Monday, September 15, 2008

Obama Gets It Right-- He Doesn't Blame McCain For Wall Street Meltdown, He Blames Republican Economic Philosophy

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Earlier this morning, we pointed out that Wall Street is having its worst time since... well you know-- that time that McCain's economic advisors demand we stop talking about.

For Republicans, deregulation has been like a religious mania. It isn't just Bush, Cheney and McCain who have bought into it. Every single Republican member of Congress has cast caution to the wind and worked hard to wreck the federal regulatory system. And so have members of Congress, Blue Dogs and their ilk, from the Republican wing of the Democratic Party. As Paul Krugman explained in yesterday's NY Times, they have been largely successful. And now the American economy and the American people will pay the piper.

Obama's response to the crisis was so indicative of the correct analysis that I was really surprised he issued a statement about it. It's harsh and it's true and it needed to be said. The McCain-biased A.P. carried it this morning. Here's Obama's actual statement though:
This morning we woke up to some very serious and troubling news from Wall Street.

The situation with Lehman Brothers and other financial institutions is the latest in a wave of crises that are generating enormous uncertainty about the future of our financial markets. This turmoil is a major threat to our economy and its ability to create good-paying jobs and help working Americans pay their bills, save for their future, and make their mortgage payments.

The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren't minding the store. Eight years of policies that have shredded consumer protections, loosened oversight and regulation, and encouraged outsized bonuses to CEOs while ignoring middle-class Americans have brought us to the most serious financial crisis since the Great Depression.

I certainly don't fault Senator McCain for these problems, but I do fault the economic philosophy he subscribes to. It's a philosophy we've had for the last eight years-- one that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else. It's a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crises.

Well now, instead of prosperity trickling down, the pain has trickled up-- from the struggles of hardworking Americans on Main Street to the largest firms of Wall Street.

This country can't afford another four years of this failed philosophy. For years, I have consistently called for modernizing the rules of the road to suit a 21st century market-- rules that would protect American investors and consumers. And I've called for policies that grow our economy and our middle-class together. That is the change I am calling for in this campaign, and that is the change I will bring as President.

What can McCain say? Well, aside from removing all mentions of "social security" and his plans to privatize it from his campaign website and from mumbling some Herbert-Hoover sounding crap about how the fundamentals of the economy are strong all he's got left is... deception.

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12 Comments:

At 9:53 AM, Blogger thebad2thebone said...

I would think Obama would want to keep his mouth shut on all of this. Considering:
Of the 354 lawmakers who received money from Freddie and Fannie between 1989 and 2008, Sen. Chris Dodd received the most. But next was . . . drumroll . . . Barack Obama. Yup. And he was only there for three years. Not too much went to John McCain, about a sixth of what Obama received (h/t Glenn Reynolds.

Now that I think about, he probably can keep talking, I forgot for a moment he is running on the Party of the un-informs ticket. Silly me

 
At 10:04 AM, Blogger slag said...

Clearly, thebad2thebone would rather assassinate character than talk issues. What's new?

Honestly, though, Obama's been taking it to trickle down economics this whole campaign. It's only now that people are starting to pay attention.

 
At 10:45 AM, Anonymous Anonymous said...

Howie,

You should know that the McAfee site advisor product is identifying this site as a Phishing site and blocking it.

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Not sure how to go about getting this rectified, but I smell a rat.

 
At 12:01 PM, Anonymous Bil said...

While we are smearing, does bad2thebone know that the North Koreans nickname for the admirals son was "SongBird"?

I don't really think the US is going to elect a man who gave military information to a communist military/country. McCain used to call it torture which he was against, before he was for it!

 
At 12:28 PM, Anonymous Anonymous said...

the problem is definitely regulations, and not the central bank.

 
At 1:55 PM, Anonymous markg8 said...

How did it all come to this?

http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html

Foreclosure Phil

By David Corn
July/August 2008 Issue

"Years before Phil Gramm was a McCain campaign adviser and a lobbyist for a Swiss bank at the center of the housing credit crisis, he pulled a sly maneuver in the Senate that helped create today's subprime meltdown.

Who's to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown. Yet has Gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain's presidential campaign and advises the Republican candidate on economic matters. He's been mentioned as a possible Treasury secretary should McCain win. That's right: A guy who helped screw up the global financial system could end up in charge of US economic policy. Talk about a market failure."

Read the whole thing and the look at this Youtube:

http://www.youtube.com/watch?v=1mHsuL6FfY4

 
At 3:12 PM, Blogger P Daddy said...

The talking point of the day has been that "Washington" has been "asleep at the switch". Republican slavish patronizers then shift the blame to Democrats. Democrats have been in charge of congress for two years and have done nothing.

1. Republicans have sought deregulation like rabid dogs.
2. The current regulators serve at the pleasure of George W. Bush.
3. There is no way that George W Bush would have passed Democratic legislation that added regulation.

When will those who blindly follow the failed policies of the Republican Party wake up?
http://paddymaddog.blogspot.com/2008/09/asleep-at-switch.html

 
At 4:48 PM, Anonymous Anonymous said...

Isn't it interesting that whenever someone (thebad2thbone) points out a FACT about Obama that reflects poorly upon him, his lackeys are quick to ignore it and continue with their ridulous attacks against McCain? Love is blind - hope you all don't get jilted at the alter.

 
At 5:50 PM, Anonymous Anonymous said...

McCain was a bad student and a lousy pilot. He can't use a computer. He thinks that "freedom" means revving a bike engine. He has an intellect of a 15 year-old.... Just look whom he picked for VP! To imagine the bunch of characters that will fill his cabinet, I recommend to watch "Idiocracy", this a film about year 2505, but in fact this is very much us. Ppl - watch it before election, and if you haven't seen it - watch "wag the dog"

 
At 6:02 PM, Anonymous Anonymous said...

David Corn: very interesting post on Phil Gramm. I didn't know all that.
For a while, I have a question to both McCain and Obama - considering the crimes (or at best criminal negligence) against this country's economy, military, health, education,environment, etc.etc. - will Bush Administration investigated, and if found guilty, punished? Don't Rove, Rumsfield, Bremer, Gonsalez, Cheney.. and perhaps the man himself deserve to do some time? If I was the President, I would have unleashed some buerocratic rat like KenStarr to dig all the facts and have them answer for Iraq, Katrina, Mortgage meltdown .... if they happen to be not guilty, then fine. But they need to be investigated - Blackwater, Saudi Arabia connections, corruption, money disappeared in Iraq, kickbacks... Someone has to do time!!

 
At 7:23 PM, Anonymous Anonymous said...

WOW Mr McCain of course the ECONOMY is sound especially when your wife can afford a $300,000 dress to wear for one night. She probably won't ever wear again and donate it to her favorite charity.

 
At 7:55 PM, Anonymous Anonymous said...

Here's a question from Europe: How can Sen.Obama accuse Sen.McCain of being out of date with the economy, when only last September he said the following - as per copy of article below:

Plan to Strengthen the Economy

“I believe that America's free market has been the engine of America's great progress. It's created a prosperity that is the envy of the world. It's led to a standard of living unmatched in history. And it has provided great rewards to the innovators and risk-takers who have made America a beacon for science, and technology, and discovery…We are all in this together. From CEOs to shareholders, from financiers to factory workers, we all have a stake in each other's success because the more Americans prosper, the more America prospers.”

— Barack Obama, New York, NY, September 17, 2007

Question: Where in this article is THE PLAN?
Secondly, if Sen.Obama thought that in September, then he must have thought he lived in anothe country. Surely, he must have woken up with a bang when Lehman collapsed....no?
And in all this, the good senator from Delaware (home to credit card companies..?), Joe Biden, must be bidin' his time before Governor Palin will imPalin him on the credit card companies' issue?
Good luck with the elections!
An interested party from Old Europe

 

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