Obama: "No Welfare For Wall Street"

Nominee Is Inclined To Support Congress' $700B Bailout Package If It Also Protects Main Street

(CBS)  Democratic presidential candidate Barack Obama said that the looming credit crisis was an urgent situation for which action needs to be taken, but he wants to ensure that the $700 billion bailout package being crafted by the Bush administration and Congress does not amount to "welfare for Wall Street."

"My inclination is to support it, because I think Main Street is now at stake," he told Face The Nation host Bob Schieffer. He added, though, "I'm not happy about it."

"This [crisis] could affect every sector of the economy. If the credit crisis continues or worsens, then suddenly small business people can't make their payroll. You have large businesses who can't sell corporate debt, which could bring the entire economy to a grinding halt."

Obama was pleased that, at first reports, his basic goals for the package were included: "The issue of making sure that we had strong oversight; the insistence that taxpayers share in the gains (if there are any) when the market recovers; the insistence that homeowners get additional relief so that there's some reciprocity - if in fact we're bailing out or helping banks, they in turn have to help rework mortgages for people who are potentially facing foreclosure; and the final thing, the issue of executive compensation, making sure that taxpayer money is not going to pad bonuses or golden parachutes.

"It appears that those principles have all been incorporated into the core agreement. And I'm going to be reviewing the language over the next day to make sure that those provisions actually stick."

But beyond the bailout (which has reportedly been agreed to by Congressional leaders), Obama focused on how the U.S. economy came to the point of a president sounding the alarm that a catastrophe was in the offing if drastic action wasn't taken immediately. "We have to remember how we got here, not so much to allocate blame as to understand the choices that are going to face the next president. Unless we update our 20th century regulatory framework for a 21st century global financial system, then we're going to continue to be vulnerable to this kind of situation, and I think the next president has to come in with a very strong package of reforms."

Obama said fighting off lobbyists and special interests was key, as is recognizing that the fundamentals of our economy are not strong - which he suggested his opponent, Republican John McCain, has not recognized.

"Some of the root causes of this crisis have to do with the day-to-day struggles that ordinary people are going through," he said, "with flat wages and incomes but constantly increasing costs.

That puts pressure on them to take out more debt, to use home equity loans, to try to refinance. It created an environment in which this kind of crisis potentially could occur.

"We should have never gotten into this place in the first place. And I think this is a final verdict on eight years of failed economic policy."

Obama noted that the dire predictions of Treasury Secretary Henry Paulson, Federal Reserve chairman Ben Bernanke and President Bush set the stage for a week of high drama that, he said, shouldn't have ever happened. "Think about it. I mean, we had the largest bank failure in our history, and it wasn't even the major news that day!"

"You agree with the president's assessment that it's as serious as he said it was?" Schieffer asked.

"I agree that this is probably the most serious financial crisis we've faced since the Great Depression," Obama said. "And what we can't do is do nothing. What I absolutely insist on, though, is that the same sense of urgency that we have about Wall Street, we have about folks on Main Street who have been struggling for a long time."

Obama said more serious regulations are required. "We have to set up some rules of the road, some regulations that work to keep the system solvent, and prevent Wall Street from taking enormous risks with other people's money, figuring that, 'Tails I win, heads you lose,' where they don't have any risk on the downside.

"But the second thing that we have to learn is that, if you think about how this all started, subprime lending, you've got homeowners who ultimately could not make payments on their homes, and that's an indication of the degree to which family budgets have been under huge stress for years now, and we haven't been paying much attention about it because the theory has been, 'Well, as long as those at the top are doing well, prosperity somehow is going to trickle down.'"

In response to Thursday's meeting at the White House, attended by both Obama and McCain, at which the tentative brokered agreement was upset by House Republicans, prompting further tense negotiations, Schieffer asked Obama if McCain should get any credit for helping to get the bailout package settled.

"No," Obama said. "Look, here are the facts: For two weeks, I was on the phone every day with Secretary Paulson and the congressional leaders, making sure that the principles that have ultimately been adopted were incorporated into the bill. None [of the amendments in the package] were in the president's provision. They are identical to the things I called for the day that Secretary Paulson released his package. That, I think, is an indication of the degree to which, when it comes to protecting taxpayers, I was pushing very hard and involved in shaping those provisions.

"But understand this: The important thing here is making sure that we don't have a photo op session, because this is serious. We should not have been here in the first place. And, you know, I think the critical debate that we're going to have to have between myself and Senator McCain moving forward is, how do we prevent this kind of thing from happening again?"

In addition to the bailout, Obama discussed Friday's debate, where McCain accused Obama of "not understanding" something.

"The interesting thing is, he kept on asserting I didn't understand, but beyond saying the line never indicated what exactly I didn't understand. It's true I don't understand Senator McCain's positions on a whole host of issues, because given how the Bush administration has created an extraordinary crisis in the economy and considering that we remain bogged down in Iraq, al Qaeda is resurgent, Iran is developing nuclear weapons, that our foreign policy is if not in a shambles, then certainly in a place that I think anybody is comfortable with - given those facts, what I don't understand is that Senator McCain continues to promote them."

---

Read the full "Face the Nation" transcript here.

By CBSNews.com producer David Morgan.

[leighg1]

To jaxsterling5 at 05:03 PM : Sep 28, 2008:

I am ashamed of you as a fellow American. People like you should not be allowed to post freely the hatred for whatever reason you have towards Sen Obama.

[dj282008]

CBS What are you doing?

[jljaguir]

Lets see. Bush and all his cronies have their suitcases full of all the gold before they leave Washington. Now the "sky is falling" on Wall Street. CEO''s on Wall street have made enough money since Bush became President to actually pay for the bail out. Bush and his Repubs in Congress were in power for six years until the American people fired them a couple of years ago. Now it is us, the American people''s fault that this bail out crisis has occurred. Well, in my opinion, that sounds like a BIG F YOU to the next President and all us taxpayers.

[jljaguir]

Lets see. Bush and all his cronies have their suitcases full of all the gold before they leave Washington. Now the "sky is falling" on Wall Street. CEO''s on Wall street have made enough money since Bush became President to actually pay for the bail out. Bush and his Repubs in Congress were in power for six years until the American people fired them a couple of years ago. Now it is us, the American people''s fault that this bail out crisis has occurred. Well, in my opinion, that sounds like a BIG F YOU to the next President and all us taxpayers.

[jljaguir]

Lets see. Bush and all his cronies have their suitcases full of all the gold before they leave Washington. Now the "sky is falling" on Wall Street. CEO''s on Wall street have made enough money since Bush became President to actually pay for the bail out. Bush and his Repubs in Congress were in power for six years until the American people fired them a couple of years ago. Now it is us, the American people''s fault that this bail out crisis has occurred. Well, in my opinion, that sounds like a BIG F YOU to the next President and all us taxpayers.

[tincup356]

seems as though CBS is deleting posts that condemn congress for this. isn''t that censorship?

[jlmcscanner]

Obama has too many radical associations for my taste.

Hamas supports Obama - 30 k donation

Black Panthers Support Obama

International Solidarity Movement supports Obama

Obama is dangerous. Who is he? Where did he come from?

ANd why doesnt Obama talk about his 20 years experience with Rev Wright, Bill Ayers and the Black Liberation Theology.


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Posted by jaxsterling5 at 05:03 PM : Sep 28, 2008

GREAT POINTS !!!!! Obama is not a Christian, he only "coverted" after his wife told him he has to in order to run for any major political office.Smoke and mirrors.......

[jlmcscanner]

Obama has too many radical associations for my taste.

Hamas supports Obama - 30 k donation

Black Panthers Support Obama

International Solidarity Movement supports Obama

Obama is dangerous. Who is he? Where did he come from?

ANd why doesnt Obama talk about his 20 years experience with Rev Wright, Bill Ayers and the Black Liberation Theology.


--------------------------------------------------------------------------------

Posted by jaxsterling5 at 05:03 PM : Sep 28, 2008

GREAT POINTS !!!!! Obama is not a Christian, he only "coverted" after his wife told him he has to in order to run for any major political office.Smoke and mirrors.......

[jljaguir]

Former Secretary of the Treasurer Paul O''Neill was fired because he didn''t agree with the BUSH tax cuts. Read his book "The Price of Loyalty".

[jljaguir]

Hey MR22582 & dj282008. I am a 50 year white female currently registered as a Republican and I am definitely not paid for my comments.

[speakingtru]

FYI both McCain and Obama plan on supporting this decision/bailout....we really have to wait and see if either one will actually vote on this bailout.

[dj282008]

Do you understand it was stalled because of Obama and the Democrats position on giving tax payer money to ACORN. I watch Cable News, CNN and FOX. Where do you get your info, "the Daily Kos" or "Huffington Post"?

Funny you ask that. I believe StormyTexan Reads that paper. I have not heard that, but I would be willing to read this information if you kindly would provide the link

[jljaguir]

LOL thats funny.

[jljaguir]

How quick you respond. Are you sure you are not a republican pollster?

[cattiej]

Letter to Obama: (All they ever send me are form letters back)
My family, friends are ALL against bailing our Wall Street and the Big Bandits of the Big Mortgate companies that have finincally raped the American citizens.
Let these Bandits give back there paychecks and there millions of dollars in bonus monies. They can take the money out of their off shore accounts and their Swiss bank accounts and repay all the money they have taken. This includes especially Henry Paulson. Chris Dodd and the rest of the committee are going to lose millions if this Bailout doesn''t happen. Once again, the rich rule of the poor and middle class. I say, throw their butts in jail, including all the lobbyist in our U.S.

[AlwaysSmiling]

Obama has too many radical associations for my taste.

Hamas supports Obama - 30 k donation

Black Panthers Support Obama

International Solidarity Movement supports Obama

Obama is dangerous. Who is he? Where did he come from?

ANd why doesnt Obama talk about his 20 years experience with Rev Wright, Bill Ayers and the Black Liberation Theology.

Posted by jaxsterling5 at 05:03 PM : Sep 28, 2008
---------------------

Care to back this up with sources? I''d like to see the proof that Hamas gave him 30k and that the Black Panthers (which as far as I know disbanded in the 60''s) supports Obama. SHOW ME THE SOURCES!!!!!

[Stratmaster7]

GREAT POINTS !!!!! Obama is not a Christian, he only "coverted" after his wife told him he has to in order to run for any major political office.Smoke and mirrors.......


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Posted by jlmcscanner at 05:23 PM

Wow. You can tell the McCain camp is desparate again after him making a fool of himself during his "I''m not debating... oops... oh yes I am" stunt. They are reaching all the way back to the Muslim/Christian thing. Still nothing positive they can talk about for their candidate.

[Stratmaster7]

Posted by StormyTexan at 05:46 PM

Yeah Rowdy. we know how perfect you are. You''re just a humble millionaire business owner who takes wonderful care of her minority emploees showering them with high wages and world class medical coverage. But you live in a small humble house while all those other idiot Americans are just too stupid to keep their heads above water. And now poor poor rowdy has to pay it for them.

[jljaguir]

dj282008. How much do you make? Sorry I have never read the rags you talk about. Maybe you should watch Face the Nation today (Ole Miss). Maybe you should watch Thomas Freidman on Meet the Press. Maybe you should step out of your partisanship and watch what is good for our COUNTRY. Maybe you should read some books and quit watching FOX NEWS.

[dj282008]

dj282008. How much do you make? Sorry I have never read the rags you talk about. Maybe you should watch Face the Nation today (Ole Miss). Maybe you should watch Thomas Freidman on Meet the Press. Maybe you should step out of your partisanship and watch what is good for our COUNTRY. Maybe you should read some books and quit watching FOX NEWS.

HA, I don''t watch FoxNews, and if you think I am a GOP supporter, well sir I am not!

[jljaguir]

Henry Paulson has a $500 million personal fortune being CEO of Goldman & Sachs. Where can I sign up for admission to the Walmart descendent compound of safety in case of world/natural calamity.

[cattiej]

All this reminds me of the Keating group,that nice group of guys that cost thousands of people there life savings in the Savings and Loan debacle (which included John McCain) I don''t think Obama nor McCain are going to make a good President. I think our country is in such a mess that another depression is just over the horizon. I think that every American should NOT, use their credit cards. The interest rate is too expensive and it''s only going to get higher if this bailout occurs. I look for the interest rate to go up to 48% soon. More jobs will be lost, thousands more jobs will be lost. This Congress, Bush and his cronies and the lobbyist have ruined America, and we have let them. American''s are too busy watching football games, using their X-Boxes, etc. to pay attention to what is happening. When is the last time you ever, if ever, went to your local and state politicans office to complain about the treatment they are giving you? Have you even made a phone call or sent an e-mail. Phone calls, letters and personal visits are what we all need to do, and do it this next week. Voice your concerns! Stand UP for America!

[jljaguir]

Well if you read one of my posts earlier you would now that I am not a sir.

[cattiej]

"No Welfare for Wall Street"
Wall Street IS WELFARE for the RICH!

[bigwig51]

we need a seizure law similar to the drug laws so the government can seize the assets of CEO CFO and coos who become wealthy running their companies into the ground. just like they seize the property of drug dealers. this money can go into a bailout fund for these same companies stockholders who have basically been robbed.

[robojake]

Part 1

Democrats have successfully manipulated the financial meltdown to having us focus on finding a solution and forgetting the root cause. Initially, the Democrat and Liberal Media (ABC, NBC, CBS) strategy was to blame Republicans for deregulation. There are two problems with that strategy: 1. it left everyone knowing that it was the Democrats that have been caught with their hands in the cookie jar and that it was the Republicans fault for not catching them. 2. The record is clear, going way back, the Republicans tried to put controls on Fannie Mae, and Freddie Mac but were repeatedly block by Democrats like Dodd, Schumer, and Frank. The biggest congressional money makers from the failed Fannie Mae and Freddie Mac are the Democrats Chris Dodd (the largest recipient), Barack Obama (second largest recipient), Chuck Schumer, and Barney Frank. From the failed Lehman Brothers the largest recipient was Hillary Clinton followed by Barack Obama. These two enterprises Fannie Mae and Freddie Mac have Democrat finger prints all over them. Their Main purpose as created by Democrat legislation was to buy up as many mortgages as possible that were given out to illegals, no income, and low income applicants, etc.

[TrishG62]

And yet Obama still insists his multi billionaire social programs he promises will go on as planned. Doesn''t anybody ever learn anything in Washington ? Anybody ?

[robojake]

Part 2
Welfare, food stamps, and now %u201Chome give away stamps%u201D fits their Socialistic agenda%u2026... get the money under Democrat Washington control and they will show you how politicians buy votes and become wealthy. It is obvious to even the most politically naive that such a government program as %u201Chome give away stamps%u201D cannot be Republican%u2026%u2026You know who buys the votes. These two, Fannie Mae and Freddie Mac with their giveaway mortgages undermined the foundation of the financial market causing it to collapse. If Barrack Obama does not like gold parachutes why did he appoint the CEO%u2019s of these failed institutions Jim Johnson and Franklin Raines to lead his presidential campaign? Both are deeply involved in the root causes for our bankrupted financial market. Both left their positions after taking tens of millions of tax payer dollars. I wonder why I feel this bailout is like the Foxes (Democrats %u2026Dodd, Schumer, Obama, and Frank) reorganizing the Hen House? In the bailout proposals, Barack Obama and company has ear marked over 100 million dollars of tax payer money going to Acorn? If you want to get your head out the sand and do some serious research - Google : %u201CACORN, Barack Obama%u201D. Google and Wikipedia Franklin Delano Raines, Jim Johnson, and Daniel Mudd, start with them and then follow it to where it leads. It is one large trail of Democrat interconnections and corruption.

[robojake]

Part 3

A trillion Dollar (plus) bailout is a tax on the Americans who do pay the taxes; but according to Barack Obama (the honest one), 95% of %u201Call%u201D Americans will get a tax break under his proposals...No way. With a lot of time and a monumental effort of every working, tax paying American we may be able to reach that trillion plus. It is impossible and pure stupidity to think that 5% of our fellow Americans could pay that much in taxes.

[dj282008]

So, when that tax increase comes your way after the election to pay for this Warthog you know who to blame: dumbya and the d-crats.

Don''t forget to add McCain, Palin and Bush in that blame game

[bigwig51]

so ha mas and the PLO support Obama. why wouldn''t they, leaders of all political organizations world wide would rather see a man of integrity leading the worlds last super power than a born again hypocrite and crook.

[dj282008]

It''''s easy to see that Obama is a liar.

Is it hard to post something logical. Or do you like this stuff that really has no relevance. God you Hate Obama I get it. Fine Hate him for all I care

[jljaguir]

robojake - Have you been Hannitized? Are you a conservative republican? Do you believe in CHARGE and Spend policies?

[sallievoter]

Yes, as the pathetic GOP ticket wanders around aimlessly shooting themselves in the foot daily, their fans do tend to get a little mental, so they write absurd stuff on the blogs.

It is panic, and rightfully so. They spew the rotten sewage from the GOP party and hurl lies and insults at Obama----panic big time.

Who cares? every day there are fewer and fewer of them as they fall away in shocked embarrasment at mccain and pallin''s lastest bungles. They only have one vote, and the same old mantra of lies. Gets very boring.

[jdmom1951]

Below are three good video clips on YouTube right now that address the fact that Republicans tried to impose legislation to regulate Freedie and Fannie, and that John Mc Cain addressed this possible economic issue in 2005. I find it interesting that Obama constantly blames the Bush administration, as well as Mc Cain for the current economic crisis, and he gets by with it because most of the media does not call him on the issue. In the meantime, John Mc Cain suffers in the polls. If you''ll watch, you''ll hear and see that every Republican voted for regulating Freddie and Fannie and every Democrat voted against in 2005. Video doesn''t lie. Please see for yourself. You''ll be amazed! http://www.youtube.com/watch?v=_MGT_cSi7Rs
http://www.youtube.com/watch?v=3QBRIsCkGQ0 (Fannie Mae Freddie Mac Barack Obama & John McCain)
http://www.youtube.com/watch?v=RYz1rbB5V1s (Who is Responsible - Meltdown - Fannie Mae, Freddie Mac, Wall Street)

[sallievoter]

yOU''RE RIGHT---video doesn''t lie, so be sure to look at PALIN''S PAGAN WITCHDOCTOR MESS----SCARY HOCKEY MOM, I''D SAY.

IF ANY OF THE OTHER THREE CANDIDATES WERE HOOKING UP WITH A KENYAN WITCHDOCTOR, THEIR CAREER WOULD BE OVER.

CHECK YOUTUBE, SARAH WITH THE WITCH DOC.....YUK!

[asamiller]

I am happy to hear Obama hint that at the bottom of this crisis is the squeezing of the American working class. The continual gutting of wages, the export of manufacturing jobs, inflation, including the energy squeeze, have conspired to destroy their purchasing power. This is what made subprime lending an effective way to artificially keep the housing market and banking industries pumped up. As a member of UAW local throughout the 80''s when this process was accelerated under Reagan, I remember lots of ordinary autoworkers understood that the destruction of the American working class would ultimately bite even the wealthy who were profiteering by imposing austerity on the bulk of American workers. So let''s elect Obama and see if he can do better than Reagan, Bushes I and II, and McCain.

[demwatcher]

Obama - What a complete and utter IDIOT. He says that nothing was done to prevent this. That is not true. What WAS done was the Democrat Congress IGNORING John McCain when he told them this was coming.

Seems that Sen McCain is MORE economically savvy then the rest of Congress.

[sallievoter]

please note---MCCAIN''S WAR IS WIPING OUT AMERICAN FAMILIES--look at what YOU are spending!!!!

From the Citizens for Tax Justice web site:
For a typical family with a taxable income of $60,000, and a typical tax bill of $8626, that works out to an Iraq War tax bill of about $2150. For a family making $100,000 in taxable income, with a typical tax bill of $18,614, that is a war tax of about $4650. Even a student making a taxable income of say $7000, and paying a tax of around $700 to Uncle Sam is paying around $175 to support the killing in Iraq.

thanks, bush and mccain for the expensive and pointless war. mccain will continue this. so repubs, be ready to pay your taxes for a completely pointless war---happy about that, are you?

[occams_taser]

Both parties are worthless. But the GOP is the brains behind this crappy operation that is turning America into a well-armed third world country. Sort of ironic that we''re ending up like Russia.

[demwatcher]

"so ha mas and the PLO support Obama. why wouldn''''t they, leaders of all political organizations world wide would rather see a man of integrity leading the worlds last super power than a born again hypocrite and crook.

Posted by bigwig51 at 06:28 PM : Sep 28, 2008"

Ha, what a laugh, Hamas and integrity in the same post.

You want to talk crook? How about the SWEET deal Obama got on his home? How about the failed housing programs he sponsored for his buddies 1n Illinois? How about all the donations he got from Fannie Mae and then put two of the men that drove it into the dirt on his campaign staff?

Yeah, let''s talk reality.

[demwatcher]

"Yes, as the pathetic GOP ticket wanders around aimlessly shooting themselves in the foot daily, their fans do tend to get a little mental, so they write absurd stuff on the blogs.

It is panic, and rightfully so. They spew the rotten sewage from the GOP party and hurl lies and insults at Obama----panic big time.

Who cares? every day there are fewer and fewer of them as they fall away in shocked embarrasment at mccain and pallin''''s lastest bungles. They only have one vote, and the same old mantra of lies. Gets very boring.

Posted by sallievoter at 06:37 PM : Sep 28, 2008"

What alternate reality do YOU come from? KOOL-AID City? Keep demonstrating your complete and utter ignorance of reality, pal. We enjoy the laughs.

[mikeking1949]

The Republican comments made here are inane. Do you really think the average Americans are fools?
The Republican NeoCon party has had ABSOLUTE CONTROL of the US for 8 miserable years, during which time the National Debt has grown exponentially, real wages tanked, Wall Street raped us raw, Promises of the Oil will pay for the Iraq war, WMD, Executive Monarchy with My Way or the Highway, Subsidies for OIL Companies, No White Color Crime(?), Food and Fuel INFLATION, 50% loss in the value of the dollar and AIG, etc. and such a screw job that we HAVE TO bail ot the RICH or loss our savings ... all 100% GOP MANDATES.
Obama and the DEms aren''t perfect, but we know who they are beholding to (workers) - and who the GOP steps and fetchs for (capitalists) ... even a child gets it!
STOP DISSING OUR INTELLIGENCE

[upto1947]

I was not going to vote for him before, and after he say this had to be done. I''m sure I am not going to vote for him. I''ll vote for any one running against him. I just wish some one was running who would say no to all bailouts.

[lovegetpeace]

Amigos NeoCons,
You folks are not that Stupid and Dumb from what I read in these blogs. However, you are all Idiots for continuing to support a Failed Ideology that is impacting you and your family beside our nation big time. Where is your love, commitment, patriotism and loyalty to your nation and not your party?

[upto1947]

I would rathere have SARAH PALIN then OBAMA OSAMA.

[toolmangler-2009]

Hey folks, does anybody know whats happening to the posts?
Posted by I_Love_Sarah at 06:53 PM : Sep 28, 2008


CBS Censorship, All of mine written before 5:00 pm are gone along with every body elses.

[targaray-2009]

D.U.I.

The Bush/Palin/McCain campaign is wobbling all over the road again, too bad she has already fired all of the Alaskan Troopers!

[toolmangler-2009]

I would rathere have SARAH PALIN then OBAMA OSAMA.

Posted by Upto1947 at 07:00 PM : Sep 28, 2008



Different strokes for different folks. As for me, the last eight years cured me of wanting four more like them.

[jljaguir]

Boy - The republican''s are getting very nasty here. Name calling, blaiming everything on the Democratic Party. Go find a mirror. Obama/Biden - Country First!