by Christi Parsons
The federal bailout of the financial system can't end up being a "welfare program for Wall Street executives," Democrat Barack Obama told reporters today.
And if taxpayers are going to fork over the $700 billion the administration wants, he said, they should be able to expect accountability and pay-back in the end - not to mention a little help for homeowners facing foreclosure.
The Democratic presidential nominee criticized President Bush for what he called "stubborn inflexibility" on the matter, and said that, as president, he wouldn't try to dictate every term of the relief plan.
But "if the plan that emerges does not address the principles I discussed," he said, "I will strongly recommend to (Treasury) Secretary (Henry) Paulson that we go back to the drawing board and find an approach that does address them."
Obama's remarks came as Paulson and Federal Reserve Chairman Ben Bernanke urged Congress to act quickly on a $700 billion plan to purchase troubled assets from financial firms. Failure to do so would threaten markets and the U.S. economy, the two told skeptical lawmakers earlier Tuesday.
Now Americans are being asked to finance the solution, Obama said, they're owed some "protections and assurances" from elected leaders.
The bailout plan can't reward irresponsible CEOS, he said. The $700 billion should be overseen by an independent board.
Taxpayers should "share in the upside" as recovery takes place, he said, perhaps by putting equity into the firms instead of simply buying their assets.
And the plan should help families who are struggling to stay in their homes, possibly by giving the government power to buy mortgages directly instead of mortgage-backed securities.
"The American people need to know that we feel as great a sense of urgency about the emergency on Main Street," Obama said, "as we do about the problems on Wall Street."
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Comments
It is good to see a steady hand slapping the hands from Wall Street that want hand outs. Obama can see himself as president.
http://www.boppoll.com is showing a surge for both candidates. Difficult to say what it means.
I was looking forward to getting another stimulus check. Oh well, I guess even Obama knows you can't just print money!
Posted by: Steady Hand! | September 23, 2008 3:30 PM
Ok, can anyone say from the above what Obama's position on the bailout plan is???
Will he vote for it, or against it?
Anyone?
And if he ever announces his "deeply held" position one way or the other, will that position last more than a week, or will it have a 1-week shelf life like his other "deeply held" positions?
Posted by: Bruce | September 23, 2008 3:33 PM
McCain expressed doubts about the bailout during a campaign stop in Media, Pennsylvania, on Monday, in an attempt to help distance himself from the unpopular president.
"We need to put our country first and focus what's best for Main Street. It's the excess and greed of Washington and Wall Street that got us in this situation to start with," the Arizona Republican said
That's rich, coming from a politician connected at the hip to Bush and Lobbyist.
Posted by: dt | September 23, 2008 3:41 PM
It will be a matter of minutes before we hear the Echo from Arizona, Senator McCain, borrow Senator Obama's position, for his own. Those Lobbyist do not take positions, they only take cash, it's harder to follow !! Or, is Senator McCain focusing on finding that, oh so clever line, for the upcoming debate. In any case, he better start bring his own positions to the table, or people are going to start to wonder if he's ready for our Presidency !! My guess, he needs some time among the real people, not the Lobbyists, especially, former Senator ' Whiner " Gramm. The only person that may have spent more time at the public trough than, Senator McCain !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, Chicago | September 23, 2008 4:32 PM
I wonder how BO's comments will paly with all of his Wall Street backers?
Posted by: Terry | September 23, 2008 7:48 PM
Terry,
About as well as McLiar's comments.
Posted by: C. Morris | September 23, 2008 9:01 PM
T,
Who cares, and why would McCain or Obama care what the totally discredited Wall Street cults think or do?
They are toast. They are irrelevant. The only thing left is to decide how to terminate them.
My opinion is, let them fail, allow the recession predicted by Paulson, take the $2 trillion (More accurate figure than a mere $700b) and refund any little Americans that lost 401k value or are threatened with foreclosure.
Economists say a recession is a good thing and in the end leaves the economy stronger.
Posted by: OldCreaky | September 23, 2008 9:09 PM
Paulson is not going to be a traitor to his class. His whole program, particularly the part about no review by any court or agency, was designed to permit him to reward his friends and protect his own $700 million he accumulated as one of the masters of the universe.
The greed never stops. Even as the Titanic starts to upend, Harry Widener considers running back to the stateroom to salvage some of his collection or rarities.
Make no mistake: the lobbying going on now is on behalf of the high rollers, to save their investments. Any benefit to Main St. is purely incidental and collateral.
Are Nancy & Harry going to let them get away with it?
O, I forgot: they have a recess scheduled. Don't expect them to work overtime just because the house of cards is collapsing.
Posted by: ornery | September 23, 2008 9:46 PM
Terry--Where there's a lie there's a way. The latest slap-down of McLiar:
McCain Aide’s Firm Was Paid by Freddie Mac:
http://www.nytimes.com/2008/09/24/us/politics/24davis.html?hp
Posted by: dt | September 24, 2008 12:28 AM
CM,
BO out fund raises McCain on Wall Street about 2 to 1
Posted by: Terry | September 24, 2008 6:49 AM
And Obama received campaign funds from execs at both Fannie and Freddie.
Let's face it, both nominees for President are typical corrupt politicans, and nothing more!
Socialism, here we come!
Posted by: Pat | September 24, 2008 11:14 PM
How sad, a once great country goes belly up!
Posted by: Pat_M | September 24, 2008 11:16 PM