McCain fails to realize that it has been old Republican ideas from President Herbert Hoover (you remember, the guy that couldn’t do anything to get us out of the Great Depression), that have created this economic crisis - the one that McCain characterized as “the fundaments are strong” Monday morning, until the Dow dropped 504.4 points, losing $700 Billion in value, (the worst drop since September 11, 2001), when McCain suddenly switched his take later that afternoon and called it an “economic crisis.” Wow, he finally figured it out? How many years did it take him?
Allen Greenspan stated that this is the worst economic climate he’s seen.
I guess reality suddenly slapped McCain upside the head and he realized that he couldn’t continue to lie to the public. When everyone else can see that even Wall Street is tanking, and the rich are starting to lose their shirts, then and only then, does McCain admit that the economy ISN’T “fundamentally strong”. Heck, even Bush got called out for calling our economy “fundamentally strong”, quite some time ago. Why is it that the media has been letting McCain get away with this lie for so long?
It was financial deregulation and banks investing in bad mortgages that Bush had pushed for in his “ownership society” idea, which caused people to buy property with no money down and shaky employment. It was Allen Greenspan who cut interest rates to allow people to get loans that they weren’t qualified to get. And it is John McCain, who calls himself “the biggest free marketer out there”, and claims that he is “fundamentally a deregulator”, who has continually worked to eliminate any regulations which could have prevented the current crisis from occurring in the first place. It was John McCain’s top economic advisor, Senator Phil Graham, who in 1999 got rid of the Great Depression era regulations that allowed this crisis to occur.
Now with unemployment rising, and a million homes being foreclosed this year, (with a million more projected to be foreclosed on next year), banks have to be bailed out by the government – by YOU the taxpayers – just like what happened during the previous Bush Administration, when all of the Savings and Loans went under at an initial cost of over $600 Billion to the taxpayers, which later ballooned to over $1.4 TRILLION. That was one quarter of the country’s deficit at the time. We are still paying for that debacle.
(Two of President George H.W. Bush’s sons, Jeb and Neil, were officers in Savings and Loans that went under due to their mismanagement, and failed to repay millions of dollars in loans that they took, abusing their positions in the process, and relied on the U.S. Government, i.e. TAXPAYERS, to pay investors for their losses at pennies on the dollar, in a bailout signed by – dear old dad. (Jeb defaulted on a $4.56 Million from the Broward Savings and Loan which he was an officer of. Neil became a Director of Silverado Savings and Loan at the age of 30, and the S&L went belly up three years later at a cost to taxpayers of $1.6 Billion.) http://www.rationalrevolution.net/war/bush_family_and_the_s.htm
The Savings and Loans went under because of new financial deregulations that went into place under the Reagan Administration in the early 1980’s that were supposed to increase their profitability while promoting home ownership. Sound familiar?)
More on the Bush S&L Debacle here:
http://www.informationclearinghouse.info/article3330.htm
http://topics.nytimes.com/top/reference/timestopics/subjects/s/savings_and_loan_associations/index.html?query=BUSH,%20GEORGE&field=per&match=exact
Not only do you have to bail out the banks for their mismanagement, but your own property values are dropping because of the excessive number of homes on the market.
But it wasn’t only the Bushs that were involved in the S&L Debacle. John McCain had his own connections with the Keating Five. Charles Keating’s Lincoln Savings and Loan failed at an eventual cost to taxpayers of $3.4 Billion, because of bad real estate deals, some of which John McCain’s wife and father-in-law were involved with. McCain and four other Senators pressured regulators to back off on their investigation of Lincoln Savings and Loan and its impending crash. McCain backed away from supporting Keating when it became public that criminal action was going to be taken against his friend, but even today the ties are there. Keating’s legal firm was the sixth largest bundler for McCain up until recently, for his current campaign. (Reported by OpenSecrets.org) http://www.opensecrets.org/news/2008/09/the-keating-50000.html
More on the Keating Five Scandal: http://www.michiganmessenger.com/3998/remember-the-keating-5-john-mccain-does
Kenneth Lewis, CEO and President of Bank of America said that the reason behind today’s financial crisis was “excessive leverage and greed”.
Perhaps the failure of Silver State Bank in Nevada was caused by that as well.
“It was the 11th failure this year of a federally insured bank.
Nevada regulators closed Silver State and the Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.
Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, since February but resigned in July after five months citing “personal reasons,” corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank’s audit committee, responsible for oversight of the company’s accounting.
The younger McCain, who is the chief financial officer of Hensley & Co., the beer distributorship of which Cindy McCain is chairwoman, is the Arizona senator’s adopted son from his first marriage.
Andrew McCain’s position on the Silver State board and departure were first reported Friday (September 5), by The Wall Street Journal online.
Silver State Bank ran into difficulty because of a substantial amount of “poor-quality loans primarily related to real estate development” in southern Nevada and other distressed markets, FDIC spokesman David Barr said.”
Click here for the whole story: http://news.aol.com/story/_a/silver-state-bank-in-nevada-is-shut/n20080905235709990024
Sound familiar?
Now that Lehman Brothers and Merrill Lynch have tanked (with AIG close behind) the insurers have to bail them out.
Henry Paulsen, Bush’s Treasury Secretary, claims that he won’t bail out Lehman Brothers, but he doesn’t rule out using taxpayer money to bail out these mismanaged financial institutions which have been raking in huge record compensation for their top executives even while these companies have been failing. (September 16, the U.S. Government is looking at bailing out AIG with $85-$90 Billion.)
Where was Bush when he could have stepped in as the mortgage crisis started? The Democrats have repeatedly attempted to put safeguards in place to avoid this type of financial crises, but the Republicans didn’t want regulations and repeatedly blocked them.
Where was Bush when he could have stepped in to put together a real energy plan to reduce the impact of energy prices on businesses and consumers?
Where was Bush when he could have stepped in to stop the speculation that drove oil prices up to $147 a barrel and more than $4.00 a gallon gas?
Where was Bush when he could have stopped the oil companies from exporting Alaskan oil to Asia, and kept it here at home to keep our gas prices low? (Instead of telling us that we had to drill for new oil that we haven’t found yet.)
And why is it that with oil prices down to $95 a barrel yesterday (September 15), we are still looking at $4.25 a gallon gas, and illegal price gouging in Florida and Texas at $5.50 a gallon when people were evacuating ahead of Hurricane Ike? (Oil prices dropped to below $92 a barrel on September 16). Wasn’t dropping the price of oil supposed to drop the price of gasoline?
Where was Bush when he could have stepped in to stop the financial institutions excessive leverage and greed? Where were our government regulators, and why didn’t they stop this before it became a crisis? (Maybe they had to recognize that it was a problem before they could take action? You can’t prevent a crisis, if you can’t see it coming.)
And where was Senator McCain as all these problems were building, with his 26 years of “experience”? McCain brags that he supported Bush 90% of the time. And until yesterday, he has repeatedly claimed that our economy was “fundamentally strong.”
McCain also bragged that he doesn’t know much about the economy. (His brother says that the men in his family never even had to deal with their own family finances – they always had their wives handle that. Is that why he picked a female running mate?)
So, Senator McCain, are we still in a “mental recession”?
And let’s look at the real record of taxes and the proposals of McCain versus Obama.
Even as McCain’s commercials fraudulently claim that Obama would raise taxes on the middle class, an independent analysis by the non-partisan Tax Policy Center proves that Senator Obama would give substantially higher tax CUTS to the middle class, while McCain would give substantially higher tax cuts to the people making $250,000 or more, with much lower tax cuts for the less well off. 25% of McCain’s tax cuts go to the top one-tenth of 1% of the income earners.
Under McCain’s plan, if you earn between $38,000-$66,000, you would only get an average of $319 in tax breaks. Under Obama’s plan, you would get an average of $1,042.
Under McCain’s plan, if you earn between $19,000-$38,000, you would only get an average of $113 in tax breaks. Under Obama’s plan, you would get an average of $892.
Under McCain’s plan, if you earn under $19,000, you would only get an average of $19 in tax breaks. Under Obama’s plan you would get an average of $567 in tax breaks.
But under McCain’s plan, those earning between $227,000-$603,000, would get an average tax break of $7,871. Under Obama’s plan they would have an average increase of $12. Yes, that’s right, only $12.
And for those earning over $2.9 MILLION, McCain plan gives them an average tax break of $269,364, while Obama would raise their taxes by $701,885, (reversing the Bush tax cuts for the wealthy).
http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/index.htm?cnn=yes
http://www.taxpolicycenter.org/UploadedPDF/411750_updated_candidates_summary.pdf
Didn’t McCain say that he was cutting taxes for the “middle class”? What is his definition of the “middle class”, and why won’t he tell us?
Remember, McCain says that the cut-off dividing the middle class from the rich is a $5 million a year income. http://thinkprogress.org/2008/08/17/mccain-defines-rich/
During the Saddleback Presidential Forum Pastor Rick Warren had asked both candidates what their definition of middle class was.
Senator Obama answered, “if you are making $150,000 or less, as a family, then you are middle class.”
McCain, however, dismissed Warren’s question, asking in jest, “How about $5 million?”
WARREN: Everybody talks about, you know, taxing the rich, but not the poor, the middle class. At what point, give me a number, give me a specific number. Where do you move from middle class to rich? […]
MCCAIN: How about $5 million? No, but seriously, I don’t think you can, I don’t think seriously that the point is I’m trying to make, seriously, and I’m sure that comment will be distorted but the point is…that we want to keep people’s taxes low, and increase revenues. … So, it doesn’t matter really what my definition of rich is because I don’t want to raise anybody’s taxes. I really don’t.
In other words, McCain WON’T ANSWER THE QUESTION. Note that McCain’s stance on tax cuts for the wealthy now, are in opposition to what his stance was when he was campaigning against then Governor Bush in 2000.
So, according to a glib McCain, if you earn under $5 million a year, you are middle class. That, by the way, is the only way he can say that the majority of his tax cuts go to the “middle class”. Note also that Candy Crowley characterized his comment during Anderson Cooper 360 on September 15, 2008, claiming that McCain went on to clarify that the middle class was “this or that”. In fact, contrary to her characterization, McCain wouldn’t give any specific figure.
This is the same situation that we ran into when McCain was asked how long he would stay in Iraq, when he said that staying in Iraq for 100 years would “be fine with me.”
Watch the video: http://www.youtube.com/watch?v=VFknKVjuyNk
See McCain defend his statements: http://www.cnn.com/2008/POLITICS/02/14/mccain.king/index.html?eref=rss_topstories
Then watch McCain flip flop again: http://thinkprogress.org/2008/01/04/mccain-100-years/
Asked about the remark later by Mother Jones’ David Corn, McCain reaffirmed it, “excitedly declaring that U.S. troops could be in Iraq for ‘a thousand years’ or ‘a million years,’ as far as he was concerned.”
McCain’s latest comments complete a full flip-flop-flip. He previously said that the Korea model was “exactly” the right idea for Iraq. But in late November, he abandoned it on PBS’ Charlie Rose Show:
ROSE: Do you think that this — Korea, South Korea is an analogy of where Iraq might be, not in terms of their economic success but in terms of an American presence over the next, say, 20, 25 years, that we will have a significant amount of troops there?
MCCAIN: I don’t think so.
ROSE: Even if there are no casualties?
MCCAIN: No. But I can see an American presence for a while. But eventually I think because of the nature of the society in Iraq and the religious aspects of it that America eventually withdraws.
Whatever happened to staying there until the job is done, until the war is won – even though General Petraeus doesn’t believe that we can “win” this war?
Whenever McCain can’t answer a question with a well thought out policy position, he makes a joke out of it. When caught in a lie, he repeatedly changes his position regardless of what his previous publicly stated position has been. Is that what we want from a President of the United States?
Isn’t that what we’ve had for the last eight years?