In a stop in Blue Bell, Pennsylvania, Sen. John McCain on Tuesday outlined a new economic package that includes a capital gains tax cut and changes to 401 (k) and IRA withdrawal rules. USA Today reports McCain "pitched new tax breaks and other incentives Tuesday to help investors and senior citizens," while the campaign of Barack Obama "criticized those proposals for being too limited and benefiting the wealthy." The CBS Evening News adds, "After two days of confusion over whether John McCain would offer any new economic plan this week, today in the Philadelphia suburbs he laid out a $52 billion package of proposals to help those who he said are hardest hit by the crisis." ABC World News reported, "As part of their new economic rescue plans, both candidates are focusing on the biggest victims of this crisis those in or approaching retirement, who have lost more than two trillion dollars in the last 15 months." McCain "proposed cutting the long-term capital gains tax in half, from 15% to 7.5% in 2009 and 2010." Similarly, the New York Times says "most of the benefits" of the plan "would go to older voters." The Wall Street Journal adds the new proposal "comes a day after Sen. Obama issued $60 billion of spending and tax-break proposals of his own. Both candidates' plans are in line with their parties' orthodoxy and their own prior initiatives." The New York Post notes that McCain "did not spell out how he would pay for the additional tax relief."
Fox News' Special Report adds McCain "said the plans of his opponent could be disastrous. ... McCain proposed new help for those hurt by the credit crisis and used the 'D word,' warning that Barack Obama's policies will cause a depression." McCain said, "Senator Obama is going to raise your taxes. In this economy, raising taxes is the surest way to turn a recession into a depression." The AFP adds that McCain said Obama's "'eloquent' advocacy of lower taxes for the middle class was belied by his record of voting for higher taxes."
Yesterday night and this morning stories about the liberal activist group ACORN's alleged ties to voter registration fraud migrated from local and conservative news outlets to the mainstream media though ABC World News was the only network to mention the growing controversy during its evening newscast, reporting, "There are already accusations of voter fraud. The charges made by the McCain campaign are directed at a group called ACORN. That's an association of community organizations which has been filing registrations for new voters who may not be legitimate voters at all." ABC added that McCain "attacked ACORN and tried to tie it to Barack Obama," saying, "ACORN is tampering with America's most precious right. There has to be a full and complete investigation, but it has to be immediate. Senator Obama has had relations with ACORN in the past." According to the Los Angeles Times, McCain aides "first accused ACORN of misdeeds last week. McCain upped the ante Tuesday when he called for an immediate investigation of what he described as 'voter fraud going on' in battleground states."
Obama Seeks Distance From ACORN The Washington Post says that Obama "distanced himself from" ACORN, "while also playing down the allegations of fraud that have embroiled the organization." The Politico reports Obama said, "We've got the best voter registration and turnout and volunteer operation in politics right now, and we don't need ACORN's help." The Politico notes that Obama "in the 1990s represented the group in a lawsuit, and on Tuesday, he said that 'as an elected official, I've had interactions with' the Chicago branch of the group, which he said has 'been active,' according to a pool report." USA Today adds that Obama's campaign "paid Citizens Services Inc., an ACORN affiliate, $832,000 this year for help identifying voters in the Democratic primaries."
The AP details state investigations targeting ACORN over voter fraud complaints in a number of states, including Ohio and North Carolina, while the New York Times details problems faced by the group in Washington state, and the Pittsburgh Tribune-Review examines problems faced by the group in Pennsylvania.
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Fox News' Special Report reported, "After the last debate," Sen. Barack Obama "said he was surprised that when they were face to face" Sen. John McCain "chose not to bring up Obama's relationship with '60's radical Bill Ayers." In a radio interview yesterday, McCain "said that very remark from Barack Obama 'all but ensures' it will come up" in tonight's debate at Hofstra University in Hempstead, New York. The St. Louis Post-Dispatch says, "Tonight's match-up has taken on a mano-a-mano flavor with McCain promising supporters that he will whip Obama's 'you-know-what' and Obama challenging McCain last week to 'say it to my face," regarding the McCain camp's claims that Obama's ties to Ayers raise questions about Obama's "character." However, the New York Daily News reports, "Several GOP strategists said McCain...should be focusing on the economy and his pro-choice and tax-cutting ideals, not sideshows like Ayers. 'Look, unless Ayers runs a mutual fund, I don't think most Americans care,' said GOP strategist Nelson Warfield. 'What they care about is unprecedented turmoil in the markets, and McCain needs to score points on those pocketbook issues.'"
Meanwhile, in an op-ed for the Washington Post, Newt Gingrich says McCain "has to focus on the Reid-Pelosi-Obama machine and the threats they pose to most Americans...the use of tax money to pay the liberal group ACORN, which is engaged in massive voter fraud in its registration drives in multiple states; the close ties Chris Dodd, Barack Obama and Barney Frank have to Fannie Mae and Freddie Mac; and the trillion-dollar spending increase in the Obama campaign promises. If McCain can make these facts stick, he can get back into the race."
While some polls still show a close presidential race, a number of surveys now find Barack Obama opening significant leads over John McCain.
A new CBS News/NYTimes poll of 639 likely voters taken October 10-13 gives Obama the largest lead, 53%-39%. On its front page this morning, the New York Times blames the numbers on "the McCain campaign's recent angry tone and sharply personal attacks," which "appear to have backfired and tarnished...McCain more than their intended target." Reporting on the poll, the CBS Evening News said "a record number of Americans feel the country is on the wrong track, which is clearly helping Obama among voters nationwide."
The George Washington University/Battleground tracking poll of 800 likely voters taken October 8-9 and 12-13 shows Obama leading McCain 53%-40%.
The Los Angeles Times reports on its LATimes/Bloomberg News survey of 1,030 likely voters October 10-13, which shows Obama leading 50%-41%. According to the poll, McCain "remains tethered to an unpopular president."
The Gallup daily presidential tracking poll of 2,7893 registered voters taken October 11-13 shows Obama leading McCain 51%-42% among registered voters. Gallup also has two likely voter models one (based on past voting behavior and current intention to vote) shows Obama leading McCain 51%-45%, while the second (based on current intention to vote) shows Obama up 53%-43%.
A USA Today/Gallup poll also offers results based on the two definitions of what constitutes a "likely voter." Using a "traditional" model (761 likely voters between October 10-12), Obama leads 50%-46%. However, under the "expanded" definition (1030 likely voters between October 10-12), the Illinois senator's senator grows to seven points, 52%-45%.
An Ipsos/McClatchy poll of 1,035 registered voters taken October 8-13 shows Obama in the lead 51%-42%.
The Diageo/Hotline daily presidential tracking poll of 829 likely voters taken October 11-13 shows Obama leading McCain 48%-42%, unchanged from the previous day.
The Rasmussen Reports automated daily presidential tracking poll for October 14 shows Obama leading McCain 50%-45%, the same as the previous day.
An American Research Group poll of 1,200 likely voters taken October 11-13 shows Obama leading McCain 50%-45%.
The C-Span/Zogby daily presidential tracking poll of 1,210 likely voters taken October 11-14 shows Obama leading McCain by 48%-44%.
The Investor's Business Daily /TIPP tracking poll of 825 likely voters taken October 6-12 shows Obama leading McCain 45%-43%.
Obama Up 5 In Ohio A SurveyUSA automated poll of 575 likely Ohio voters taken October 12-13 shows Obama leading McCain 50%-45%.
Obama Has Wide Lead In Pennsylvania A SurveyUSA automated poll of 516 likely Pennsylvania voters taken October 11-13 for a group of state TV stations shows Obama leading McCain 55%-40%.
Obama Edges McCain In North Carolina A Public Policy Polling (D) survey of 1,196 likely North Carolina voters taken October 11-12 shows Obama leading McCain 49%-46%, down from a 50%-44% lead last week.
Obama Tops McCain By 2 In Missouri A Public Policy Polling (D) survey of 1,009 likely Missouri voters taken October 11-12 shows Obama leading McCain 48%-46%.
Obama Up 4 In Colorado A Suffolk University poll of 600 likely Colorado voters taken October 10-13 shows Obama leading McCain 47%-43% with Bob Barr (L) taking 1% and Ralph Nader taking 2%.
Obama Up 7 In New Mexico A SurveyUSA automated poll of 568 likely New Mexico voters taken October 12-13 for KOB-TV Albuquerque shows Obama leading McCain 52%-45%.
Obama Up 16 In Washington A SurveyUSA automated poll of 544 likely Washington State voters taken October 12-13 for KING-TV and KATU-TV shows Obama leading McCain 56%-40%.
McCain Up Big In South Carolina A SurveyUSA automated poll of 561 likely South Carolina voters taken October 12-13 for WCSC-TV shows McCain leading Obama 55%-41%.
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Characterizations of the banking bailout unveiled yesterday generally cast it as a repudiation of the Republican free market ideology. The Christian Science Monitor says the plan means "a Republican administration in essence may have opted for a New New Deal, intervening in private markets to an extent not seen since the days of the Great Depression." The CBS Evening News reported, "With an air of resignation, the government threw out the free market playbook," and the Los Angeles Times describes the new Administration plan as "a dramatic reversal of course for the Bush administration and a departure from the Republican Party's strong free-market philosophy." McClatchy, in a dispatch titled "It's Goodbye To The Reagan Era As Feds Buy Stakes In Banks," calls it "a momentous shift away from a 30-year effort to get government out of business's way and opened the door to a new era of government engagement with business in ways that are only starting to unfold." The Wall Street Journal reports that "upending the government's relationship with the financial sector, the Bush administration outlined a plan Tuesday to prop up banks by injecting $250 billion into US financial institutions, including nine of the nation's largest banks, and to guarantee new debt issues and deposit accounts used by businesses."
The nature of the plan left Treasury Secretary Henry Paulson on the defensive. Paulson told the Financial Times that "the rescue plan unveiled by the US authorities to protect the nation's banks represents 'a major step towards stabilising the system,'" where "for the first time you have seen an action that is systematic, that is getting at the root causes" of the crisis. Fox News' Special Report, meanwhile, noted Paulson saying during his morning appearance that "the Administration regrets having to take these actions." Paulson: "Government owning a stake in any private US company is objectionable to most Americans, me included. Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable."
Interviewed by the Wall Street Journal, Paulson said, "What we are doing is making clear to" banks "how important it is to deploy the capital. I believe that the most you can do to encourage the capital be used is first of all make sure there's plenty of it and so that they're well capitalized and so secondly have there be enough confidence in the system...that they feel secure and if banks feel secure and if their investors feel secure and they are well capitalized they will make loans."
The Wall Street Journal says for Mr. Paulson, "who had spent a career as an investment banker, the decision marked a reversal. Just weeks earlier, he had said that injecting capital directly into banks would appear to be a sign of 'failure.'" Yesterday, the Financial Times reports, Federal Reserve Chairman Ben Bernanke said that "even the massive intervention announced on Tuesday may not be the final word."
Reporting yesterday also demonstrated a consensus that the partial nationalization was necessary. USA Today reports that "credit markets had become so tight that some businesses have been unable to secure financing for more than a few days. Fully 117 US banks are in danger of failure, according to the government." A number of media reports cautiously suggest the Administration's plan may help stabilize the financial markets, but that it is unlikely to stave off a recession. The Financial Times says "the world banking system showed signs of pulling back from the brink of disaster," while the AP also reports "some early signs were hopeful for the latest in a flurry of radical efforts to save the nation's financial system: Credit was a bit easier to come by." The Wall Street Journal says "analysts, investors and some bankers applauded the government rescue," while the NBC Nightly News said "there are signs that money is slowly starting to flow again."
ABC World News said that "even if the tide is turning on the financial crisis, and many think it is, the economy has taken a pounding, and a recession is in the cards." The CBS Evening News similarly reported that "even if" the Administration's plan "thaws the credit markets, it may be too late to help the economy." The story was also reported by the New York Times, the Los Angeles Times, the AP, and The Politico.
Obama, McCain Offer Qualified Endorsement Of Bank Bailout The Wall Street Journal reports Sens. Barack Obama and John McCain "each said Tuesday that he would put his own stamp on the massive financial-rescue plan, going beyond buying up bank stocks and distressed assets to exert influence on how the firms are structured and managed." McCain "told voters in Pennsylvania that his administration would 'require that those companies be reformed and restructured until they are sound assets again, and can be sold at no loss -- or perhaps even a profit -- to the taxpayers of America.' But he also suggested he would try to end the program soon." NBC Nightly News reported Obama "said he agreed with the Fed's decision to inject capital directly into banks just the way John McCain did. But he offered one caveat to that proposal." Sen. Obama: "If we are just giving them money but we're not making sure that they are curbing some of the excessive risks that got us into this mess in the first place, then we are just continuing the same philosophy that has failed the American people so badly."
Stocks Show "Moderate" Losses The AP reports, "Wall Street ended a relatively calm session with a moderate loss Tuesday." The Dow "fell 76.62, or 0.82 percent, to 9,310.99. Broader stock indicators also declined. The S&P 500 index fell 5.34, or 0.53 percent, to 998.01, and the Nasdaq fell 65.24, or 3.54 percent, to 1,779.01."
The consequences of the current financial crisis and its legislative remedies are already being felt in the government's books. The AP reports the Federal budget "deficit soared to $454.8 billion in 2008 as a housing collapse and efforts to combat the economic slowdown pushed the tide of government red ink to the highest level in history." The new figures "surpassed the previous record of $413 billion set in 2004," and "some analysts believe that next year's deficit could easily top $700 billion, giving the next president a formidable challenge." The Los Angeles Times reports the "final accounting for fiscal 2008 produced a larger shortfall than had been projected, reflecting the start of federal efforts to address the economic emergency. It is certain to become a significant issue in the campaign, confronting the candidates with new questions about their growing slate of proposals for new spending and tax cuts at a time when red ink is surging."
The Wall Street Journal (10/15, McKinnon) reports, "Some private economists put the 2009 deficit at as much as $1 trillion. On Tuesday, the White House budget office said the hole will look much deeper because accounting rules will force the administration to include all $250 billion of its bank recapitalization plan in the annual deficit as well." The Washington Post also runs the AP story.
The success of the US military's surge strategy has prompted insurgents to seek territory more amenable to their goals, particularly Afghanistan. The New York Times reports, "American military successes in Iraq have prompted growing numbers of well-trained 'foreign fighters' to join the insurgency in Afghanistan instead," Afghan Defense Minister Gen. Abdul Rahim Wardak said.
US Intel Warns Pakistan "On The Edge" McClatchy reports that a "soon-to-be completed US intelligence assessment" concludes that "a growing al Qaeda-backed insurgency, combined with the Pakistani army's reluctance to launch an all-out crackdown, political infighting and energy and food shortages are plunging America's key ally in the war on terror deeper into turmoil and violence." A US official "who participated in drafting the top secret National Intelligence Estimate said it portrays the situation in Pakistan as 'very bad,'" while "another official called the draft 'very bleak,' and said it describes Pakistan as being 'on the edge.'"
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Jay Leno: "More charges of voter registration fraud with this group ACORN. ... This is turning into a huge scandal. Apparently, this group has been charged with putting a lot of phony names on voter registration cards, including Mickey Mouse. Mickey Mouse was registered to vote in Florida. Is that so bad? I mean, Goofy's been President for the last eight years."
Jay Leno: "Barack Obama...says that both men and women should have to register for the draft. ... The first woman he wants signed up, Sarah Palin."
Jay Leno: "Yesterday," at "a rally in Virginia, they played the theme to 'Rocky' as John McCain walked out on stage." Does John McCain "look like Rocky to you? Doesn't he look more like the Burgess Meredith character?"
David Letterman: "Tomorrow night is the final presidential debate," and "John McCain is going to take this opportunity to unveil his new campaign persona, his new campaign personality, to really energize the last couple of weeks of the campaign: Fighting underdog. ... And if that doesn't work, then he's going to go to sadistic yard bull."
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