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

[KIMBER]

Everything McCain has done for a month has been erratic, irrational, pathetic and desperate. The idea of a man with his history, at his age, being in the Presidency, with an inadequate and anti-intellectual person like Palin as his backup should scare the wits out of everyone on this planet.

[sillyseason]

You're dead-on accurate, but the sad truth is, you'll never shake the rethug loyalists.

As for the true undecideds, the rethugs are banking on the undecideds' being stupid enough to buy their last 30 days of drama.

My gut tells me some will, but MOST won't.

[bootcamp]

McCain has nowhere to go now but down. He can run away from President Bush, but he can't run away from the Republican Party. The Republicans will be regarded from now on as "the party that wrecked America." Over the weeks ahead, as carnage in the economy and the financial markets ramps up, it will become increasingly clear. It is important that this meme be spread through the internet. I urge all commentators to adopt and spread the idea that the Republicans are "the party that wrecked America." It will work because it is the truth. Use it freely.

[riverhippie]

So now you wacko liberals (and I mean that endearingly) who hate this administration so much you froth at the mouth at the mention of the Bush Administration are saying we should believe what an "Administration Official" says? That is the funniest thing I've read in months. Thank you. Really, thank you.

Hypocrisy at its finest.

I mean an "Administration Official" saying something bad about McCain is good for him, right?

Surely the "Administration Official" is lying, right?

[teronhussein678]

Where is Rick davis????

[breakingnews]

Free Rick Davis!!!

[Pupster]

Last I heard, he was partying it up at the 21 Club here in NYC.

[Nagarjuna]

I guess what's amusing is the dissension among Republicans, as they squirm and flail trying to find a way to spin their self-created mess to their own advantage somehow. It's a "circular firing squad" effect.

[honeydiva]

i still hate the administration and don't believe a da rn thing they say...if that helps.

but 0ld did mess up, you know that.

[dve2z]

the "official" says what everybody else already knows: McCain tried to steal spotlight but failed.

are you catching on?

[riverhippie]

McCain and the House Republicans spoiled the Fed's and Bush's fearmongering attempt to get congress to come to an agreement before Friday or the stack market would crash and we would go into a depression tactic that worked on the democrats. You're telling me that Bush and Bernanke and Paulson saying AFTER the meeting that they were willing to negotiate EVERYTHING wasn't a win for the U.S. Taxpayer?

Let's wait and see what the bailout looks like before we proclaim the whole thing was "Grandstan­ding."

One thing's for sure, whatever extra protections and precautions are added to the bailout that weren't there before the meeting are going to be credited to the House Republicans and McCain.

They showed a pair and called Bush's and the Fed's bluff. Bush, Bernanke, and Paulson are the ones who blinked.

The democrats sat there like the deer in the headlights they are when the stuff hits the fan. And then they turned it into political gamesmanship.

If this causes McCain to lose but we end up with a better deal on the bailout, it was worth it.

I just hope they can stand up to Bush and the democrats and make a bailout that makes some sense.

Can we just keep printing money and bailing businesses out?

What after the 700 billion is gone? Another 70 billion? Then another?

It's much more important that we get the best deal we can on the bailout than the stupid debate.

WAKE UP.

[oldguru]

I did not need any "official" of the administration to tell me that McCain had screwed up AGAIN. I figured it out all by myself because I am a liberal and I can think for myself.

[WasteNJ]

This is the political and economic equivalent of stunt driving with your family in the back seat. McCain is trying to jump the drawbridge. The gap was widening, so he decided to hit the gas and do something crazy. Buckle up!

[soiloecho]

Did I get it right or am I wrong, that Obama was the one who first asked about the Republican counter proposal? If its true, this guy then really listens to all sides. Wow!!!

[Maury66]

Not having read that specific information and lacking any other source on the subject, I'd say, sure, Obama would have been one who would ask what the opposition's idea was, because that's what he does. That's how he funtions. He listens and asks questions and looks for common ground....­like a good leader...l­ike someone you'd want for a President.

[riverhippie]

That's funny. I doubt anyone at the meeting could have avoided hearing about the republican counter proposal.

[nellie]

McCain is willing to play with our tax base, play with our government, play with our ECONOMY—all for his own personal aggrandizement.

This guy DOES NOT have the temperament to be president.

[Shadow08]

He doesn't have the temperment, the judgment, the ability or intellect to be the president.

After 8 years of a president who ruined everything because he thinks his gut gives him better advice that educated advisors, it's time for America to step away from "the president is my buddy" mentality and elect a president who thinks things through, who surrounds himself with experts instead of cronies and who has 4 basic elements, common sense, intellect, reason and logic.

We have seen first hand how badly a president can bring America down if our president does not possess these essential qualites.

McCain-Palin has shown us that people without these basic elements can't even run a well structured campaign. We can't afford to give this country to an out of touch man who wants the presidency to be the last feather in his cap, and we certainly can't afford the chance of his running mate, a total fraud and liar the oppotunity to take the seat of power in this great country.

I would hope by now that even republicans who don't like Barack personally will see that this is a moment in time when we can't get this wrong and vote for skin color instead of substance.

We owe it to our children and theirs to get this one right.

[sherbug]

It must be a sign that McCain is losing because there are few trolls on this thread. If McCain was surging, then they would be out in force.

[breakingnews]

They are getting their talking points in order. Somethng about Rev Wright....­blah....bl­ah...blah

[35Echo]

If the proposed agreement for the bailout, the one McCain is supposed to have torpedoed, where such a 'Great Deal' why did not the Dems call a vote and PASS it? I mean , after all, they are the MAJORITY in the House and don't even need one Repub. vote to pass anything.

[ProudLeftist]

Because we are close to elections and the public hates the idea of this bailout. Isn't this obvious, or are you being cute? For argument's sake let's assume, as Warren Buffett (an Obama supporter) and others have indicated, that there really is a financial emergency here. If only the Dems take action to stop it, the Republicans in the House - every one of whom is up for election - could all take the safe course and vote against it, getting the "benefits" of the "rescue" while allowing themselves to distance themselves from Bush and the plan, which is unpopular to the public that may or may not understand all the financial issues. This is a crisis caused by GOP deregulation, and the Dems may be willing to help solve it for the good of the country but they are going to make the GOP own it, so the GOP cannot use this late September surprise for political advantage.

[Shadow08]

They are probably embarassed by him and Palin. But I hope they are starting to see the McCain Pkain ticket is the worse thing that could happen to this country.

I hope they become color blind and vote Obama-Biden so our kids can have a better chance at life other than being sent off to foreign wa rs.

[wazzucoug]

McCain's losing more than the "PR battle," he's losing his grip on the White House. It's over!

[devanate]

On the White House? He's just losing his grip, period. Erratic. Chaotic. And completely unhinged.

[Shadow08]

"On the White House? He's just losing his grip, period. Erratic. Chaotic. And completely unhinged."


That has got to be in the back of even the strongest McCain supporters.

I don't think they can possibly think McCain is capable of running this country after the last two weeks of the McCain-Palin show.

[BabsfromKansas]

As Ed Grimley would have said, “They’re as doomed as doomed can be, you know.”

[Shadow08]

If I just had to throw something out there after the Mac antics over the last two weeks, I would say Mac lost his bid. Yesterday he said he did what he did and if he takes a "pounding" for it, so be it.

Tonight will be interesting to see if a subdued, under control Mac shows up, or the wi.ld man we have had to grimace through for over two weeks now.

I think we know how Barack will approach the debate tonight, but Mac is to erratic to tell.

BTW, I think Mac and his whole camp are realizing what a mistake Palin has been.

[LibertiBelle]

IMO McCain was promised this nomination in 2004 not to run against BUSH as a Democrat but they didn't promise to support him, just give him the nomination and it appears the only thing he had to do was come into allignment with BUSH's policies..­.and so he did.

He sold his soul to be President.

[enlighteninglad]

Hard to believe that I ever had respect for this man.

[loax]

McCain lost my PR battle a long time ago - even before he made the stupid Palin pick!

[TSPEY]

McCain / Palin: Road to the Outhouse

http://tspey.wordpress.com/

[Fabini]

Okay, let's elect Obama and ALL democrats and then hold their feet to the fire. We want America to be fair and free. No more power grabs.

[Bitsko]

That's right. Let's get 'em in there and make sure they do what the People want and not the megacorporations.

[riverhippie]

I agree, Bitsko. We should throw all the bums out and start over with a new Center Party. I'm sorry, but there are as many screwed up democrats in congress as there are republicans.

Both parties have become to radical.

All of you should read Joseph Ellis' "Founding Brothers." It's about the writing of the constitution and how fierce the debate was every day and how at the end of the day the side that won the debate compromised and got most of what they wanted.

The idea being that our government was formed with the notion that REASONABLE men could debate issues and arrive at a compromise that was best for the people.

Unfortunately, our politicians today (both republican and democrat) -- at least a large majority of them -- are more concerned about getting re-elected than doing what's right.

maybe if the market tanks we will end up with a new government that actually represents the people.

You're fooling yourself if you think McCain or Obama will be able to change things.

I really liked Obama when I first heard him talk about the need to be a "new kind of politician­." I thought... you know... he's right. But since the end of the primary, he has proven to be nothing more than a partisan hack. All talk, nothing but the same old tired attacks against conservatives.

[JenMI]

Could mainstream media possibly, ever tell the whole truth, the whole story?

[Okieborn]

Hell No, the main stream Media have a coservative attitude !!!

[WatchmanD]

I have to give it to John McCain. His 26 years of experience has been front and center the last 10 days. I have marvelled at his ability to pause reality, hit the reset button, and place his train wreck of a campaign back on unsteady tracks with no destination. You folks who are on board the train to nowhere are also to be marvelled.

Obama/Biden 08