Fierce opposition to the Administration's bailout package from lawmakers of both parties could complicate congressional leaders' plans to push for swift passage of the plan. The Washington Times reports lawmakers remain "deeply skeptical about the bill," and warned yesterday "that it will take longer than a week to pass and will include provisions that the administration opposes." Roll Call, in a story titled "Bush Push Lacks Traction," says "the rank and file in both parties expressed deep concerns about" the deal and "leaders struggled to keep their Members open-minded in the face of surging outside opposition from a diverse range of voices."
The New York Times reports on its front page that House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid, "and other Democratic leaders met Tuesday afternoon to form a strategy for bringing the bailout legislation to the floors of both chambers later this week." However, "there was no clear road map by the end of Tuesday." House Minority Leader John A. Boehner, meanwhile, "said that there seemed to be little appetite for the bailout among his conference."
In fact, the Financial Times says "growing Republican doubts will make it harder for momentum to build in favour of the proposal." Reid said yesterday "the Republicans needed to 'start producing some votes for us.'" The Hill reports, "Pelosi is telling Democrats that she will not support...Bush's $700 billion bailout of the financial sector unless there is significant Republican support for the controversial plan." The Washington Post and the Wall Street Journal also report on GOP opposition to the plan.
In his Washington Post column, however, Dana Milbank writes that much of the anger in Congress is "posturing, of course. Lawmakers, afraid of being blamed for the next Great Depression, have little choice but to give Paulson much of what he wants." McClatchy notes that "the point man for the package in the House of Representatives, Financial Services Committee Chairman Barney Frank, D-Mass., said he didn't think that the level of dissent on both sides of the aisle was enough to derail a major bailout package." The Los Angeles Times and USA Today note the White House also continued to express confidence in the prompt passage of the plan.
Stories on the bailout debate dominated the network newscasts last night, and appear on the front pages of today's major newspapers. Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke testified before the Senate Banking Committee yesterday, casting the bailout plan as a dire necessity. However, as the Wall Street Journal reports, the officials encountered an "unfriendly reception from...Committee members," with "most lawmakers" expressing "unhappiness with the proposal." In a similar report, the Financial Times notes there was "widespread discontent in Congress on Tuesday." The Washington Post, in a front-page story titled "Bailout Proposal Meets Bipartisan Outrage," reports lawmakers "are deeply skeptical of the proposal and angered by the administration's push for its speedy approval."
The CBS Evening News reported senators from both parties" told Paulson and Bernanke "their $700 billion bailout won't fly without significant changes." ABC World News reported the "bailout hearing on Capitol Hill was a tense, five-hour affair, with many senators skeptical -- if not downright outraged -- by what they're being asked to do." ABC World News went on to note that "a White House spokesman said...that it was unthinkable that Congress would not pass an economic rescue bill this week, but what if? What if the unthinkable were to happen?" There's "talk of a collapse, a crash, maybe even another Great Depression if the bailout doesn't happen." NBC Nightly News led its broadcast saying, "It works out to $2,300 for every man, woman, and child in America. That's the bill for this financial bailout that the Feds tell us is necessary to prevent a massive collapse of our financial system." NBC Nightly News also reported that "on Main Streets, people say they are angry and worried."
The Los Angeles Times reports a new Los Angeles Times/Bloomberg poll finds, "Most Americans don't believe the government has responsibility for bailing out financial firms with taxpayer money, a core part of the rescue plan Congress is considering to halt the near-meltdown of the nation's financial markets." Asked whether "the government should use taxpayer dollars to rescue financial firms whose collapse could have adverse effects on the economy, 55% of the poll's respondents said they did not believe the government should be responsible for funding a bailout plan."
Cheney Meeting An "Unmitigated Disaster" Vice President Cheney's appearance on Capitol Hill yesterday, meant to calm Republicans fears regarding Paulson's bailout plan, is being reported as a near total failure, with one anonymous Republican calling the meeting "an unmitigated disaster." The Politico, in an article titled, "House GOP Rises Up Against Cheney," reported House Republicans came in "steaming" and "walked out just as angry...they described what happened in between as both 'a bloodbath' and 'an unmitigated disaster.'"
Plan Unlikely To Add $700 Billion To Deficit The Wall Street Journal reports the Bush Administration "might be seeking $700 billion for its financial rescue plan, but that amount isn't likely to show up in the budget deficit." Federal Reserve Chairman Ben Bernanke told senators, "This is not an expenditure of $700 billion. This is a purchase of assets, and if auctions are done properly...the American taxpayer will get a good value for his or her money. And as the economy recovers, most, all, or perhaps more than all of the value will be recovered over time."
Buffett Investment In Goldman Sachs Generates Optimism. The AP (9/24, Jacobs) reports this morning, "Financial markets showed some signs of stabilizing Wednesday as investor Warren Buffett's $5 billion bet on Goldman Sachs Group Inc. renewed confidence that U.S. financial firms will survive the credit crisis. Stock futures pointed to a higher opening, although the credit markets, waiting for further news on the government's bank rescue package, were still restrained." The AP added that in addition to his $5 billion purchase of preferred Goldman stock, Buffett "also got warrants to buy another $5 billion in Goldman's common stock."
Largely overshadowed by coverage of the congressional debate on the financial bailout package, President Bush's UN speech is being cast in today's press as an "olive branch" to the world body. The Washington Post says Bush "sought to turn the attention...to his core foreign policy goals of fighting terrorists and promoting freedom around the world" by holding "out an olive branch.'" The Washington Times reports that in addition to the US financial crisis, which "diverted much of the attention at the annual meeting of heads of state," Bush "competed for media attention with Republican vice-presidential nominee Sarah Palin."
The Christian Science Monitor notes Bush "characterized the UN as a critical force in the 21st century one that is uniquely positioned to meet the challenges of extremism, poverty, authoritarian rule, and a lack of human rights. But its promise is too often limited, he said, by inefficiencies and member states' failure to work toward common interests."
The AP notes Bush "got less than 10 seconds of polite applause at the end" of his speech, which it calls a "decidedly low-key appearance, rehashing familiar themes, devoid of the passion Bush displayed in the early years of his presidency." In a separate dispatch, the AP reports that Bush, "who once warned that the United Nations was in danger of becoming irrelevant," said that the organization is "now 'needed more urgently than ever' to combat terrorists and extremists who are threatening world order." Fox News' Special Report similarly reported Bush "seemed to have had a change of heart" and "says the world needs a United Nations that is confident and effective."
AFP adds Bush "took pains to emphasize that the United Nations 'must stand united' against plagues like terrorism and poverty and in support of democracy and development." USA Today, however, casts Bush as "speaking in sharp terms," and adds he "singled out for criticism Iran, North Korea and Russia, which recently invaded Georgia in a dispute over breakaway republics. As he spoke, Iranian President Mahmoud Ahmadinejad smiled and waved to reporters."
Ahmadinejad: US "Empire" Nears Collapse In his address before the UN General Assembly yesterday, the AP reports Iranian President Mahmoud Ahmadinejad declared "that 'the American empire' is nearing collapse and should end its military involvement in other countries." He also "accused the US of starting wars in Iraq and Afghanistan to win votes in elections and blamed a 'few bullying powers' for trying to undermine Iran's nuclear program."
The Washington Post reports that in addition to his speech before the UN yesterday, President Bush "had a variety of private meetings," including one with new Pakistani President Asif Ali Zardari "in a session that focused on the fight against Islamic radicals along the Pakistan-Afghanistan border." The AP reports that "publicly," the two leaders "exhibited a show of solidarity against extremists," but "privately" they "must try to craft a delicate strategy to make progress in fighting militants while keeping US-Pakistan relations on an even keel until Bush leaves office in four months."
Gates "Pessimistic" On Pakistani Support The Washington Post reports, "Pakistan's leaders and military cannot publicly support US cross-border operations against militant groups in Pakistan's western tribal areas, but such strikes are needed to protect American troops in Afghanistan and defend the United States against its gravest terrorist threat," Defense Secretary Robert Gates told Congress yesterday. "But when asked "whether Pakistan's government would back unilateral US military operations into Pakistan," he said: "I don't think they can do that."
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Media reports indicate congressional Democrats and Republicans alike are anxiously looking to Sen. John McCain for cues on his stance on the financial bailout package. Stories suggest the GOP nominee's stance on the legislation could prove decisive to its passage. ABC World News, for example, reported McCain "may hold the fate of the $700 billion bailout proposal in his hands. Even with Vice President Dick Cheney lobbying hard for the bill today, top congressional Republicans say if McCain does not support the bill, it will likely die" and "Democratic leaders have told the White House a deal without McCain on board will mean no sale. They say they fear McCain will, quote, 'demagogue' the bill and Democrats on the campaign trail." Roll Call adds, "According to a Democratic aide familiar with the discussions," Senate Majority Leader Harry Reid told Treasury Secretary Paulson "this week that 'if McCain didn't come out for this thing and come out for it quickly, it was going to begin bleeding Republican votes.' Democrats 'have a very real concern that opposition [from McCain] is going to drive away potential Republican votes,' this aide said."
However, there are conflicting signs in the media on the level of McCain's support for the package. The AP reported McCain "hinted he might vote against" the bill yesterday, calling the price tag "staggering." However, The Hill reports Reid "announced" that McCain would support the package, saying last night, "I got some good news in the last hour or so ... it appears that Sen. McCain is going to come out for this." The Wall Street Journal reports that in a Q&A session with reporters after an appearance in Freeland, Michigan, McCain "declined to say if he saw any deal-breakers that could force him to vote against the proposal. He said that Democrats in Congress waiting to see if he would support the legislation should instead focus on the nature of the financial crisis and not worry about his vote."
Obama Sets Conditions For Backing Plan For his part, the AP reports Sen. Barack Obama "said Tuesday any plan to rescue Wall Street from its financial woes must ensure that taxpayers are reimbursed and corporate executives are not further enriched for mismanagement." The Hill adds Obama "said he would only support a bailout of the financial markets if it provides the necessary oversight and protects taxpayers. However, the Illinois senator made it clear that he does not require specific language to be part of legislation Congresses passes to address the crisis on Wall Street."
Bloomberg News adds that Obama also took the opportunity to criticize Bush's tactics in pushing for quick passage of the bill, saying, "The president's stubborn inflexibility is both unacceptable and disturbingly familiar. This is not the time for my-way-or-the-highway intransigence from anyone involved."
There are six new national polls out in the last 24 hours, and five of them show an extremely tight race. A McClatchy /Ipsos poll of 923 registered voters taken September 18-22 shows Obama leading McCain 44%-43%. An American Research Group poll of 1,200 likely voters taken September 20-22 shows Obama leading McCain 48%-46%. The Gallup daily presidential tracking poll of 2,740 registered voters taken September 20-22 shows Obama leading McCain 47%-44%, down from 48%-44% the previous day and 50%-44% late last week. The Rasmussen Reports automated daily presidential tracking poll for September 23 shows Obama and McCain tied at 48%. The Battleground tracking poll shows McCain leading Obama 48%-46%. The survey of 800 likely voters was conducted over September 17-18, and 21-22.
However, there is one outlier a new ABC News /Washington Post poll of 780 likely voters taken September 19-22 shows Obama leading McCain 52%-43%. The Post notes that as a "point of comparison, neither of the last two Democratic nominees -- John F. Kerry in 2004 or Al Gore in 2000 -- recorded support above 50 percent in a pre-election poll by the Post and ABC News."
Race Tied In Ohio. An Insider Advantage /Poll Position survey of 545 likely Ohio voters taken September 22 shows McCain and Obama tied at 46% apiece.
Obama Leads In Pennsylvania. An American Research Group poll of 600 likely Pennsylvania voters taken September 20-22 shows Obama leading McCain 50%-46%.
Obama Up 7 In Colorado Poll. A Public Policy Polling (D) survey of 1,084 likely Colorado voters taken September 20-21 shows Obama leading McCain 51%-44%.
Obama Up 11 In Washington. A SurveyUSA automated poll of 682 likely Washington State voters taken September 21-22 shows Obama leading McCain 54%-43%.
Obama Up By Double Digits In Oregon. An American Research Group poll of 600 likely Oregon voters taken September 19-22 shows Obama leading McCain 52%-41%.
McCain Ahead In Arkansas. An American Research Group poll of 600 likely Arkansas voters taken September 20-22 shows McCain leading Obama 53%-41%.
McCain Up 12 In Kansas. A SurveyUSA automated poll of 666 Kansas likely voters taken September 21-22 for KWCH-TV Wichita and KCTV-TV Kansas City shows McCain leading Obama 53%-41%.
Obama Trouncing McCain In Vermont. An American Research Group poll of 600 likely Vermont voters taken September 18-22 shows Obama leading McCain 56%-38%.
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NBC Nightly News reported, "It's been a rough couple of days for" Sen. Joe Biden, as "misstatements about coal plants in the US, FDR being on television before television was invented, and Barack Obama has been forced to go against Joe Biden on the massive AIG insurance bailout." The Hill says Biden "has, in recent days, lived up to his reputation as a gaffe machine." The New York Daily News reports Republicans "reveled in Biden's bobbles, sending out a list of recent alleged missteps. 'Joe Biden's bizarre comments underscore the lack of decisiveness and leadership represented at the top of the ticket,'" said RNC spokesman Danny Diaz, "contending that Obama's 'lack of experience and accomplishment is reflected in the confused comments by his running mate.'"
New reports emerged today that Rick Davis' firm, Davis Manafort, remained on the Freddie payroll until recent years. Roll Call reports "two sources with knowledge of the arrangement" said Davis Manafort has "collected $15,000 a month from the organization since late 2005, when Freddie Mac and Fannie Mae dissolved a five-year-old advocacy group that Davis earned nearly $2 million leading, the sources said." The New York Times reports in a front page story, "The disclosure undercuts a remark by Mr. McCain on Sunday night that the campaign manager, Rick Davis, had had no involvement with the company for the last several years." The Washington Post reports an industry source described "the relationship as one in which the firm was on retainer and did little actual work after early 2007."
Gov. Sarah Palin's meetings with world leaders at the UN yesterday was dismissed by much of the media as substance free, while the campaign's apparent effort to keep reporters from accompanying the cameras capturing the photo events is portrayed as part of an ongoing campaign to protect Palin from media scrutiny. NBC Nightly News reported, "Today was designed to showcase her in pictures," but "those pictures almost didn't happen." According to NBC, "Campaign officials invited the media to attend the beginning of the meeting, but at the last minute banned reporters, a departure from the usual practice, saying only photographers would be allowed. When news organizations threatened to pull the cameras if reporters were banned, the campaign relented, calling it a miscommunication." The AP calls the event "a tightly controlled crash course on foreign policy," while the Los Angeles Times titles its article on Gov. Palin's day in New York "Sarah Palin's U.N. Meetings Begin With Media Flap." MSNBC's David Shuster claimed that the McCain campaign perceived heavy-handedness "hijacked their own headlines." CNN's Anderson Cooper described the standoff as a "full-on meltdown."
The Wall Street Journal reports that Palin did meet with a number of key leaders, including Afghan President Hamid Karzai and Colombian President Alvaro Uribe, and will meet with the presidents of Pakistan and Iraq solo today, and hold joint meetings with McCain and the presidents of Georgia, Ukraine and India.
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Jay Leno: "Oh, more bad news from President Bush. Remember those rebate checks from a few months ago? He wants them back. Yeah! We need to give that money to rich people on Wall Street. They need it more than you do!"
Jimmy Kimmel: "President Bush" made "a farewell speech in front of the United Nations General Assembly. You know, the President is not an eloquent speaker, but I thought he spoke quite powerfully today, especially at the end of his speech when he looked out at all the delegates representing all the nations of the world and...said, 'Can we borrow some money?'"
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