Obama On Bailout: "No Blank Check" (VIDEO)

Speaking at a rally in Charlotte Sunday, Obama addressed the issue of how the government should respond to the financial crisis. He began by stressing that Washington must recognize "that economic recovery requires that we act, not just to address the crisis on Wall Street, but also the crisis on Main Street and around kitchen tables across America." Obama also criticized the Bush Administration's lack of a plan to combat the problem:

As of now, the Bush Administration has only offered a concept with a staggering price tag, not a plan. Even if the U.S. Treasury recovers some or most of its investment over time, this initial outlay of up to $700 billion is sobering. And in return for their support, the American people must be assured that the deal reflects the basic principles of transparency, fairness, and reform.

He then made a number of key points concerning how the government should tackle the financial crisis.

First, there must be no blank check when American taxpayers are on the hook for this much money.

Second, taxpayers shouldn't be spending a dime to reward CEOs on Wall Street.

Third, taxpayers should be protected and should be able to recoup this investment.

Fourth, this plan has to help homeowners stay in their homes.

Fifth, this is a global crisis, and the United States must insist that other nations join us in helping secure the financial markets.

Sixth, we need to start putting in place the rules of the road I've been calling for for years to prevent this from ever happening again.

And finally, this plan can't just be a plan for Wall Street, it has to be a plan for Main Street.

Watch video of Obama's remarks.

Comments

[LightningJoe]

Isn't this supposed to be the "ownership society," according to our worshiped President?

I say cool -- if we the people buy something, we own it. Bailing out Wall Street with our money must give us a stake in those companies we help with our money. There are different ways to approach this, but in the spirit of the Silly Season, I suggest the Alaska model. Goes like this:

Go ahead and bail out the companies with our tax money. But then treat the money spent as an investment in the company it helps. This makes all taxpayers stockholders of those companies. We'd receive a check every year combining all of our dividend profits from those companies. The dividends would be taxable, as our Alaska Permanent Fund Dividend checks are now.

Under current conditions, the check might bring in $1000 to $2000 every year, for every US taxpayer. Pretty good incentive for getting your taxes straightened out, eh?

Companies could avoid pitching in to the US-PFD by maintaining appropriate fiscal discipline. If bought-out­/bailed-ou­t by taxpayers, they'd be paying into the fund.

DO NOT "divest over time" -- send me the check!

[toosinbeymen]

What are you talking about? They want us to buy bad debt. The tax payer isn't going to make any money on this. All the money has been made already by the slick brokers and banks that sold the debt. Now that the debt is worthless, they want to pawn it off on us so they don't lose their shirts.

[bikerdude]

Once again this failed Bush regime is trying to bum-rush us into another fiasco that won't work. He did the same thing when he was rushing into Iraq. This time we have to dig in our heels and have dialog that will bring out the alternatives and the positions of all sides. This is important, but we don't have to once more give the "have mores" what they want, rather than what we need.

[Dreamers101]

These GO D DAM N tro//s and there government elect needs to move out the f-@king way while Senator O'bama and the Dem's take care of business and upright this sinking ship!!

Tro//s get the f-@k out of the way and take George B'ush and D'ick C'heney with you!!!!!

Go and sit down a drink a f-@ken beer with your dum b as President!­!!!!!!!!!!

[SENCvoter]

I agree.

[tsloan]

a men.

[AndrewInToronto]

Treasury Secretary Paulson is saying in an interview I'm just watching that because this 'stabilization' plan is well in advance of financial/corporate failure -- 'to buy up the assets that are clogging the system so it can work' -- that he doesn't want to make it "punnative" -- aka "accountable" to the American taxpayers. This is a recipe for the privatization of reward with the socialization of risk, without ever knowing the worth of the assets which the government is nationalizing prior to purchase. It mocks the notion that unlike other government expenditures, this time there will be something of "worth" which can be sold later on. Can one imagine going to a bank and saying to the manager that one wants a loan, unconditional on its eventual use and with no guarantee behind it?

Capitalists decry nationalization in the context of a profitable industry while requiring it to stave off disaster when unfettered policy fails. As such, this goes well beyond McCain and Obama; rather they speak to the very heart of a system of economic management which when left to its innate motivating factor -- institutionalized greed -- fails on its own criteria.

[cavegal]

I couldn't agree with you more! This continual bailing out of corporation after corporation is total BS. What does this say to all of the business's that practice fiscal responsibility? What must they be thinking about now? And so what if foreign banks lose some money for making bad investments? How can these banks have leveraged themselves at a rate of 30 to 1 and expect that everything was going to work out in their favor? They deserve to go out of business.

[AndrewInToronto]

I agree as well with your comments as both a person who has operated a non-profit private physical therapy practice for 11 years and also as a committed communist.

[Totallyorderless]

Thank You Senator Obama!

NO blank check
Not a dime to reward CEOs
Protect the taxpayers
Help homeowners
Help from global community
REregulate
Help Wall street, HOWEVER MAIN STREET FIRST!

We all know damn well that George W will veto this!

When he does, let the chips fall where they may. We cannot afford any alternative.

[Nancy84]

What can we all do to let the Dems know we're behind them if they hold out for:

No CEO compensation!
Giving the helm to someone other than Paulson (Bloomberg was suggested)
No bailouts to foreign companies.

Nothing unreasonable to ask and if the repubs balk......­.. Make noise in the media. Most Americans would agree with this.

[SENCvoter]

Let's everyone call their representatives and senators! Flood their voicemail with angry messages.

I AM MADDDDDDDD!!!!

[mike41]

Warren Buffett would be much better. He is honest & much more rounded in various types of investments.

[AndrewInToronto]

Yes, at the more personal end of this, NO CEO compensation ! I heard an interview on MSNBC about three days ago in which the business-news reporter was sympathetically saying that $22 million parachute for Richard Fuld wouldn't go as far as it would have in the past. He was taking a hit too. It was that explicit, much to the visible incredulity of the host.

[SurrealPumpkin]

It may be worse, if the wording isn't changed then us tax dollars can be used to bail out foreign companies.

[JayInDallas]

There are few things more infuriating than the huge amounts of money CEOs walk away with regardless of how the company performs. I can get behind the idea as an incentive, if the company does well, you profit. But the "heads-you-win tails-we-lose" approach is way past its prime. How about the "if-the-co­mpany-tank­s-on-your-­watch-you-­get-nothin­g approach"? Or the "we'll-pay­-you-but-y­ou-pay-the­-severance­-of-all-th­e-employee­s-you-put-­on-the-str­eet" approach?

As far as this bailout goes, put some teeth in it. Aren't we all tired of the fatcats walking and leaving us with the check, let alone the mess to clean up? We let the Bush administration implement an Enron-type plan, distracting us with a needless war so Wall Street and Big Oil could game the crap out of the system. Its time to get mad. Its time to demand accountability. Its time for a reckoning that demonstrates explicitly that we are a nation where there are laws no one is above. Round 'em up and extraordinary rendition their sorry selves to Abu Grahib!!!

[cavegal]

Exactly Jay, Exactly!!

[hexham]

I listen to this man, and I wish we could have the election today and his inauguration tomorrow. Can we elect him by acclimation?

McCain should just give up.

[Shelly1970]

No kidding. Seriously. McCain has NO good ideas. Then, he picks a VP candidate with no clue whatsoever. Really, he should just drop out.

[SmootyBooty]

any republican who supports this should have their party membership revoked, let alone their citizenshi­p...

[AceInTheHole]

I was a Republican for over 50 years and I support OBAMA.

[SENCvoter]

My husband was a Republican until 8 years ago. Then he became an independent. When we moved a year ago, he declared himself a Democrat. The way he feels is that he didn't leave the party. THE PARTY LEFT HIM.

[SurrealPumpkin]

At the least their mental health status should be re-evaluated.

[andrekrouwel]

see how much you agree with Obama (or McCain) on www.electoralcompass.com
a good analysis of their policy proposals!

[KiwisCanFly]

The correct link, thanks anyway andrekrouwel.

http://www.electoralcompass.com/

[Nancy84]

Paulson is going around the morning shows saying we have to act now!! There's no time to worry about the millions the corp. heads will take away from this. That's rediculous! It sounds like another "scare the people and make your friends rich scheme". The people responsible for this should walk away with nothing...­. Nada....

[gcallaghan]

There's no way this crisis arose without all kinds of warning signs, about which we and congress heard nothing. They wanted this situation to belong to the next administration. Now, the only tool in their toolbox is to give Paulsen a no-bid contract to fix it and they expect us not to question their actions. Compare their assessments on the costs of the Iraq war with reality, I don't trust any of them and especially not with another open check without intense oversight and absolute accountability.

[Jaxxon]

Hindsight is 20/20. I totally agree with you and everyone else who's been saying this "crisis" could have been averted. When these banks started these billion dollar write downs, it should have been a red flag. This was happening months ago. Paulson and Bernanke had to have known what was happening and what would happen.

Bush is probably thinking: If only this had happened November 5th!!

I guess shining a spotlight on a problem Democrats traditionally fix cannot be good for McCain and the Republicans.

[MIVOTE]

The bailout should be short term, 3 - 6 months to look at revisions. Repubs care less than a d.. what happens on Main Street so there should be no long term contract without a new administrations review and revision if necessary.

[Faith101]

I just wish that somebody would be totally honest as to the extent of this massive bail out. Who suffers the most? It is not good for the majority of americans if foreclosure, unemployment, uninsured, is not helped. Who actually benefits from these corporations? I had a couple of days to think more about this. It seems like the rich people benefit the most from the bailout. Bush already knows that his legacy is screwed. So maybe is trying to help out his buddiies before he eases out the door and leave this mess up to the next president. We already know McCain is not going to help the middle class. The rich will get richer and the poor get poorer under him, not to mention MORE WARS. So that leaves Obama and the plans that he want to implement for the middle class in his admin. Think about it, eventually the banks will have to sell these houses, somebody is going to make out like bandits in about a year. I think we should hold firm and not agree to this bail out without further specifics.

[lbrillante]

After watching Paulson on TV today I realize that I have no confidence in this man. Senator Obama was asked if he would keep Secretary Paulson in place in his adminstration and he simply said he would definitely be needed during the transition. However I feel that Paulson does not understand our financial systems well enough to be handed such awesome power and responsibility as his 'plan' suggests. He did not see any of this coming... he said he couldn't do anything until it got this serious...­. dubious claims. I feel that Paulson has failed us and he may sincerely want to fix the situation but I am not sure he should be the one to do it.
Congress needs to add strong oversight and be sure not to add any long term broad financial powers to the executive branch of our government.
I do not want to hear that it is 'partisan' to be wise and careful at a time like this. That makes me furious. I do not trust the adminstration and I don't trust Paulson... so congress better step up and get involved and do something to keep any fraud or abuse from happening to the amercan people in he solution they put in place.

Enough!!
Obama/Biden '08

[eden4barack08]

I never liked not trusted Paulson. Now my instincts are validated.

[SurrealPumpkin]

Of course he'll be needed during the transition, The new Treasury Secretary will want to look at his rolodex.

[Seattlelite]

I'm with O on this, what makes me nervous is it seems there is no plan, just a knee jerk reaction throw money at the problem but no idea if it's even going to work. I heard nothing about a plan to investigate which of these companies won't fail even with a bail out! They should know this before throwing good money after bad. NO corporation would spend or invests this type of money without a friggin plan -- but see there lies the problem it's not the governments money it's our money!

[hexham]

its really china's money, we're just borrowing it.

[gcallaghan]

But they expect to get it back someday