Administration Official: Bailout Likely, McCain Lost PR Battle

Concerned that the public relations battle had turned against their favor, John McCain and the group of conservatives who opposed the outlines of the compromise financial bailout package will likely back away from their recalcitrance, an official close to the Administration tells the Huffington Post.

The Republican source, with direct knowledge of the negotiations, said that GOPers and McCain were "scared about the press perception" that they were at fault for "blowing the thing up." The takeover of Washington Mutual on Thursday combined with the continued downturn in the futures and credit markets "also scared them," to the point that a bailout deal seemed within the realm of possibility "over the weekend."

The official's tone - more optimistic than that of key figures just last night - signals an end may be in sight on a bailout negotiations. McCain has generally avoided taking a stance on the set of compromise principles agreed to by the administration, Democrats and many Republicans in Congress. But talks stalled during a White House meeting last night, in large part, sources say, because of a power struggle within the House Republican caucus.

McCain had left the campaign trail mid-week with a promise to force a consensus. But it seems, at this point, that he will have done relatively little during the negotiations - save for possibly killing the earlier arrangement and providing an opening for the opposition.

"I do think that John McCain was very helpful in what he did. I saw him this morning, we've been talking with his staff," House Republican Whip Roy Blunt told Andrea Mitchell on MSNBC. "Clearly, yesterday, his position in that discussion yesterday [at the White House] was one that stopped a deal from finalizing that no House Republican, in my view, would've been for."

According to one Democratic aide familiar with the negotiations, House GOP leadership was hoping to save face with more conservative members on Friday by forcing consideration (at the very least) of some of the alternative proposals - primarily, having the government sell insurance to companies that buy mortgage-backed securities. The leadership would then turn around and praise McCain for greasing the wheels on this front. But the course is problematic. McCain has left town. And during the White House meeting on Thursday night, Barack Obama reportedly brought up discussion of the conservative counterproposal only to have Treasury Secretary Hank Paulson declare it wouldn't work.

Comments

[FatherWolf]

Every day is a new reality for the McCane campaign. What's big news on Wednesday vaporizes by Friday.

Next week they'll be denying they ever announced a suspension of the campaign. Or redifine "suspension" to mean whatever Old John did on Thursday and Friday.

I can't imagine how anyone can take these people seriously.

[Shadow08]

I think more and more Americans are not taking him serioulsy. I think people are amazed at his antics and he shows himself as being to risky. He has ventured beyond sanity.

[debinoregon]

Can you imagine what four years of McCain/Palin would be like? A drama every week. We'll need to bring Jerry Springer in to mediate. His ticket is becoming scarier than Bush/Cheney and that's pretty hard to do.

[sclucie]

It looks like that's what the latest polling out of Michigan shows - a big shift across every demographic group - in one of the hardest hit states in this rotten economy.

[Yellowbird]

I feel like I have been whipsawed back and forth and cold smacked to boot by republicans ever since their inglorious impeachment of President Clinton. So if you count that display of hatred I think we can safely say that for MORE THAN 12 years we have been whipsawed back and forth.

I am damn tired of it. I want a real government with real Americans running it. Let's jettison these crooks and then make laws against their way of doing business. Get those laws on the books: meaning in the Constitution so that they can't pick our children dry after they have earned money the way they're doing to us.

We have GOT to have some financial stability for the working class in America. WE ARE NOT THE SLAVES OF THE CORPORATE MASTERS.

[Phate]

I am a resident of a 'red' state, with parents who are panning on voting for McCain. They've been listening to Republican news, and haven't been looking for more information. It's mostly ignorance on their part, coupled with my father being conservative. My mother is more liberal, but the sheer level of how much she doesn't know about Obama's campaign astounds me.

So, it's just all around being unaware. And it sucks.

--Phate

[ImagesAndAdjectives]

and the lemmings dive off the cliff, one by one.

I think you're right, it's just general laziness and ignorance. Most people are too busy watching sitcoms to care about the news, or they haven't thought twice about what it's going to be like when McSame kicks the bucket and Palin steps in as a puppet president to a bunch of lobbyists.

I thought I would enjoy the "I told you so" after Bush won in 2004, but you know, I never thought of it that way. Hey, I know - the people who voted for Bush in 2000 and 2004 should foot the bill on the bailout!!

[dbm1966]

So McCain can't even control people in his own party. Great. And this would make him a good president because . . . ?

[Shadow08]

Excellent point.

[35Echo]

So McCain can't even control people in his own party

How do you know he didn't?

[vulvina]

Yes, he is more bon eheaded than his poorly managing, conflicted top campaign execs. Just a foretaste of what it would be like

[MizFlagPin]

Here's what happened . . .

C'heney, the really scary dude, cancelled his trip to Mexico this morning. Instead he had a little pow-wow with McScary in DC. C'heney in no uncertain terms told Little MiiniMac to stop f#cking around with the bailout and to get his tight butt down to Ole Miss . . . asap.

The Maveric.k tucked, folded and got the heck of Dodge.

[Shadow08]

That could be it. Cheney has got to be angry for allowing Mac this much leash and he reigned him in. Cheney has ongoing investments in Iraq, he can't afford an Obama presidency.

[MindyIsHot]

Don't miss the debates...

Ask Hard Questions...

http://myrealitytelevision.com/2008/09/mccain-versus-obama-2008-presidential-election-debates-hard-questions-demand-answers/

[NicoleAnon]

I want to know if Paulson has GS stock or not. Some people think he put it in a "bilnd trust" and he can have access to it when he leaves his government job. How can the person making decisions about which banks will get favorable treatment be objective if he own stocks in that bank? If GS had gone out of business Paulson would have lost everything. My question is how do I get this information? Can I file a Freedom of Information request from the Treasury department or not? He works for the government and taxpayers have a right to know. The other option is I just give up trying to be Erin Brockowich and forget about all this...

"Paulson absolutely has GS stock, which most of his wealth is in. I'm convinced that's part of the reason he banned the short sellers."

[Pupster]

As long as there is oversight, the risk that he will "favor" one bank or another is lower. That said, you still don't get it. You know how GS stayed out of the this credit crisis that knocked out most of their competitors? They got rid of it from their books. Their balance sheet is much cleaner of the toxic assets than those other guys. Bear Stearns and Lehman's were the worst. That's why Merrill got bought out by BoA at 40% premium from their closing price, but no one would take Lehman even for a $1 a share. That's why Buffett, who is no dummy, bought into Goldman but not the others. Their books are pretty clean.

You don't seem to know much about what the actual problem is, so I suggest to let go of your Erin Brockovich thing. It's not helpful. There are forces at work here that are too huge to understand easily. The Wall Street guys are not getting off as easy as you think. The FBI is looking into it, and the appropriate scapegoats (and hopefully a few deserving) will be prosecuted and thrown in jail.

In the meantime, the bailout in some form is absolutely necessary. Believe it. Unless you want our country to turn into Zimbabwe where we need a wheelbarrow of currency to try to buy a loaf of bread.

[NicoleAnon]

You don't seem to know much about the actual problem either because you don't even realize the Goldman Sachs isn't an investment bank anymore. Did you already forget that they were days away from going under last week, and this has been confirmed by WSJ also, until they didn't have any choice but become a regular bank so they could have more access to the Fed's discount window? Do you think they would like Buffett buy shares if they didn't need capital right away?

And maybe I don't know much but over 200 economists sent a letter to Pelosi saying they think the bailout is wrong.

Also you don't know what the FBI is going because you don't work there.

[129dcb]

Highly unlikely that he still holds stock, since his appointment as Treasury Secretary gave him the chance him to sell without recognizing a gain (potentially avoiding $200 Million or so in taxes).

[sandpiper1]

I read somewhere he left with $500,000 tax free hand shake.

[VetKor51]

Lots of misinformation here. The ORIGINAL PLAN by Hank Paulson was REJECTED by Democrats. The Democrats refused to go along with the plan unless MAIN ST was protected. (along with other conditions) So the CURRENT plan is the result of adopting safeguards proposed by Democrats.

[NicoleAnon]

I don't get it - how do you know what the "current" plan is? Were you in the room with them today?

[Bluejay00234]

Tr0ll perhaps? Li-ar maybe?

[amistad]

Your argument applies and makes your point moot: how do you know what the "current" plan is? Were you in the room with them today?

[AxelDC]

They are still giving away half of the annual US budget to Wall Street billionaires, so that we post a deficit 3x the previous record.

The US dollar will fall, oil prices will spike and inflation will trigger an even deeper recession as a result, and those are only the short-term consequences.

[sandpiper1]

Isn't this money a loan though, which will have to be paid back with interest once the company's fortunes reverse and stabilize ? I can't imagine the Gov. even Shrub giving the money away, the Dems. wouldn't go for it knowing it would be political suicide. I gather the Gov. has to help out AIG as it's more of an internaitonal investment firm which could cripple other countries if it wasn't protected from total collapse. Am I wrong?

[sclucie]

Thanks - everybdy seems to be missing this point. From the little we know - there have been major changes to the bill since inception. I just wish someone would outline them - if we're paying - and our kids and grandkids, don't we deserve to know?

[Everybody Should Vote]

Sept 26 Polling Update
http://voteforamerica.net/editorials/Comments.aspx?ArticleId=72&ArticleName=Poll+Update

Obama 301, McCain 237
http://voteforamerica.net/electoral.aspx

The 700 Billion Dollar Concession
http://voteforamerica.net/editorials/Comments.aspx?ArticleId=71&ArticleName=The+700+Billion+Dollar+Concession

[justsomeguywhocameby]

I live in MO. Two weeks ago McCain was ahead in the polls 17-24%, The newest poll out today has it a toss up.
WOOHOO!!!!!!!!

[sclucie]

You gotta be kidding? In MO?

[timberdoodle]

John McCain did what he did to prove he wasn't a liar that in fact he doesn't know anything about the economy. Everyone just thinks he has lost his marbles but in fact his main problem is he keeps trying to spit into the wind and his campaign staff have to keep running after him to wipe the mess off his face.

[tigs]

Mc cain couldnt get Obama to do as he was told ,re town hall meetings, so he used the excuse of having to be in Washington believing that Obama wouldnt have the debate on his own. He miscaclulated, Obama is more savvy than John Mc cain. A question , if big institutions have been bought out by private companies for a song ,why cant they buy Freddie May and Freddie Mac , it is after all to save these banks for the general good ,not give the failed executives bonuses.

[TNFarmer]

McCain never intended to skip the debate - he was posturing and - again - shooting from the lip. It cost him more credibility and confidence in his ability to actually lead this Nation.

[Vyvjala]

McCain,.................... maverick or a mullet,.............................

[Shiral]

Or meathead.

What is going ON with this guy? What's happening in his brain case? His behavior is totally erratic. Now he's claiming premature victory in a debate that hasn't started yet.

[sakibov]

An old man and a toddler think about food but non of them thinks about shitting safely.

[anastasiabeaverhousen]

Mcsame's antics the past few days are proof that he is more of the same. One major pro blem with the shrub's admin has been there are NO policy people in charge of anything. They are all po litical hacks. Not a wonk in the group.

Mcsame has proved he will be EXACTLY the same as the shrub. The country be dam ned. Everything he has said and done have been done solely to seek pol itical advantage.

Path etic old man.

[apogee2perogee]

Being aggressive and bold are his only skill set and he doesn't value insight. Frankly, I think it is a common personality trait for fundie's and neocons.

[anastasiabeaverhousen]

I think you're correct.. Just look at the fanatics Regent "University" releases on the world. THat's their tactic every time you get one of them on a talking head show - keep talking and keep getting louder. Content matters not. It's all volume all the time.

[Wuzzup]

From the Obama War Room!

–”Debunked claims you may hear from McCain tonight” http://thepage.time.com/debate-e-mail-from-the-obama-campaign/

[NicoleAnon]

At least Paulson isn't pretending to be fair anymore - in a way this is better because we all know Goldman Sachs is in charge of the bailout and we actually knew that anyway when Lloyd Blankfein, the CEO of Goldman Sachs, was invited to meet with Congress this week about the bailout.

"Hank Paulson, Treasury secretary, has called on Edward Forst, a former senior Goldman Sachs executive who recently joined Harvard University, to be a key adviser on the $700bn financial rescue plan, it emerged on Friday.

Mr Forst joined Mr Paulson"s team less than a week ago and has been working on the structuring and implementation of the "troubled assets relief programme" if it is approved by Congress, a Treasury official said. "

[BoulderSue]

It really is too bad, but I am convinced that at least some of the people who know where the bodies are buried have to be involved in cleaning up this mess, at least until things are stabilized. I don't claim to understand all this, but clearly the bodies have to be unearthed before real investigation and reform can begin. This will be an extremely complex process in unknown territory. I do hope the scoundrels who were complicit in creating the culture of greed on Wall Street, who will necessarily be involved at first, can be discarded ASAP. Hopefully some of the "good guys", billionaires who know that giving back some of their wealth is a great and patriotic (maybe even the Christian or other thing, if religiously inclined) thing to do very soon. I'm talking about those who realize that money has more meaning than seeing how much you can accumulate at the expense of others.

[NicoleAnon]

I'm still not sure about Paulson because he seems different than most of the immoral people working at these banks but I wouldn't be surprised if he was a really bad person either. We will never know.

1) He is an environmentalist and has given lots of money to nature conservatories.
2) He doesn't live an ostentatious lifestyle like other investment bankers. He doesn't own a fancy summer home.
3) He doesn't drink.
4) He has a stable marriage for many years.
5) He claims he is giving all his money to charity.
6) He gets along with both dems and repubs which is strange.

[TNFarmer]

While I agree with your philosophy, it seems highly unlikely to me that those who know where the bodies are buried would be willing to dig them up and show their (the diggers') complicity and liability.

[SugarMan]

McCain is a DRAMA KING!
along with Princess Palin

[CBS]

Palin is like one of those fake blimps over discount stores.

[NicoleAnon]

It's good to know that we just witnessed the biggest heist in American history and all people care about is insulting SP.

And people who are content with their lives do NOT make vicious attacks on other people even if they aren't voting for them. You're obviously miserable.

[anastasiabeaverhousen]

Someone find her plug and pull it. Please.