McBush claims the economy is strong, but Lehman bankruptcy another sign of crisis (updated)

[ProSense]

McBush: "the fundamentals of America's economy are strong"

In Frantic Day, Wall Street Banks Teeter

By ANDREW ROSS SORKIN, BEN WHITE and JENNY ANDERSON
Published: September 14, 2008

In one of the most extraordinary days in Wall Street’s history, Merrill Lynch is near an 11th-hour deal with Bank of America to avert a deepening financial crisis while another storied securities firm, Lehman Brothers, hurtled toward liquidation, according to people briefed on the deal.

The dramatic turn of events was prompted by the cataclysm of losses that has shaken the American financial industry over the last 14 months.

The moves came after a weekend of frantic negotiations between federal officials and Wall Street executives over how to avert a downward spiral in the markets. Questions still remain about how the market will react and whether other firms may still falter like A.I.G., the large insurer, and Washington Mutual, both of whose stocks fell precipitously last week.

Coming just a week after the government took control of mortgage lenders Fannie Mae and Freddie Mac, the magnitude of the industry’s reshaping is staggering: two of the most powerful firms on Wall Street, Merrill Lynch and Lehman, will disappear.

more

Update:

Dept. of poor timing

Quite a day for an op-ed titled "Quit Doling Out That Bad-Economy Line."

From Donald Luskin's attack-ad-ready piece: "Full disclosure: I'm an adviser to John McCain's campaign..."

[FreakinDJ]

1. This is going to make the "Great Depression" look like a hic-up

[CakeGrrl]

2. I hope Team Obama has their ad creators working overtime

If we have to wait for an 'October Blitzkrieg' as has been suggested, I'll wait...but they have enough material to put out an ad a day from now until the election. One more piece of evidence that McCain whistles past the graveyard.

[BlooInBloo]

3. A crisis that's the direct result of McPOW's right-hand-man Phil Graham.

[FreakinDJ]

4. And don't let them "Cork Soakers" forget it

This is PURELY of the Ratpublican's own making

[mw]

5. Obama should declare sharply: "Thank Repub 'deregulation' for this

Obama needs to simply blame Republican deregulation for today's mortgage/banking mess. Sweet and simple

Put the Repukes on defense to parse what Obama claims.

[European Socialist]

6. Too bad the "original Mavericks" (Mc and Moose) aren't in....

office right now--They know how to handle the Repuke special interests.

[ProSense]

7. Statement from Senator Obama on the Situation in Financial Markets

Statement from Senator Obama on the Situation in Financial Markets

By Christopher Hass - Sep 15th, 2008 at 9:22 am EDT

In response to today's news of the worsening financial markets, including the news that the large investment bank Lehman Brothers will file for bankruptcy, Senator Obama released the following statement:

This morning we woke up to some very serious and troubling news from Wall Street.

The situation with Lehman Brothers and other financial institutions is the latest in a wave of crises that are generating enormous uncertainty about the future of our financial markets. This turmoil is a major threat to our economy and its ability to create good-paying jobs and help working Americans pay their bills, save for their future, and make their mortgage payments.

The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren’t minding the store. Eight years of policies that have shredded consumer protections, loosened oversight and regulation, and encouraged outsized bonuses to CEOs while ignoring middle-class Americans have brought us to the most serious financial crisis since the Great Depression.

I certainly don’t fault Senator McCain for these problems, but I do fault the economic philosophy he subscribes to. It’s a philosophy we’ve had for the last eight years – one that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else. It’s a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crises.

Well now, instead of prosperity trickling down, the pain has trickled up – from the struggles of hardworking Americans on Main Street to the largest firms of Wall Street.

This country can’t afford another four years of this failed philosophy. For years, I have consistently called for modernizing the rules of the road to suit a 21st century market – rules that would protect American investors and consumers. And I’ve called for policies that grow our economy and our middle-class together. That is the change I am calling for in this campaign, and that is the change I will bring as President.

[ProSense]

8. Response to McCain on the 'strong' fundamentals of our economy

Response to McCain on the 'strong' fundamentals of our economy

By Sam Graham-Felsen - Sep 15th, 2008 at 10:54 am EDT

In response to John McCain's remarks this morning on the 'strong' fundamentals of our economy, Obama campaign spokesman Bill Burton stated...

Today of all days, John McCain's stubborn insistence that the 'fundamentals of the economy are strong' shows that he is disturbingly out of touch with what's going in the lives of ordinary Americans. Even as his own ads try to convince him that the economy is in crisis, apparently his 26 years in Washington have left him incapable of understanding that the policies he supports have created an historic economic crisis.