Media reports are casting President Bush's televised address last night as both a warning to the nation on the severity of the financial crisis and an attempt to push Congress into passing his proposed bailout. A number of the stories remark on Bush's stark warnings about the health of the economy. Roll Call, for example, says Bush "sketched a frightening view of the economic danger," and used "unusually blunt and even dramatic language." The New York Times reports Bush told the country that "'a long and painful recession' could occur if Congress does not act quickly." Like many other media outlets this morning, the Times quotes the President saying, "Our entire economy is in danger." Bush's speech highlighted "a growing sense of urgency on the part of the administration that Congress must act to avert a far-reaching economic collapse." USA Today notes the President also said, "Without immediate action by Congress, America could slip into a financial panic. ... More banks could fail, including some in your community." He also "warned that inaction could cause millions of layoffs, bank failures, business closures, lost retirement savings, more foreclosures, a further drying up of credit." McClatchy, Los Angeles Times and Washington Post run similar reports.
The speech is also seen as a response to critics who accused the President of not having played a lead role in the government's efforts to defuse the crisis. USA Today reports, for example, that Bush faced "criticism from some Democrats for being AWOL in the debate," and the Wall Street Journal says that "until now," the President had "relied largely on Treasury Secretary Henry Paulson -- a former Goldman Sachs CEO -- and Federal Reserve Chairman Ben Bernanke to make the case for the plan," but "Republican support has been so soft that Democrats worried they would have to take on most of the responsibility -- and political risk -- for passing the package." And "to spread that risk, Democrats on Tuesday called on Mr. Bush to address the nation."
The Politico describes Paulson as "the captain of a crowded lifeboat" who "struggled to stay afloat in Congress Wednesday, battling the waves crashing in on his Wall Street rescue plan." With his speech, Bush was "lending a hand" and taking "back the helm long enough Wednesday night to deliver a nationally televised address," but "to the surprise of some in his own administration, Bush spent precious political capital by using the speech to try to help McCain by bringing him into what have been delicate negotiations with Congress."
McCain, Obama To Attend White House Talks Today The AP notes Bush "spoke just after inviting Democrat Sen. Barack Obama and Republican Sen. John McCain, one of whom will inherit the mess in four months, and key congressional leaders to an extraordinary White House meeting Thursday to hammer out a compromise." In his speech, the President "explicitly endorsed several of the changes that have been demanded in recent days from the right and left. But he warned that he would draw the line at regulations he determined would hamper economic growth." Another AP story and a report in the Los Angeles Times, among other media stories, note both Obama and McCain have said they will attend the meeting.
Before President Bush's speech last night, ABC World News reported his televised appearance was "not coming a moment too soon, as opposition seems to be growing here in Congress for the legislation that could be the most important of Mr. Bush's presidency." NBC Nightly News said "a lot of Americans and many in Congress seem to be saying today: 'Wait a minute. What's in here, and what's it going to cost all of us?,'" and as a result "the original plan is in trouble. They talked all day in Washington," and "they're still talking tonight."
The CBS Evening News, however, said that "away from the overheated rhetoric, sources say negotiators are moving closer to a deal. The Bush Administration now has signed off on oversight, meaning the treasury secretary will have to answer for how he spends the bailout dollars. And Democrats apparently have won their fight on executive compensation, meaning the salaries and severance of top executives would be somehow capped if their companies unload bad assets on the government." Along similar lines, George Stephanopoulos said on ABC World News that "the Democrats think they are making progress on working towards a deal. The White House is saying the same thing."
The Hill (9/25, Soraghan) reports that "according to a Democratic source," Democrats and Republicans "on key committees are nearing agreement...and will sit down Thursday morning to craft a final bipartisan plan." The aide "said that 'not too many' issues remain unresolved for the 10 a.m. meeting." Roll Call also says "senators on both sides coalesced around a proposal late Wednesday that Members predicted would pass before Wall Street's opening bell on Monday." The Washington Post, Christian Science Monitor, New York Times, Wall Street Journal and USA Today also report a deal could be near.
CBO Head: Bailout Could Make Crisis Worse. The Washington Post reports, "The director of the Congressional Budget Office said yesterday that the proposed Wall Street bailout could actually worsen the current financial crisis." Appearing before the House Budget Committee, Peter R. Orszag "said the bailout could expose the way companies are stowing toxic assets on their books, leading to greater problems." Said Orszag, "Ironically, the intervention could even trigger additional failures of large institutions, because some institutions may be carrying troubled assets on their books at inflated values. ... Establishing clearer prices might reveal those institutions to be insolvent." The Financial Times and New York Times also report on Orszag's comments.
Markets Await Outcome Of Bailout Debate ABC World News reported that amid the "uncertainty and the negotiations" on the financial bailout plan, it was "a relatively calm day on Wall Street. The Dow was virtually unchanged, losing just 29 points. That's far less volatile than recent days." The AP notes the Dow now stands at "10,825.17. The decline leaves the Dow down more than 560 points, or about 5 percent, for the week." Yesterday, "the Standard & Poor's 500 index slipped 2.35, or 0.20 percent, to 1,185.87, and the Nasdaq composite index rose 2.35, or 0.11 percent, to 2,155.68."
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Roll Call reports this morning that that despite the Democrats' "stunning reversal" allowing the "offshore drilling moratorium to expire," energy "lobbyists say that...it is just the first of many steps that will be needed before new oil platforms...are actually built and put to use." Companies that seek to drill offshore "face a lengthy regulatory process with the federal government and hurdles within individual states as well. All of that gives plenty of room for green groups to stop the drilling or to use the ban as a bargaining chip in energy legislation negotiations next year."
Opinion Divided On Reason For Record Oil Spike. The Wall Street Journal reports, "As theories swirl around Monday's unprecedented jump in oil futures," US "officials suggested that a financial trader was responsible, though market participants suspect an oil producer might have been caught in dire need of extra barrels." The Journal adds, "U.S. Energy Secretary Samuel Bodman doused suggestions that an oil company or other commercial-industry participant with a need for crude oil for delivery next month entered the Nymex futures market to secure it." However, "several analysts contended that the wild trading...reflected an oil company that suddenly found itself short crude oil after hurricanes Gustav and Ike shut down most production in the Gulf of Mexico and barrels at the main delivery point for Nymex crude had dwindled."
The CBS Evening News reported last night the House "plans to investigate one of its own, New York Congressman Charles Rangel. He's come under fire for, among other things, failure to pay taxes on a luxury villa he owns in the Dominican Republic." The New York Democrat "has rejected calls that he step down as chairman of the House Ways and Means Committee." Roll Call notes the House ethics committee voted yesterday "to establish an investigative subcommittee to examine a multitude of allegations that" Rangel "violated the chamber's rules." According to a statement issued by the committee, "the four-member subcommittee will examine Rangel's ownership of a Dominican Republic villa, living arrangements, use of House parking facilities and fundraising efforts on behalf of a City College of New York center bearing his name."
The Hill interviewed Rangel, who likened "the ethics controversy swirling around him to being in a hospital bed," saying, "Everyone's coming to see you, but you wish you weren't in the hospital." The Hill adds "it is clear that Rangel, the amicable 78-year-old serving in his 19th term, is not pleased with how House Republican leaders and the press have treated him." Rangel "said about a dozen Republicans privately apologized to him for voting with" Minority Leader John Boehner to investigate him, "saying they were under political pressure. Asked if Boehner privately apologized to him, Rangel said, 'Hell, no!,'" adding that "Boehner is 'insecure' in his leadership post."
ABC World News reported last night, "Under pressure of an October 1st deadline to pass a new budget, the House today followed what has become a tradition of late and punted. Instead of passing separate appropriations bills to fund each department of government as the Congress is supposed to do, the House instead passed a giant $630 billion omnibus spending bill which will fund the government for six months instead of the full fiscal year." Roll Call notes that the continuing resolution passed "without a single challenge to the thousands of earmarks worth billions of dollars, infuriating government watchdogs and fiscal hawks who thought changes made this Congress would stem the earmark tide." Roll Call adds that President Bush "had threatened to veto bills that didn't reduce earmarks by half but caved in negotiations with lawmakers." Taxpayers for Common Sense "counted 2,322 earmarks worth $6.6 billion."
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Coverage of Sen. John McCain's announcement that he is suspending his campaign immediately, and is not likely to participate in Friday's scheduled first debate with Sen. Barack Obama, led all three network news broadcasts last night and dominated cable news programming both before and after the President's address. ABC World News reported that McCain "said he would suspend campaigning, no speeches, no fund-raising, no commercials, and go back to Washington to help solve the economic crisis." According to NBC Nightly News, McCain aides say he "made his decision to freeze his own political schedule mid-morning. That came after meeting with economic advisers and after phoning a number of members of Congress. Advisers said that included Hillary Clinton." The CBS Evening News said McCain "says he made that dramatic decision after becoming convinced the Administration's Wall Street bailout plan had almost no chance of passage, thereby imperiling the economy. ... The goal, McCain said, is to reach agreement before the stock market opens on Monday."
The networks presented McCain's decision straightforwardly, with little political analysis or speculation as to ulterior motives. On the other hand, MSNBC's Keith Olbermann, Rachel Maddow and Chris Mathews repeatedly posited last night that McCain was forced to "reset" his campaign due to "deteriorating" poll numbers. This morning's papers echo that theme, with the New York Times contending in a front-page article that McCain "made his decision to try to delay the debate as he has been struggling to find his political footing on the financial crisis and a number of recent polls showed that more Americans trust Mr. Obama to handle the economy than Mr. McCain." The Washington Post's Harold Meyerson and the New York Times' Gail Collins also take up this theme in their columns today.
A major theme in the news coverage is the notion that McCain is taking a major gamble with his campaign. The Washington Post, in a front-page article titled, "Selfless Or Reckless? McCain Gambles On Voters' Verdict," says McCain "is a gambler by nature, and the bet he placed Wednesday may be among the biggest of his political life." According to the Wall Street Journal, "The dramatic gestures were in keeping with a career with many such moments. As in the past, it was both high risk and high reward. It draws attention to him at a time when Democrats stand to benefit from economic turmoil and helps him recast the question as one of leadership, where he is viewed positively. But he risks coming off as exploiting a very real problem for political gain." The Politico, in an article titled, "McCain Plan A 'Stunt' Or 'Smart Move,'" says "opinion often broke sharply along partisan lines. ... But several observers said they thought McCain's move bolstered his leadership credentials and demonstrated a willingness to put national interest ahead of partisan politics."
ABC World News reported that Sen. John McCain "called for a delay in Friday's first presidential debate. Barack Obama was having none of that, saying the new president will have to deal with more than one thing at once and he said he'll be at the debate." ABC added that yesterday afternoon, the bipartisan commission on presidential debates released a statement "saying that it is moving forward with its plans for Friday night's debate at the University in Oxford, Mississippi." The CBS Evening News said Sen. Obama "did not take the bait." Fox News' Special Report added that Obama "will continue all of this campaigning activities, including preparing for the debate, running commercials" and "raising money."
There does appear to be a chance the debate will feature both candidates. Sen. Lindsey Graham, McCain's representative in debate negotiations, told the AP that McCain "will not attend the debate unless there is agreement on a solution that is publicly endorsed by Obama, McCain, the White House and congressional leaders." On MSNBC last night, former GOP strategist Mike Murphy predicted that Sen. McCain will end up participating Friday night.
Obama Reportedly Surprised By McCain's Announcement NBC Nightly News said that McCain's move "came as a shock" to Obama. The New York Times adds that Obama "said that he and Mr. McCain had spoken for about five minutes by telephone on Wednesday afternoon, but during that conversation he said he was not left with the impression that Mr. McCain planned to skip the debate."
Even as the country's attention focuses on the financial crisis, an issue many analysts believe helps Sen. Obama, most polls suggest the issue â at least for now â may not be giving the Illinois senator much of a boost. One polls shows a larger lead -- a Fox News poll of 900 registered voters conducted September 22-23 shows Sen. Barack Obama leading 45%-39% -- but the rest show a tighter race.
A Los Angeles Times /Bloomberg News poll of 1,287 registered voters, including 838 likely voters, taken September 19-22 shows Obama leading McCain 46%-44% among registered voters and 49%-45% among likely voters.
An NBC Nightly News /Wall Street Journal poll of 1,085 registered voters taken September 19-22 shows Obama leading McCain 46%-45%.
The Gallup daily presidential tracking poll of 2,712 registered voters taken September 21-23 shows Obama leading McCain 47%-44%.
The Rasmussen Reports automated daily presidential tracking poll for September 24 shows Obama leading McCain 48%-46%.
The Battleground tracking poll shows McCain leading Obama 48%-46%. The survey of 800 likely voters was conducted over September 17-18, and 21-23.
A Zogby Interactive online poll of 2,331 likely voters taken September 19-20 shows Obama leading McCain 47%-44%.
The Politico reports that "state by state," Sen. Barack Obama "is showing signs of breaking open a presidential race that looked deadlocked through much of September."
Obama Up In 3 Colorado Surveys A Rasmussen Reports automated poll of 700 likely Colorado voters taken September 23 shows Obama leading McCain 50%-47%. An Insider Advantage /Poll Position poll of 505 likely Colorado voters taken September 23 shows Obama leading McCain 50%-41%. A TIME /CNN poll of 932 registered Colorado voters, including 794 likely voters, taken September 21-23 shows Obama leads 51%-45% among registered voters and 51%-47% among likely voters.
Obama Up In Pair Of Pennsylvania Polls A TIME /CNN poll of 920 registered Pennsylvania voters, including 730 likely voters, taken September 21-23 shows Obama leading McCain 52%-43% among registered voters and 53%-44% among likely voters. A Strategic Vision (R) poll of 1,200 likely Pennsylvania voters taken September 20-22 shows Obama leading McCain 47%-46%.
McCain Up 3 In Florida A Strategic Vision (R) poll of 1,200 likely Florida voters taken September 20-22 shows McCain leading Obama 48%-45%.
Polls Conflict In New Hampshire A Marist poll of 763 New Hampshire Registered Voters taken September 17-21 shows Obama leading McCain 48%-45% among registered voters and 51%-45% among likely voters. However, a Rasmussen Reports automated poll of 700 likely New Hampshire voters taken September 23 shows McCain leading Obama 49%-47%.
Obama Holds Significant Lead In Iowa A Marist poll of 714 Iowa Registered Voters taken September 18-21 shows Obama leading McCain 46%-41% among registered voters and 51%-41% among likely voters.
Obama Leads In Michigan A TIME /CNN poll of 966 registered Michigan voters, including 765 likely voters, taken September 21-23 shows Obama leads McCain 51%-44% among registered voters and 51%-46% among likely voters.
McCain Holds Double-Digit Lead In Montana A TIME /CNN poll of 903 registered Montana voters, including 737 likely voters, taken September 21-23 shows McCain leading 54%-43% among likely voters.
McCain Up 4 In West Virginia A TIME /CNN poll of 876 registered West Virginia voters, including 694 likely voters, taken September 21-23 shows McCain leading Obama 50%-46% among likely voters.
McCain Holds Edge In Battleground States An NPR/Greenberg (D) poll of 800 likely voters in battleground states (Colorado, Florida, Iowa, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Virginia, and Wisconsin) shows McCain leading Obama 46%-44%. In addition, 49% expect Obama to do better in the debate, while 34% expect McCain to do better.
The AP reports Gov. Sarah Palin spent another day meeting with world leaders "as part of an effort by" the McCain campaign "to counter criticism that the former small-town mayor lacks the experience to be vice president, let alone president in an emergency." Palin met with Iraqi President Jalal Talabani, Pakistani President Asif Ali Zardari, Indian Prime Minister Manmohan Singh, and jointly with Sen. John McCain, Georgian President Mikhail Saakashvili and Ukrainian President Viktor Yuschenko. According to the Financial Times, Palin "was in listening mode but not in talking mode."
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Jay Leno: McCain "said he'd like to postpone the presidential debate until he's, you know, ahead in the polls."
Conan O'Brien: "Earlier tonight," President Bush "gave a speech about the Wall Street financial crisis. ... The title of Bush's speech was 'Two More Months And It Ain't My Problem.'"
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