Obama blames Wall St. crisis on Republican policy

[cal04]

http://news.yahoo.com/s/ap/20080915/ap_on_el_pr/obama

Democratic presidential nominee Barack Obama said Monday the upheaval on Wall Street was "the most serious financial crisis since the Great Depression" and blamed it on policies that he said Republican rival John McCain supports.

Obama's statement, issued as he prepared to fly to Colorado to begin a swing through contested Western states, was intended to serve two purposes: to link McCain with the unpopular presidency of George W. Bush and to express sympathy with the anxiety of most Americans who say the economy is issue No. 1 in the election.

"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," Obama said in a statement. "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 Sen. McCain for these problems," Obama said, "but I do fault the economic philosophy he subscribes to."

[marmar]

1. Smart mode of attack .... and true.

[polichick]

2. "It's about the economy stupid!"

[DFW]

3. Perfectly worded

Not McCain's fault, but McCain thinks Bush was right, so he would have done no
differently, and WILL not do differently if elected. Point made, false accusation
deftly avoided.

That's the way, uh-huh uh-huh, I LIKE IT...........

[noel711]

4. Absolutely.. my problem here is....

this will pass like smoke in the morning
in the face of all the other 'flashier' stories...

Hurricane Ike aftermath,

the carnage on Wall Street (even if this is a direct hit
at the economic policies of the repugs....)

and whatever is the daily dose of 'what's her name?'

We need to kick this hard, and get it out there...

[elizfeelinggreat]

5. k&r

This is what we wanted him to do and he deserves recognition for it.

[Jim__]

6. And McCain admits he doesn't understand the economy.

Not much chance he knows how to fix it.

[bronxiteforever]

7. Great K & R-the economy is the GOP weak spot-the party of the rich and hides its true face

The real GOP just wants control of the federal tax code and the culture war is just the ruse to hide its true intentions.

[dynasaw]

8. On Republican Shoulders

Obama needs to place the whole economic mess squarely on McC and the Republicans where it belongs. Not just the crash of major financial institutions, but the whole foreclosure scandals, massive layoffs and unemployment as well as the weakened dollar.

From now until November, Dems really need to get this center stage and get the public off with the fascination about pigs/moose bunnies with lipstick.

[Breeze54]

9. K & R

Now he needs to break that down into simpler terms for all the voters to absorb and comprehend.

[pleah]

10. K&R 'bout time.

:thumbsup:

[SammyWinstonJack]

11. K&R!

[central scrutinizer]

12. Gramm-Leach-Bliley Financial Services Modernization Act.

Yes, that Gramm - McW's economic guru who scolded Americans to stop whining. Should be easy to tie McW to this.

Copied from another thread posted yesterday by DUer MrJJ:

McCain & the GOP Screwed America

Gramm-Leach-Bliley Financial Services Modernization Act.

53 Republican Senators plus one Democrat - AYE

44 Democrats no Republicans - NAY

The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.

The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. For example, Citibank merged with Travelers Group, an insurance company, and in 1998 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services. Other major mergers in the financial sector had already taken place such as the Smith-Barney, Shearson, Primerica and Travelers Insurance Corporation combination in the mid-1990s. This combination, announced in 1993 and finalized in 1994, would have violated the Glass-Steagall Act and the Bank Holding Acts by combining insurance and securities companies, if not for a temporary waiver process <1>. The law was passed to legalize these mergers on a permanent basis. Historically, the combined industry has been known as the financial services industry.

...

Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.<6> Economists Robert Ekelund and Mark Thornton have made similar criticisms, arguing that while "in a world regulated by a gold standard, 100% reserve banking, and no FDIC deposit insurance" the Financial Services Modernization Act would have made "perfect sense" as a legitimate act of deregulation, under the present fiat monetary system it "amounts to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dearly".

100's Of Banks WILL FAIL. The FDIC DOES NOT have enough liquid funds to cover the insured depositors. Of course the FDIC will go to the FED and get the needed money. Those funds Will NOT show up on the books as a deficit. The taxpayer gets screwed again.

"John McCain voted FOR the bank laws that led to the current credit crisis. John Mccain's economic advisor WROTE the law. 53 Republicans voted YES to the law. When you're in danger of losing your house, can you take a chance on more of the same from those who wrecked out economy?"

U.S. Senate Roll Call Votes 106th Congress - 1st Session
as compiled through Senate LIS by the Senate Bill Clerk under the direction of the Secretary of the Senate

http://www.senate.gov/legislative/LIS/roll_call_lists/r...

[The Backlash Cometh]

13. If we could only drive that point across...