Newsweek asks, "Remember the ownership society?" President Bush "championed the concept" in 2004, "envisioning a world in which every American family owned a house and a stock portfolio, and government stayed out of the way of the American Dream." Bush "pushed new policies encouraging homeownership, like the 'zero-down-payment initiative,' which was much as it sounds -- a government-sponsored program that allowed people to get mortgages without a down payment. More exotic mortgages followed, including ones with no monthly payments for the first two years. Other mortgages required no documentation other than the say-so of the borrower."
Time reports, "If the global financial meltdown can be traced to an American export -- the subprime mess -- the U.S. will import the consequences. As the go-go economies of China and India hit the brakes, so too will demand for American goods and services."
Newsweek's Daniel Gross adds, "In recent weeks, as the comparison between today's financial crisis and the Great Depression has grown commonplace, it's become clear that fear itself is Wall Street's greatest fear. ... Markets, we are told, continually process available information to spit out accurate gauges of reality in the form of prices. That's the theory. The reality: markets are frequently inefficient, and dominated by humans, with all their frailties."
Leaders Seek To Stabilize World Markets President Bush on Sunday pledged that his Administration would continue its efforts to stabilize the financial markets. The President also met with G7 financial ministers and made an appearance at the International Monetary Fund as Treasury Secretary Henry Paulson put the finishing touches on the US plan to take an equity stake in troubled financial institutions. However, some media reports highlight concerns by outside economists, who argue that the Administration's response lacked a clear rationale. NBC Nightly News reported, "The urgency of the situation was also apparent in Washington, where last night, President Bush paid a personal visit to the meeting of G20 finance ministers, asking them to avoid pursuing 'go it alone' policies that could undermine other countries. But will it all be enough? Previous efforts did little to calm market fears."
The AP also reports Bush "and financial leaders from nations rich and poor pledged Saturday to intensify their efforts to unblock a frozen financial system before it does more damage to an increasingly shaky global economy." While there were "no concrete offers of new moves, Bush vowed anew that his administration was doing everything possible to halt the biggest market disruptions since the Great Depression."
Meanwhile, the Wall Street Journal reports Paulson "is fashioning yet another tool to stem turmoil in financial markets by injecting capital directly into banks, details of which could be announced as soon as Monday." But the "government's "punching power has been diminished as it appeared to lurch from crisis to crisis, often changing its mind about the best course of action. Outside economists and investors complain that neither the Treasury nor the Federal Reserve have explained their rationale and the intended impact of their actions."
ABC World News reported the Bush Administration "is radically rethinking its own rescue plan. What started with a $700 billion rescue bill to buy bad assets from financial firms has now morphed into a plan allowing the government to take ownership in those firms, partially nationalizing private banks. That's an idea the Administration opposed at the start of the crisis." The CBS Evening News reported, "It is a stunning turnaround for an administration with a strong ideological aversion toward government intrusion." On Capitol Hill, "word of the pending move brought swift, though cautious approval."
The US moves come as a number of European nations, led by the United Kingdom, began to set in motion similar plans to partially nationalize their banking institutions. The Financial Times reports France, Germany, Italy, and Britain "were working on dramatic plans, due to be announced today, to shore up their lenders." ABC World News reported, "Late today in Europe, leaders came up with an emergency plan to rescue their banks, infusing them with cash in hopes that they'll start lending once again." More details on the European efforts were reported in the New York Times, the Wall Street Journal, the Financial Times, the New York Times, the Wall Street Journal, the Los Angeles Times, and the Washington Times.
Over the weekend, several members of Congress discussed the possibility of a second stimulus plan, raised by House Speaker Nancy Pelosi. Sen. Charles Schumer, on CNN's Late Edition, said, "We definitely need a stimulus package because...Main Street is in real trouble. And a stimulus package aimed at Main Street makes sense. And it has to be a kind of stimulus that's going to get into the guts of the economy. So we believe that there ought to be some infrastructure." Asked on CNN's Late Edition whether he agrees with Pelosi's call for a second stimulus bill, Sen. Arlen Specter answered, "I'm not prepared to jump off a bridge on $150 billion on a sound bite. But I'm prepared to consider it."
US Public Confidence In Economy Shaken The Washington Post reports Americans' "confidence in their own financial security has tumbled alongside dizzying declines in stock prices and home values, according to a new Washington Post-ABC News poll. Less than half now believe they will have enough money to last through retirement, and two-thirds fear for their family's economic situation." Nearly "nine in 10 are worried about the direction of the economy over the next few years and more than three-quarters are worried about the markets' performance."
US Gas Prices Have Biggest Two-Week Drop The CBS Evening News reported, "Gas prices recorded their biggest two-week drop in the 58-year history of the Lundburg Survey. They fell 35 cents to $3.31 a gallon."
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The Wall Street Journal reports the US and Iraq "are close to agreeing on a final draft of a security agreement that includes a compromise on legal jurisdiction over American soldiers, people familiar with the talks said Sunday." Negotiations have "sped up recently as both sides moved toward compromise" on the issue of immunity for US soldiers. The "draft agreement," the Journal continues, "still contains a goal for withdrawal of US combat troops from Iraq at the end of 2011, although that could be amended depending on conditions on the ground."
Meanwhile, the Washington Post reports US commander Gen. Ray Odierno "said Sunday that American intelligence reports suggest Iran has attempted to bribe Iraqi lawmakers in an effort to derail" the ongoing security talks between the US and Iraq. In an interview, Odierno said of Iran, "Clearly, this is one they're having a full court press on to try to ensure there's never any bilateral agreement between the United States and Iraq."
After the US agreed to drop the country from its terrorism blacklist, North Korea said it would resume its plan to disable a key nuclear facility. The AP reports the developments over the weekend "raised hopes that stalled international nuclear talks could quickly resume and help improve ties between Washington and Pyongyang." However, "US officials warned North Korea could again be placed on the blacklist if it ends up not allowing the inspections." AFP, meanwhile, reports a North Korean "spokesman cautioned that the US must ensure the delisting 'actually takes effect.'"
The New York Times reports the Bush Administration move to remove North Korea from the list of state sponsors of terrorism "is an important symbolic gesture for the North," but "there is much in Washington's tortuous relationship with North Korea that stays the same, including economic sanctions against the North." And, "in the end, the administration won only some concessions," says the Times.
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After Rep. John Lewis, a civil rights era activist, suggested that Republicans were sowing "hatred" against Sen. Barack Obama and linked him to segregationist governor George Wallace, Sen. John McCain's campaign hit back yesterday. NBC Nightly News reported Lewis said in a statement, "Sen. McCain and Gov. Palin are playing with fire and if they are not careful, that fire will consume us all." Rick Davis, McCain campaign manager, said, "Barack Obama should apologize to John McCain directly for the kinds of comments made by John Lewis yesterday." On Fox News Sunday, Davis said, "The kind of comments made by Congressman Lewis, a big Obama supporter, are reprehensible and the idea you will compare John McCain to the kinds of hate spread in the '60s by somebody like George Wallace is outrageous. Where was John McCain when George Wallace was spreading his hate and segregationist policies at that time? He was in a Vietnam prison camp serving his country with his civil rights denied." Sen. Lindsey Graham, on CBS' Face The Nation yesterday, said, "The idea that John McCain and Sarah Palin are conducting themselves like George Wallace is just incredibly offensive." Obama campaign chief strategist David Axelrod, also on Fox News Sunday, countered, "We issued a statement right away, and said there is no comparison between George Wallace and John McCain.
Virginia GOP Chair Compares Obama To Bin Laden The Washington Post reports Del. Jeffrey Frederick, chairman of the Republican Party of Virginia, "compared" Obama to Osama bin Laden because of Obama's "past association with Bill Ayers." Virginia Democrats, and "some Republicans are outraged, saying these are the latest in a series of inflammatory statements that the GOP has made against Obama in Virginia." Frederick is quoted as saying that Obama and bin Laden "both have friends that bombed the Pentagon."
The Politico reports, "Grasping for a foothold on the economy," Sen. John McCain "plans to propose new tax cuts this week as part of an economic package designed to lure investors back to the stock market, campaign advisers said Sunday." The Wall Street Journal adds that McCain aides "said no decisions have been made about whether to propose significant new initiatives or what options would be most effective, but they said he will remain focused on the economy." USA Today notes "campaign spokesman Tucker Bounds declined to say whether the Republican nominee would make any new economic proposals during an event today in Virginia Beach.
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The AP reports Sen. John McCain "vowed Sunday to 'whip'" Sen. Barack Obama's "'you-know-what' when the two presidential candidates meet Wednesday in their final televised debate."
A separate AP story reports on Wednesday's debate, to be moderated by CBS' Bob Schieffer, who "won't telegraph what he will ask. But he said he will be seeking more details about their potential presidencies than have been evident so far. 'By now we've all heard their talking points,' he said. 'We've heard the general outlines of what they are talking about. The time has come to be a little more specific.'" On its website, Broadcasting & Cable reports that Schieffer is more likely than past moderators to preside over "at least one illuminating debate."
ABC World News reported, "Today, Hillary Clinton, who trounced" Sen. Barack Obama in Pennsylvania's Democratic primary, "campaigned for Obama with running mate Joe Biden in Biden's hometown of Scranton, where many voters have been immune to Obama's charms." The New York Times reports Biden, "sharing a stage with Bill and Hillary Rodham Clinton for the first time this year," said Sen. John McCain's campaign "was stooping to stunts and 'ugly inferences' because it was losing and was out of ideas."
The CBS Evening News adds Bill Clinton said, "Who's got the best ability to understand these challenges? Who's got the best supporting cast? The answer is Barack Obama, and that's why Hillary's here, that's why I'm here, that's why you're here." NBC Nightly News added that Hillary Clinton "claims she's doing everything she can to help the opponent she once fought so hard to defeat." She is "holding at least 50 events, raising $10 million for Obama while still burdened by some $20 million of her own campaign debt."
National tracking polls continue to show Sen. Barack Obama leading the race for the White House. On its front page, the Washington Post reports a new WPost-ABC News poll finds "Obama is leading 53 percent to 43 percent among likely voters, and for the first time in the general-election campaign, voters gave the Democrat a clear edge on tax policy and providing strong leadership." Moreover, Sen. John McCain "has made little headway in his attempts to convince voters that Obama is too 'risky' or too 'liberal.' Rather, recent strategic shifts may have hurt the Republican nominee, who now has higher negative ratings than his rival and is seen as mostly attacking his opponent rather than addressing the issues that voters care about."
Other polls show a smaller Obama lead. The Gallup daily presidential tracking poll of 2,783 registered voters taken October 6-8 shows Obama leading McCain 50%-43%. Gallup also has two likely voter models: one (based on past voting behavior and current intention to vote) shows Obama leading McCain 50%-46%, while the second (based on current intention to vote) shows Obama up 51%-45%.
The Rasmussen Reports automated daily presidential tracking poll for October 12 shows Obama leading McCain 51%-45%, the same as the previous day. The C-Span/Zogby daily presidential tracking poll of 1,206 likely voters taken October 9-12 shows Obama leading McCain by 48%-44%. The Diageo/Hotline daily presidential tracking poll of 814 likely voters taken October 9-11 shows Obama leading McCain 49%-41%.
Obama, Democrats Said Headed Toward "Landslide" Win In a story titled "Daring To Utter The 'L' Word: Obama On Track To A Landslide," McClatchy reports, "Barring a dramatic change in the political landscape over the next three weeks, Democrats appear headed toward a decisive victory on Election Day that would give them broad power over the federal government. The victory would send Barack Obama to the White House and give him larger Democratic majorities in both the House of Representatives and the Senate -- and perhaps a filibuster-proof margin there."
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Obama Up 5 In Florida A Research 2000 poll of 600 likely Florida voters taken October 6-8 for the Sun-Sentinel shows Obama leading McCain 49%-44%.
McCain Up 2 In Ohio The AP reports the Ohio Newspaper Poll of 876 likely Ohio voters taken October 4-8 shows McCain leading Obama 48%-46%.
The New York Post (10/13, Retter, 621K), in a report on the results of the Ohio Newspaper Poll, relates that the survey "found that 22 percent of Ohio voters said they are very or somewhat worried about losing their jobs. Another 18 percent are very or somewhat worried about losing their homes. Three weeks ago, the same poll had McCain leading 48-42 percent."
Obama Up 10 In Colorado A Public Policy Polling (D) poll of 1,331 likely Colorado voters taken October 8-10 shows Obama leading McCain 52%-42%.
Obama Edges McCain In Nevada A Las Vegas Review Journal poll of 625 likely Nevada voters taken October 8-9 by Mason-Dixon shows Obama leading McCain 47%-45%.
McCain Up 2 In North Carolina A WSOC-TV poll of 500 likely North Carolina voters taken October 6-7 shows McCain leading Obama 48%-46%.
Obama Holds Small Lead In North Dakota A Fargo Forum /Public Affairs Institute at Minnesota State University Moorhead poll of 606 likely North Dakota voters taken October 6-8 shows Obama leading McCain 45%-43%.
Obama Up 13 In Iowa A SurveyUSA automated poll of 692 likely Iowa voters taken October 8-9 for KAAL-TV Mason City and WHO-TV Des Moines shows Obama leading McCain 54%-41%.
Obama Up Big In California A Rasmussen Reports automated poll of 500 likely California voters taken October 9 shows Obama leading McCain 56%-40%.
Obama Holds Wide Lead In Delaware A West Chester University poll of 429 likely Delaware voters taken October 6-8 shows Obama leading McCain 56%-38%.
McCain Up 27 In Alabama A SurveyUSA automated poll of 697 likely Alabama taken October 8-9 for WKRG-TV shows McCain leading Obama 62%-35%.
In his New York Times column, conservative William Kristol writes, "It's time for John McCain to fire his campaign. He has nothing to lose." McCain's campaign, "once merely problematic, is now close to being out-and-out dysfunctional. Its combination of strategic incoherence and operational incompetence has become toxic. ... What McCain needs to do is junk the whole thing and start over. ... And let McCain go back to what he's been good at in the past -- running as a cheerful, open and accessible candidate."
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Jay Leno: "America's most famous hockey mom, Sarah Palin, will drop the ceremonial first puck at the Philadelphia Flyers game. And right afterwards she'll go down on the ice and skate around reporters' questions."
Jay Leno: "Before lawmakers in Alaska released the report on this 'Troopergate' scandal, Sarah Palin's campaign released the results of their own campaign clearing her of any wrongdoing. ... I think it's legitimate. Because apparently, Palin can see the courthouse from her front porch."
David Letterman: "Hillary Clinton is celebrating 35 years of marriage to Bill, or as Hillary likes to call it, the 'bridge to nowhere.'"
David Letterman: Sarah Palin "looks like a lady with her own line of cookies."
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