McCain Flip-Flops On AIG Bailout: Rejects It Tuesday, Says It's Okay Wednesday

ORION TOWNSHIP, Mich. — 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 finanical 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."

"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."

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.

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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."

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On the Net:

McCain campaign: http://www.johnmccain.com/

Obama campaign: http://www.barackobama.com/index.php

(This version CORRECTS Corrects dateline; SUBS 3rd graf to DELETE extraneous words.)

Comments

[narkz1]

Its HIlarious how McSame was the poster child for the Bush/Cheney De-Regulation policies that created this whole mess, and now hes Marching to the Tune of Regulation? Is he serious? McSame will do ANYTHING and say ANYTHING to get elected....how do you trust a president who Lied and Swindled you to get into office? you dont. Im a die Hard Republican and Im voting for Obama Biden for 08' because im tired of this blatant disregard for our mental capacity.

[AspenFreePress]

McCain's flip-flop, which probably occurred after a stern phone call from the White House, shows he's a marionette rather than a maverick. It's interesting, too, that Palin changed her opposition to the Bush bailouts at about the same time.
Sterling Greenwood
Aspen Free Press

[Thundrdrum]

I don't support a bail-out for anybody unless I'm assured the CEOs give back their monstrous salaries. Isn't the AIG chairman taking something like $76 million home this year? Our leaders can start by making the failing companies' CEOs give back that money.

[Liberoservative]

Of course.. before this:
"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."

There was this:
http://www.motorauthority.com/mccain-rules-out-government-bailout-for-detroit.html

[hoopesaz]

McCain asserts some tough words for Obama:

Obama took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them.

Obama put Fannie Mae"s CEO who helped create this disaster in charge of finding his Vice President.

Fannie"s former General Counsel is a senior advisor to Obama's campaign.

When McCain pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent.

[WABJR]

ECONOMY: BUSH AND MCCAIN'S NEW KATRINA

Too little too late and as if the elephant was not in the room. Why are we surprised about the meltdown or dare I say, crash? All the signs were there; a country at war digging deeper in debt, an economy that during his 2008 State Of The Union Address, President Bush claimed was booming, even though it was based on an inflated and economically false housing market that even at that time was teetering on the brink of oblivion. He was told, he was warned, however, in order to find some modicum of economic hope and show a shred of evidence that America was fiscally sound, he chose to feed the elephant peanuts rather than tell the truth. In doing so, President Bush, created a situation where his administration is once again playing catch up during a crisis just as it did during the horrific American experience of Hurricane Katrina.

Once again, it's catch up. Once again the President of the United States is relegated to the role of the boy with his finger in a dike, trying to patch it up with gum called the FDIC. This is not the greatness of the United States nor its leadership. Why point a finger also at John McCain? With all of his 26 years of experience in Washington, not once did he call a special meeting with Republican, President George W. Bush to... (FULL POST AT):

The Digital Politic
http://www.digitalpolitic.com

[Luca]

Well, the US has managed to create a dollar that is not yet exactly the value of the Mexican peso. But I do believe that pretty soon the whole world will be referring to the US currency as the Busho. What crooks that administration and its cronies have been...and still are. Yes, they have practiced capitalistic cronyism...and continue to loot the treasury. Yep, the Busho has arrived. Let's vote McCain-Palin in so this party can continue.

[AspenFreePress]

Isn't it wonderful that the U.S. has presses, paper and ink to print enough dollars to bail everyone out; and in probably less time than it takes a metro daily to make an early edition press run.
Sterling Greenwood

[terriertribe]

I'm willing to fund a federal bailout of all these failed firms.

The price is simple: serious jail time and personal bankruptcy for the Officers and Board of Directors of each company we bail out.

Personal Responsibility, so long preached by the right, will finally have real meaning.

[lukebenward]

You'll notice he hasn't used his infamous term "straight talk express" in at least 2 months. What gives? Do you now realize the common sense of people will call you out on this? Then why don't you apply that across the board to flip-flops/waffles like this, Johnny boy???

[AdobePhsyko]

Why can't the auto manufacturers spend the money to retool thier own plants ,so they can build the cars they should have been building since the mid 70s ?
Why is it MY PROBLEM that thier upper management has been jerking us around for the last 30 years ?

[eztempo]

"...a day after flatly rejecting the idea of a taxpayer bailout for American International Group Inc., said Wednesday ..." he was FOR IT!

Damn, since the mainstream media ignored this 180-degree reversal overnight, I was beginning to think I was the only one in America that heard it!

McCain's reckless and impulsive decision-making style seems to be getting him in trouble, now that people are paying attention. Of course, he did say that he liked to "make decisions faster than the other guy" and that sometimes cost him.

Let's just hope it doesn't end up costing the rest of us!

[Snoop2]

Johnny come lately............ He is havig great ideas, unfortuately he is first seeing them in newspapers or on cnbc! What a joke. Remember this is he guy who said he doesn't know much about the economy! I suggest he consults with Sarahs witch hunter friend!
Be afraid of her and John, be very afraid!

Seems Sarah had a little help in run for governor. A Kenyan witch doctor came to her church and laid hands on her! She is a religious whacko.. Here is the link to the story and a bit of it..!

http://timesonline.typepad.com/uselections/2008/09/palin-linked-el.html

Palin linked electoral success to prayer of Kenyan witch hunter The pastor whose prayer Sarah Palin says helped her to become governor of Alaska founded his ministry with a witchhunt against a Kenyan woman who he accused of causing car accidents through demonic spells. At a speech at the Wasilla Assembly of God on June 8 this year, Mrs Palin described how Thomas Muthee had laid his hands on her when he visited the church as a guest preacher in late 2005, prior to her successful gubernatorial bid. In video footage of the speech, she is seen saying: I was mayor and Pastor Muthee was here and he was praying over me.

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[nclwtk]

John McCain is just lost. He obviusly doesnt know what he thinks until he talks to his handlers. He obviusly thinks bluster can cover up the fact he has no new ideas nor and plans for how to deal with anything to deal with the economy. John McCain never met a free market he didnt like

[exhale09]

yup yup yup...Bush 44

[imfedup]

The headline on the homepage says "rejects it one day, against it the next . . ." Maybe somebody should fix that?

[JonG345]

Hey, Huffington Post guys? Your main page link to this makes no sense. It says he was against it and then he was against it. You meant he was against it and now he's for it. Please change.