'Economy'에 해당되는 글 34건

  1. 2008.09.30 Lawmakers Face 'Difficult Vote' on Financial Bailout by CEOinIRVINE
  2. 2008.09.27 Economy and Iraq Take Central Role in Debate by CEOinIRVINE
  3. 2008.09.26 Talks Falter on Bailout Deal by CEOinIRVINE
  4. 2008.09.17 McCain by CEOinIRVINE

Economic policymakers work to stabilize global financial markets and say Congress must act quickly on a proposed bailout plan to avoid dire consequences for the U.S. economy.
» LAUNCH PHOTO GALLERY

The House began a heated debate this morning on legislation that would authorize what is likely to become the biggest federal government bailout in the nation's history, shortly after President Bush urged lawmakers to act quickly to approve the $700 billion proposal hammered out over the weekend.

Bush acknowledged that the vote will be "difficult" in the face of opposition from taxpayers and voters but necessary to protect the economy.

"A vote for this bill is a vote to prevent economic damage to you and your community" by stabilizing financial markets and renewing the flow of credit, Bush said, attempting to undercut arguments that the proposed legislation bolsters Wall Street at taxpayers' expense. "This is a bold bill that will keep the crisis in our financial system from spreading through our economy."

"Today's the decision day. I wish it weren't the case," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee and co-author of the legislation that was crafted in marathon negotiating sessions with Treasury Secretary Henry M. Paulson Jr.

Frank said no lawmaker wants to approve such a large bailout that was made necessary by the mistakes of Wall Street financiers and the mortgage industry, but inaction risked a more widespread financial meltdown. If nothing is done, he said, "the consequences will be much more severe."

With three hours of debate beginning just before 9:30 a.m., lawmakers expect a vote to be wrapped up before 1 p.m. Eastern time. Leaders of both parties are supporting the measure, but neither side has given a public estimate of how much support they have.



During early morning votes on noncontroversial matters, House Speaker Nancy Pelosi (D-Calif.) hurried around the chamber floor, button-holing rank-and-file members and showing them papers, asking for their support.

After a week of political tumult and deepening economic anxiety, congressional leaders yesterday rallied support for the historic proposal, which would grant the government vast new powers over Wall Street and offer fresh help to homeowners at risk of foreclosure.

The proposed legislation would authorize Treasury Secretary Henry M. Paulson Jr. to initiate what is likely to become the biggest government bailout in U.S. history, allowing him to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates.

The plan would give Paulson broad latitude to purchase any assets from any firms at any price and to assemble a team of individuals and institutions to manage them. In wielding those powers, Paulson and others hope to contain a crisis that already has caused the failure or forced the rescue of a half-dozen major Wall Street firms and unnerved markets around the world.

The measure was forged during a marathon negotiating session between lawmakers from both parties and Paulson -- who at one point appeared to negotiators to be on the verge of collapse. Restive Republican lawmakers originally criticized the package as putting taxpayers at risk and violating free-market principles, but many of them appeared yesterday to be dropping their opposition.

House Minority Leader John A. Boehner (R-Ohio) emerged last night from a meeting of House Republicans to say he is "encouraging every member whose conscience will allow them to support this." Boehner said he and other GOP leaders made the case that negotiators had improved the bill by gaining a key concession on a plan to limit taxpayer exposure.




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Event was designed to focus on national security and foreign policy, but the economy and the bailout package lead off the questions. (Bloomberg)

McCain and Obama Duel Over Judgement, Foreign Policy

By Ben Pershing
washingtonpost.com staff writer

Sens. John McCain (R-Ariz.) and Barack Obama (D-Ill.) kicked off the first general election debate of a tight presidential contest tonight, tackling the national economic crisis and then pivoting to an increasingly heated series of exchanges over policies in Iraq and Afghanistan..

The debate, moderated by Jim Lehrer of the PBS NewsHour, was designed to focus on national security and foreign policy, but the early rounds were dominated by the country's grave economic news.

Much of the debate featured McCain on offense, lobbing charges at Obama that the Democrat has been forced to rebut. McCain repeatedly sought to cast Obama as inexperienced and unsophisticated on national security issues, saying several times that the Democrat "doesn't understand" foreign policy concepts and dynamics.

"There are some advantages to experience, and I honestly don't believe Senator Obama has the knowledge or experience, and has made the wrong judgeement in a number of areas," McCain said near the end of the debate.

Lehrer began the debate by immediately plunging into the news of the day, asking the two men: "Where do you stand on the national recovery plan?"

Obama answered first, saying "we are at a defining moment in our history," amidst two wars and a difficult "financial crisis."

Obama ticked off his priorities for the bailout package, emphasizing oversight, the need for taxpayers to potentially recoup their money, ensuring that CEOs of companies that receive aid not get "golden parachutes," and making sure that homeowners get assistance.

McCain, who has been criticized for not acknowledging quickly enough the severity of the economic situation, warned: "Have no doubt about the magnitude of this crisis."

Asked whether he would vote for the bailout plan, McCain said "I hope so" and "sure."

McCain emphasized his disdain for the current Wall Street culture, in which "greed is rewarded, excess is rewarded ... People are going to be held accountable in my administration."

Obama attempted to take a longer view, lamenting that Washington didn't craft better policies before the current crisis.

McCain went on the attack on the next question, criticizing Obama for his record of requesting more than $900 million worth of earmarks for his state and vowing to veto overstuffed spending bills. "That's a fundamental difference between me and Senator Obama. I want to cut spending. I want to keep taxes low," McCain said.

Obama fired back by criticizing both the Bush administration's tax proposals and McCain's plan, suggesting that tax cuts for the wealthy dwarfed earmarks in their relative slice of the federal budget.

"Eliminating earmarks alone is not how we are going to get the middle class back on track," Obama said.

Asked what they would have to give up as president because of the financial crisis, Obama avoided a direct answer and instead provided a laundry list of programs he would initiate and emphasize. Under further questioning, he said he might have to cut back on some of the programs he favors to reduce U.S. dependency on foreign oil. McCain vowed to cut spending overall, and continued his aggressive stance by taking a swipe at Obama for being most liberal Senator, a reference to his vote rating by National Journal. McCain suggested it is difficult to reach across the aisle "when you're that far to the left."

Shifting abroad, Lehrer asked the candidates what lessons they had learned from the Iraq war.

"The lessons of Iraq are clear, you can not have a failed strategy," McCain said, adding that he had called for a change of strategy early in the war and that the troop surge, which he supported, had been successful in putting the U.S. on a path to victory "with honor."

Obama responded by referencing his opposition to going to the war in the first place, contrasting it with McCain and Bush's advocacy in favor of the conflict.

"I wish for the sake of the country that I had been wrong and they were right, but that's not been the case," Obama said, charging that Iraq was a distraction from American efforts in Afghanistan and that al-Qaeda was resurgent as a result.

The exchanges grew more heated as the next question continued on the subject of Afghanistan. Obama said more troops were needed in the country "as quickly as possible" and that he would send "two to three additional brigades" there. Obama also called for additional pressure on Pakistan to force the government there to crack down on al Qaeda within its borders.

McCain said he would "work with the Pakistani government" and would not call for cutting aid to the country, suggesting Obama was irresponsible. Obama struck back by recalling that McCain had once threatened North Korea with "extinction" and sang a song joking about bombing Iran.

Still on offense, McCain criticized Obama for saying he would meet with the Iranian prime minister "without preconditions." Obama retorted by pointing out that his policy has been echoed by the Bush administration and several former secretaries of state, including Henry Kissinger, an advisor to McCain.

The crisis on Wall Street has intersected with the campaign trail in recent days. High-level negotiations on Capitol Hill over a massive financial rescue package brought both candidates rushing back to Washington this week along with a brief suspension of the McCain campaign and a call by the Arizonan to delay tonight's debate, which was months in the making.

Obama resisted that call, and the fate of the gathering at the University of Mississippi in Oxford was uncertain until late this morning, when McCain judged that there was "significant progress toward a bipartisan agreement" and hastily left Washington to travel south.

The nominal topic of tonight's debate, foreign policy, was thought to be Obama's biggest weakness relative to McCain, and the Republican pressed for advantage. In particular, McCain emphasized his steadfast support -- and the apparent success -- of the troop surge in Iraq and contrast that record with Obama's mixed record on the issue.

As he has repeatedly done throughout the race, Obama sought to steer the discussion further back, to make the case that he was right in initially opposing the war while McCain was as misguided as the Bush administration in backing it.

Polling has shown the race to be tight since McCain and Obama clinched their respective party nominations, but the debate came as Obama has opened a narrow lead driven by the focus on economic news -- a strong suit both for him and the Democratic party in general, according to surveys. The Washington Post/ABC News poll released Wednesday showed Obama leading McCain, 52 percent to 43 percent, among likely voters. Other surveys this week have showed a tighter race, and the RealClearPolitics average of recent national surveys gives the Democrat a four-point edge.

Having apparently lost the burst of momentum he gained after choosing Alaska Gov. Sarah Palin as his running mate and staging an energetic Republican National Convention, McCain has had a turbulent two weeks leading up to tonight's debate.

Democrats pounced last week when McCain said "the fundamentals of our economy remain strong," the same day the storied financial firm Lehman Brothers collapsed and the stock market was tumbling. McCain quickly revised his public outlook on the economy, but the Obama campaign was already racing to paint him as out of touch with the concerns of average Americans.

Even after acknowledging the severity of both Wall Street and Main Street's problems, McCain still saw his poll numbers dropping and the narrative of the campaign shift in Obama's favor. Those factors may have contributed to his stunning announcement Wednesday that he was suspending his campaign, taking ads off the air and returning to Washington to involve himself in bailout negotiations.

As partisans argued over McCain's motivations and analysts debated the wisdom of his move, the Republican nominee entered the negotiating process just as a potential deal was collapsing Thursday afternoon. At McCain's urging, President Bush convened an unusual summit at the White House that included congressional leaders of both parties as well as McCain and Obama. At that session, the bailout package the administration and Hill Democrats were nearing agreement on fell apart when House Minority Leader John Boehner (R-Ohio) said his members would not go along and McCain was reportedly quiet and non-commital.

While Thursday's events marked a setback, there were indications today that all sides might be gradually working toward a compromise package that would incorporate at least some of the ideas advocated by House Republicans. Both McCain and Obama will likely have a chance tonight to make their own views known in detail.

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In the Cabinet Room, President Bush meets to discuss the bailout with, from left, Sen. John McCain, Rep. John Boehner, Rep. Nancy Pelosi, Sen. Harry Reid, Sen. Mitch McConnell and Sen. Barack Obama.
In the Cabinet Room, President Bush meets to discuss the bailout with, from left, Sen. John McCain, Rep. John Boehner, Rep. Nancy Pelosi, Sen. Harry Reid, Sen. Mitch McConnell and Sen. Barack Obama.

  Washington Post Staff Writers
Friday, September 26, 2008; Page A01

A renegade bloc of Republicans moved to reshape a massive bailout of the U.S. financial system yesterday, surprising and angering Bush administration and congressional leaders who hours earlier announced agreement on the "fundamentals" of a deal.


At a meeting at the White House that included President Bush, top lawmakers and both presidential candidates, House Minority Leader John A. Boehner (R-Ohio) floated a new plan for addressing the crisis that has hobbled global markets.

Democrats accused Boehner of acting on behalf of GOP presidential candidate Sen. John McCain (Ariz.) in trying to disrupt a developing consensus. The new proposal also displeased White House officials, including Treasury Secretary Henry M. Paulson Jr., who chased after Democrats leaving the meeting and -- half-jokingly -- dropped to one knee and pleaded with them not to "blow up" the $700 billion deal, according to people present at the meeting.

Before the meeting broke up, President Bush had issued a stark warning about the impact on the nation's economy if the measure did not pass. "If money isn't loosened up, this sucker could go down," Bush said, according to one person in the room.

Under the alternative Republican plan, the government would set up an expanded insurance system, financed by the banks, that would rescue individual home mortgages. The government would not have to buy up the toxic mortgage-backed assets that are weighing down financial institutions.

Paulson and Federal Reserve Chairman Ben S. Bernanke had already considered and discarded a similar idea, White House spokesman Tony Fratto said. "I'm not convinced it does what needs to be done for the banking system, and neither is Secretary Paulson or Fed Chairman Bernanke," he said.



Last night, after the White House meeting, Paulson shuttled back to the Capitol for a nearly two-hour meeting with Democrats and Senate Republicans, and the sides began drafting legislation based on the general agreement struck earlier in the day. That effort will continue this morning.

Democrats say they would not approve the legislation without a significant number of Republican votes to share in any political fallout from the controversial proposal, which comes just weeks before the November election. "We are working to try to get this bill ready, but if House Republicans continue to reject the president's approach, then there's no bill," said Rep. Barney Frank (D-Mass.), an architect of the bailout legislation. "We told Paulson the whole thing is at risk if the president can't get his own party to participate."

"We've not seen any way to getting majority [Republican] support," said Rep. Eric Cantor (Va.), a leading Republican vote counter and co-author of the alternative House GOP plan, which would also cut taxes on dividends and capital gains.

The apparent breakdown yesterday followed a lunchtime declaration by Republicans and Democrats in the Senate banking and the House Financial Services committees that they had come to a general accord on many outstanding issues. During a nearly three-hour meeting, lawmakers reached an "agreement on principles."

Under that agreement, the package would be broken into three parts. Paulson would receive $250 billion immediately and $100 billion more upon certification that the funds are necessary. The final $350 billion could be dispersed without additional congressional approval, but Congress would be given 30 days to object.

The agreement calls for strong oversight of the bailout program, including an independent inspector general and regular audits by the Government Accountability Office. It also would require the Treasury to set standards to ban "inappropriate or excessive" compensation for executives at participating firms and establish stronger protections for taxpayers, including a requirement that they receive equity in all participating companies. The latter provision ensures that the Treasury could recover the cash it invests in bad assets if the firms return to financial health.




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McCain

Politics 2008. 9. 17. 20:11
Video
Republican presidential nominee John McCain says Wall Street's financial turmoil is the result of unchecked corporate greed.
 
  Washington Post Staff Writer
Wednesday, September 17, 2008; Page A01

A decade ago, Sen. John McCain embraced legislation to broadly deregulate the banking and insurance industries, helping to sweep aside a thicket of rules established over decades in favor of a less restricted financial marketplace that proponents said would result in greater economic growth.

Now, as the Bush administration scrambles to prevent the collapse of the American International Group (AIG), the nation's largest insurance company, and stabilize a tumultuous Wall Street, the Republican presidential nominee is scrambling to recast himself as a champion of regulation to end "reckless conduct, corruption and unbridled greed" on Wall Street.

"Government has a clear responsibility to act in defense of the public interest, and that's exactly what I intend to do," a fiery McCain said at a rally in Tampa yesterday. "In my administration, we're going to hold people on Wall Street responsible. And we're going to enact and enforce reforms to make sure that these outrages never happen in the first place."

McCain hopes to tap into anger among voters who are looking for someone to blame for the economic meltdown that threatens their home values, bank accounts and 401(k) plans. But his past support of congressional deregulation efforts and his arguments against "government interference" in the free market by federal, state and local officials have given Sen. Barack Obama an opening to press the advantage Democrats traditionally have in times of economic trouble.

In 2002, McCain introduced a bill to deregulate the broadband Internet market, warning that "the potential for government interference with market forces is not limited to federal regulation." Three years earlier, McCain had joined with other Republicans to push through landmark legislation sponsored by then-Sen. Phil Gramm (Tex.), who is now an economic adviser to his campaign. The Gramm-Leach-Bliley Act aimed to make the country's financial institutions competitive by removing the Depression-era walls between banking, investment and insurance companies.

That bill allowed AIG to participate in the gold rush of a rapidly expanding global banking and investment market. But the legislation also helped pave the way for companies such as AIG and Lehman Brothers to become behemoths laden with bad loans and investments.

McCain now condemns the executives at those companies for pursuing the ambitions that the Gramm-Leach-Bliley Act made possible, saying that "in an endless quest for easy money, they dreamed up investment schemes that they themselves don't even understand."

He said the misconduct was aided by "casual oversight by regulatory agencies in Washington," where he said oversight is "scattered, unfocused and ineffective."

"They haven't been doing their job right," McCain said yesterday, "or else we wouldn't have these massive problems on Wall Street, and that's a fact. At their worst, they've been caught up in Washington turf wars instead of working together to protect investors and the public interest."

Yesterday, Obama seized on what he called McCain's "newfound support for regulation" and accused his rival of backing "a broken system in Washington that is breaking the American economy."

In a speech in Golden, Colo., Obama blamed the economic crisis on an "economic philosophy" that he said McCain and President Bush supported blindly.

"John McCain has spent decades in Washington supporting financial institutions instead of their customers," he told a crowd of about 2,100 at the Colorado School of Mines. "So let's be clear: What we've seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed."

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