rssObama Demands Bailout in Major Address
Tuesday, September 30, 2008 at 2:33 pm
- 10 Comments
RENO, Nev — Sen. Barack Obama doubled down in gambling country Tuesday, telling a morning rally at a university here that Congress must pass a bailout plan to tackle the financial problems that are “no longer just a Wall Street crisis, [but] an American crisis.”
“It’s the American economy that needs this rescue plan,” Obama told 12,000 millennials in a serious, impassioned tone.
For the first time, the Democratic presidential nominee explicitly hitched his ongoing argument about social change to the financial crisis, arguing that the nation must transcend its differences and unite behind the bailout.
It was his most dramatic economic address since the financial crisis began. In contrast to the parsing that passed for policy leadership at last week’s first presidential debate, Obama emphatically advocated an urgent bailout, regardless of public opinion or partisan squabbling.
“To the Democrats and Republicans who opposed this plan yesterday, I say – step up to the plate and do what’s right for this country,” he told the crowd packed into the quad at the University of Nevada at Reno.
Then Obama offered a new narrative, one that many Americans may resist: He cast the bailout as another historic American achievement — a challenging but invigorating opportunity to come together for the common good.
“This country and the dream it represents are being tested in a way that we haven’t seen in nearly a century. And future generations will judge ours by how we respond to this test,” he said. “Will they say that this was a time when America lost its way and its purpose? When we allowed our own petty differences and broken politics to plunge this country into a dark and painful recession? Or will they say that this was another one of those moments when America overcame? When we battled back from adversity by recognizing that common stake that we have in each other’s success?”
By now, such rhetoric is familiar to the public: Obama’s knack for fusing the language of (progressive) movement organizing with (conservative) American exceptionalism. Today, he took a risk by wrapping it around a deeply unpopular and complex measure that is widely seen as a sop for reckless elites. It was MLK meets CNBC.
“I believe that this is one of those moments. I know that many of you are anxious about your future and the future of this country,” Obama continued. “Despite all of this, I ask you to believe – believe in this country and your ability to change it. I ask you what has been asked of the American people in times of trial and turmoil throughout our history – what was asked at the beginning of the greatest financial crisis this nation has ever endured. In his first fireside chat, Franklin Roosevelt told his fellow Americans that “..there is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people themselves. Confidence and courage are the essentials of success in carrying out our plan. Let us unite in banishing fear. Together, we cannot fail.”
Obama channeled FDR’s era — the fear of depression and the promise of a populist agenda — to recast the bailout as a working-class imperative:
“America, together, we cannot fail. Not now. Not when we have a crisis to solve and an economy to save. Not when there are so many Americans without jobs and without homes. Not when there are families who can’t afford to see a doctor, or send their child to college, or pay their bills at the end of the month. Not when there is a generation that is counting on us to give them the same opportunities and the same chances that we had for ourselves,” he said, his voice hitting the characteristic intensity that rounds out Big Speeches.
“Now is the time to make them proud of what we did here. Let’s give our children the future they deserve, and let’s act with confidence and courage to show the world that at this moment, in this election, the United States of America is still the last, best hope of Earth.”
It was the kind of grand, sprawling argument that Obama makes better than most politicians alive — whether you agree with him or not. Right now, most Americans don’t.
10 Comments
Comment posted September 30, 2008 @ 12:26 pm
Bravo, Bravo This is what I call a leader , we need an Obama-Biden ticket to lead us to the 21st century , because I think America deserves better . We need a leader who is smart , competent and ready to take this country back for the sake of our children.
Comment posted September 30, 2008 @ 12:26 pm
“The fundamentals of our economy are strong”
John McCain – Sept 15, 2008
“The economy is fundamentally sound”
Herbert Hoover – October, 1931
Comment posted September 30, 2008 @ 12:39 pm
“It was the kind of grand, sprawling argument that Obama makes better than most politicians alive — whether you agree with him or not. Right now, most Americans don’t.”
I do question the last statement as the opinion of the writer since the polls say a different thing. If it is the undecided 10% he is talking about I would like to see where he bases that opinion from. CBS neglected to post the unfavorable rating change for McCain after the debate. Please go to CBS and download the poll results.
Comment posted September 30, 2008 @ 1:31 pm
MyVoice,
I think he means most Americans disagree with Obama's stance on the bailout.
Comment posted September 30, 2008 @ 3:48 pm
The Common Sense Fix
Years of bad decisions and stupid mistakes have created an economic nightmare in this country,
but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support
any congressperson who votes to implement such a policy. Instead, I submit the following threestep
Common Sense Plan.
I. INSURANCE
a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance.
Government-insured and backed loans would have an instant market all over the
world, creating immediate and needed liquidity.
b. In order for a company to accept the government-backed insurance, they must do two
things:
1. Rewrite any mortgage that is more than three months delinquent to a
6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the
balance. This brings homeowners current and allows them a
chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or
the sale of the property to pay off the bad loan. In the event of
foreclosure or short sale, the borrower will not be held liable
for any deficit balance. FHA does this now, and that
encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and
ruined lives.
2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and
executive team members as long as the company holds these
government-insured bonds/mortgages. This keeps underperforming
executives from being paid when they don’t do their jobs.
c. This backstop will cost less than $50 billion—a small fraction of the current proposal.
II. MARK TO MARKET
a. Remove mark to market accounting rules for two years on only subprime Tier III
bonds/mortgages. This keeps companies from being forced to artificially mark down
bonds/mortgages below the value of the underlying mortgages and real estate.
b. This move creates patience in the market and has an immediate stabilizing effect on
failing and ailing banks—and it costs the taxpayer nothing.
III. CAPITAL GAINS TAX
a. Remove the capital gains tax completely. Investors will flood the real estate and stock
market in search of tax-free profits, creating tremendous—and immediate—liquidity in
the markets. Again, this costs the taxpayer nothing.
b. This move will be seen as a lightning rod politically because many will say it is helping
the rich. The truth is the rich will benefit, but it will be their money that stimulates the
economy. This will enable all Americans to have more stable jobs and retirement
investments that go up instead of down.
This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
stand up, speak out, and fix this mess.
Comment posted September 30, 2008 @ 7:26 pm
Bravo, Bravo This is what I call a leader , we need an Obama-Biden ticket to lead us to the 21st century , because I think America deserves better . We need a leader who is smart , competent and ready to take this country back for the sake of our children.
Comment posted September 30, 2008 @ 7:26 pm
“The fundamentals of our economy are strong”
John McCain – Sept 15, 2008
“The economy is fundamentally sound”
Herbert Hoover – October, 1931
Comment posted September 30, 2008 @ 7:39 pm
“It was the kind of grand, sprawling argument that Obama makes better than most politicians alive — whether you agree with him or not. Right now, most Americans don’t.”
I do question the last statement as the opinion of the writer since the polls say a different thing. If it is the undecided 10% he is talking about I would like to see where he bases that opinion from. CBS neglected to post the unfavorable rating change for McCain after the debate. Please go to CBS and download the poll results.
Comment posted September 30, 2008 @ 8:31 pm
MyVoice,
I think he means most Americans disagree with Obama's stance on the bailout.
Comment posted September 30, 2008 @ 10:48 pm
The Common Sense Fix
Years of bad decisions and stupid mistakes have created an economic nightmare in this country,
but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support
any congressperson who votes to implement such a policy. Instead, I submit the following threestep
Common Sense Plan.
I. INSURANCE
a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance.
Government-insured and backed loans would have an instant market all over the
world, creating immediate and needed liquidity.
b. In order for a company to accept the government-backed insurance, they must do two
things:
1. Rewrite any mortgage that is more than three months delinquent to a
6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the
balance. This brings homeowners current and allows them a
chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or
the sale of the property to pay off the bad loan. In the event of
foreclosure or short sale, the borrower will not be held liable
for any deficit balance. FHA does this now, and that
encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and
ruined lives.
2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and
executive team members as long as the company holds these
government-insured bonds/mortgages. This keeps underperforming
executives from being paid when they don’t do their jobs.
c. This backstop will cost less than $50 billion—a small fraction of the current proposal.
II. MARK TO MARKET
a. Remove mark to market accounting rules for two years on only subprime Tier III
bonds/mortgages. This keeps companies from being forced to artificially mark down
bonds/mortgages below the value of the underlying mortgages and real estate.
b. This move creates patience in the market and has an immediate stabilizing effect on
failing and ailing banks—and it costs the taxpayer nothing.
III. CAPITAL GAINS TAX
a. Remove the capital gains tax completely. Investors will flood the real estate and stock
market in search of tax-free profits, creating tremendous—and immediate—liquidity in
the markets. Again, this costs the taxpayer nothing.
b. This move will be seen as a lightning rod politically because many will say it is helping
the rich. The truth is the rich will benefit, but it will be their money that stimulates the
economy. This will enable all Americans to have more stable jobs and retirement
investments that go up instead of down.
This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
stand up, speak out, and fix this mess.
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