Obama calls McCain economic ideas 'out of touch'

DETROIT — Democratic presidential nominee Barack Obama on Sunday called Republican rival John McCain's economic philosophies out of touch and dangerous for a teetering economy as Congress quickly moved toward a financial bailout of Wall Street.

"The idea that if we give more and more to those with the most, prosperity will trickle down to everyone else; the idea that no harm will be done if we let lobbyists shred consumer protections and fight against every regulation as unwise or unnecessary," Obama said, offering his summation of McCain's ideas for what county law enforcement officials said was a crowd of about 35,000 gathered outside the Detroit Public Library.

"Well, what we have seen over the last few weeks is nothing less than the final verdict on this failed philosophy. And I am running for president of the United States because the dreams of the American people cannot be endangered anymore," Obama said.

Both candidates indicated Sunday that they will support a newly negotiated congressional deal for a $700 billion bailout of the financial industry. Obama said Washington has no choice but to act despite, calling the crisis an "outrage _ an outrage _ that we are now being forced to clean up their mess."

"We must act now. We have to act responsibly, because now that we're in this situation, your jobs, your life savings, entire sectors and the stability of our entire economy are at risk," Obama said.

Congressional leaders hope to have a House vote on the measure Monday, followed quickly by the Senate. Obama predicted it would pass soon.

Under the plan, the federal government would buy mortgage-backed securities and other bad debt held by banks and other investors, which should help troubled lenders make new loans and open frozen lines of credit. The government would later try to sell the packages to recover the money.

"My inclination is to support it because I think Main Street is now at stake," Obama told CBS "Face the Nation" in an interview.

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McCain campaign spokesman Tucker Bounds said Obama's record of voting for higher taxes is "proof that his talk about the middle class is much different than his record."

Obama also used the visit to the Michigan battleground, his first in three weeks, to emphasize voter registration and encourage supporters to register to vote by the Oct. 6 deadline. Polls last week showed Obama pulling ahead of McCain in a state considered crucial to Obama's chances on Nov. 4.

Sen. Joe Biden, Obama's vice presidential running mate, called on everyone in the crowd to help register at least one person before the deadline.

At a $2,500-per couple fundraiser inside the library before the rally, Obama also urged about 125 supporters to register and vote.

"There's no project more important over the next five weeks," Obama said. "I'm absolutely convinced that we will win Michigan and if we win Michigan, we will win the general election and if we win the general election, you and I together will change this country and this world."

Michigan already has a high percentage of people registered to vote, thanks in part to efforts by the secretary of state's office to register people when they apply for a driver's license. Of the state's roughly 7.6 million eligible voters, more than 7.2 million are registered _ about 95 percent.

More than 100,000 of them have been added to the rolls since January. State officials won't have a final tally until after the Oct. 6 deadline, but Obama strategists hope to raise the total number of new registrants to 150,000.

Since the last federal election in 2006, more than 2 million Democrats have been added to voter rolls in the 28 states that register voters according to party affiliation. The Republicans have lost nearly 344,000 voters in the same states.

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Associated Press writers Kathy Barks Hoffman and Corey Williams in Detroit and Stephen Ohlemacher in Washington contributed to this report.

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On the Net:

Obama: http://www.barackobama.com

McCain: http://www.johnmccain.com

Comments

[williamlanders]

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[rosal]

And to think McCorporate wanted to privatize Social Security. Every senior citizen should know this, make sure you tell them.

[reshas1]

http://www.rallycongress.com/americansforleadership/1228/a-call-to-the-house-and-the-senate


http://www.justsaynodealcom/acorn.html


http://www.americanthinker.com/blog/2008/09/memory_lane_lynching_franklin.html

[Whatashame]

I don't understand why the Democrats should be the ones cleaning up the Republicans mess. Could somebody explain this to me.

[kellygrrrl]

The Democrats are acting to avoid complete and total Economic Meltdown

caused by Bush/McCain and the ReThug Privatization Pirates

[Belisarius]

Here is how I think we got here:

The banks borrowed short term money to leverage investments in mortgage backed securities. Their leverage was like 15 X. This would be equivalent to you or I borrowing 15 times our savings and risking the money on a security whose value has since gone to about 1/3 of what we paid for it. In other words, the asset we bought is now toxic.

To keep from going under or at the least having our net worth and credit rating sink, we pull an accounting trick. We refuse to mark the value of the asset to its current value i.e. what the market would pay for it. But we cannot do this for ever. Also, everyone knows we are doing this therefore they don't trust our books and they refuse to loan more money to us.

Our next trick is to ask the tax payers to pay higher than market value for our securities because "we know" they are worth more than the market will pay for them. Right.

What if we let the banks fail? Stock holders in the banks lose everything. A new entity is born without the old debt and life goes on or the assets are sold. Until we force them to recognize their losses, no one will loan these banks money and we will have a liquidity crisis.

Did the airlines stop flying when they went bankrupt?

Let the banks fail. They took the risk.

[opinion123]

Exactly!

[bobsmith]

The issue is not the bailout, it's the system that created this mess...privatizing the creation of money. We can thank bankers for that, and the complicity of a Democratic President, Woodrow Wilson. It's a failed system that is at the root of many of the world's problems. 99% of the country doesn't even know how it works. The plutocracy depends upon the ignorance of the populace.

[Head-Liner]

We all are angry and opposed to this bailout but we have to come back to reality and get those CROOKS out of office.period. If we don't act there will be more institutions going belly up, millions of job losses, loss of pensions and savings, retirement benefits frozen, small businesses can't barrow money to pay employees, the alternative would be devestating for the whole world, not just America. Obama has stated many times he is disgusted with having taxpayers bailing these crooks out, but he has to listen to the experts like Warren Buffet and act on it responsibly for our economy kicks the bucket. Do many of us want to see this economy fail and deal with the grave consequences following it. I don't think we can fathom what possibly would happen since most of us value our lively hoods. Thank Obama and the Dems for being open to a solution rather than opposing everything put forth and intern being blamed for not acting in the best interest for middle class people.

[Belisarius]

I am with you. Lobbyists own em all.

Let the sky fall on incumbents in November.

[Belisarius]

I pushed post and instead of preview. I mean to add that I disagree with the bail out.

[Whatashame]

The Bush administration and John Mccain is the one that created this mess with their lack of regulations. McCain is known in Washington and have been captured on video saying that he for less regulations.

[Icantbelieveher]

He keeps saying it in different ways -- like when he says we have to get government out of this!!! The government was sleeping on the job! These people will grab as much money as they can for themselves. Greedy people will not police themselves! It's ridiculous to even think they would!

Just check out the gambling industry!!! It's not the reservations who are making the big $$$$$.

[Icantbelieveher]

Obama didn't cause this mess that we're in. He's inclined to agree with the bail out!! McCain is taking credit for it! He should take credit for the reasons we need it too!

[TheJibreelaMonsters]

Obama Supports the Bailout... he said it in Detroit today!

[HansB]

That's as courageous as opposing the Iraq war was back in 2003. Going against the popular sentiment when it has to be done. He'll be called all kinds of things but he's right.

[Icantbelieveher]

Believe that Obama is a highly educated man. He's not like McCain who will wait to see how the wind blows to take a position. I have faith in him. He's going to be handed this mess -- and he will clean it up, but it's going to be painful! I know he knows what he's doing!

Don't bail on him now!

[Belisarius]

Lost my vote.

I no longer have a horse in this race. I thought we had somebody different.

There is not a dimes worth of difference between democrats and repubs.

[Dynamohum]

Yes and the democrats have written into the bill, many provisions for constant monitoring and oversight, returns on investment to taxpayers, etc. He is making the best out of a bad situation. When you get handed lemons, you make lemonade.

The deal is not perfect, but it is much more fair and much better than if it had been written by repugnants. It is time to take the bitter pill.

Most Americans buy most of their "stuff" with credit. Average balance per capita $17,000.00. So the problem is not just on Wall Street, the problem is systemic and is on Main Street as well. We have been living high on the hog, beyond or means for way to long. Everybody with blackberries, ipods, laptops, flatscreens, etc. It is time to pay the piper. Denial is not a river in Egypt.

[kellygrrrl]

the Dems are acting right now to avoid complete and total Economic Meltdown

caused by Bush and McCain and the Privatization Pirates

[jprfrog]

Because the basis of so called mortgage-backed securities (I call them insecurities) is so shaky --- both mortgages in default and the falling values of the collateral securing them (the houses themselves) no one knows what these things are worth... so banks that hold them don't really know what shape their balance sheets are really in and are afraid to make those short-terms loans...thus we are under threat of a financial coronary thrombosis because every business needs those credits.
(continuing from above)
And if business freezes up, so do profits, earnings on stocks etc. and so the markets where many people have 401k's or mutual funds collapse This adds to the down-turn and so it goes. Since we are deep in deficit (to say the least), it's hard to say what might reverse the downward spiral once we get into it for real. So, with the safeguards that Obama, Frank and the Democratic leadership seem to have wrestled into the proposal to take these bad securites off the banks' books, I think that it is better than nothing and probably the best course available now. There may be alternatives but time is running out and 4th and goal on the 11 yard line does restrict one's options.

I hope that the blind anger I see here (and I am enough of an Old Lefty to sympathize) gets less blind soon, or it will contribute to the debacle that will engulf us all.

[Icantbelieveher]

Agreed -- Obama is not the one to be angry at! I'm angry with the administration's policies that allowed us to get to this point. And make no mistake -- McVain is part of this administration. He can try to distance himself all he wants -- he is repeating the same words that Bush said when he was trying to win election! Bush promised us tax cuts (I didn't see any because I didn't make enough for them to show, they favored the wealthy). He promised corporate tax cuts would create jobs, but if you ask the unemployed people, they did not! McVain is repeating those same promises, which means 4 more years of this administration.

I don't know about you, but my family won't make it through another 4 more years.

[jprfrog]

I was born in 1939 and grew up in a lower-middle class family (my father was a schoolteacher) for whom the Great Depression was still a looming presence, and it has shadowed my entire life. We didn't really pull out of it until after the War, for which government deficit spending and rationing created an enormous backlog of purchasing powe).

I would go far to avoid anything like it happening again (Among other things, without it it is unlikely that Hitler would have ever come to power.)There was a time when the local school system could not borrow enough short-term cash to pay its employees and so they issued scrip...funny money that maybe maybe the corner grocer would accept...and he wasn't sure that he could buy produce because he coudn't get a short-term loan either. That's what happens, multiplied millions of times, when the credit market freezes. And there is a spiraling effect, because everybody depends on the circulation of money through the system, most of which comes from short-term credit...the analogy to blood circulating in a living body is not far from the mark.

[iblittlewing]

I'm not sold on this bailout. I'm glad there is still ambivalence. If the history of fear mongering hasty legislation and its disastrous outcomes haven't been learned, then congress will be duped again. I'm tired of this congress being the poodle of this pathetic administration.

I do not see much evidence that the bailout will work. Trickle down economics is a false premiss. The only trickle down I ever get from these bis cats is their urine. Us paying for their f ups. Yea, that is trickle down economics!

The Bush administration doesn't have any credibility, therefore I am highly skeptical of this whole bailout situation. There are other ways in dealing with this situation. Being a poodle to this administration's proposal is not the best choice. We need more liquidity in the hands of the middle class!! I wish the Obama camp and Democratic leaders would pound this more aggressively.

[motherfather]

ditto.

[radicalcentrist44]

I am not sure what to think regarding this massive bailout and Obama's inclination to accept it. Not sure what he means by "inclined." I thought this would be a great opportunity for Obama to rise above partisan b.s., finger-pointing, ect. I thought he was above this. Obama was not as strong on FISA, Bush tax cuts and now this bailout as he said he would be. Is he going to take a Clinton approach to the economy (which is not really that bad)? Something does need to change, I am just not sure on the promises that Obama has run on without telling us the details of how we pay for it, because I am in the group that is going to end up paying for it.

[motherfather]

For every one of us that feels the way you do, there are a100 on the other side hoping for him to get off message or bAck himself into a corner. He cannot do that now,. there is too much at stake. I too smell a stinky rat in this bailout deal, however its not form the Obama camp. Bush and little Bush are the ones to blame for this and we should not forget that. Obama know whatever he says now will come back to haunt him.

[Dynamohum]

They are only going to get $250 billion to start. The rest will have to be signed off on by the new President Obama.