Even as disagreements surface in Congress over the Administration's $700 billion financial bailout plan, most media reports suggest the parties are making progress toward a compromise package. In fact, the Los Angeles Times reports House Financial Services Chairman Barney Frank "said agreement had been reached in several broad areas, among them: creation of an independent oversight board to monitor the Treasury Department's handling of the bailout and a requirement that the department seek to minimize home foreclosures by slicing the interest rate and even the outstanding loan amount of many of the troubled mortgages it buys." The Hill notes Frank also "predicted...that congressional Democrats would reach agreement with the Bush administration on a Wall Street bailout by the end of the week." Roll Call, meanwhile, says "Bush administration officials believe they have leverage as they press for a $700 billion bank bailout package, wagering Democrats must act out of fear they will be tarred with blame for the economic fallout if a deal isn't struck."
However, several obstacles remain in the way of a deal, and lawmakers warned it was possible that the Administration's deadline of Friday may not be met. The Washington Post reports on the front page that "the two sides remained at odds over other issues and were struggling to gain the support of rank-and-file lawmakers on both sides of the aisle." While Democratic leaders "said they could embrace the bailout plan with certain modifications, a growing minority of lawmakers were starting to question the very premise of the Treasury Department's proposal." Along similar lines, Roll Call says "rank-and-file Members on both ends of the political spectrum -- fearing a voter backlash -- are resisting the deal." The Politico, meanwhile, reports "conservative Republicans are beginning to publicly peel off, despite appeals from President Bush."
ABC World News reported, "Two major sticking points remained as of Monday evening. One is bankruptcy reform. Democrats in Congress want the bill to give judges the power to help homeowners avoid foreclosure. The other issue, executive compensation. Some in Congress want the heads of firms who receive this aid to have their compensation restricted, eliminating exorbitant severance packages, or 'golden parachutes,' and limiting the rewards for investors who take high risks." On ABC World News, George Stephanopoulos said on Capitol Hill "there still is a core group that wants to get this done. ... I think the Democrats know they're not going to get the bankruptcy reform, and the Republicans know they're going to have to give something on the CEO pay."
The Wall Street Journal reports "the plan's reception -- from academics, politicians and commentators of varied stripes -- has been largely hostile, weakening the administration's negotiating position on the remaining issues." NBC Nightly News, for example, led its broadcast last night with a markedly skeptical look at the Administration's proposal: "The American people are about to pay good money and lots of it for the largest bailout of private industry in the nation's history. They are about to give sweeping powers to a Secretary of the Treasury they've never voted for, and they've been told it's an effort to hold off an economic collapse. We've been told our financial system may be changing forever. ... So, naturally, today there are a lot of questions from members of Congress, Democrats and Republicans, who'd like to know what we're paying for, and from the people who are putting up the money, the American taxpayers."
The CBS Evening News said, "Congress is in no mood to be rushed, and there is considerable worry on Capitol Hill about risking so much taxpayer money so quickly." The Wall Street Journal reports Treasury Secretary Henry "Paulson, who bears most of the burden of selling the plan, clearly knows how to do a deal -- on Wall Street, behind closed doors. The question now is whether he can pull off the biggest deal of all time in the Washington hothouse, in the middle of a campaign." The Hill reports, "Throughout his two-year tenure...Paulson has attracted praise from both sides of the aisle. But times have changed." USA Today says Paulson was knows as "The Hammer" at Golden Sachs, and adds the bailout plan was "crafted with Fed Chairman Ben Bernanke, an academic, softer-spoken Sundance Kid to Paulson's dealmaking Butch Cassidy." The Christian Science Monitor, Washington Times, New York Times and Los Angeles Times run similar stories.
Stocks Plunge, Oil And Gold Spike ABC World News reported, "Investors on Wall Street are skeptical of the bailout. Relief that the government has stepped in to save the day has given way to deep anxiety about whether this $700 billion deal can actually get done, and at what price to ordinary Americans." The CBS Evening News noted "investors dumped more stock, today, in favor of safer investments like gold and oil, and as they did, stock prices plummeted. The Dow lost 372 points today. Meanwhile, oil shot up $25 a barrel, the biggest one-day gain ever, before settling with an increase of about $16." The Wall Street Journal reports "the Nasdaq Composite Index slipped 4.2% to end at 2178.98, down 18% on the year. The S&P 500 was down 3.8% at 1207.09, down 18% on the year. All the broad measure's sectors fell, led by an 8.2% slide in the financials."
US Financial System Came Close To Collapse The NBC Nightly News reported officials said "Thursday was a very bad day, where the financial system got really close to the abyss and we almost fell in. There were people withdrawing money from money markets, money markets withdrawing from the commercial paper markets. From what I'm told, the financial market came very close to freezing up, and a lot of people in very high places were scared, and what I understand is that the Federal Reserve Chairman, who is, by the way, one of the leading experts on the Great Depression said - he didn't say this, was suggesting -- we were close to bank lines in this country."
The New York Times reports, "Four months before President Bush leaves office, his top civilian and military aides are conducting four major new reviews of the war strategy and overall mission in Afghanistan, which have exposed internal fissures over American troop levels, how billions of aid dollars are spent, and how to cope with a deteriorating security situation in neighboring Pakistan." Some of the "issues being studied, including proposed increases in American troop levels in Afghanistan, have set off internal debate and could have far-reaching consequences for the next administration."
Meanwhile, the Wall Street Journal reports, "US commanders in Afghanistan say they expect the Taliban to launch a winter offensive, a move that could bring bloodshed during a time of year that historically has been relatively peaceful." If the "assessments are correct, the US death toll in Afghanistan -- already higher than in any previous year of the war -- could increase significantly by year end."
The CBS Evening News reported, "It looks as if Pakistan's top leaders may have narrowly avoided death on Saturday. A senior official said today the President and Prime Minister were supposed to have dinner at the Islamabad hotel that was devastated by a truck bombing, but they changed their plans at the last minute." The Washington Times also reports "Saturday's bombing appeared aimed in part at decapitating the Pakistani government," while Fox News' Special Report said that "an 11th hour shift of venue to the heavily guarded prime minister's house apparently saved the lives of the country's top leadership."
Zardari Says Pakistan Needs Help Speaking to NBC Nightly News after this weekend's bombing at the Marriott hotel in Islamabad, Pakistani President Asif Ali Zardari was asked if Pakistan is "capable and willing, militarily, to go after and get rid of Taliban and al Qaeda." Zardari said, "Pakistan is willing, but is Pakistan capable on its own? No. With the help of the world, yes, we are capable." However, Zardari rejected the idea of US troops conducting raids within Pakistan, saying: "Give us the intelligence and we will do the job."
ABC World News, meanwhile, reported that this weekend's attack "underscores the difficulty Pakistan is having working with the US to root out terrorists." The Pakistani "military has stepped up operations against militants, but that has sparked a wave of retaliatory attacks. And US raids inside Pakistan have enraged the Pakistani public."
In a related analysis piece, the New York Times reports that "a full-scale battle in a remote corner of Pakistan is shaping up to be a critical test of the military's determination to combat the country's militants," military and intelligence officials say. The campaign in Bajaur "has taken on new seriousness with the Marriott Hotel bombing" this weekend, which "some officials" in Pakistan see "as, in effect, an extension of the battle" in the tribal areas. The Los Angeles Times runs a similar analysis on its front page this morning.
Joint Border Patrol Considered The Washington Post reports, "Afghanistan, Pakistan and the United States are discussing the creation of a joint military force to attack insurgent sanctuaries on both sides of the rugged Afghan-Pakistani border," a senior Afghan official said yesterday. Afghan Defense Minister Rahim Wardak said he had proposed the idea and it was discussed last month at a meeting of military officers from the three countries that focused on the border problem."
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The Wall Street Journal reports that both Sens. John McCain and Barack Obama "are carefully calibrating the rapidly changing politics -- and policies -- of the mammoth Treasury bailout plan, embracing the general concept but weighing in with a list of criticisms and demands for change." Both have "left their options open about whether they would support or oppose the $700 billion bailout if and when it reaches the Senate floor." The CBS Evening News reported both candidates "warned that the Administration's economic plan falls short because of a lack of oversight." McCain and Obama "also sounded similar themes in demanding that the rescue plan keep the focus on average Americans on Main Street not the titans of Wall Street."
The Los Angeles Times reports McCain "said that the plan being discussed today in Washington gives too much power to" Treasury Secretary Henry Paulson. Fox News' Special Report reports that McCain, in Pennsylvania yesterday, "repeatedly voiced major doubts" about the package, saying, "Never before in the history of our nation has so much power and money been concentrated in the hands of one person." Fox adds that McCain's aides "repeatedly insisted he is so unsure of the merits of this plan...that they do not rule out the possibility that ultimately he could oppose it."
NBC Nightly News reports Obama said in Wisconsin, "We cannot give a blank check to Washington with no oversight and no accountability, when no oversight and accountability is exactly what got us into this mess in the first place." The AP adds that Obama "moved to claim the mantle of fiscal responsibility in a roiling economy, vowing Monday to slash federal spending on contractors by 10 percent and saving $40 billion." Obama urged "members of his own party to be just as fiscally tough as the most conservative Republicans," and said "the $700 billion economic bailout plan proposed by the Bush administration and congressional leaders is forcing a renewed look at federal spending."
McCain, Obama, Biden Unlikely To Be In DC For Bailout Plan Vote The Politico reports Congress "is poised to vote on the biggest government intervention in the financial markets since the Great Depression, but it's unlikely that any of the three senators vying for the White House will be there even though all three have talked of little else for over a week."
The Washington Post reports that the McCain campaign "stepped up its assault on the media today as its chief strategist denounced the New York Times. The broadside was prompted by a Times report saying that campaign manager Rick Davis had been paid nearly $2 million by mortgage giants Fannie Mae and Freddie Mac to protect them against stricter regulations. ... In a conference call with reporters, chief strategist Steve Schmidt said: 'Whatever the New York Times once was, it is today not by any standard a journalistic organization. It is a pro-Obama advocacy organization. This is an organization that is completely, totally, 150 percent in the tank for the Democratic candidate.'"
The New York Times notes that Bill Keller, executive editor of The Times, "responded in a statement: 'The New York Times is committed to covering the candidates fully, fairly and aggressively. It's our job to ask hard questions, fact-check their statements and their advertising, examine their programs, positions, biographies and advisers. Candidates and their campaign operatives are not always comfortable with that level of scrutiny, but it's what our readers expect and deserve.'"
Obama Campaign Defends NYTimes The Politico adds that Obama campaign spokesman Bill Burton "called Schmidt's accusation laughable, and said the Times had published more than 40 'probing stories...over the course of the campaign about Barack Obama, his life, his religion, his childhood, his politics, his time in the state Senate, his time in the U.S. Senate, his family, his religion, his friends, his fundraising and all other manner of associations.'"
A CNN /Opinion Research poll shows Sen. Barack Obama leading Sen. John McCain 51%-46% among registered voters, and 51%-47% among likely voters. The poll surveyed 909 registered voters, including 697 likely voters, from September 19-21.
The Gallup daily presidential tracking poll of 2,720 registered voters taken September 19-21 shows Obama leading McCain 48%-44%.
The Battleground tracking poll shows McCain leading Obama 48%-47%. The survey of 800 likely voters was conducted over September 14, 17-18, and 21.
The Rasmussen Reports automated daily presidential tracking poll for September 22 shows Obama leading McCain 48%-47%.
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A set of new state polls out today shows Sen. Barack Obama leading Sen. John McCain in both Virginia and Colorado, two states won by President Bush in both 2000 and 2004.
Obama Leads In 2 Of 3 Virginia Polls A Washington Post /ABC News poll of 698 likely Virginia voters taken September 18-21 shows Obama leading McCain 49%-46%.
A SurveyUSA automated poll of 716 likely Virginia voters taken September 19-21 shows Obama leading McCain 51%-45%.
A Fox News/Rasmussen Reports automated poll of 500 likely Virginia voters taken September 21 shows McCain leading Obama 50%-48%.
Pollster Scott Rasmussen, on Fox News' Hannity and Colmes, said Republicans "need to be very worried about Virginia. This is a state that's not gone for the Democrats since 1964. To be honest, all through the summer I expected you'd see a little more movement in John McCain's direction. It's not happening, so this is a cause for concern for the GOP."
Obama Up 4 In Colorado A Quinnipiac University poll of 1,418 likely Colorado voters taken September 14-21 shows Obama leading McCain 49%-45%.
In other state polls:
McCain Leads New Hampshire Poll By Two Points A WMUR/Granite State poll of 523 likely New Hampshire voters taken September 14-21 shows McCain leading Obama 47%-45%.
McCain Leads By Five Points In Florida A Fox News/Rasmussen Reports automated poll of 500 likely Florida voters taken September 21 shows McCain leading Obama 51%-46%.
McCain Up Four Points In Ohio A Fox News/Rasmussen Reports automated poll of 500 likely Ohio voters taken September 21 shows McCain leading Obama 50%-46%.
Obama Holds Narrow Edge In Minnesota A Quinnipiac University poll of 1,301 likely Minnesota voters taken September 14-21 shows Obama leading McCain 47%-45%.
Obama Up In Two Michigan Polls A Fox News/Rasmussen Reports automated poll of 500 likely Michigan voters taken September 21 shows Obama leading McCain 51%-44%. A Quinnipiac University poll of 1,364 likely Michigan voters taken September 14-21 shows Obama leading McCain 48%-44%.
Obama Up Three Points In Pennsylvania A Fox News/Rasmussen Reports automated poll of 500 likely Pennsylvania voters taken September 21 shows Obama leading McCain 48%-45%.
Obama Tops McCain By 7 In Wisconsin A Quinnipiac University poll of 1,313 likely Wisconsin voters taken September 14-21 shows Obama leading McCain 49%-42%.
The CBS Evening News reported, "November 4th is still six weeks away, but voters in three states have already begun casting ballots. Virginia, Kentucky, and Georgia are among more than 30 states that will allow in-person voting before Election Day in addition to absentee ballots. Experts say nearly a third of all votes will be cast before November 4th." The Wall Street Journal estimates this morning that according to "voting experts," "more than half of the voters in some states" will cast their ballots early, which "takes away some of a candidate's ability to unveil major initiatives late in the campaign, when voters typically are more attentive."
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Jay Leno: "You know, last night, they had the 60th Emmy Awards. What a star-studded affair that was. There were more celebrities there than" at a "Barack Obama fundraiser."
Jay Leno: "I guess the miniseries 'John Adams' set a new Emmy record last night" with "13 wins. So, a guy from the 1700s can still win today. That is good news for John McCain."
Jay Leno: "See, you know the way a bailout works? Here's the way a bailout works. A failed president and a failed Congress invest $700 billion of your money in failed businesses. Believe me, this can't fail."
Jay Leno: "The first presidential debate will take place this Friday night. They say John McCain's challenge will be to distance himself from President Bush," while "Obama's challenge will be to answer questions before his supporters can start clapping."
David Letterman: "By the way, as the campaign goes on, we're learning more and more about Senator John McCain," who "apparently...has 13 cars." But "he can't remember where he parked any of them."
Conan O'Brien: "President Bush has been speaking out about the Wall Street bailout. And today, a reporter asked him what he planned to do about AIG. ... Bush got upset and said, 'Why does everyone always spell in front of me?'"
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