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The Note: Bailout Bill Presents Quandary to Candidates

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September 23, 2008 8:33 AM

ABC News' Rick Klein reports in Tuesday's Note: Maybe this is the day Gov. Sarah Palin has been waiting for (does New York City -- not to mention the United Nations -- count as a visit to a foreign country?). 

Maybe Sen. Joe Biden just committed the type of gaffe we thought he’d be reeling off at the pace of about one a week (and did his statement of clarification make things even a little bit better?). 

Maybe (surely) George Will is not happy that Sen. John McCain has targeted his friend.

Maybe the person who has the best read on what will come out of Friday’s debate is Alan Keyes (has anyone else debated both McCain and Sen. Barack Obama?).

Maybe the real story of race in the race has yet to be told. 

And maybe we should feel bad for the bailout bill.

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.

After all, it was born morbidly obese in a town that likes to pretend it’s all about being lean. Its parents never really wanted one like it -- and we know they’ll be out of the picture in a few months, anyway.

The men who would be president sure aren’t eager to adopt it. Oddly, their critiques sound similar -- reflecting a shared fate: Both McCain and Obama will have to take a stand on a very big issue that could be either economic salvation or a spectacularly expensive failure -- and could wind up being cast as either decisive leadership or a gigantic Wall Street handout.

“Either choice involves political risk,” The Wall Street Journal's Laura Meckler, Elizabeth Holmes and Nick Timiraos report. “Opposing the plan could look irresponsible in the face of financial meltdown. But supporting a bailout for Wall Street firms, while voters are suffering their own economic hardships, could be hazardous, too.

“The similarity in the rhetoric between the candidates matched the similar outlooks of voters in their separate crowds Monday -- an unusual twist, as the two men tend to attract voters with different political perspectives,” they continue. “Obama and McCain supporters, alike, said they saw the bailout as a necessary, but upsetting, move -- and said it had better include proper protections.”

The teams in Arlington and Chicago are game-planning the sequence that will come about, as one of the particular pleasures of having candidates who are sitting senators. (Will it be another one of those fun scenes on the Senate floor, the two rivals eyeing each other’s thumbs on the eve of their first debate?)

Continue reading today's Note by clicking HERE.

ABC News' Hope Ditto contributed to this report.

September 23, 2008 in Biden, Joe, McCain, John, Obama, Barack, Palin, Sarah, Vote 2008: Democrats, Vote 2008: Republicans, Washington | Permalink | User Comments (14)

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I read in Drudge this morning that Obama's supporters are downplaying their candidates probable performance.

Well, we knew that would happen. Didn't we?

Posted by: dl | Sep 23, 2008 8:48:30 AM

I find it odd how the pundits are complaining because candidates are not being more forceful on the economic bill.
Neither one wants to get in the way of the delicate negotiations and I think it's smart for them to give their opinions without being pushy or interfering.
I find it annoying that all McCain can do is attack Obama and not give any substance to what he wants to do.
Obama came out with a 6 point plan but, it was not covered much by the media, instead prefering to ignore it and complain.
But, McCain gives us no substance or idea of what he plans to do on any issue. All he can do is attack and it's annoying.
Attacking doesn't tell us anything. McCain totally lacks substance on all the issues.
Even foreign policy. He is always confused and befuddled and has no answers so all he does is attack and give cold war rhetoric.

Posted by: vwcat | Sep 23, 2008 9:11:46 AM

Oh, DL, because Obama supporters do not feel the need to brag doesn't mean anything.
Besides, this is from Drudge. Drudge is guy who falsely claimed Palin got 60,000 people for an event that she actually got around 20 for.
How can anyone take Drudge seriously.
As for the debates, we expect it be fine but, it is not a debate we expect much from either candidate.
We expect that one to come in the next debate. We simply feel this one will be a bit low key and boring.

Posted by: vwcat | Sep 23, 2008 9:15:06 AM

how can anyone take mccain seriously

seriously?

how?

Posted by: Bhrandon | Sep 23, 2008 9:38:03 AM

I really don't like what the government has done by taking over Freddie Mac, Fannie Mae, AIG, and funding various other major transactions because what they are doing is setting the stage for another similar problem just as the savings and loan bailout set the stage for later problems, but I understand why they intervened. Almost all of our major companies borrow money for day-to-day operations. This is because even if they make tons of money, they don't make it in a steady flow throughout the year to guarantee that they can pay for any specific day's cost of business. What the government saw was a run by investors away from banks which would eliminate enough money from being available for companies to pay for their day-to-day operations which would effectively stop the economy. Our economy runs on the trust of investors in the banks, and when too many investors flee to cash, the banks don't have the money to lend to the companies. What the government saw was another depression occurring. This wasn't because the economy wasn't fundamentally sound from a short term perspective but because the dip in available money for lending was far too low causing too much of a shock for the economy to ride out without significant damage which would take a long time to recoup. However, the root of the current problems causing investors to flee is because the government intervened in previous problems and causing investors to ignore valid risks in the future which eventually build up causing yet another big mess. What the government needs to do is extricate itself from this death cycle by interfering as little as possible even to the point where the economy may go down slightly because removing short term fear by investors shouldn't lead to them ignoring the riskiness of their investments too much as happened when bad mortgages were repackaged as investment vehicles leading to the sub-prime mortgage mess. The shortsightedness of congress is what got us into this mess, and that means Obama, Biden and McCain.

Posted by: sangjmoon | Sep 23, 2008 11:11:51 AM

We don't need to take McCain seriously to vote the for Palin/McCain ticket. She is the one we're really voting for anyway! We have to openly admit that we just don't have anywhere near enough guts to vote for a guy that is so intelligent and not one of the good ol' boys. It's scary enough that he looks funny and has a funny sounding name.

Posted by: McChickens | Sep 23, 2008 11:31:22 AM

This is no quandary to McCain - to have a quandary requires that one first have morals. McCain is taking his shoe off to bang on the podium of self righteousness. How pathetic. .........
http://thefiresidepost.com/2008/09/23/anarchy-the-slippery-slope-of-deregulation/

Posted by: Ohg Rea Tone | Sep 23, 2008 11:52:17 AM

We are now in the business of bailing out foreign banks that were willing to make huge profits on our markets. Now they are losing money so they want us to bail them out.
Pathetic Bush, Fed and our Legislatures.
What a bunch of idiots.

Bailing Out Foreign Banks?

The government’s $700 billion rescue plan for our failing financial markets has grown to include foreign banks operating in the United States too. Over the weekend, foreign banks emphasized their importance and influence in the U.S. banking system to make sure they get a piece of the pie, and our government, burnishing the negotiating skills of a three-year-old, capitulated to their every demand.

Posted by: storm | Sep 23, 2008 3:48:17 PM

And finally, if someone tells you McCain is a third term Bush and that BO is “Mr. liberal” please pass on this info:

“Obama often says that McCain voted 90% of the time with Bush. What he doesn’t say is that Obama himself voted 88% of the time with Bush and even voted for the Cheney energy plan. Hillary didn’t and neither did McCain.

What they don’t tell you is that McCain voted 97% of the time with the Democrats and that he has the worst conservative voting record of any Republican. He voted liberal 20% of the time.

(A little tip when you hear Obama lying about McCain’s voting record: most votes in the Senate are unanimous consent.)” http://www.redhotandbluepolitics.com

Posted by: Democrat No More | Sep 23, 2008 4:15:12 PM

The reality is that Obama and McCain are the defacto leaders of their party. They will set the tone and most of their party will follow suit. The true winner out of this will be the one yells "NO!" to the Paulson plan and comes up with something else that is better for the taxpayers and the economy; not some minor modifications to a plan that is rotten throughout.

A better plan can be seen at:
http://robertreich.blogspot.com/2008/09/bailout-of-all-bailouts-is-bad-idea.html

But of course Paulson and Barnacke are saying the sky is falling and everything will fall apart by this weekend which is bogus. A plan, led by one man, with dictorial decision making powers with no oversight?

Write and email your representative and senators and tell them to say NO!...not a muted yes with modifications!

Posted by: Real World Realities | Sep 23, 2008 5:25:05 PM

Maybe the person who has the best read on what will come out of Friday’s debate is Alan Keyes (has anyone else debated both McCain and Sen. Barack Obama?).

Surprised Rick Klein mentioned Alan Keyes. I wonder if Klein knows that Keyes is running as an Independent candidate - America’s Independent Party?

Wouldn't it be great to see Keyes, McCain & Barack debate the bailout bill? Now, that would be something worthwhile to watch!!

Posted by: demecat | Sep 24, 2008 12:08:31 PM

About time someone mentioned a real canidate GO Alan Keyes. How many of us Conservatives have been lied too. Not just by McCain, but also Saddleback adn Focus on the Family. (Guess they couldnt focus on God's family at the same time)Hey this whole bail out is a sham. I mean really how is the money going to be spent.. Why does the government Have to bail them out they did dirty deals and there is no punishment? Let them fall at least if the company goes belly up. Who do folks pay the morgage too.. No one! Anyway here we are bailing out companies and there are gas stations here in North Carolina running out of gas.. Can we focus for at least once. For those interested check out Americasrevival.com.com.
As for me I am voting Alan Keyes even though I have to write him in!!!

Posted by: Marc Rogers | Sep 24, 2008 1:25:15 PM

Obama enough is enough your words - bail out people not wall street. We were screwed twice once on mortgage fraud and then on gas manipulation.

You want my vote - take a stand

OHIO

Posted by: nevermind | Sep 24, 2008 2:28:59 PM

"Maybe the person who has the best read on what will come out of Friday’s debate is Alan Keyes (has anyone else debated both McCain and Sen. Barack Obama?)."
That's not the only thing he may have the best read on, Listen to the McAlverny Interveiw from 9/24/08"

http://www.mcalvany.com/podcast/?p=42

Posted by: Maureen in MA | Sep 25, 2008 12:25:03 AM

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