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Palin Seeks Serenity in Sedona

September 30, 2008 7:57 PM

ABC News' Kate Snow and Imtiyaz Delawala  report:  Gov. Sarah Palin secluded herself today at the Sedona ranch home of Sen. John McCain, using the sprawling estate’s “relaxed environment” to prepare for her critical vice presidential debate with Sen. Joe Biden Thursday in St. Louis. 

"The Governor's debate prep today is taking place outdoors near a creek on the scenic McCain ranch in Sedona,” a campaign official said. “The serenity and beauty of this setting has contributed to what can be characterized as a relaxed environment.”

Signaling the importance of the upcoming debate, McCain's top campaign adviser Steve Schmidt traveled to Sedona to help with the final preparations, as did McCain's chief foreign policy advisor Randy Scheunemann, who is playing the part of Sen. Biden in mock debate sessions. Mark Wallace, deputy campaign manager to President Bush in 2004, has also been working closely with Palin, as has former Bush National Security Council staffer Steve Biegun, who is serving as Palin's lead foreign policy adviser.

Palin has also been joined in Arizona by her husband Todd, as well as her daughters Willow and Piper, and infant son Trig. Aides to the campaign hope the atmosphere will help Palin relax and better prepare for the upcoming showdown with Biden, and allow her to focus on highlighting her strengths as a candidate.

“She's eager to show more of what got her where she is,” the Palin aide said. “To her team, that means more of what her fans in Alaska and elsewhere know and love about her record and her fresh approach to reform.”

Palin was widely criticized for a series of interviews with CBS’ Katie Couric that aired last week, including by former conservative supporters who said she was unprepared and presented herself poorly on critical issues such as the economy and foreign policy. Palin took time out from her debate preparation this afternoon to tape an interview with conservative blogger and radio host Hugh Hewitt, in which she blasted the media’s treatment of her.

“I have a degree in journalism also, so it surprises me that so much has changed since I received my education in journalistic ethics all those years ago. But I’m not going to pick a fight with those who buy ink by the barrelful. I’m going to take those shots and those pop quizzes and just say that’s okay, those are good testing grounds,” Palin told Hewitt. “It makes somebody be even clearer and more articulate in their positions. So really I don’t fight it. I invite it.”

At a rally in Columbus, OH yesterday Palin said she was looking forward to the debate with Biden, while making a joking reference to her opponent’s age and experience in Washington.

“We are going to talk about those new ideas, new energy for America,” Palin told the crowd. “I'm looking forward to meet him too. I've never met him before. But, I've been hearing about his senate speeches since I was in like 2nd grade.”

In another interview yesterday, after the Columbus rally, Couric asked Palin whether joking about Biden’s age was “a risky thing to say, insinuating that Joe Biden's been around awhile” given that her own running mate is 72 years old, and would be the oldest president ever elected.

“Oh no, it's nothing negative at all,” Palin said of the comment on Biden. “He's got a lot of experience and just stating the fact there, that we've been hearing his speeches for all these years. So he's got a tremendous amount of experience and, you know, I'm the new energy, the new face, the new ideas and he's got the experience based on many many years in the Senate and voters are gonna have a choice there of what it is that they want in these next four years.”

September 30, 2008 | Permalink | User Comments (268)

Stephanopoulos: Independent Voters Hold White House Key

September 30, 2008 7:22 PM

ABC News’ George Stephanopoulos reports: Democratic presidential candidate Barack Obama holds a 50-46 percent lead over Republican presidential candidate John McCain among likely voters, according to the latest ABC News/Washington Post poll.

However independent and undecided voters, who could make all the difference in a tight election, are shifting back and forth between Obama and McCain.

After the Republican convention, McCain was up by about 10 points among independent likely voters, according to an ABC/Post poll released earlier this month.

Then, last week Obama has a big swing and was up by 14 percentage points, but in our latest poll, McCain has pulled ahead by three percentage points.

We’ve seen similar dramatic moves among white women, another group whose preferences are changing with each new poll.

After the Republican convention, McCain has a double-digit lead among white women, with many pundits crediting his new vice presidential pick Alaska Gov. Sarah Palin for the shift in voter preferences. Last week Obama pulled ahead by two percentage points with white women, but the ABC/Post poll released today finds McCain regaining  sizeable 11 percentage point lead over Obama with this group.

One in five voters say they could still change their mind in this election. It is those undecided voters and white women voters who will hold the key to who wins the White House in five weeks.

The poll also found that President Bush is far and away the biggest drag on McCain right now.
He has a new disapproval rating of 70 percent, which is a record for all presidents going back to the beginning of public opinion polling in 1938. The problem for McCain is that a majority of Americans – 53 percent – believe he would take the country in the same direction as Bush.

When it comes to the all-important Commander-in-Chief test, a majority of Americans still do not believe Obama would be a good Commander-in-Chief.  The poll found McCain leading Obama on who would make a good Commander-in-Chief of the military, with 73 percent of Americans saying McCain would do a good job, while just 46 percent said Obama would make a good Commander-in-Chief.

But for the first time, the poll found a majority of Americans – 52 percent – who say Obama has the experience to serve effectively as president.

If Obama keeps that number above 50 percent, it will be his race to lose.

September 30, 2008 in McCain, John, Obama, Barack, Vote 2008: Democrats, Vote 2008: Republicans | Permalink | User Comments (599)

Biden Warns of "Real Trouble" if Bailout Plan Collapses

September 30, 2008 6:48 PM

ABC News' Matthew Jaffe Reports: With Thursday's vice-presidential debate looming, Sen. Joe Biden, D-Del., is focused on debate prep, holed up in a downtown Wilmington hotel with Michigan Gov. Jennifer Granholm, but on the minds of voters there is one issue of paramount importance: the embattled economic rescue plan struggling to make it through Congress.

Biden took a break from debate prep Tuesday to grab lunch at Wilmington's Charcoal Pit, where he fielded two questions from voters concerned about the nation's precarious economic situation.

"It’s real trouble," Biden said of the prospect that the rescue plan might not come through. "What people are going to do if they don’t get this done, people are going to lose their jobs, their pensions."

The Delaware lawmaker noted that the $700 billion bailout - "if it works the right way" - will be paid back to taxpayers.

"Way we’re making it sound now and what our Republican friends are saying is, ‘we’re not gonna bail...'," Biden said. "I mean, it’s people’s jobs."

"That why we’ve got to have this package," emphasized Biden to another voter. "This is not a $700 billion check we’re writing out. We’ll get this money back."

Even after he finished his cheesesteak lunch, Biden was not done with the questions on the economy, with a reporter asking if he thought an agreement would be reached on the rescue package.

"I'm hoping so," Biden replied. "We need to."

And with that, it was back to debate prep, but the senator will return to Washington later this week for a vote on the bailout plan if it comes to one.

September 30, 2008 | Permalink | User Comments (45)

Gingrich Denies Whipping Against Bailout

September 30, 2008 4:00 PM

ABC News' Teddy Davis, Arnab Datta, and Rigel Anderson Report: Former House Speaker Newt Gingrich said Tuesday that he did not personally urge members of Congress to vote against Monday's failed Wall Street bailout bill, disputing a report made earlier in the day on MSNBC by correspondent Andrea Mitchell.

"MSNBC is just wrong," said Gingrich. "And it is probably wrong deliberately. It is a stunningly dishonest network."

"I believe that if they would simply look at what I released yesterday, if they look at what I said on 'This Week' on Sunday, they'll see that what I said was, 'I deeply opposed Paulson's original proposal.  I deeply opposed the liberal Democrats making it even worse on Thursday,' I did everything I could," said Gingrich.

"And I think that John Boehner and Roy Blunt would confirm this -- or Eric Cantor or Paul Ryan would confirm  this -- I did everything I could over the last five days to improve this bill. And I said with great reluctance I would vote for it," he continued, "and I gave a statement to that effect to Leader Boehner, who was going to both put it in the record and share it with all my friends and former colleagues, so I was actually reluctantly trying to help it get through."

Gingrich offered his scathing criticism during the question and answer period which followed a Tuesday speech on the financial crisis at the National Press Club.

Appearing earlier in the day on MSNBC's "Morning Joe," NBC's Andrea Mitchell reported that she had been "told reliably by leading Republicans who are close to" Gingrich that the former House Speaker "was whipping against" Monday's failed Wall Street bailout bill "until the last minute" when he issued what Mitchell called a "face-saving statement."

"Newt Gingrich was telling people in the strongest possible language that this was a terrible deal," Mitchell continued, "not only that it was a terrible deal, that it was a disaster, that it was the end of democracy as we know it, it was socialism. And then at the last minute comes out with a statement when the vote is already in place."

Mitchell's report was followed by MSNBC's Mike Barnicle saying, "Andrea, I could hug you for saying that because I was told last night by two or three members of Congress that this was the opening salvo of
Newt Gingrich's presidential campaign four years hence."

When Barnicle raised the prospect of Gingrich seeking the White House by undermining the House Republican Leader, Mika Brzezinski interjected by borrowing the words Boehner had used to describe the Wall Street bailout.

"Talk about a crap sandwich," said Brzezinski.

Watch the MSNBC video on ThinkProgress.

Gingrich led the charge against Paulson's original proposal last week, telling ABC News on Tues., Sept. 23 that John McCain could not vote in favor of it and still claim "with a straight face" to be "the reform candidate."

The next day - on Wed., Sept. 24 - Gingrich issued a statement to the press praising McCain for suspending his campaign and "putting everything on the line" to try to get a bipartisan "economic package" to replace what he called the "failed Paulson bailout package."

Appearing Sunday on ABC News' "This Week with George Stephanopoulos," Gingrich said that he suspected that he would "probably" end up voting "reluctantly yes" on the revised bailout if he were still in office. He coupled this with a call for Henry Paulson's resignation, claiming that the U.S. Treasury
Secretary had behaved in an "un-American way" by initially asking for $700 billion without legislative oversight or judicial review.

On Monday, with the vote underway on the House floor, Gingrich made his position on the bailout definitive, issuing a statement saying that if he were still in office he would "reluctantly and sadly" support it. Gingrich explained his change in position by saying that the House Republicans, "reinforced by John McCain," have improved the bill "significantly" so it is "less bad" than the original proposal offered by Paulson.

MSNBC did not have an immediate reaction to Gingrich's criticism.

September 30, 2008 in McCain, John, Vote 2008: Democrats, Vote 2008: Republicans, Washington, White House | Permalink | User Comments (44)

Biden Preps for Debate As Son's Deployment Looms

September 30, 2008 3:51 PM

ABC News' Matt Jaffe Reports: All the attention this week might appear to be on Thursday's vice-presidential debate in St. Louis, but such is not the case for one of the two participants in the much-anticipated duel: Sen. Joe Biden's son Beau, Delaware state attorney general, will begin his year-long deployment to Iraq with a ceremony Friday in Wilmington.

Biden interrupted his debate prep Tuesday for lunch with Beau, Beau's wife Hallie, and their four-year old daughter Natalie at a family favorite burger joint, The Charcoal Pit in Wilmington.

"Debates are important but family is always what's really important," said Biden spokesman David Wade. "The Biden family, like all the families in our country who have a loved one called up, deserve some time to themselves outside the glare and frenzy of the political process. They appreciate how incredibly understanding folks have been, including the media."

Following Thursday's debate, Sen. Biden will fly home to Delaware to get back in time to attend and speak at Friday morning's deployment ceremony for Beau's unit, scheduled for 11am in Dover.

Earlier this month, Republican vice presidential candidate Alaska Gov. Sarah Palin was the featured speaker at her son Track's deployment ceremony in Fairbanks bidding him a very public goodbye on the tarmac.

In her remarks, Palin never referenced her 19-year-old son. ""Soldiers, we honor you. Each one of these soldiers is here by choice," she said.

Lt. Col Len Grattieri, public affairs officer for the state National Guard, said that although the 60-minute event will feature the Democratic vice-presidential nominee, it is in no way a political forum.

"It is by no means a political rally," Grattieri said. "This is about the soldiers."

Biden, Grattieri stated, has regularly attended the 10-15 deployment ceremonies since the 9-11 attacks, although Friday's will have added meaning for the Delaware senator.

"He will always speak at these and he said he will speak at this one as well," Grattieri pointed out, noting that the senator, chairman of the Foreign Relations committee, frequently uses the forum to impart to the troops his international know-how on Iraq and Afghanistan.

"He's a real foreign relations expert, so he's usually gonna tell the soldiers his view of what's going on there based on his visits."

But Grattieri cautioned that Friday's event is not about the Bidens, but rather the entire 261st Signal Brigade, set to deploy for the first time.

"These are unique circumstances because of the senator's position and Capt. Biden's position," said Grattieri. "There are 115 soldiers going out with this unit and Capt. Biden is just one of them."

Friday's ceremony will take place on the Legislative Mall in front of the state capital in Dover. Along with Biden, it is customary for other elected officials from Delaware to speak, including Gov. Ruth Ann Minner.

"They always come to wish our troops a fond farewell," noted Grattieri.

Following the event, the troops will actually be able to return to their families for the weekend. The 115 soldiers then leave Sunday morning for Ft. Bliss, Texas, where they will spend six to eight weeks before heading to Iraq. If all goes well, the unit, commanded by Brig. Gen. Scott Chambers, a one-star general, could return as soon as September 2009.

In Iraq, Capt. Biden's work will be "very technologically-based," and "very complicated" according to Grattieri. "He will be providing communications to soldiers in the Iraqi theater."

"They're not infantry men," Grattieri added, "but they'll be in combat zones."

Biden has referenced his son's deployment at various points along the campaign trail, including an August meeting with guardsmen in Denver when he asked them to "keep an eye out" for Beau.

"We love you," said Biden, accompanied by his wife Jill. "And by the way if any of you get shipped back over, keep an eye out for my son. He'll keep an eye out for you guys. Keep the faith, go get 'em."

Just last Monday in Baltimore, Biden addressed the National Guard's annual conference, noting that he was not just speaking as the Democratic vice-presidential nominee.

"I'm also here today as a father of a guardsman," he continued. "My son Beau is proud to wear the uniform, and proud to answer the call to serve."

Beau introduced his father at the Democratic convention last month, giving a speech in which he referenced his pending deployment to Iraq.

"Because of other duties, it won't be possible for me to be here this fall to stand by him the way he stood by me." Beau said to the Democratic party gathered at Denver's Pepsi Center. "So I have something to ask of you. Be there for my dad like he was there for me."

September 30, 2008 in Biden, Joe | Permalink | User Comments (19)

McCain Takes Conciliatory Tone

September 30, 2008 2:27 PM

ABC News' Ron Claiborne Reports:  Republican presidential nominee John McCain took a more politically conciliatory tone today as he urged Congress to move quickly to pass a financial "rescue" plan before small businesses are swept up in the tightening credit crunch.

At a business roundtable campaign event in Des Moines, Iowa, McCain offered examples of small businesses and even college students suddenly unable to obtain loans.

"Businesses all over the country cannot borrow to finance their own operations and pay their bills," McCain said. "If we do nothing, many may fail... Inaction is not an option."

McCain did not mention his Democratic opponent, Sen. Barack Obama at all as he did just yesterday when he accused Obama of "phoning it in," and failing to provide leadership in the financial crisis.

In an interview today with ABC News, McCain declined to attack Obama when asked about that prior criticism.

"We can look back on this very soon, the crisis is here, let’s work together," he said. "I don’t feel like trading insults with Sen. Obama or anyone else right now. Let’s sit down together and work it out.

McCain said House Republicans should not have voted against the rescue plan yesterday just because they were angered by what many considered inflammatory on-the-floor remarks by Speaker Nancy Pelosi (D-California). After the measure failed, some Republicans blamed the defeat, in part, on Pelosi's harsh attack on the economic policies of President Bush and the Republicans.

"The vote should be decided, not on basis of (an) inflammatory speech but on the basis of what’s best for America," he said. "Of course it (Pelosi's comments) wasn’t helpful, but the point is there is so much larger stakes here in this game that we have got to act together."

But even as McCain toned down the rheotoric on the campaign trail, his campaign released a new television ad asserting that he had fought to "rein in" the now-troubled mortgage giants Fannie Mae and Freddie.Mac and "pushed for stronger regulation while Mr. Obama was notably silent."

McCain had originally planned to fly to Washington, D.C. tonight. Instead, he is going to Kansas City, Missouri to continue campaigning. He said he did not know when he would return to Washington or what his role would be in trying to come up with a plan that can pass in Congress.

"I’ll do whatever is necessary," he said. "I don’t know that that necessarily means go back to Washington ... I’ll rely on the advice of some of my colleagues as to how I can be most effective. The last thing I want to do is go in and harm the process."

September 30, 2008 | Permalink | User Comments (73)

McCain: Americans Are Suffering from a 'Crisis Of Confidence'

September 30, 2008 2:26 PM

ABC News' Bret Hovell reports: Calling the credit crunch "the greatest financial crisis of our lives," John McCain attempted to make the administration's financial rescue package relevant to middle America Tuesday. Speaking at a roundtable with Iowa business leaders in Des Moines, he said Americans were suffering from a "crisis of confidence." 

"One of the reasons why Congress failed to act effectively was because it hasn't really sunk in that people are hurting, and are being hurt, are Main Street, families, small businesses, those kinds of people that are the engine of our economy," McCain said.

"And the unfortunate aspect of this seems to be we are finger-pointing and trying to place the blame rather than trying to fix the problem," he said.

In his prepared remarks which opened the panel discussion, McCain said "we cannot allow a crisis in our financial system to become a crisis of confidence."

But a few minutes later, speaking without a script, he seemed to indicate that the economic situation had, in fact, already gotten that bad.

"We've got a severe crisis of confidence among the American people…" McCain said. "So we have a confidence building – a confidence restoration challenge that needs to be made here. And so when we go to the American people, we have to make sure that they have the confidence, which they do not today, that the changes that we make will be to their benefit and not for political reasons or for reasons of helping people on Wall Street."

McCain said that assurance would be key to winning passage of the administration's proposed bailout of the financial sector.

In order to improve the bill's chances of passage, McCain has recommended increasing the FDIC's insurance coverage to $250,000, a non-controversial step that Sen. Obama has also suggested.

McCain reiterated his call for Chris Cox, the chairman of the Securities and Exchange Commission to step down. McCain said that even good people have to take responsibility when things go wrong on their watch, which elicited a large round of applause from the audience.

McCain has given little indication of what he will do to help resurrect the bill in Congress. He told ABC News's Ron Claiborne Tuesday morning that he would "take the advice and counsel" of leaders of Congress on how he can be most helpful.

"I'll do whatever is necessary," McCain told Claiborne. "I don't know that that necessarily means go back to Washington."

September 30, 2008 | Permalink | User Comments (29)

Obama Pushes Rescue Plan ... Lays Off McCain

September 30, 2008 1:44 PM

ABC News' John Berman, Sunlen Miller, and Ursula Fahy report: Barack Obama delivered a rarity today in Reno, Nevada.  After days of hammering John McCain, trying to tie him to the Bush administration, and suggesting he doesn't understand the problems facing the country, Obama held a rally today, delivering a full  36-minute speech where he didn’t once mention the name “John McCain.”

“There will be time to punish those who set this fire,” he said, “but now is the moment for us to come together and put the fire out.”

Obama used the speech at the University of Nevada, Reno to try build public support for the economic rescue plan being discussed in Washington, and put pressure on Congress to act.

“It is not a time for politicians to concern themselves with the next election,” Obama told the crowd,  “It is a time for all of us to concern ourselves with the future of the country we love. This is a time for action.”

And in his speech, he leaned on members from both parties. 

“To the Democrats and Republicans who opposed this plan yesterday, I say – step up to the plate and do what’s right for this country.” 

While Obama had been in touch with President Bush, Treasury Secretary Henry Paulson and Democratic House leaders, aides say he did not make any calls to push for Democratic votes before the failed vote Monday.  Now, campaign officials refuse to say whether he is making directs pleas to wary members.

Obama also made a more direct sales pitch to voters than he has in recent days, trying to persuade of the risks of not taking action.  “What it means is that thousands of businesses could close. Millions of jobs could be lost. A long and painful recession could follow,” he said.

He also tried to put the cost of the plan in perspective, “This is not a plan to just hand over $700 billion of your money to a few banks on Wall Street. If this is executed the right way, then the government will temporarily purchase the bad assets of our financial institutions so that they can start lending again, and then sell those assets once the markets settle down and the economy recovers.”

Obama offered a new policy proposal in the speech, raising the Federal Deposit Insurance limit to $250,000 from where it stands at $100,000 right now. 

It’s an idea Republicans say they first brought up last week. 

McCain has also recommended increasing the FDIC's insurance coverage to $250,000.

In a statement, House Republican Leader John Boehner said, “The presidential candidates’ support for increasing the FDIC cap is welcome news. Increasing the FDIC cap is a proposal put on the table by Roy Blunt and House Republicans but ruled out by Democrats during the negotiations that led to yesterday’s unsuccessful vote.”

Nevertheless, Obama asked for other ideas too.

“That’s one idea. If there are others that can help shore up support for this plan and shore up our economy, I encourage both parties, Democrats and Republicans to offer them.”

He concluded, “We can't have another day like yesterday.”

UPDATE: Obama campaign spokeswoman Linda Douglass now says that "yes" Obama is making calls to lobby members. She would not say which members or how many, but she did say that it is being done in consultation with the House leadership.

September 30, 2008 in McCain, John, Obama, Barack, Vote 2008: Democrats, Vote 2008: Republicans, Washington | Permalink | User Comments (517)

Senate Decides to Stay in Session; Congress Can 'Act Like Grown-Ups'

September 30, 2008 11:06 AM

ABC News' Z. Byron Wolf Reports:  Senators were supposed to be out of session today to accommodate celebration of the Jewish New Year, and while there are no votes scheduled, they made the last-minute decision to stay in session.

The two leaders of the both -- Republican Mitch McConnell of Kentucky and Democrat Harry Reid of Nevada -- made a bipartisan pledge on the Senate floor to pass legislation to address the financial crisis this week.

Notwithstanding yesterday's failure in the House, the Republican Leader McConnell said Congress can "act like grown-ups."

"We will get the job done. We will get it done this week. It will reassure the American people that Congress can rise to the occasion, act like grown-ups, if you will," McConnell said.

Senate Majority Leader Reid said he spent a good amount of time on the phone this morning with White House Chief of Staff Josh Bolten and with the Democratic Presidential nominee, who Reid said had spoken on the phone with President Bush. The government is working, he said, to pass legislation (he didn't say which or how the failed legislation would change).

Reid will meet later this morning with the chief Senate negotiators, Sens. Chris Dodd, Chuck Schumer and Jack Reed.

"The blame game needs to end," Reid said, trying to paint a picture of the financial crisis that would resonate with the public. "Yesterdays drop on Wall Street allowed for a loss of more than a trillion dollars...Most of that money doesn't come from Wall Street titans, it comes from the pensions of people who work...people who work for a lifetime to save a few dollars."

September 30, 2008 in Washington, White House | Permalink | User Comments (98)

Bush Warns Economic Damage Could Be 'Painful and Lasting'

September 30, 2008 10:06 AM

ABC News' Jennifer Duck reports: After Congress failed to pass a $700 billion financial rescue bill yesterday, President Bush made a plea to Congress Tuesday morning to act now or "the economic damage will be painful and lasting." 

This is the sixth time in the past two weeks President Bush cleared his schedule to make remarks specifically on the economy.

"The reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act," he said. 

"The dramatic drop in the stock market that we saw yesterday will have a direct impact on the retirement accounts, pension funds, and personal savings of millions of our citizens. And if our nation continues on this course, the economic damage will be painful and lasting."

The president added the more than 777-point drop in the Dow Jones Industrial Average yesterday represented more than a trillion dollars in losses.

Speaking directly to Congress he said, "We're facing a choice between action and the real prospect of economic hardship for millions of Americans. And for the financial security of every American, Congress must act."

Bush admitted he was "disappointed" by the vote yesterday but emphasized urgency in getting a new bill into law. "Producing legislation is complicated, and it can be contentious.  It matters little what a path a bill takes to become law. What matters is that we get a law."

Since many members are off today for the Jewish holiday Rosh Hashanah, the legislation would come Wednesday at the earliest. 

However, the president noted his economic team will be working closely and talking with both parties in Congress today. 

Both presidential candidates called the president this morning about the failed bailout bill.

“Senator McCain and Senator Obama each called and spoke to the President this morning regarding the financial crisis," White House spokesman Tony Fratto said. "Both calls were very constructive, and the President appreciated hearing from them.  The senators offered ideas and reaffirmed what they have said publicly – that this is a critical issue that needs to be addressed.  We’re not going to comment on specific ideas, but we appreciate hearing them and will continue to work with congressional leaders on ideas that will help the economy."

Some of the ideas being considered for the bill include extending Federal Deposit Insurance to more accounts, something Obama advocated this morning, and eliminating the mark-to-market rule that makes financial decision-makers show their losses in real time.

September 30, 2008 in Washington, White House | Permalink | User Comments (98)

The Note: In Blame Game, McCain’s Defense is Offense

September 30, 2008 8:36 AM

ABC News' Rick Klein reports in Tuesday's Note: Can you blame these guys for wanting to get out of that building?

As we watch the stock market try to whip votes in Congress in a way not even a president, two presidential candidates, and the united bipartisan, bicameral leadership could not, everyone looks bad, but some people look more bad than others.

That second list would include, say, those who have lagged when the talk has turn to the economy; those whose party’s votes largely sank the bill; those who staked their campaigns to getting a workable solution through Congress; and those who celebrated the measure’s passage only slightly prematurely.

Sometimes, gambles fail: “Republican John McCain has maneuvered himself into a political dead end and has five weeks to find his way out,” the AP’s Steven Hurst writes. “All in all, McCain might have been better served by staying out of the mess and above the fray.” 

Sen. Barack Obama hardly emerges as a profile in courage; aides couldn’t point to a single phone call he made to an on-the-fence lawmaker, and there’s the little matter of his own advance text applauding the deal that never was. 

Read the rest of The Note -- and get all the latest on the 2008 election, Congress, the White House and the wide world of politics every day -- from Rick Klein by bookmarking this link.

(Obama is first out of the box, though, with a new idea Tuesday -- expanding FDIC insurance to help small businesses. And President Bush -- never looking less relevant than he does at this moment -- seeks to calm the markets with 8:45 am ET remarks at the White House.)

(Plus -- the RNC fires back with a quick-out-of-the-box “independent expenditure” ad that probably doesn’t make compromise any easier: “Meltdown: Wall Street squanders our money, and Washington is forced to bail them out with -- you guessed it -- our money. Under Barack Obama’s plan, the government would spend a trillion dollars more, even after the bailout.” A Republican official tells ABC the ad is running in Wisconsin, Michigan, Pennsylvania, Ohio, Virginia, and -- here’s a first for the cycle -- Indiana.)

Still, McCain had and still has more on the line -- and would be in the same situation if his only goal was shifting the debate away from the economy, rather than salvaging his political reputation at the same time.

“As a study in his prospective leadership, the role of Mr. McCain, the Republican presidential nominee, has done him no political good,” Jackie Calmes writes in The New York Times. “He implicitly took credit for the compromise bailout that Congressional leaders had negotiated over the weekend, even as it was going down to defeat.”

“Mr. Obama, campaigning in Colorado, also was taken by surprise,” Calmes continues. “He quickly revised his speech, which announced the bipartisan agreement, to instead call for Congress to ‘step up to the plate and get this done.’ While Mr. Obama had tepidly endorsed the plan and kept in daily touch with Mr. Paulson and Congressional leaders, aides said he did not twist Democrats’ arms to support it.”

Continue reading today's Note by clicking HERE.

ABC News' Hope Ditto contributed to this report.

September 30, 2008 in Biden, Joe, Bush, George W., McCain, John, Obama, Barack, Palin, Sarah, Vote 2008: Democrats, Vote 2008: Republicans | Permalink | User Comments (122)

Stephanopoulos: Officials Meet Behind-the-Scenes on Failed Bailout Bill

September 30, 2008 8:06 AM

ABC News' George Stephanopoulos reports: What's next? Is extending deposit insurance the answer?

There will be some discussions behind-the-scenes today between Treasury Department officials, White House officials, and inside Congress about the failed $700 billion Wall Street bailout bill.

Officials are trying to figure out if there are one or two relatively small changes they can make to the bill that would get the 12 votes necessary to pass it through the House of Representatives.

The idea that has gained the most currency within the last 24 hours is extending Federal Deposit Insurance to more accounts, top administration and congressional officials tell ABC News.

Democratic presidential candidate Sen. Barack Obama released a statement this morning saying we should raise the limit on insurance from $100,000 to $250,000. Meanwhile, some Republicans are calling for extending the limit in insurance even more widely.

They believe this could be the one idea that could get you the ten or 12 votes that you need right now. However it's very uncertain territory.

A second option being kicked about is eliminating the mark-to-market rule that many Republicans and conservatives complain about, which ensures financial decision-makers must show their losses in real time.

Congress has left town for the Jewish New Year holiday so nothing is going to get done until Wednesday night at the earliest, and more likely on Thursday.

But another drop off in the market today would create more pressure on members of Congress to pass this bailout package quickly. 

The problem is that President George Bush is suffering from record-low popularity, and leadership in Congress is also at record-low public approval ratings.

The president and the leaders in Congress don't have the power to forestall this populist revolt against the bailout bill.

Many of the leaders are banking on the fact that members of Congress will see this financial crisis rippling throughout the economy, which will put pressure on them to pass a bailout bill.

In an election year, no one wants to be blamed for causing further turmoil in the markets.

By 2-1, voters are blaming Republicans in Congress more than the Democrats in Congress, 44 percent to 21 percent, according to the latest ABC News/Washington Post poll released this morning.

Americans are also putting most of the blame on Bush for the overall economic crisis. The president is blames by 25 percent of voters in the latest ABC News/Washington Post poll, while 18 percent blame the financial institutions themselves, eight percent blame the federal government overall, and eight percent blame Congress.

But after the finger-pointing yesterday where Republicans blamed a speech by House Speaker Nancy Pelosi for the bill's failure, and Democrats blames Republicans , voters will likely react negatively to any more finger pointing right now.

While voters don't like some of the details in this bailout plan, they want the government to get something done to constrain the economic fallout before it ripples throughout the economy.

September 30, 2008 in Vote 2008: Democrats, Vote 2008: Republicans, Washington, White House | Permalink | User Comments (163)

Obama Proposes FDIC Hike

September 30, 2008 6:55 AM

ABC News' John Berman reports: Barack Obama issued a new proposal his campaign hopes will help jump start the financial bailout negotiations and perhaps attract some new voters. 

He proposed lifting the current limit on federal deposit insurance from its current limit of $100,000 to $250,000.  In a statement, the Obama campaign said it's a "step that would boost small businesses, make our banking system more secure, and help restore public confidence in our financial system."

As it stands, FDIC insurance guarantees deposits in banks of up to $100,000, meaning if the bank goes down, the federal government guarantees your first $100,000 are safe.

In the e-mail statement this morning, Obama says, '“While that guarantee is more than adequate for most families, it is insufficient for many small businesses that maintain bank accounts to meet their payroll, buy their supplies, and invest in expanding and creating jobs.  The current insurance limit of $100,000 was set 28 years ago and has not been adjusted for inflation."

The campaign said Obama would make the suggestion to congressional leaders later this morning.
 
Obama has come under criticism from his presidential rival John McCain for not taking a more active role in the negotiations.

September 30, 2008 in McCain, John, Obama, Barack, Vote 2008: Democrats, Vote 2008: Republicans, Washington | Permalink | User Comments (148)

Stephanopoulos: What's Next? Congress Mulls Four Options

September 29, 2008 7:05 PM

ABC News' George Stephanopoulos reports: There are meetings going on right now on Capitol Hill to try to figure out what to do about the $700 billion Wall Street bailout bill that failed to pass the House today.

Congressional sources tell ABC News that what they're talking about right now are three or four basic baskets of options:

# 1 -- Muscle Bailout Bill Through House: Some leaders suggest those House Republicans on the fence will be swayed by seeing what the markets do tomorrow, which could be more bad news. The Dow Jones Industrial Average dropped over 700 points today as the administration's bailout bill failed in Congress  This option would see House leaders try again to muscle through the votes they need to get the $700 billion bailout bill passed.

#2 -- Pass Bailout in Senate First: Some Senate and House leaders have been talking about letting the Senate go first and pass the bailout package, ABC News has learned. There appears to be broader support in the Senate for the bailout package. This option would see the Senate vote first which would increase the pressure on the House to pass the Bush administration's bailout bill.

#3 -- Make Small Tweaks to the Bill: Congressional leaders wonder if perhaps there are a couple of small tweaks they can make to the package that would bring along the 12 votes they lost the vote by. Option A, sources say, could be adding a line that some economists have said is absolutely necessary for the FDIC to guarantee all deposits in transaction accounts, not just up to $100,000.  That would deal with the credit crunch and it would be quite popular, some on Capitol Hill argue. Option B would be eliminating the mark-to-market rule that many Republicans and conservatives complain about, which ensures financial decision-makers must show their losses in real time.

#4 -- Get More Democrats On Board: Finally, one other unlikely option talked about on Capitol Hill is to try to pass the bill almost entirely with the Democratic majority in the House. That would require adding a major stimulus package favored by Democrats, infrastructure spending, unemployment insurance spending, and heating and food stamp assistance for low-income Americans.

All of that is being discussed right now. We're not likely to hear members have landed on any single proposal until at least tomorrow.

Nothing will be done for at least a day and a half as Congress is in recess because of the Jewish New Year. The Senate won't be back until Wednesday afternoon and the House of Representatives is adjourned until Thursday.

However the bigger sell to Congress to do something may be the consequences of not acting. More bad news through the end of the week that might do it.

Bailout Politics

Everyone knew it was going to be a close vote, but we've never seen anything like this.

There was a Republican president, a Democratic Speaker of the House,  a Democratic majority leader,  the entire Republican and Democratic leadership from both sides of Congress and both presidential candidates Barack Obama and John McCain arguing for this package.

But a peek at the upcoming congressional races of the people who voted against this package provides some insight.

We calculate there are about 31 competitive House races divided between Democratic and Republican House members, and 24 of the 31 members in competitive districts voted against this package.

No one wants to vote for this. Even those who were arguing for it on the House floor today said 'we know this package is painful, we know it's hard to argue that we should be spending up to $700 billion in a way that might end up benefiting the banks.' It's a hard pill to swallow despite the arguments about what's its going to mean for Main Street.

However the fundamental problem for Republicans is that in an election year when the incumbent is not on the ballot, but you've had eight straight years of Republicans in the White House, any bad economic news is likely to fall harder at this point on Republicans.

Obama called on Congress to get the bill passed and McCain blamed Obama and House Speaker Nancy Pelosi for injecting what he called "unnecessary partisanship" into the equation.

Many Republicans are complaining about a floor speech Pelosi gave prior to the vote, where she laid so much of the blame on eight years of Republican economics and President George Bush's policies.

The Democrats are arguing it's unbelievable that hurt feelings would prompt the Republicans to switch their vote and perhaps cause an economic disaster.

Neither presidential candidate has given any indication that they are going to suspend their campaign and run back to Washington, DC to deal with this. However it's likely well see both Obama and McCain in Washington in person when that vote finally comes.

 

September 29, 2008 in McCain, John, Obama, Barack, Vote 2008: Democrats, Vote 2008: Republicans, Washington | Permalink | User Comments (458)

Obama's Casino Royale

September 29, 2008 3:15 PM

ABC News' John Berman, Sunlen Miller and Ursula Fahy Report: Before a raucous crowd in Westminster, CO, Barack Obama put all his chips on the table, doubled-down, and went all-in on a new line of attack.

Playing off of a New York Times article which outlined McCain’s propensity to gamble (high-stakes craps at Foxwoods in Connecticut), Obama gleefully unleashed a barrage of gambling metaphors on his opponent.

“I read the other day that Senator McCain likes to gamble,” said Obama, “He likes to roll those dice. And that's ok. I enjoy a little friendly game of poker myself.”

But after that kindly introduction, he lit-in to his foe, “One thing I know is this – we can't afford to gamble on four more years of the same disastrous economic policies we've had for the last eight.”

And in case anyone missed that, Obama went on, “We can't afford to roll the dice by privatizing Social Security, and wagering the nest egg of millions of Americans on Wall Street. We can't afford to gamble on more of the same trickle down philosophy that showers tax breaks on big corporations and the wealthiest few."

And then he finished his romp through the political table wit this, “We cant double down on the same things that haven’t work, we’ve got to try something new, and that’s why I’m running for President of the United States.”

As Obama noted, he is no stranger to the tables.  Republicans circulated this quote from a USA Today article:

"On Wednesday nights during Illinois General Assembly sessions, a group of lobbyists and lawmakers used to gather at the headquarters of the Illinois Manufacturers' Association for a weekly poker game. Barack Obama, who represented part of Chicago as state senator from 1997-2004, was a regular."

After the event in Denver, Obama heads to Reno, Nevada.  It is safe to say the gambling metaphors are not about to stop any time soon.

September 29, 2008 | Permalink | User Comments (129)

Obama: 'Stay Calm' on Bailout Failure; McCain Camp Blames Obama

September 29, 2008 3:08 PM

ABC News' John Berman and Ron Claiborne report: Barack Obama told a crowd in Westminster, Colo., not to panic at the House of Representatives' failure to pass the Bush administration's $700 billion bailout bill.

"It's important for the American public and for the markets to stay calm,” Obama said, “because things are never smooth in Congress, and to understand that it will get done.”

He called on members from both parties to get back to the negotiating table: “Democrats and Republicans in Washington have a responsibility to make sure that an emergency rescue package is put forward that can at least stop the immediate problems that we have so we can begin to plan for the future.”

But, invoking a Rocky Mountain metaphor, he warned it won’t be easy.

"It's going to be a little rocky. It's sort of like flying into Denver. You know you're going to land, but it's not always fun going over those mountains."

Obama said he began his campaign event late because he said he was on the phone with Treasury Secretary Henry Paulson and House Speaker Nancy Pelosi following the bill's failure. 

Speaking at the campaign event, Obama said, "The message I have for Congress is get this done.  Democrats and Republicans need to step up to the plate."

For their part, the McCain campaign seized on  the vote as an opportunity to hit Obama: “This bill failed because Barack Obama and the Democrats put politics ahead of country,” McCain senior policy adviser Doug Holtz-Eakin said in a e-mailed press release. 

When asked how many rank-and-file Democratic House members Obama called to lobby for votes, Obama spokeswoman Linda Douglass said she was not sure Obama called any.

Earlier in the day, before the bill went down in flames, Obama's Republican rival John McCain appeared to take some credit for the bailout bill.

McCain defended his decision last week to "suspend" his campaign and return to Washington, DC to get involved the bailout deal negotiations.

"I put it on hold," McCain said at a rally in Columbus, Ohio this morning before the House vote on the bill, "to fight for the rescue plan that puts you and your families and working Americans first."

McCain went on: "I went to Washington to make sure the people of Ohio ... weren't left footing the bill for mistakes made on Wall Street and evil and greed in Washington."

The McCain campaign said a new statement on the failure of the bill will be released soon.

Republican leaders are blaming Pelosi for the failure of a majority of Republicans to vote for the Bush administration's $700 billion Wall Street bailout bill.

However Pelosi and other House Democrats pointed out Democrats voted overwhelmingly for the bill, and a majority of Republicans in the House voted against it.

ABC News' Sunlen Miller and Urlsula Fahy contributed to this report.

September 29, 2008 in Obama, Barack, Vote 2008: Democrats, Washington | Permalink | User Comments (608)

Gingrich Switches Bailout Stance

September 29, 2008 2:11 PM

ABC News' Teddy Davis Reports: Former House Speaker Newt Gingrich reversed course on Monday, issuing a statement saying that if he were still in office he would "reluctantly and sadly" support the $700 billion Wall Street bailout bill.

Gingrich, who led the charge against the bailout last week, explained his change in position by saying that the House Republicans, "reinforced by John McCain," have improved the bill "significantly" so it is "less bad" than the original proposal offered by Treasury Secretary Henry Paulson.

While saying that he sympathizes with any member of Congress who votes "no," Gingrich says in his statement that the crisis of the credit markets is real and could have "horrendous" consequences.

While Gingrich has come around on the bailout bill, he still wants Paulson to resign for initially requesting the $700 billion with no oversight.

Gingrich maintains that as long as Paulson is in charge, "it is impossible to get a creative or significantly better solution."

"Having a former chairman of Goldman Sachs preside over disbursing hundreds of billions of dollars to Wall Street is a terrible concept and inevitably will lead to crony capitalism and the appearance of - if not the actual existence of - corruption," says Gingrich in his statement. "The Bush Administration has now provided three case studies in arrogance, isolation, and destructiveness: Michael Brown during Hurricane Katrina, Ambassador Jerry Bremer in Baghdad, and Secretary Paulson at Treasury."

"It is a tragic and very expensive legacy," he continued. "No conservative and no Republican should doubt how much it has hurt our cause and our party."

The former House Speaker hinted that he was moving in the direction of supporting the bailout during his Sunday appearance on the "This Week" roundtable but did not make his position definitive until Monday.

The former House Speaker was in a very different place last week when he urged McCain to break with President Bush and Barack Obama and oppose the bailout.

"I don't know how he can vote for this and with a straight face go around and say that he's for real change and he's the reform candidate," Gingrich told ABC News on Sept. 23.

Gingrich issued the statement as the vote was underway on the floor of the House. It eventually went down to defeat: 205 in favor, 228 against.

September 29, 2008 | Permalink | User Comments (85)

Palin Says She's Ready To Rumble

September 29, 2008 2:09 PM

ABC News' Ron Claiborne reports: Seemingly brimming with confidence, Alaska Gov. Sarah Palin says she is ready to go head-to-head with Democratic Sen. Joe Biden in the vice presidential debate this week.

"I guess it's my turn now and I do look forward to Thursday and debating Senator Biden," she told a roaring crowd at a joint campaign rally Monday in Columbus, Ohio with Republican presidential candidate Sen. John McCain.

Palin told the audience "I'll do my part in St. Louis this week” in her debate against Sen. Biden, while mocking his age and experience, and his sports prognostication skills to the Ohio State Buckeye-friendly audience.

"I'm looking forward to meeting him too," Palin said. "I've never met him before. But, I've been hearing about his senate speeches since I was in like second grade. I have to admit though he is a great debater and looks pretty doggone confident like he's sure he's gonna win. But, then again this is the same Senator Biden who said the other day that the University of Delaware would trounce the Ohio State Buckeyes. Wrong!"

The allusion to Biden's 36 years in the U.S. Senate was an odd remark coming from the running mate of McCain, 72, a man who has been in Congress for the past 26 years and whose age has been cited as a concern of many voters, according to the latest ABC News/Washington Post poll.

Palin, 44, has been facing criticism in recent days for seeming unsteady and halting answering questions in an interview with CBS Evening News anchor Katie Couric.

Palin will reportedly spend Tuesday and Wednesday in intense preparation for the debate.

McCain's top advisers, Steve Schmidt and campaign manager Rick Davis, are working with her to get her ready for a debate at which some political analysts say she must do well to dispel questions about her experience and familiarity with national and international policy.

September 29, 2008 in McCain, John, Obama, Barack, Palin, Sarah, Vote 2008: Democrats, Vote 2008: Republicans | Permalink | User Comments (303)

Florida Congressman Regrets Swipe at 'Gun Toting' Palin

September 29, 2008 12:37 PM

ABC News' Teddy Davis and Rigel Anderson Report: Florida Democratic Congressman Alcee Hastings issued a statement Monday indicating that he regrets saying that "gun toting" Sarah Palin "don't care too much" about Jews and blacks while still maintaining that the policies and priorities of a McCain-Palin administration would be  "anathema to most African-Americans and Jews."

“I regret the comments I made last Tuesday that were not smart and certainly not relevant to hunters or sportsmen," Hastings said in his statement. “I regret that I was not clearer and apologize to Governor Palin, my host where I was speaking, and those who my comments may have offended.”

While participating in a panel discussion last week sponsored by the National Jewish Democratic Council (N.J.D.C), Hastings said: "If Sarah Palin isn’t enough of a reason for you to get over whatever your problem is with Barack Obama, then you damn well had better pay attention. Anybody toting guns and stripping moose don’t care too much about what they do with Jews and blacks. So, you just think this through."

Asked last week what the congressman meant, Hastings spokesman David Goldenberg told ABC News that he was trying to argue that Palin is an "extremely conservative woman who is out of touch with mainstream America."

After saying that Palin "don't care too much" about Jews and blacks, Hastings argued at the N.J.D.C. event that African Americans and Jews should come together behind Obama because there are many issues on which they agree. 

"Just like Jews, blacks care about affordable health care, energy independence, and the separation of church and state," said Hastings. "And just like blacks, Jews care about equal pay for equal work, investment in alternative energy, and a woman's right to choose."

Asked last week about the Hastings criticism, Palin spokeswoman Maria Comella said, "We’re taking a pass."

September 29, 2008 | Permalink | User Comments (59)

Stephanopoulos: Palin Can't Afford a Debate Mistake

September 29, 2008 8:31 AM

ABC News' George Stephanopoulos reports: At Thursday night's vice presidential debate between Alaska Gov. Sarah Palin and Sen. Joe Biden, D-Dela., in St. Louis, Palin cannot afford to make a mistake.

A major mistake, particularly on foreign policy, would be absolutely fatal to her candidacy.

Palin must also avoid what we've seen from her in recent media interviews: those deer in the headlight moments where it seems like she doesn't know what to say.

Watch for Palin to come out aggressively against Democratic presidential candidate Barack Obama, McCain campaign officials told ABC News.

Part of Palin's strategy will be to call Obama out as a liberal, putting him on the defensive so that Biden will have to answer for Obama.

The McCain campaign is bringing in some heavy hitters to prepare Palin this week for the debate, which will be held in St. Louis, Missouri.

Less than a month ago, Sen. John McCain was applauded by Republican conservatives for his selection of Palin as his vice presidential candidate.

However the reaction among some conservatives has turned bad. There are lots of second thoughts now about her selection within the conservative community, and the buzz on Palin has gone all bad.

When you become a punch line in politics, it's one of the worst things that could happen, and that's what's happening to Palin now.

It's something she should address in the debate this Thursday.

When Palin was first picked, she was a huge boost to McCain's presidential candidacy.

But her favorability numbers have gone down from 58 percent on Sept. 7 to 52 percent, according to the latest ABC News/Washington Post poll.

 
Even more important are voter perceptions of her qualifications to be president.

The number of  people who say she's not qualified to be vice president is going up. Almost half the country, 49 percent, say she's not qualified, compared to only 21 percent for Biden, according to the latest ABC News/Washington Post poll.   

But the degree of difficultly for Thursday night's debate will be high for Biden as well.

It's always difficult in these debates, particularly for someone like Biden, not to appear too aggressive, or too boorish, and he's got to be careful about that.

On the other hand, Biden has to make his points about why he would be a better vice president that Palin. 

Both sides are hunkering down right now getting ready for this debate. It's going to be a big deal.

The Democrats have the momentum after Friday night's first Democratic presidential debate.
Recent national polls coming out over the last three days point to Obama as the first debate winner.

The most recent is the USA Today/Gallup poll released today which shows 46 percent of people though Obama won and 34 said McCain won.

That corresponds with national polls coming out over the weekend which show Obama either holding or decreasing his lead over McCain.

Over the course of the first presidential debate, Obama didn't make any major mistakes and he showed he can hold his own on foreign policy.

Even though both did well, Obama came into the debate with momentum and a country primed to vote for a candidate who can deliver change. Therefore, in a close debate, voters are perceiving Obama as the winner.

The vice presidential candidates will likely have to deal with questions about the controversial $700 economic rescue package that was hammered out on Capitol Hill over the weekend.

The House takes up debate on the bill today, and a top House Democrat late last night said they were very pleased with the deal reached with House Republicans who has floated their own plan late last week.

While the bailout is likely to pass in both the House and the Senate, no one on Capitol Hill wants to vote for it.

Even if the bill gets through the House of Representatives, it's going to be a close vote.  There will likely not be a vote on the package in the Senate until Wednesday.

September 29, 2008 in McCain, John, Obama, Barack, Palin, Sarah, Vote 2008: Democrats, Vote 2008: Republicans | Permalink | User Comments (508)

The Note: Palin Charged With Reviving McCain Ticket

September 29, 2008 8:25 AM

ABC News' Rick Klein reports in Monday's Note:

Now that (we presume) the economy will be saved and the republic will endure and our money is as safe as the politicians who crafted this bailout package (read: not very), a few questions to take us into a week that will surely be more predictable than the last one:

How many presidents do you need to save a bailout bill?

How many winners were there in Friday's debate?

How many more ready-made opportunities do the candidates have to shift the terms of the race? (How many times has the Obama campaign done anything as bold as the McCain campaign does about every other week?)

How much impact will "Saturday Night Live" have if politics subsumes the jokes?

Read the rest of The Note -- and get all the latest on the 2008 election, Congress, the White House and the wide world of politics every day -- from Rick Klein by bookmarking this link.

How many times will Bill Clinton say, "Barack Obama is the best man for the job"? 

How many more times can Gov. Sarah Palin unleash words instead of answers without seeing her image cemented by the national media? (How much does Steve Schmidt care about that question?)

(Is the answer to all the above questions, "zero"?)

This is why you pick a vice president (plus the Tina Fey impersonations, we suppose). Palin will be critical to Sen. John McCain's success this week -- the flubs and fumbles under close scrutiny, the episodes where she seems to contradict McCain while talking circles around herself under an unforgiving glare.

The pressure would rest on the McCain ticket's shoulders anyway, given the shuttle (and shifting) diplomacy of last week that didn't quite work out. Add to that a first debate that cements the status quo, a running mate who seems to be getting worse the more (still limited) time she’s out there, and a very big week gets bigger for Sarah Palin.

Continue reading today's Note by clicking HERE.

ABC News' Hope Ditto contributed to this report.

September 29, 2008 in Biden, Joe, Bush, George W., Clinton, Bill, Clinton, Hillary, McCain, John, Obama, Barack, Palin, Sarah | Permalink | User Comments (146)

Obama Slams McCain for a 'Katrina Like' Response to the Bailout Bill

September 28, 2008 4:03 PM

ABC News' John Berman, Ursula Fahy, Matt Jaffe and Sunlen Miller Report: The Obama-Biden ticket brought out their wives for a rally in Detroit before 35,000 people this Sunday afternoon.

Sen. Barack Obama, D-Ill., spoke about the economic bailout bill’s progress, giving bipartisan credit for being close to passing a plan.

"Thanks to the hard work of Democrats and Republicans, it looks like we have a rescue plan that includes these taxpayer protections. It looks like we will pass that plan very soon."

Obama continued to be critical of Sen. John McCain’s reaction to the economic crisis– and for the first time today had tougher words, saying McCain’s response was similar to Bush’s response during Katrina.

"I think Senator McCain just doesn’t get it – he doesn’t understand that the storm hitting Wall Street hit Main Street long ago. That’s why his first response to the greatest financial meltdown in generations was a Katrina like response. Sort of stood there. Said the ‘fundamentals of the economy are strong.’"

Obama said that McCain’s just been shifting positions over the last two weeks and looking for photo opts to try to find out what to say and what to do in terms of the economy.

"Well, I know what we need to do. You know what we need to do. Joe Biden knows what we need to do," Obama chanted, "We need to stop giving those tax cuts to corporations and CEOs on Wall Street, and start standing up for families right here in Michigan."

Obama pounded his message that Americans can’t afford the "nonsense" of four more years like the last eight – and brought up how Friday’s debate – in his eyes – demonstrated how McCain could bring just that.

"Think about it on Friday, we had a debate. And on issue after issue – from taxes to health care to the war in Iraq – you heard John McCain make the case for more of the same," Obama said, "He kept on asking’ me, ‘you don’t understand.’ No, I understand, you want more of the same. The same Bush tax policies, the same Bush energy policies, the same Bush Iraq policies. A fifth grader could understand – it’s more of the same."

Senator Biden – in his introduction – continued his attack dog role and his regular free speaking attitude, telling the audience, "John McCain said he'd follow Osama bin Laden to the gates of Hell. Well let me tell you something. President Barack Obama will follow him to where he lives and then send him to hell."

Obama was joined on stage for the duration of his speech by Michelle Obama, Jill Biden and his running mate.

At the onset, Obama disappointed the crowd – telling them that his wife would not be speaking today.

""Michelle decided she wasn’t going to speak today. She just wanted to sit there and look cute. That’s okay," he joked (much to Michelle’s dismay?), "It’s okay with me!"

Later – when an audience member fainted and Obama stopped his remarks to toss a bottle of water into he crowd his wife helped and similarly threw her water bottle into the crowd as well.

"Oh Michelle you got an arm too?" Obama snidely ribbed his wife….. perhaps not setting up the Senator well for his upcoming 16th wedding anniversary celebration on Friday.

September 28, 2008 | Permalink | User Comments (711)

'Un-American' Bailout, Paulson Should Have Quit, Gingrich Says

September 28, 2008 12:46 PM

ABC News' Tahman Bradley and Arnab Datta Report: Former House Speaker Newt Gingrich, R-Ga., on Sunday described Treasury Secretary Henry Paulson's request for billions of dollars to buy debt from struggling Wall Street financial firms as "un-American" and said the secretary should have stepped down.

Gingrich even expressed concern with Paulson's connections to Wall Street.  The treasury secretary served as the chairman of a major global investment banking and securities firm before joining the Bush administration.

"You have the former Chairman of Goldman Sachs asking for 700 billion dollars, and in his initial request, asking for it in such an un-American way that I think he should have resigned," said Gingrich. "I think Paulson has terminally misunderstood the nature of the American system. Not just no review, no judicial review, no congressional accountability. Give me 700 billion dollars, 700 BILLION dollars! 'I'll be glad to spend it for you.'  That's a centralization of power that is totally un-American."

Watch Gingrich's remarks HERE.

Watch "This Week's Sunday Sound" webcast HERE.

Early Sunday, congressional leaders and the Bush administration reached a tentative agreement on the $700 billion Wall Street bailout proposal. The bill is expected to come up for a vote in the House on Monday.   

Gingrich, who made his remarks on the "This Week with George Stephanopoulos" roundtable, conceded that he would probably vote for the plan if he were still in the U.S. House because Congress was left with little choice.   

Last week, Gingrich described the bailout plan as a "dead loser on Election Day" and urged Republican presidential candidate Sen. John McCain of Arizona to speak out against the plan.  McCain, who appeared as the headliner on "This Week", signaled he's likely to vote for the bill in its present form.

September 28, 2008 in Washington, White House | Permalink | User Comments (720)

Palin Supports Cross-Border Pakistan Raids

September 28, 2008 8:11 AM

ABC News' Imtiyaz Delawala Reports: During an unscheduled stop at a Philadelphia cheesesteak shop last night, Republican vice presidential nominee Gov. Sarah Palin endorsed cross-border raids by U.S. troops into Pakistan to prevent terrorists from crossing the border into Afghanistan.

Palin made a stop last night at Tony Luke's, an outdoor cheesesteak joint in South Philly, where she grabbed dinner with her daughter Willow and chatted with customers.

According to the pool report of the stop, one customer there named Michael Rovito briefly pressed Palin on her position on Pakistan, and how she would handle attacks on American troops in Afghanistan by terrorists based in Pakistan's Waziristan border region.

"It's working with Zardari to make sure that we’re all working together to stop the guys from coming in over the border. And we'll go from there," Palin said of working with new Pakistani President Asif Ali Zardari, who she met in New York last week.

When asked by Rovito whether the U.S. should conduct cross-border raids into Pakistan fom Afghanistan, Palin responded, "If that’s what we have to do stop the terrorists from coming any further in, absolutely, we should."

Senators John McCain and Barack Obama got into a heated exchange on Pakistan at their first presidential debate on Friday, with McCain harshly criticizing Obama for promoting in a speech last year making military strikes on terrorist targets in Pakistan with or without the Pakistani government's permission.

"He said that he would launch military strikes into Pakistan," McCain said of Obama. "Now, you don't do that. You don't say that out loud. If you have to do things, you have to do things, and you work with the Pakistani government."

"And I guarantee you I would not publicly state that I'm going to attack them," McCain added.

Obama responded that "nobody talked about attacking Pakistan," saying his speech last year on Pakistan endorsed the idea that "if the United States has al Qaeda, bin Laden, top-level lieutenants in our sights, and Pakistan is unable or unwilling to act, then we should take them out."

"This is not an easy situation. You've got cross-border attacks against U.S. troops," Obama added. "And we've got a choice. We could allow our troops to just be on the defensive and absorb those blows again and again and again, if Pakistan is unwilling to cooperate, or we have to start making some decisions."

Obama's position on cross-border raids sounds similar to the one stated by Palin last night, although Palin did not explicitly say whether she would support raids without the Pakistani government's permiss