McCain says Fed should stop government bailouts (again today)

[FreeStateDemocrat]

Source: AP/NYTimes


By THE ASSOCIATED PRESS
Published: September 19, 2008
Filed at 2:39 p.m. ET

GREEN BAY, Wis. (AP) -- Republican John McCain said Friday the Federal Reserve needs to stop bailing out failed financial institutions. The Republican presidential hopeful said the Fed should get back to ''its core business of responsibly managing our money supply and inflation'' and he laid out several recommendations for stabilizing markets in the financial crisis that has rocked Wall Street and commanded the dialogue in the presidential campaign.

McCain made little mention of the massive proposal being crafted by Treasury Secretary Henry Paulson that could amount to a $1 trillion taxpayer bailout of the mortgage industry. McCain said simply that leaders should put aside partisan differences and ''any action should be designed to keep people in their homes and safeguard the life savings of all Americans.''

The Fed engineered an $85 billion takeover of insurance giant AIG this week after seizing control of housing giants Freddie Mac and Fannie Mae. McCain said that to help return the U.S. to fiscal solvency, the powerful central bank should instead focus on shoring up the dollar and keeping inflation low.

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The Arizona senator again criticized Democratic rival Barack Obama for ties to Freddie Mac and Fannie Mae and for advocating tax increases McCain said would ''turn a recession into a depression.''

Obama has said he would raise taxes on people making over $250,000 a year and would cut taxes on the middle class. McCain restated his claim that Obama had voted to raise taxes on people who make just $42,000 a year -- a claim that has been widely debunked by nonpartisan fact check organizations.



Read more: http://www.nytimes.com/aponline/washington/AP-McCain-Financial-Crisis.html?_r=1&oref=slogin

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JOhnnie's right on top of the situation with a vast store of experience in how to solve yesterday's problems but not a clue about solutions for today's or tomorrow's evolving crisis.

[AlinPA]

1. ...and Palin will take over in case he can't. She will have a crash course

by Grover Norquist. Guys and gals, she will not blink.

[Epiphany4z]

3. do you think it is wise to use the word crash

considering the economy and you know how McCain has ...has well ya know ..crashed a few planes...cough...ahem.

[AlinPA]

4. Good point, I wasn't thinking-I was trying not to blink with these allergies.

[dgibby]

9. new nickname

Ace McCrash, especially good to use when talking about either the military or the economy.

[Misskittycat]

2. Question: doesn't this put McCain at odds with the entire GOP?n/t

[asjr]

5. He must be seeking revenge on

Ferdinand and Isabella.

[CitizenPatriot]

6. whhhhaaaaat?

He makes ZERO sense now. He needs to stay out of the way.

though I'd LOVE to hear this genius explain how "our" life savings can be protected if the FED doesn't bail out the bad debt caused my McCain's support for Gramm's bills.

I'm waiting to hear how we'd be better off if the FED didn't do this.

Is the man a moron? WORLD ECONOMY WAS SLIDING INTO GLOBAL DEPRESSION

Translation into freep: Terror level RED.

got it?

You already screwed "our life savings" with Keating, Enron, and now the subprime disaster, John. Stop lying about it.

[Deny and Shred]

14. A trillion on top of the roughly $800 billion. Inflationary?

Life savings are worth a lot less after this bailout.

[CitizenPatriot]

15. oh, yeah...

that's right.

it was inflation or global bust.

I hope they manage this better than they did Ike, but I am certainly not holding my breath.

We're screwed either way, but I'm super relieved to hear that one of the "deciders" got 17 million from Goldman Sachs for a few months work while waiting to be appointed by the Big Daddy of Deciders. Nice that they could save that institution, one they have fondness for, as we all would if we had 500 million in stock at some point.

(sarcasm)

Oh well. Off to count my 1/3 of a dollars.

[last1standing]

7. "This is no time for partisanship....BUT IT'S ALL OBAMA'S FAULT!!!

What a piece of garbage mcsame is. We just can't stand for 4 more years of this bullshit.

[Fearless]

8. NEW ROVE STRATEGY...

Throw shit at the wall. See if it'll stick. Doesn't have to make sense. Can be a lie. Can be contrary to what you've said. You've got nothing to lose. Whatever sticks is profit. What doesn't, throw again... again... again...

[Ian David]

10. Drug-addicted pedophile Rush Limbaugh says the bail-out of AIG is Socialism. n/t

[Zenlitened]

11. Seriously, is he in the early stages of dementia?

Does he even REMEMBER what he says from day to day, or what people say to him?

:wow:

[depakid]

18. That's my conclusion

based on what I've seen several times, up close and personal.

[JonQ]

12. He's right

we shouldn't be in the business of bailing out companies like this.

[Voltaire99]

13. For once, McCain gets something right.

Not that I would believe or trust the old goat as he flails about for a position that sticks. But luck or accident have led him to the correct take on this one.

We're privatizing profits and socializing losses, and in the process we're saddling taxpayers with massive debt while also preventing the workthrough necessary to move bad debt through the system. See, e.g., arguments by Nouriel Roubini (http://www.rgemonitor.com/) or Michael Hudson (www.counterpunch.com)

The last thing I'd be hopeful about is Obama's reliance on two neoliberal putzes, Rubin and Summers. How do you think we got to this deregulatory abyss?

[JonQ]

16. "We're privatizing profits and socializing losses"

I like that quote, is it yours?

[Neshanic]

17. After Obama's speech today he is scrambling to get a handle on this, and looks kooky.