The Financial Times reports, "A breakthrough agreement to create a giant US government-sponsored vehicle to take on toxic assets in the financial system looked possible on Thursday night as" Secretary Paulson, Federal Reserve chairman Ben Bernanke "and top lawmakers convened a dramatic meeting to discuss the financial crisis." The Treasury Department "said the meeting discussed a 'comprehensive approach to address the illiquid assets on bank balance sheets that are at the underlying source of the current stresses in our financial institutions and financial markets.'"
The New York Times reports the group of officials meeting with Hill leaders "included Christopher Cox, the chairman of the Securities and Exchange Commission." Congressional participants included Speaker Nancy Pelosi, Senate Majority Leader Harry Reid, Minority Leader Mitch McConnell, Sens Christopher J. Dodd and Richard C. Shelby of Alabama, House Minority Leader John A. Boehner of Ohio and Rep. Barney Frank.
The Washington Post reports, "Congressional leaders gave bipartisan support to the administration's efforts after" the meeting last night. According to "a participant in the meeting who spoke on condition of anonymity," Paulson and Bernanke "presented a 'chilling' picture of the state of the financial system," and "lawmakers were told that the consequences would be grave if they failed to pass legislation by the end of next week."
AFP reports, "In a brief news conference on Capitol Hill, Paulson, flanked by participants," said, "I think we saw the best of the United States of America in the speaker's office tonight. This country is able to come together and do things quickly when it needs to be done for the good of the American people." The AP reports Pelosi "said any potential action must protect taxpayers who are already on the hook for potentially billions of dollars in bailouts to financial firms taken down by the financial crisis."
The Wall Street Journal notes President George Bush met with Paulson, Cox and Bernanke "for 45 minutes Thursday to discuss 'the serious conditions in our financial markets,'" according to White House spokesman Tony Fratto. The "sweeping series of programs" under consideration "would represent perhaps the biggest intervention in financial markets since the 1930s."
The Christian Science Monitor reports, "Washington's response to the credit crisis so far has seemed to rely on daily improvisation. Perhaps it now needs something more organized: a new US government resale agency that would absorb and then dispose of the assets of damaged firms."
The Politico says "the discussions this week have sometimes been confused by comparisons to the Resolution Trust Corp. created to address the savings and loan crisis in the late 80s and early 90s." Sen. Charles Schumer "took the Senate floor Thursday to propose an alternative modeled on a Depression-era entity designed not to buy up bad assets but to invest in companies to give them needed capital to work their way out of debt." USA Today, Los Angeles Times and Washington Times also report on the talks.
Dems May Want Stimulus In Return Meanwhile, the New York Times reports, "Democrats, having their own desire for a second round of economic aid for struggling Americans, see the administration's request as a way to win White House approval of new spending to help stimulate the economy in exchange for support for the Treasury request." Democrats also "say they will push for relief for homeowners faced with foreclosure in return for supporting any broad bailout of struggling financial institutions."
On ABC World News, George Stephanopoulos said, "The Speaker of the House and other Democrats are also going to push that as part of the price for agreeing to a program like this, there is a second stimulus package that will include funding for unemployment, food stamps, home heating assistance, direct aid to taxpayers and consumers."
The Dow Jones Industrial Average rebounded on Thursday on word that Treasury Secretary Henry Paulson was working to create an entity like the Resolution Trust Corporation to unwind the subprime mortgage crisis. ABC World News reported, "The market had its biggest one day rally since October 2002." Bloomberg News notes the S&P "advanced 50.12 points to 1,206.51, recovering most of yesterday's 4.7 percent tumble. The Dow surged 410.03, or 3.9 percent, to 11,019.69," and "the Nasdaq Composite Index jumped 100.25, or 4.8 percent, to 2,199.1."
Most media reports, however, caution that yesterday's Wall Street rally does not mean the crisis affecting the financial system is closer to being over. The New York Times says investors were "heartened by signs that the government is taking more drastic steps to tamp down problems plaguing the financial markets," but the market gains were "by no means a sign that the crisis on Wall Street had turned a corner."
The Washington Post titles its front-page story "Despite Late Surge, Markets Still Show Signs of Instability," and the Wall Street Journal says that "despite Thursday's late burst of buying activity, few participants are willing to call an end to the volatility and the generally bearish tone that has been the hallmark of trading this week." The Los Angeles Times and Financial Times run similar stories.
Media commentators and senior Democrats were sharply critical of remarks by President Bush on the financial crisis. The New York Times titles its story "Bush Emerges After Days Of Financial Crisis," and reports that "all week long, with Wall Street engulfed by what analysts are calling the worst financial crisis since the Great Depression...Bush had mostly stayed out of sight, except when trying to maintain the façade of business as usual." The Times adds that "by all outward appearances, Mr. Bush has been reduced this week to almost a bit player in his own government."
The Wall Street Journal reports Bush's brief speech "appeared to have little immediate impact save for drawing new attacks from Democrats." His appearance, adds the Journal, "reflected a growing sense within the administration of the need for him to speak directly to the public about the crisis, despite the traditional caution presidents have felt about commenting on US markets, especially during Wall Street trading hours."
The Politico's Roger Simon, in a piece headlined "Is President Bush AWOL?," reports, "You remember him. Dubya. No. 43. Won a second term a few years ago. It was in all the papers. But where has he been lately? Where has he been during America's worst financial crisis since the Great Depression? Nowhere. AWOL."
The Washington Post reports Democrats "quickly criticized the brevity of Bush's remarks and placed blame for the crisis at his feet." House Speaker Nancy Pelosi "said the financial meltdown was due to the administration's 'failed policies' on the economy and markets."
The AP says "Washington's intervention has been unprecedented -- federal takeovers of private companies, government bailouts, taxpayer money plowed into markets overseas. Not exactly a week of limited government. Just limited public involvement by Bush."
Republicans have also faulted the White House for poor communication. Administration officials "refused to attend a closed-door briefing with House Republicans Thursday morning, said Rep. John A. Boehner of Ohio, the House GOP leader. 'Members of Congress have a responsibility to their constituents and to the American taxpayers to have a better understanding of what's happening,' Boehner said."
The Hill notes that responding to Boehner's criticism, "the White House did not respond to a request for clarification of the canceled meeting, but it conceded Thursday morning that more communication was needed between the administration and Congress."
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Media reports cast a skeptical eye on Sen. John McCain's criticism of Wall Street regulators, and particularly SEC Chairman Christopher Cox. The move is being described as an attempt by McCain to distance himself from the Bush Administration. NBC Nightly News showed McCain saying, "The chairman of the SEC serves at the appointment of the President and in my view has betrayed the public trust. If I were president today, I would fire him." Added NBC, "That's tricky. While a president can remove the SEC chair for cause, legal authorities say the president cannot simply fire a member of the commission over policy disagreements." The Los Angeles Times notes "Cox was appointed SEC chairman by President Bush in 2005. Before that, Cox was a Republican congressman from Newport Beach for 17 years."
The CBS Evening News was one of the few media outlets to cast McCain's move in a positive light, "After stumbling earlier in the week, when he claimed the economy's 'fundamentals' are strong, McCain is now roaring back with a harsh attack on Washington and Wall Street." McCain: "Mismanagement and greed became the operating standard while regulators were asleep at the switch." McCain, added CBS, also "ripped into Barack Obama for being too close to mortgage giants Fannie Mae and Freddie Mac, who he said are at the center of the economic crisis." McCain: "Fannie's former general counsel is a senior adviser to his campaign. Whose side do you think he's on?" NBC Nightly News reported, "Late today, McCain's campaign put out a new TV ad that tries to further link Obama to the Fannie and Freddie mortgage mess, saying he has relied on economic advisers who were part of that collapse."
Obama Critical Of McCain The AP reports that in New Mexico, Obama "heaped criticism and sarcasm on" McCain "and mocked his promise to fire the head of the Securities and Exchange Commission if elected. 'I think that's all fine and good but here's what I think,' Obama said. 'In the next 47 days you can fire the whole trickle-down, on-your-own, look-the-other way crowd in Washington who has led us down this disastrous path.'" NBC Nightly News showed Obama saying, "Even George Bush's White House couldn't agree with it when they were asked about it. They had to distance themselves from John McCain." The CBS Evening News reported, "The financial storms this week did something the Obama campaign had been unable to do for the past two weeks -- shift the spotlight away from questions of culture and values back to the economy, where Democrats generally fare better."
Fox News' "Special Report" reports on Obama's efforts to "capitalize" on the current economic crisis. In his blog for The Politico, Ben Smith writes "McCain campaign chief Steve Schmidt, in an interview with pool reporters, calls Democratic chatter that the Wall Street crisis benefits Democrats a 'disgrace,' and accuses Obama's campaign of 'cheerleading this crisis.'"
In an interview with the CBS Evening News, Sen. Joe Biden defended his earlier claim that a willingness to pay higher taxes by those in upper income brackets is "patriotic," saying, "The truth of the matter is that we are in trouble, and the people who do not need a new tax cut should be willing as patriotic Americans to understand the way to get this economy back up on their feet is to give middle class taxpayers a break. We take the tax cut they're getting and we give it to the middle class." NBC Nightly News showed Gov. Sarah Palin saying, "Joe Biden said it again today -- raising taxes is about patriotism. To the rest of America, that's not patriotism, raising taxes is about killing jobs and hurting small businesses."
The Gallup daily presidential tracking poll of 2,815 registered voters taken September 15-17 shows Barack Obama leading John McCain 48%-44%. The Rasmussen Reports automated daily presidential tracking poll for September 18 shows McCain and Obama tied at 48% apiece.
A new Pew Research survey of 2,509 registered voters taken September 9-14 shows 46% would vote for Obama-Biden; 44% would vote for McCain-Palin; 10% were undecided. Among a sub-sample of 2,307 likely voters, 46% would vote for Obama-Biden; 46% would vote for McCain-Palin.
The Battleground Poll's tracking survey (800 likely voters, 200 per night on September 10, 11, 14, and 17), shows 47% would vote for McCain-Palin; 45% would vote for Obama-Biden.
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Obama Narrowly Edges McCain In Ohio A Big Ten Battleground poll of 619 registered Ohio voters taken September 14-17 shows Obama leading McCain 45.6%-45.1%.
Race Tied In Pennsylvania A Big Ten Battleground poll of 608 registered Pennsylvania voters taken September 14-17 shows the race tied at 45%.
McCain Up In One Florida Poll, Tied In Another A SurveyUSA automated poll of 707 Florida likely voters taken September 16-18 shows McCain leading Obama 51%-45%. An American Research Group poll of 600 likely Florida voters taken September 14-17 shows the race tied at 46%.
Obama Up 10 In Colorado Poll An Insider Advantage/Poll Position survey of 502 likely Colorado voters taken September 17 shows Obama leading McCain 51%-41%.
McCain Leads In Pair Of Virginia Polls An Allstate/National Journal/FD poll of 409 registered Virginia voters taken September 11-15 shows McCain leading Obama 49%-41%. An Insider Advantage/Poll Position survey of 502 likely Virginia voters taken September 17 shows McCain leading Obama 48%-46%.
Obama Up 4 In Michigan A Big Ten Battleground poll of 628 registered Michigan voters taken September 14-17 shows Obama leading McCain 48%-44%.
Obama Up 3 In Wisconsin A Big Ten Battleground poll of 616 registered Wisconsin voters taken September 14-17 shows Obama leading McCain 45%-42%.
Obama Up 2 In Minnesota A Big Ten Battleground poll of 610 registered Minnesota voters taken September 14-17 shows Obama leading McCain 47%-45%.
Race Tied In Iowa A Big Ten Battleground poll of 643 registered Iowa voters taken September 14-17 shows the candidates tied at 44.8% apiece.
McCain Up 3 In New Hampshire An American Research Group poll of 600 likely New Hampshire voters taken September 13-15 shows McCain leading Obama 48%-45%.
McCain Up 4 In Indiana A Big Ten Battleground poll of 612 registered Indiana voters taken September 14-17 shows McCain leading Obama 47%-43%.
Obama Up 5 In Washington A Strategic Vision (R) poll of 800 likely Washington State voters taken September 14-16 shows Obama leading McCain 47%-42%.
Obama Up In 2 New Jersey Polls, But Lead Varies Widely A Rasmussen Reports automated poll of 500 likely New Jersey voters taken September 16 showed Obama leading McCain 55%-42%. A Strategic Vision (R) survey of 800 likely New Jersey voters taken September 14-16 shows Obama leading McCain 47%-43%.
McCain Up In 2 Georgia Polls A Rasmussen Reports automated poll of 500 likely Georgia voters taken September 16 shows McCain leading Obama 54%-43%. An Insider Advantage /Poll Position survey of 500 likely Georgia voters taken September 17 shows McCain leading Obama 51%-43%.
The Washington Post reports in a front page story after "months of fundraising doldrums, recruitment misfires and daunting polls," Republicans "believe they are finally on the rebound in the battle for Congress." While both sides "concede that the GOP stands almost no chance of taking back the House or Senate," GOP leaders "think the Palin factor and an increasingly competitive fight for the White House have generated enthusiasm and momentum that could limit GOP losses to only a few Senate seats and perhaps fewer than a dozen House seats."
In the same vein, The Politico reports new poll data "suggests that the Republican Party is beginning to regain some of its luster and, perhaps as important, is experiencing a surge in excitement among its political base." The new Pew Research Center poll "reports that independent voters have an equally favorable opinion of both parties, 50 to 49 percent, a one-point edge for the GOP," and a Gallup poll "recently found that the Democratic generic lead among voters, when asked which party they prefer to control Congress, has withered to only 3 points, 48 to 45 percent."
The Knoxville News Sentinel reports that the college-age son of state Rep. Mike Kernell (D) of Tennessee is reportedly under investigation for hacking into Gov. Sarah Palin's Yahoo! email account. The AP reports details of the break-in now suggest the account "was vulnerable because a hacker was able to impersonate her online to obtain her password." The hacker "guessed that Alaska's governor had met her husband in high school, and knew Palin's date of birth and home Zip code. Using those details, the hacker tricked Yahoo Inc.'s service into assigning a new password." The New York Post reports that RNC spokesman Danny Diaz "said: 'The fact that a Democratic activist -- and possibly an Obama supporter -- could go to these lengths is deeply disturbing and criminal.'"
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Jay Leno: "The stock market was up 400 points today. Or as Democrats call that, 'Terrible news! That's horrible!'"
Jay Leno: "In a speech today, Joe Biden said that...paying higher taxes is patriotic. ... In fact, do you know what the Republican strategy on Joe Biden is? Let him keep talking."
Jay Leno: "The Democratic-controlled Congress says they're going to adjourn for the rest of the year. This is true. The Senate majority leader said, regarding the financial crisis, no one knows what to do. Well there's a ringing endorsement to reelect them, huh? 'Hey, good luck! You're on your own! We're leaving!'"
Jay Leno: "Actually," Sarah Palin "is not the only famous person to have" her email account "hacked into. This is a huge problem. Here are some other emails that have been leaked. This one's from Barack Obama. Can we show that email? 'Because of tough economic times we face, I believe the next fundraiser should be reduced to only $20,000 a plate.'"
Jay Leno: "Now, this was found in Joe Biden's inbox. 'You can swim in it, you can shower with it, you can comb it, and it feels just like your own hair.'"
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