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Home > Window on Washington > Archives > 2008 > September
September 2008
Paulson meets with Bush
Treasury Secretary Henry Paulson outside West Wing after discussions with President Bush in the wake of House rejection of the administration-supported economic bailout package.
Video above.
Text below.
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PAULSON: I’m very disappointed in today’s vote, but leaders on both sides of the aisle have worked very hard. I’ve spoken to them, and I know they share my great disappointment. We’ve experienced significant turmoil in our financial markets in the last few days, including the collapse of Washington Mutual and Wachovia here and the failure of two major financial institutions in Europe.
Markets around the world are under stress, and that reduces the availability of credit that businesses across America depend on to meet payroll and to purchase inventories.
Families, too, feel the credit crunch, as it becomes more difficult to get car loans or a student loan.
I and my colleagues at the Fed and the SEC continue to address the market challenges we are facing on a daily basis. I am committed to continue to work with my fellow regulators to use all the tools available to protect our financial system and our economy.
Our toolkit is substantial, but insufficient. Therefore, I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy.
We’ve got much work to do, and this is much too important to simply let fail.
QUESTION: How long do you estimate it will take, if there is still no congressional action, before the country starts to slip into what the president calls a long and painful recession?
PAULSON: Well, we need to work as quickly as possible. We need to get something done. And I’m going to be continuing to consult with congressional leaders to find the way forward to get something done as soon as possible. We need to get something done.
QUESTION: Do you still think you can put something close to your original plan back together?
PAULSON: We need to put something back together that works. And as you’ve heard me say, we believe that our plan and the plan that we developed with the congressional leaders and worked so hard is a plan that works. And we need a plan that works.
QUESTION: How soon do you need it, sir?
PAULSON: We need it as soon as possible. And we’re just committed to working with congressional leaders to get it done.
QUESTION: What would you like to see?
PAULSON: We had a plan that we’d worked very hard on that did the job, gave us the tools we needed to protect the financial markets, to protect the American people.
So where we go from here is something we’re going to be working on with congressional leaders, because we need to get something done, and we’re going to be working hard on it.
One more question.
QUESTION: Is the banking system able to withstand this stress it’s under right now?
PAULSON: Our banking system has been holding up very well, considering all of the pressures, and there’s been a lot of work that’s been done.
And you’ve seen us now for a period of months and weeks taking strong actions and actions that are essential in order to protect the banking system and the economy.
And as I’ve said to you, we have significant tools in our toolkit, but they’re not sufficient. And so we’re going to continue to work with what we have until we get from Congress what we need.
Thank you very much.
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All seven Georgia Republicans reject bailout plan
WASHINGTON—All seven of Georgia’s Republican House members joined all but two of the Democrats Monday in voting against the Bush administration’s $700 billion plan to shore up the nation’s financial markets.
Rep. Jim Marshall of Macon, a Democrat who said he was willing to back the unpopular package even if it meant losing his seat in November, joined Rep. Sanford Bishop, D-Albany, in voting yes.
The proposal went down by a surprise 228-205 margin after Republicans refused to back their party leadership.
“Our leadership weren’t elected by the people of our districts,” said Rep. Phil Gingrey, R-Marietta, who received a call from the Republican House leaders a few minutes before he voted against the proposal.
Gingrey and the other Georgia lawmakers have received a torrent of emails and phone calls from angry voters urging them to oppose what many considered a taxpayers’ bailout for firms that were guilty of greed or worse.
Rep. Tom Price, R-Roswell, blamed a “lack of leadership” by House Speaker Nancy Pelosi, D-Calif., for the failure to pass a rescue plan. Price said it would have received “overwhelming support” if it had included more protections for taxpayers, embraced private enterprise solutions and had a clear “exit” policy for ending the program.
Price said he expected the House would try again “later this week.” The House adjourned for the Jewish new year’s holiday but could be recalled at any time by the speaker.
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Georgia Republicans plan ‘no’ vote on bailout
With the world and their constituents waiting to see how lawmakers would vote on the $700 billion bailout bill for the financial markets, Georgia Republicans in the House were poised Monday to “just say no” to their party leaders and the president.
After a meeting Sunday evening in the office of Rep. Phil Gringrey of Marietta, aides said the members were leaning heavily against the bailout. Rep. Lynn Westmoreland of Grantville took the House floor Monday morning to denounce the bill as too rushed.
“You cannot do this type of buyout — bailout of $700 billion without adequate hearings, without hearing other alternatives,” Westmoreland said.
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Bush on bailout
Above: Amid the clatter of cameras at the White House, President Bush pitches the economic bailout bill.
Below: The transcript, not including the questions he ignored (see video above to hear them):
Good morning. Yesterday, leaders here in Washington reached an extraordinary agreement to deal with an extraordinary problem in our economy. Working closely with my administration, congressional leaders from both parties produced the Emergency Economic Stabilization Act - a bold bill that will help keep the crisis in our financial system from spreading throughout our economy.
This legislation deals with complex issues, and negotiators were asked to address them in a very short period of time. I appreciate the leadership of members on both sides of the aisle, who came together when our nation was counting on them. Negotiations are sometimes difficult, but their hard work and cooperation paid off.
The bipartisan economic rescue plan addresses the root cause of the financial crisis - the assets related to home mortgages that have lost value during the housing decline. Under the Emergency Economic Stabilization Act, the federal government will be authorized to purchase these assets from banks and other financial institutions, which will help free them to resume lending to businesses and consumers.
The bill also includes other important ideas put forward by members of Congress from both parties. For example, the bill requires the establishment of a guarantee program that will insure assets at no cost to the taxpayer. The bill provides strong, bipartisan oversight so Americans can be certain that their tax dollars are used carefully and wisely. The bill ensures that failed executives do not receive a windfall from your tax dollars.
With this strong and decisive legislation, we will help restart the flow of credit, so American families can meet their daily needs and American businesses can make purchases, ship goods, and meet their payrolls. We’ll make clear that the United States is serious about restoring confidence and stability in our financial system.
I know many Americans are worried about the cost of the bill, and I understand their concern. This bill commits up to 700 billion taxpayer dollars, because a large amount of money is necessary to have an impact on our financial system. However, both the non-partisan Congressional Budget Office and the Office of Management and Budget expect that the ultimate cost to the taxpayer will be far less than that. In fact, we expect that over time, much - if not all - of the tax dollars we invest will be paid back.
Now that this legislation has been agreed to by leaders of both parties, it must be passed by houses - both houses of Congress. And I fully understand that this will be a difficult vote. But with the improvements made to this bill, I’m confident that members of both parties will support it. Congress can send a strong signal to markets at home and abroad by passing this bill promptly. Every member of Congress and every American should keep in mind: A vote for this bill is a vote to prevent economic damage to you and your community.
This has been a volatile time for our financial system and our economy. Even with the important steps we’re taking to address the current crisis, we will continue to face serious challenges. The impact of the credit crisis and the housing correction will continue to pressure our financial system and impact the growth of our economy for some time. But I’m confident that this rescue plan - along with other measures taken by the Treasury Department and the Federal Reserve - will begin to restore strength and stability to America’s financial system and overall economy. And I’m confident that in the long run, America will overcome these challenges and remain the most dynamic and productive economy in the world.
Thank you.
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Signs of the South, Part One
Church sign across the street from the Tupelo, Mississippi home in which Elvis was born.
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Signs of the South, Part Two
How’d you like to run against a guy named Adams for mayor of Adamsville, Alabama? (And his dad is a former mayor).
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Confederate flag flap at debate site
An attempt to display the Confederate flag outside the presidential debate site sparked some angry words
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The debate scene in Oxford
The scene outside the presidential debate in Oxford, Mississippi
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Mississippi governor: Glad McCain showed up
Mississippi Gov. Haley Barbour on presidential debate in his state.
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McCain’s debate RSVP: Mac is back
Better late than never, here’s the announcement that means John McCain is showing up for tonight’s presidential debate in Oxford, Mississippi:
‘John McCain’s decision to suspend his campaign was made in the hopes that politics could be set aside to address our economic crisis. In response, Americans saw a familiar spectacle in Washington. At a moment of crisis that threatened the economic security of American families, Washington played the blame game rather than work together to find a solution that would avert a collapse of financial markets without squandering hundreds of billions of taxpayers’ money to bailout bankers and brokers who bet their fortunes on unsafe lending practices.”
“Both parties in both houses of Congress and the administration needed to come together to find a solution that would deserve the trust of the American people. And while there were attempts to do that, much of yesterday was spent fighting over who would get the credit for a deal and who would get the blame for failure. There was no deal or offer yesterday that had a majority of support in Congress.”
“There was no deal yesterday that included adequate protections for the taxpayers. It is not enough to cut deals behind closed doors and then try to force it on the rest of Congress - especially when it amounts to thousands of dollars for every American family.”
“The difference between Barack Obama and John McCain was apparent during the White House meeting yesterday where Barack Obama’s priority was political posturing in his opening monologue defending the package as it stands. John McCain listened to all sides so he could help focus the debate on finding a bipartisan resolution that is in the interest of taxpayers and homeowners. The Democratic interests stood together in opposition to an agreement that would accommodate additional taxpayer protections.”
“Senator McCain has spent the morning talking to members of the Administration, members of the Senate, and members of the House. He is optimistic that there has been significant progress toward a bipartisan agreement now that there is a framework for all parties to be represented in negotiations, including Representative Blunt as a designated negotiator for House Republicans.”
“The McCain campaign is resuming all activities and the senator will travel to the debate this afternoon. Following the debate, he will return to Washington to ensure that all voices and interests are represented in the final agreement, especially those of taxpayers and homeowners.”
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No deal
Here’s Sen. Richard Shelby, R-Alabama, emerging from the West Wing on Thursday to announce there was no agreement on the bailout measure pushed by President Bush.
Earlier in the day, Democratic and GOP congressional leaders said there was an agreement.
No, says Shelby.
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Republicans Building Jewish Support
Barack Obama is enjoying far less support from Jewish voters than previous Democratic candidates, according to a poll released Thursday by the American Jewish Committee.
The poll shows the Illinois senator leading 57 to 30 percent among Jewish voters, with 13 percent still undecided. If those numbers remain steady through election day, Obama will have won fewer Jewish votes than any Democratic candidate since Jimmy Carter in 1980.
Sen. John Kerry, D-Mass., won 78 percent of the Jewish vote in the 2004 presidential election, according National Election Pool exit polls.
The AJC poll shows that Jews are still a reliably Democratic voting base: On issues like support for Israel and energy independence, Jewish voters prefer Democrats by a margin of at least 20 percentage points.
However, Republicans have sought to make inroads in the Jewish community by portraying Obama as softer on terrorism and more likely to make concessions to Iran. Ads produced by the Republican Jewish Coalition say his foreign policy is “naive and dangerous.”
It remains to be seen if John McCain, who has been touting his foreign policy experience, will be able to capitalize on uncertainty over Obama this November.
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Reid picks a number, any number
At a 12:15 p.m. EDT briefing with reporters on Thursday, Senate Democratic leaders said the crafting of a financial-sector bailout bill was nearly finished. But they would not release specifics, saying some details were still being negotiated.
While they had little to say about the bailout’s provisions, the Democrats did have plenty of comments to make about presidential candidate Sen. John McCain, the Arizona Republican who has been largely absent this year. Senate Majority Leader Harry Reid, D-Nev., said it was “stunning” to hear McCain announce he’d return to the Hill to help out — now that the bailout legislation is done.
Reid did say Democrats want legislation that would allow bankruptcy judges to rewrite mortgages to ease the burden on struggling home owners. He then gave an example of how the law currently works in favor of wealthier people who own more than one home. His example involved a family that owns seven homes.
“I just happened to pick seven out of the air,” Reid said. He did not mention that last month during an interview, McCain said he was unsure of how many houses the owns. The total is seven.
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Perino: No politics in bailout meeting
White House Press Secretary sets up today’s meeting involving President Bush, presidential candidates Barack Obama and John McCain, and congressional leaders.
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Not so great expectations
On Wednesday, about an hour before John McCain called for postponement of the Friday debate, his campaign’s political director Mike DuHaime said this at a lunch with Washington reporters:
“We know Senator Obama is a phenomenal debater. I mean he is somebody who is one of the most gifted orators that we’ve seen. We understand he is very good at this. He is good at speaking. He is somebody who speaks very well. So we know that. Senator McCain does not have that same reputation as a debater, but I think his message will come across as somebody who is sincere and certainly has, I would say, a greater knowledge of the issues and I think that will come across.”
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Bush speech
Here’s the text of President Bush’s speech from the White House on Wednesday night:
Good evening. This is an extraordinary period for America’s economy.
Over the past few weeks, many Americans have felt anxiety about their finances and their future. I understand their worry and their frustration.
We’ve seen triple-digit swings in the stock market. Major financial institutions have teetered on the edge of collapse, and some have failed. As uncertainty has grown, many banks have restricted lending, credit markets have frozen, and families and businesses have found it harder to borrow money.
We’re in the midst of a serious financial crisis, and the federal government is responding with decisive action.
We boosted confidence in money market mutual funds and acted to prevent major investors from intentionally driving down stocks for their own personal gain.
Most importantly, my administration is working with Congress to address the root cause behind much of the instability in our markets.
Financial assets related to home mortgages have lost value during the house decline, and the banks holding these assets have restricted credit. As a result, our entire economy is in danger.
So I propose that the federal government reduce the risk posed by these troubled assets and supply urgently needed money so banks and other financial institutions can avoid collapse and resume lending.
This rescue effort is not aimed at preserving any individual company or industry. It is aimed at preserving America’s overall economy.
It will help American consumers and businesses get credit to meet their daily needs and create jobs. And it will help send a signal to markets around the world that America’s financial system is back on track.
I know many Americans have questions tonight: How did we reach this point in our economy? How will the solution I propose work? And what does this mean for your financial future?
These are good questions, and they deserve clear answers.
First, how did our economy reach this point? Well, most economists agree that the problems we’re witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad because our country is an attractive and secure place to do business.
This large influx of money to U.S. banks and financial institutions, along with low interest rates, made it easier for Americans to get credit. These developments allowed more families to borrow money for cars, and homes, and college tuition, some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.
Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit, combined with the faulty assumption that home values would continue to rise, led to excesses and bad decisions.
Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.
Optimism about housing values also led to a boom in home construction. Eventually, the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell, and this created a problem.
Borrowers with adjustable-rate mortgages, who had been planning to sell or refinance their homes at a higher price, were stuck with homes worth less than expected, along with mortgage payments they could not afford.
As a result, many mortgage-holders began to default. These widespread defaults had effects far beyond the housing market.
See, in today’s mortgage industry, home loans are often packaged together and converted into financial products called mortgage-backed securities. These securities were sold to investors around the world.
Many investors assumed these securities were trustworthy and asked few questions about their actual value. Two of the leading purchasers of mortgage-backed securities were Fannie Mae and Freddie Mac.
Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk.
The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses.
Before long, these securities became so unreliable that they were not being bought or sold. Investment banks, such as Bear Stearns and Lehman Brothers, found themselves saddled with large amounts of assets they could not sell. They ran out of money needed to meet their immediate obligations, and they faced imminent collapse.
Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt.
With the situation becoming more precarious by the day, I faced a choice, to step in with dramatic government action or to stand back and allow the irresponsible actions of some to undermine the financial security of all.
I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business. Under normal circumstances, I would have followed this course. But these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence, and major sectors of America’s financial system are at risk of shutting down.
The government’s top economic experts warn that, without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.
More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically.
And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs.
Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession.
Fellow citizens, we must not let this happen. I appreciate the work of leaders from both parties in both houses of Congress to address this problem and to make improvements to the proposal my administration sent to them.
There is a spirit of cooperation between Democrats and Republicans and between Congress and this administration. In that spirit, I’ve invited Senators McCain and Obama to join congressional leaders of both parties at the White House tomorrow to help speed our discussions toward a bipartisan bill.
I know that an economic rescue package will present a tough vote for many members of Congress. It is difficult to pass a bill that commits so much of the taxpayers’ hard-earned money.
I also understand the frustration of responsible Americans who pay their mortgages on time, file their tax returns every April 15th, and are reluctant to pay the cost of excesses on Wall Street.
But given the situation we are facing, not passing a bill now would cost these Americans much more later.
Many Americans are asking, how would a rescue plan work? After much discussion, there’s now widespread agreement on the principles such a plan would include.
It would remove the risk posed by the troubled assets, including mortgage-backed securities, now clogging the financial system. This would free banks to resume the flow of credit to American families and businesses.
Any rescue plan should also be designed to ensure that taxpayers are protected. It should welcome the participation of financial institutions, large and small. It should make certain that failed executives do not receive a windfall from your tax dollars.
It should establish a bipartisan board to oversee the plan’s implementation, and it should be enacted as soon as possible.
In close consultation with Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox, I announced a plan on Friday.
First, the plan is big enough to solve a serious problem. Under our proposal, the federal government would put up to $700 billion taxpayer dollars on the line to purchase troubled assets that are clogging the financial system.
In the short term, this will free up banks to resume the flow of credit to American families and businesses, and this will help our economy grow.
Second, as markets have lost confidence in mortgage-backed securities, their prices have dropped sharply, yet the value of many of these assets will likely be higher than their current price, because the vast majority of Americans will ultimately pay off their mortgages.
The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal.
And when that happens, money will flow back to the Treasury as these assets are sold, and we expect that much, if not all, of the tax dollars we invest will be paid back.
The final question is, what does this mean for your economic future? Well, the primary steps — purpose of the steps I’ve outlined tonight is to safeguard the financial security of American workers, and families, and small businesses. The federal government also continues to enforce laws and regulations protecting your money.
The Treasury Department recently offered government insurance for money market mutual funds. And through the FDIC, every savings account, checking account, and certificate of deposit is insured by the federal government for up to $100,000.
The FDIC has been in existence for 75 years, and no one has ever lost a penny on an insured deposit, and this will not change.
Once this crisis is resolved, there will be time to update our financial regulatory structures. Our 21st-century global economy remains regulated largely by outdated 20th-century laws.
Recently, we’ve seen how one company can grow so large that its failure jeopardizes the entire financial system.
Earlier this year, Secretary Paulson proposed a blueprint that would modernize our financial regulations. For example, the Federal Reserve would be authorized to take a closer look at the operations of companies across the financial spectrum and ensure that their practices do not threaten overall financial stability.
There are other good ideas, and members of Congress should consider them. As they do, they must ensure that efforts to regulate Wall Street do not end up hampering our economy’s ability to grow.
In the long run, Americans have good reason to be confident in our economic strength. Despite corrections in the marketplace and instances of abuse, democratic capitalism is the best system ever devised.
It has unleashed the talents and the productivity and entrepreneurial spirit of our citizens. It has made this country the best place in the world to invest and do business. And it gives our economy the flexibility and resilience to absorb shocks, adjust, and bounce back.
Our economy is facing a moment of great challenge, but we’ve overcome tough challenges before, and we will overcome this one.
I know that Americans sometimes get discouraged by the tone in Washington and the seemingly endless partisan struggles, yet history has shown that, in times of real trial, elected officials rise to the occasion.
And together we will show the world once again what kind of country America is: a nation that tackles problems head on, where leaders come together to meet great tests, and where people of every background can work hard, develop their talents, and realize their dreams.
Thank you for listening. May God bless you.
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Pro gun crowd likes Democratic Rep. Barrow
The NRA’s Political Victory Fund awarded Barrow an “A” rating, said in a letter that he had “consistently supported the constitutional rights of law-abiding gun owners and sportsmen,” and urged his reelection.
Barrow, long cited by Georgia Republicans as a prime target for defeat, said he was “proud” to have the NRA backing “because they stand by the Second Amendment, and so do I.”
It was the first time Barrow has been endorsed by the NRA.
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Last bank left standing
House Financial Services Committee Chairman Barney Frank, D-Mass., speaking Friday at an AARP forum, said that with Bank of America scooping up so many other financial institutions, it may soon need a name change.
He suggested: The Only Bank of America.
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Bush on economy
President Bush this morning ended two days of public silence on the economy.
Here’s what he said outside the Oval Office after meeting with advisers. Note the lack of any reference to the economy as fundamentally sound.
“The American people are concerned about the situation in our financial markets and our economy, and I share their concerns.”
“I’ve canceled my travel today to stay in Washington where I’ll continue to closely monitor the situation in our financial markets and consult with my economic advisers. Spoke to Secretary Paulson this morning, and I will meet with him later on today.”
“In recent weeks, the federal government has taken extraordinary measures to address the challenges confronting our financial markets. We’ve taken control of Fannie Mae and Freddie Mac, the home finance agencies, to help promote market stability and to ensure they can continue to play a role in helping our housing market recover.”
“This week the Federal Reserve acted to prevent the disorderly failure of the insurance company AIG, a development that could have caused a severe disruption in our financial markets and threatened other sectors of the economy.”
“Yesterday, the Security and Exchange Commission took action to strengthen investor protections and step up its enforcement actions against illegal market manipulation.”
“Last night, the Federal Reserve, in coordination with central banks around the world, took a substantial step to provide additional liquidity to the U.S. financial system.”
“These actions are necessary and they’re important, and the markets are adjusting to them. Our financial markets continue to deal with serious challenges.”
“As our recent actions demonstrate, my administration is focused on meeting these challenges. The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence. Thank you.”
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Meeting keeps McCaul from energy vote
The U.S. House approved legislation late Tuesday to expand offshore oil drilling, but Republicans said the plan did too little to increase domestic oil supplies.
The legislation would open waters 50 miles off the Pacific and Atlantic coasts to oil and natural gas development — if the adjacent states agree to go along. The bill, which Democrats largely supported and Republicans largely opposed, now moves to the Senate, where changes are expected.
The House defeated an effort by Republicans to replace the energy measure with an alternative bill sponsored by Reps. John Peterson, R-Penn., and Neil Abercrombie, D-Hawaii, that would have allowed more drilling than the plan approved by the House.
The Peterson-Abercrombie plan “does do all of the above,” Minority Leader John Boehner, R-Ohio, said, citing provisions that allow more drilling while promoting nuclear energy, renewable-energy incentives and so-called clean coal technology.
U.S. Rep. Michael McCaul, R-Austin, has for months called for an “all-of-the-above” approach, and at several points during the congressional recess in August he criticized House Speaker Nancy Pelosi for not allowing an up-or-down vote on such a plan. At one point he collected gas receipts from constituents and delivered them to Pelosi’s office.
But when the House voted on whether to consider the Peterson-Abercrombie measure, McCaul missed the vote.
McCaul just missed the vote because he was returning from a meeting with representatives of the Texas Automobile Dealers Association, McCaul spokesman Mike Rosen said.
“He fully intended to vote in favor,” Rosen said.
Members of Congress often leave the House floor for meetings between votes, and McCaul’s vote alone would not have changed the fate of the Peterson-Abercrombie plan.
McCaul voted against the Democrat-backed proposal that eventually passed. Also voting against it were Reps. John Carter, R-Round Rock, and Lamar Smith, R-San Antonio.
Republicans criticized the Democratic plan because it would not share royalties from energy production with the adjacent states.
“Democrats know that states will have no incentive to opt-in if they don’t get to participate in the revenues,” McCaul said. “Democrats are cynically attempting to convince Americans they now support new exploration.”
The Democratic bill would roll back nearly $18 billion in tax breaks over 10 years for the five largest oil companies, using that revenue for tax incentives to help commercialize alternative energy such as solar, wind and biomass, and programs that foster energy efficiency.
The bill also would require the president to make available oil from the government’s Strategic Petroleum Reserve, and it would require utilities nationwide to generate 15 percent of their electricity from solar, wind or other alternative energy sources.
Rep. Lloyd Doggett, D-Austin, supported the bill and said it contains several renewable-energy provisions that he supported, including consumer tax credits for plug-in hybrid cars.
“It represents a comprehensive, bipartisan response to our energy needs, including opening for drilling over 300 million new acres immediately and another 85 million acres upon state approval,” Doggett said. “It represents meaningful action, not more election-year gimmickry and much more than the Republicans accomplished during their dozen years of House control.”
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Bush: “I’m old.”
Some interesting Oval Office back and forth today between a reporter who wanted to ask a question and a president who didn’t want to answer one.
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Pooling POTUS and Petraeus in the Oval Office
President Bush met with Gen. David Petraeus today in the Oval Office. After the session, the press pool was ushered in — and ushered out before any questions could be asked or answered — for a brief comment from the president and a briefer one from the general.
For the second day in a row, Bush is saying nothing publicly about the nation’s economic woes.
Says press secretary Dana Perino:
“There are times, believe it or not, when policymakers actually need to, like, work on making some policy. Everyone was very busy yesterday making sure that all the i’s were dotted and t’s were crossed before they moved forward with action last night. So you didn’t hear from the president yesterday. I will keep you as updated as I possibly can. I don’t expect you’ll hear from the president today on this, either.”
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Barr Files Suit To Remove Obama And McCain From Texas Ballot
Libertarian presidential nominee Bob Barr’s campaign filed suit Tuesday seeking to remove Republican John McCain and Democrat Barack Obama from the ballot in Texas, alleging that the two major candidates missed the deadline for officially filing to be on the ballot.
The lawsuit by the former Republican congressman from Georgia claims that neither McCain nor Obama met the requirement of Texas law that all candidates provide “written certification” of their nomination “before 5 p.m. on the 70th day before election day” because neither had been formally nominated by their respective parties in time.
That would have been Aug. 25. Obama did not accept his party’s nomination until Aug. 28, McCain his on Sept. 4.
The lawsuit states: “The hubris of the major parties has risen to such a level that they do not believe that the election laws of the State of Texas apply to them.”
Pat Dixon, chairman of the Texas Libertarian Party, issued a statement saying, “Libertarian principles require personal responsibility for your acts and failures. Obama and McCain failed to meet the deadlines. They must follow the law like everyone else.”
Barr first raised the issue in a press release earlier this month. Ashley Burton, a spokesperson for the Texas Secretary of State’s office, responded at that time, saying, “Both parties made filings with our office before the deadline, supplemented their filings and will be on the November ballot.”
Barr plans to hold a news conference at the Texas Supreme Court on Thursday.
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Bush goes mum on economy
A day after making a Rose Garden statement on the economy, President Bush opted not to comment today.
Prior to Bush’s session today with his working group on financial markets (a panel that includes the chairs of the Federal Reserve Board, the Securities and Exchange Commission, and the Commodity Futures Trading Commission), spokesman Tony Fratto said, “We decided it would be best to limit public comment about markets today, and so there will not be press coverage of the president’s working group meeting this afternoon. The president looks forward to the briefing by the working group.”
After the meeting, this from White House Press Secretary Dana Perino: “The president was briefed this afternoon by his working group on financial markets. He appreciates their work to strengthen and stabilize the markets.”
Wall Street reaction to the day’s events: The Dow closed up about 140 points.
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Rove: McCain now leads in electoral votes
Karl Rove says Republican John McCain now leads Democrat Barack Obama in electoral votes for the first time since early June. It’s a one-vote edge — 227-226 — with 85 still in the toss-up column, according to Rove.
The former longtime Bush adviser comes upon his numbers by calculating “the average of all public telephone polls taken within 14 days of the most recent poll available in each state.”
McCain took the lead as a result of polls that put Florida’s 27 electoral votes in his column, according to Rove’s math. He also noted that McCain is within striking distance of moving Minnesota (10 electoral votes) and Washington (11 EVs) out of Obama’s column and into the toss-up category.
A Roverian caveat: “McCain’s lead may be a result of his convention bounce or it may be a sign of real progress — only time will tell.”
See Rove’s map here
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Five minutes with Treasury Secretary Paulson
Some lively exchanges as Treasury Secretary Henry Paulson dropped by the White House Briefing Room to answer reporters’ questions about the economic woes du jour.
Highlights above.
The short version: All is not well but please don’t panic.
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Tricks of the trade
Best reason to attend Rose Garden events: Close contact with big-time officials you’d like to interview.
Listen as April Ryan of American Urban Radio Networks chats up Secretary of State Condoleezza Rice during a Rose Garden event today.
Says Ms. Ryan: “I would like to do an interview with you soon.”
Says Ms. Rice: “We’ll get it done before we’re done.”
Says Ms. Ryan: “Please.”
Says Ms. Rice: “Really. We will. Absolutely.”
Says Ms. Ryan: “OK. Take care.”
And now it’s on the record, YouTube-style.
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Bush on Ike
President Bush at White House today after briefing on Hurricane Ike:
“We obviously watch this recovery very carefully because the federal government is playing a critical role in helping the people of the devastated areas recover. We’re working closely with the state and local authorities on a variety of subjects.”
“Recently I was informed that there are going to a - numerous points of distribution for food, water and ice throughout Harris County to help the people there adjust.”
“Obviously, until electricity is full restored people are going to need help with water, food and ice.”
“There’s some good news on electricity. Electricity is beginning to be restored. Obviously, there’s a lot more houses and folks that are waiting for electricity. But people are working hard. There’s crews coming in from around the country to help.”
“The energy situation is one that’s of concern. Our drivers, our folks at the pump are going to have to expect some upward pressure on price because the storm disrupted the supply of gasoline as a result of shutting down refineries and pipelines.”
“Now, two - the two major pipelines are up and running, which is positive news. It happened quicker than we thought it could happen. Yet, until those refineries get up and running full blast, those pipelines are going to be looking for, you know, product.”
“And so there’s going to be a pinch. I wish it wasn’t the case, but it is.”
“On the other hand, if the pinch is too hard, if people think they’re being treated unfairly, they need to get on the Department of Energy Web site, because there’s - or the FTC Web site - and make their complaints known.”
“The storm was - you know, damaged a lot of infrastructure, but, truthfully, it was not as bad as some predicted that it would be on the energy sector.”
“I’m going down tomorrow. I’m looking forward to going down. Members of my administration will be going down. We’re looking forward to hearing from, you know, the local folks. I’m confident there’ll be people that are very frustrated because their lives have been severely affected by this storm. And my message will be that, ‘We hear you and we’ll work as hard and fast we can to help you get your lives back up to normal.’”
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Bush on economy
Here’s what it looked like this morning as Bush viewed the economy through a Rose Garden perspective. (And stay tuned until the end when Ghana President John Kufuor, visiting the White House today, reminds Bush “that we must learn to sail together or perhaps we sink together.”)
Here’s what Bush said:
“I know Americans are concerned about the adjustments that are taking place in our financial markets. At the White House and throughout my administration we’re focused on them, and we’re working to reduce disruptions and minimize the impact of these financial market developments on the broader economy.”
“I’ve been in close touch with Secretary Paulson throughout this weekend and this morning. I appreciate the work that the Treasury Department and the Federal Reserve and the Securities Exchange Commission and major final institutions here and around the world are doing to promote stability in the financial systems”
“As policymakers we’re focused on the health of the financial system as a whole.”
“In the short run, adjustments in the financial markets can be painful, both for the people concerned about their investments and for the employees of the affected firms.”
“In the long run I’m confident that our capital markets are flexible and resilient and can deal with these adjustments.”
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Bush’s “mind-boggling and hair-raising” adventure
Hectic day at the White House, what with Wall Street dealing with financial collapses and Galveston dealing with building collapses.
So what better way to start than with encouraging words from a visitor.
John Kufuor, president of Ghana, is in the building for a day of meetings and a dinner. During this morning’s South Lawn arrival ceremony he offered this colorful and upbeat assessment of the Bush presidency.
“I cannot conclude without wishing you, Mr. President, a successful ending to your tenure as the leader of this superpower nation. Your tenure has been full of events and challenges, some very mind-boggling and hair-raising. Through them all, you have been strong, forthright, consistent and faithful. You are a survivor. And my hope is that history would prove kinder to you.”
Bush chuckled at some of the lines, including this closer:
“May you have a restful and useful retirement within your society and beyond.”
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White House 9/11 ceremony
Moment of silence ceremony on White House South Lawn marking anniversary of 9/11 attacks
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A nation divided
On Thursday, the seventh anniversary of the 9/11 attacks, Barack Obama and John McCain will stand together at Ground Zero to remind the nation of the unity that prevailed in the aftermath of that national tragedy.
On Wednesday, after a McCain-Palin rally in Fairfax, Virginia, folks on all sides of the current political debate offered a reminder of the lack of unity that now prevails.
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McCain and Obama: Hire me
The Labor Department today said unemployment hit 6.1 percent in August, the highest in almost five years. And it didn’t take long for the McCain and Obama campaigns to interpret what that means.
Each side’s rapid response teams rapidly responded with statements that the numbers clearly mean the nation needs to hire its candidate.
Team Obama won by three minutes with an e-mail that hit reporters’ inboxes at 9:36 a.m.
Click continue reading to see the statements:
From Obama:
“Today’s jobs report is a reminder of what’s at stake in this election - John McCain showed last night that he is intent on continuing the economic policies that just this year have caused the American economy to lose 605,000 jobs.”
” John McCain may believe that the fundamentals of our economy are ‘strong,’ but the working men and women I meet every day are working harder for less, the typical working age family’s income is down $2,000 since George Bush took office, and their purchasing power is as low as it’s been in a decade.”
“John McCain’s answer is more of the same: $200 billion in tax cuts to big corporations and oil companies, and not one dime of tax relief to more than 100 million middle-class families. If I am president, I will cut taxes for 95% of all working families and provide an immediate $50 billion to struggling states so that they don’t have to cut back on health care and education and can rebuild roads and schools. That’s the change working families need right now.”
From McCain: “Americans are hurting and we must act to create jobs. Unfortunately, while millions of Americans are gathering around the kitchen table and questioning how they can keep their homes, pay their medical bills and afford their children’s education, Washington has failed to act.”
“As I promised last night, I will fight for those that lost their jobs, savings, and real estate investments. Some Americans have been left behind in the changing economy, and it often seems your government hasn’t even noticed. We must prepare every worker for the jobs of tomorrow. We will use our community colleges to help train people for new opportunities in their communities.”
“As president, I will enact a Jobs for America economic plan that creates jobs, helps small businesses, expands opportunities and opens markets to American goods. Washington must stand beside the American people, not in their way.”
“Sadly there are those who believe that to grow this economy we must raise taxes, impose costly new mandates and isolate America from the global economy. When our economy is hurting, the last thing we should do is raise taxes as Barack Obama plans to do and has done. The American people cannot afford a Barack Obama presidency.”
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REPUBLICAN CONVENTION VIDEO: Final Night Timelapse
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Texans react to McCain acceptance speech
Texas delegates react to John McCain’s acceptance speech on final night of Republican National Convention in St. Paul.
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McCain rehearsal
The scene at the Xcel Energy Center in St. Paul as Sen. John McCain rehearsed for his Thursday night acceptance speech.
Here are excepts from the speech:
“I’m very proud to have introduced our next vice president to the country. But I can’t wait until I introduce her to Washington. And let me offer an advance warning to the old, big spending, do nothing, me first, country second Washington crowd: change is coming.”
“The constant partisan rancor that stops us from solving these problems isn’t a cause, it’s a symptom. It’s what happens when people go to Washington to work for themselves and not you. Again and again, I’ve worked with members of both parties to fix problems that need to be fixed. That’s how I will govern as president. I will reach out my hand to anyone to help me get this country moving again. I have that record and the scars to prove it. Senator Obama does not.”
“I fell in love with my country when I was a prisoner in someone else’s. I loved it not just for the many comforts of life here. I loved it for its decency; for its faith in the wisdom, justice and goodness of its people. I loved it because it was not just a place, but an idea, a cause worth fighting for. I was never the same again. I wasn’t my own man anymore. I was my country’s.”
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Dressing down dressed-down journalists
The national media is under assault at the Republican convention by delegates and operatives who think the coverage of vice presidential nominee Sarah Palin has been unfair.
But the criticism goes beyond what the media is reporting, as illustrated by this item in today’s Minneapolis Star Tribune:
“The folks handing out free coffee at RiverCentre were getting a little suspicious. A woman carrying several shoulder bags and wearing a chunky vest kept coming to their booth to mooch free drinks.
They wondered: Was she homeless? A protester? A secret security threat?
They finally noticed their mystery woman was carrying a camera, and the vest was filled with film.
It eased their concern, but led to the burning question: ‘Why do journalists dress like that?’ “
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Texas delegates cheer Sarah Palin
Texas delegates at Republican National Convention cheer for Alaska Gov. Sarah Palin.
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Palin convention speech excerpts
Here’s some of what Alaska Gov. Sarah Palin will say in her Republican National Convention speech tonight.
On her experience as a public servant:
“I had the privilege of living most of my life in a small town. I was just your average hockey mom, and signed up for the PTA because I wanted to make my kids’ public education better. When I ran for city council, I didn’t need focus groups and voter profiles because I knew those voters, and knew their families, too. Before I became governor of the great state of Alaska, I was mayor of my hometown. And since our opponents in this presidential election seem to look down on that experience, let me explain to them what the job involves. I guess a small-town mayor is sort of like a community organizer, except that you have actual responsibilities.”
On why she is going to Washington, D.C.:
“I’m not a member of the permanent political establishment. And I’ve learned quickly, these past few days, that if you’re not a member in good standing of the Washington elite, then some in the media consider a candidate unqualified for that reason alone. But here’s a little news flash for all those reporters and commentators: I’m not going to Washington to seek their good opinion - I’m going to Washington to serve the people of this country.”
On energy policies that the McCain-Palin administration will implement:
“Our opponents say, again and again, that drilling will not solve all of America’s energy problems - as if we all didn’t know that already. But the fact that drilling won’t solve every problem is no excuse to do nothing at all. Starting in January, in a McCain-Palin administration, we’re going to lay more pipelines … build more nuclear plants … create jobs with clean coal … and move forward on solar, wind, geothermal, and other alternative sources. We need American energy resources, brought to you by American ingenuity, and produced by American workers.”
On John McCain:
“Here’s how I look at the choice Americans face in this election. In politics, there are some candidates who use change to promote their careers. And then there are those, like John McCain, who use their careers to promote change.”
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President Jesse?
Ron Paul, of course, was the star of the Ron Paul rally in Minneapolis. But Jesse Ventura ran a close second when he announced a possible 2012 presidential race.
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Hillary or Joe: Who’s the most popular Dem at the GOP convention?
Connecticut Sen. Joe Lieberman, who was the Democratic vice presidential nominee in 2000, may think he is the most popular Democrat at the Republican national convention. He addressed the convention Tuesday night, after all, and got an enthusiastic response.
But with GOP vice presidential candidate Sarah Palin under fire in the blogosphere over her thin political biography and the problems within her family, Republicans on Wednesday repeatedly invoked the name of Hillary Clinton, one of the most unpopular Democrats ever in GOP circles, to make the case that Palin is the victim of sexism.
“One of the things I have been told by many many Democrats over the last several months is how disappointed they were in their own party for not standing up against the sexist smears that Hillary Clinton endured,” Carly Fiorina, chairman of the Republican Victory 2008 campaign, said at a news conference Wednesday. “The Republican Party will not stand by while Sarah Palin is subjected to sexist attacks.”
Unfortunately for Clinton - or perhaps fortunately - Fiorina did not raise such objections during the New York senator’s unsuccessful bid for the 2008 Democratic presidential nomination.
Still, Fiorina added, “one of the things that Hillary Clinton’s historic run for the presidency did is highly tune women’s ears to objectionable and sexist attacks” and “all of us are sensitized and outraged when we see sexist treatment.”
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Palin’s speechwriter not a fan of hunting
Former longtime Bush speechwriter Matthew Scully is the man behind tonight’s convention speech by Alaska Gov. Sarah Palin, which is interesting in light of Scully’s moral opposition to hunting and Palin’s love of the activity.
The speech by the woman selected by John McCain as his running mate is viewed as crucial as she withstands withering scrutiny of everything about her. Among the things learned about Palin is her love of hunting.
“We hunt as much as we can, and I’m proud to say our freezer is full of wild game we harvested here in Alaska,” she recently told Newsweek.
Another report detailed the home where her parents “live amid hundreds of sets of trophy antlers and a taxidermy collection that inclu