; that all men are created equal & independent, that from that equal creation they derive rights inherent & inalienable, among which are the preservation of life, & liberty, & the pursuit of happiness; that to secure these ends, governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government shall become destructive of these ends, it is the right of the people to alter or to abolish it, & to institute new government, laying its foundation on such principles & organizing its powers in such form, as to them shall seem most likely to effect their safety & happiness." Thomas Jefferson

[paris1969]

Bill Clinton is trying so hard to be a good Democrat ... and he knows that Obama is so unqualified to be President.

[ibzjem]

Posted by jones19501 at 04:35 PM : Sep 26, 2008

yes, but times were very different then. We had a surplus, balanced budget, and were not in war over oil. You can''t logically look at those preceding through the lens of today''s economy. Phil Gram opened up the Enron loophole that allowed banks to force "sub-prime" loans upon prime borrowers so they could reap higher commissions and higher interest. Clinton''s agenda was to open up loans to people that were not otherwise getting them. People who were being more or less discriminated against.

[jones19501]

Before the Democrats'' affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-Democratic Congress "mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains." Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton''s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae''s and Freddie Mac''s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.
Instead of looking at "outdated criteria," such as the mortgage applicant''s credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit. Threatening lawsuits, Clinton''s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn''t a joke -- it''s a fact.

A little control will go a long way, skyk239. Have a nice weekend and enjoy the debate.

[skyk239]

Grow up you liberal loonies, there is more to life than your minimul understanding of how the world works. If you think Obama has a chance in hell you are sadly mistaken. It has nothing to do with a debate or his extravagent speeches, it has everything to do with his complete lack of knowledge in the big people world.

Posted by john43218 at 07:56 AM : Sep 26, 2008

LOL Right!! LOL So say''s the super IDIOT from the Trailer Park that NO ONE visits!! LMAO If anyone associated with this pathetic 6th grade drop out is reading this, PLEASE keep anything sharp away from him when Obama WIN''s this thing.

[skyk239]

According to the Center for Responsive Politics, the top three U.S. Senators getting big Fannie''''s political bucks were Democrats, and #2 was Sen. Barack Obama, who had only been in the Senate four years but still managed to grab that #2 spot ahead of John Kerry & Chris Dodd, the chairman of the Senate Banking Committee.

Posted by jones19501 at 02:15 PM : Sep 26, 2008


Are YOU really THIS ignorant?? Geeeeezzzz Sparky don''t you get out of your trailer...even for a FEW minutes. Minority Area''s ARE NOT the problem and the MASSIVE Foreclosures ARE not in those Neighborhoods. Who that can speak and read English DOES NOT know that the REPUBLICAN''s, With McSame, created this mess by removing Regulations that had been in place since the Great Depression. Wow!! Take a night class and get a LITTLE education.

[jones19501]

In saner days, banks designated certain areas as no-loan zones, i.e., depressed neighborhoods where lending money to potential home buyers was not only a risky investment but a certain future foreclosure. Pres. Clinton and his chums decided that people not the least bit creditworthy (and speculators)would be entitled by law to obtain mortgages even when it was obvious they couldn''t afford to handle them. FNM & FRE poured fresh money into the banking system by buying mortgages from banks. They managed to load up their portfolios with billions of dollars of risky mortgage paper that banks had been forced to offer and then dumped on them. In Enron, people went to jail. With the Fannies, some just walked away with millions. The collapse of Lehman Brothers can be blamed on FNM and FRE. They used huge lobbying budgets and political contributions to keep regulators off their backs. According to the Center for Responsive Politics, the top three U.S. Senators getting big Fannie''s political bucks were Democrats, and #2 was Sen. Barack Obama, who had only been in the Senate four years but still managed to grab that #2 spot ahead of John Kerry & Chris Dodd, the chairman of the Senate Banking Committee.

[nwarky1]

Wake up America....

The crooks have one hand down the front of your pants and the other one in your wallet pocket again.

After Bush and Cheney invaded Iraq, they sent in Halliburton to repair the Oil Field damaged by Saddam. Three years later, somebody finally decided that Halliburton had forgotten to install any sort of metering equipment on all of those wells.... So nobody has any idea how much oil was pulled out over that three year period.... HUUUMMMMMM!

Next came the Tsunami...

Bush decided right away that we should send several Billion over to help out.....

Bush senior and Bill Clinton were on the next plane to Southeast Asia.....

All of the pay by the minute media said they were going over to help make sure the money was used where it would do the most good.

A few weeks later, the news said that a lot of the money could not be accounted for, and it was supposed that it had beem slurped up by a corrupt bunch of officials.... HUUUUUUUMMMMMMMM.

Now Bush is trying to get $700B to bail out the Banking System..... And Clinton and Bush Senior are circling in the air.... HUUUUUUUUUUUMMMMMMMMMMMMM.

[moolathe]

Republican act together when other county in trouble. Republican don''t care about when their own country in trouble.
Go Obama Go...Yes, You can do it.

[nobailoutno8]

On the 700billion dollar bailout, with 303,824,640 million people in US the government could give each US person 1million dollars which would only equal about 303 million dollars which is significantly less than 700 billion dollars and this would save the economy and would also save 699 billion dollars. Some people may not agree with this but its tax payer money anyway and is more likely to work than giving banks that screwed-up hundreds of billions of dollars that may not help.

[tinameier]

the people who talk bad about Clinton are just some sad souls. Clinton is right, Obama is the man,he will be our next President. again ,sad that some Mccain lover cant see that we need a younger stronger leader,one that does not love WAR like Mccain.

[jmcchange]

Bill Clinton was a lying sack of rapist ka,ka ...

Only hyphenated-Americans would accept anything this pervert offered as truth.
Posted by JMcChange

OMG!!! Have you been taken off your meds? While totally delusional, you are a riot! Next time they get you in that padded room you might want to ask if they will permit you some history books to learn what''s really gone on in the White House from the beginning. Thank you, I really enjoyed the raucous laughter you brought my way.
Posted by IrishWench at 09:00 PM : Sep 25, 2008
=================

I rest the case I offered above. These hyphenated-Americans never like me bashing their gods.

As you can all see, a bag full of gas and profanity is typically the best they got to offer as rebuttal.

ROTFLMGTBO!!!

[dibs977]

McCain had the opportunity to fly navy jets---something just about everyone would do if they had the chance. That does not make him a big hero in my book. He has his good points---but president material he ain''t. And all this talk about conservatives and liberals---most of us are moderates---and probably not as far apart as many think.

[dibs977]

Bush''s idea of foreign policy is to saber rattle all the time and act like an arrogant cowboy. He is just too rude and ignorant to know how to treat other countries with respect. As one of the worst presidents ever, I wonder what he has to be arrogant about. McCain showed bad judgement when hechose an embarrassing bully for his VP. She came out swinging like she was going to whip some ***. Where did she get the gall to act like that? It is just ignorant arrogance. We call people like that "oil field trash." I pray that we may have some refinement and dignity in the White House. Obama is a refined, intelligent and wise man.

[dibs977]

Bill Clinton was a great president who could have done more if her was not totally hounded continuously by Republican dirty tricksters and we must be careful not to let this happen with Obama when he becomes president. President Clinton may have made a mistake but his goal was always to do good for America---his intention was good and we prospered. Don''t you guys get it--- Bush/Cheney are here to good for a few people in business---not for America. But they deregulated so much that now the whole world is in trouble. Bush never wanted or tried to do good for America but Clinton did.

[simon9999-2009]

McCain chickens out of a debate and Sarah Mooseburger won''t talk to the press. And half the country still votes Republican. Amazing. Vote McBush because things aren''t bad enough yet!

[Harvybing]

BILL CLINTON AGREES WITH FOX NEWS ON CAUSE OF FANNIE MAE MELTDOWN - DEMOCRATS ACCORDING TO MR CLINTON

These 2 pages contain videos which are VERY TELLING INDEED. I Applaud President Clinton''s Brutal Honesty Here

http://www.youtube.com/watch?v=AHj8-HSi5AA&eurl=http://newsbusters.org/blogs/noel-sheppard/2008/09/25/fox-news-blames-democrats-financial-crisis-bill-clinton-agrees

http://blogs.abcnews.com/politicalradar/2008/09/bill-clinton-do.html

[jmcchange]

Given what we all heard Paula Jones testify to under oath as to how tiny Bill Clinton''s manhood is, don''t you know his ego has to be a full order of magnitude larger, to even allow him to show his face in public after leaving the White House.

No decent man, who was not sick with ego could have lived with himself after what was revealed about this chicken molestering pervert-in-charge.

[jmcchange]

I will just about bet any number you like, Hillary Clinton will become Barak NObama''s Vice President candidate just about two weeks prior to the election.

This way there will be no time for anyone to poke around into her husband, the former Pervert-in-Charge, laundering a bit over $500 million dollars through his so called "Presidential Library" so far.

[jmcchange]

Bill Clinton was likely the most evil pervert to ever reside in this nations White House.

This lying sack of rapist ka,ka finished off once and for all the Demotard Party''s already terribly tarnished imagine in the eyes of all real Americans.

Only hyphenated-Americans would accept anything this pervert offered as truth.