Obama, McCain focus on economy as bailout sparks debate
U.S. economic woes and the AIG bailout dominate the presidential campaign. Obama points to McCain's reversal on the bailout issue. McCain says the government had no choice.
WASHINGTON -- The economy continued to dominate the presidential campaign today as Democrat Barack Obama warned federal officials in Washington not to use the bailout of American International Group to reward Wall Street, and Republican John McCain -- after rejecting a bailout Tuesday -- said the government now had no choice.
"The government was forced to commit $85 billion," McCain said in a statement this morning. "These actions stem from failed regulation, reckless management and a casino culture on Wall Street that has crippled one of the most important companies in America."
McCain, who has long opposed corporate regulation, argued that what's needed in response to the current crisis was "strong and effective regulation."
He did not specify what regulations he would now support. He also defended his call for a commission to study the problem, telling ABC, "You need to get the best minds in America together. I mean, this is a crisis. . . . This calls for bipartisanship. This calls for patriotism."
And at a GM Orion plant in Grand Rapids, Mich., McCain told workers they are the backbone of the U.S. economy and that he is still optimistic about prospects for the future.
"These workers here are the best in the world," he said in remarks prepared for delivery. "They are the backbone and foundation of our economy."
Quoting Democratic President Franklin Delano Roosevelt, McCain added, "I reject the doom and gloom that says our nation is in decline. America's best days are ahead."
Obama, in his statement on AIG, argued that the federal government's bailout must not reward those who drove the company to the brink of disaster and called the crisis "a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary."
Doubting McCain's "eleventh-hour conversion to the language of reform," Obama said that McCain "has subscribed to this philosophy for 26 years in Washington, and the events of this week have rendered it a colossal failure."
The Obama campaign also released a two-minute ad on the economy. In the ad, taped Tuesday in Denver and to be aired nationally, Obama looks directly into the camera and talks about his ideas for reforming the economy.
