Monday, September 29, 2008
Friday, September 26, 2008
How republicans plan to steal the election (this time)
They Gave Your Mortgage to a Less Qualified Minority
by Ann Coulter
.... Even if McCain had been implicated in the Keating Five scandal -- and he wasn't -- that would still have absolutely nothing to do with the subprime mortgage crisis currently roiling the financial markets. This crisis was caused by political correctness being forced on the mortgage lending industry in the Clinton era...
...Congress "mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains."
Under Clinton... investigated Fannie Mae for racial discrimination and proposed that... Instead of looking at "outdated criteria," such as the mortgage applicant's credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named "Caylee."
...A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it's gone off.
Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats' two most important constituent groups: rich Wall Street bankers and welfare recipients.
by Ann Coulter
.... Even if McCain had been implicated in the Keating Five scandal -- and he wasn't -- that would still have absolutely nothing to do with the subprime mortgage crisis currently roiling the financial markets. This crisis was caused by political correctness being forced on the mortgage lending industry in the Clinton era...
...Congress "mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains."
Under Clinton... investigated Fannie Mae for racial discrimination and proposed that... Instead of looking at "outdated criteria," such as the mortgage applicant's credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named "Caylee."
...A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it's gone off.
Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats' two most important constituent groups: rich Wall Street bankers and welfare recipients.
Even conservatives have turned on Palin!!!!!!!!!!!!!!!
From CNN Ticker Producer Alexander Mooney
Palin was in New York City Thursday.
(CNN) – Prominent conservative columnist Kathleen Parker, an early supporter of Republican VP candidate Sarah Palin, said Friday recent interviews have shown the Alaska governor is "out of her league" and should leave the GOP presidential ticket for the good of the party.
The criticism in Parker's Friday column is the latest in a recent string of negative assessments toward the McCain-Palin candidacy from prominent conservatives.
It was fun while it lasted," Parker writes. "Palin’s recent interviews with Charles Gibson, Sean Hannity, and now Katie Couric have all revealed an attractive, earnest, confident candidate. Who is clearly out of her league."
Palin's interview with Couric drew criticism when the Alaska governor was unable to provide an example of when John McCain had pushed for more regulation of Wall Street during his Senate career. Palin also took heat for defending her foreign policy credentials by suggesting Russian leaders enter Alaska airspace when they come to America. Palin was also criticized last week for appearing not to know what the Bush Doctrine is during an interview with Charlie Gibson.
“If BS were currency, Palin could bail out Wall Street herself," Parker also writes. "If Palin were a man, we’d all be guffawing, just as we do every time Joe Biden tickles the back of his throat with his toes. But because she’s a woman — and the first ever on a Republican presidential ticket — we are reluctant to say what is painfully true."
Parker, who praised McCain's "keen judgment" for picking Palin earlier this month and wrote the Alaska governor is a "perfect storm of God, Mom and apple pie," now says Palin should step down from the ticket.
“Only Palin can save McCain, her party, and the country she loves," Parker writes. She can bow out for personal reasons, perhaps because she wants to spend more time with her newborn. No one would criticize a mother who puts her family first. Do it for your country."
Parker's comments follow those by prominent conservatives David Brooks, George Will, and David Frum who have all publicly questioned Palin's readiness to be vice president
"Sarah Palin has many virtues," Brooks wrote in a recent column. "If you wanted someone to destroy a corrupt establishment, she'd be your woman. But the constructive act of governance is another matter. She has not been engaged in national issues, does not have a repertoire of historic patterns and, like President Bush, she seems to compensate for her lack of experience with brashness and excessive decisiveness."
Palin was in New York City Thursday.
(CNN) – Prominent conservative columnist Kathleen Parker, an early supporter of Republican VP candidate Sarah Palin, said Friday recent interviews have shown the Alaska governor is "out of her league" and should leave the GOP presidential ticket for the good of the party.
The criticism in Parker's Friday column is the latest in a recent string of negative assessments toward the McCain-Palin candidacy from prominent conservatives.
It was fun while it lasted," Parker writes. "Palin’s recent interviews with Charles Gibson, Sean Hannity, and now Katie Couric have all revealed an attractive, earnest, confident candidate. Who is clearly out of her league."
Palin's interview with Couric drew criticism when the Alaska governor was unable to provide an example of when John McCain had pushed for more regulation of Wall Street during his Senate career. Palin also took heat for defending her foreign policy credentials by suggesting Russian leaders enter Alaska airspace when they come to America. Palin was also criticized last week for appearing not to know what the Bush Doctrine is during an interview with Charlie Gibson.
“If BS were currency, Palin could bail out Wall Street herself," Parker also writes. "If Palin were a man, we’d all be guffawing, just as we do every time Joe Biden tickles the back of his throat with his toes. But because she’s a woman — and the first ever on a Republican presidential ticket — we are reluctant to say what is painfully true."
Parker, who praised McCain's "keen judgment" for picking Palin earlier this month and wrote the Alaska governor is a "perfect storm of God, Mom and apple pie," now says Palin should step down from the ticket.
“Only Palin can save McCain, her party, and the country she loves," Parker writes. She can bow out for personal reasons, perhaps because she wants to spend more time with her newborn. No one would criticize a mother who puts her family first. Do it for your country."
Parker's comments follow those by prominent conservatives David Brooks, George Will, and David Frum who have all publicly questioned Palin's readiness to be vice president
"Sarah Palin has many virtues," Brooks wrote in a recent column. "If you wanted someone to destroy a corrupt establishment, she'd be your woman. But the constructive act of governance is another matter. She has not been engaged in national issues, does not have a repertoire of historic patterns and, like President Bush, she seems to compensate for her lack of experience with brashness and excessive decisiveness."
Even Huckabee knows McCain has no idea what he is doing!
From CNN Ticker Producer Alexander Mooney
Huckabee thinks McCain made a big mistake.
(CNN) – Former Republican presidential candidate Mike Huckabee said Friday the John McCain made a "huge mistake" by even floating the possibility he would not appear at the first presidential debate as planned.
“You can’t just say, ‘World stop for a moment. I’m going to cancel everything,” Huckabee told the Associated Press Thursday.
Huckabee, who vied with McCain for the GOP presidential nomination long after it appeared McCain was the party's presumptive nominee, has been an on-and-off critic of the Arizona senator. Earlier this summer he took part in a Washington, DC rally calling on McCain and Obama to highlight more evangelical issues on the campaign trail. He also criticized McCain's campaign when it alleged Obama's "lipstick on a pig" comments was an intended slight at Republican VP candidate Sarah Palin.
McCain abruptly announced Wednesday he would travel to Washington in hopes of striking a deal on the economic bailout deal, and said he would not attend a debate unless an agreement had been reached. Late Friday morning campaign aides said McCain felt sufficient progress had been made on the and he would attend the debate.
But the bill itself appears very much up in the air. After what was described by members of both parties as a "contentious" meeting at the White House Thursday afternoon, congressional leaders are still trying to hammer out a compromise on the Bush administration proposal. Speaking to reporters Friday morning, Senate Majority Leader Harry Reid said McCain's presence on the Hill helped stall negotiations.
"All he has done is stand in front of the cameras," said Reid, who has long had a chilly relationship with McCain. "We still don't know where he stands on the issue."
Huckabee thinks McCain made a big mistake.
(CNN) – Former Republican presidential candidate Mike Huckabee said Friday the John McCain made a "huge mistake" by even floating the possibility he would not appear at the first presidential debate as planned.
“You can’t just say, ‘World stop for a moment. I’m going to cancel everything,” Huckabee told the Associated Press Thursday.
Huckabee, who vied with McCain for the GOP presidential nomination long after it appeared McCain was the party's presumptive nominee, has been an on-and-off critic of the Arizona senator. Earlier this summer he took part in a Washington, DC rally calling on McCain and Obama to highlight more evangelical issues on the campaign trail. He also criticized McCain's campaign when it alleged Obama's "lipstick on a pig" comments was an intended slight at Republican VP candidate Sarah Palin.
McCain abruptly announced Wednesday he would travel to Washington in hopes of striking a deal on the economic bailout deal, and said he would not attend a debate unless an agreement had been reached. Late Friday morning campaign aides said McCain felt sufficient progress had been made on the and he would attend the debate.
But the bill itself appears very much up in the air. After what was described by members of both parties as a "contentious" meeting at the White House Thursday afternoon, congressional leaders are still trying to hammer out a compromise on the Bush administration proposal. Speaking to reporters Friday morning, Senate Majority Leader Harry Reid said McCain's presence on the Hill helped stall negotiations.
"All he has done is stand in front of the cameras," said Reid, who has long had a chilly relationship with McCain. "We still don't know where he stands on the issue."
McSame flip flops on debate
OXFORD, Mississippi (CNN) -- Sen. John McCain will attend the first presidential debate as planned Friday night, his campaign announced.
Workers put the finishing touches on the debate stage at the University of Mississippi on Thursday.
McCain said earlier this week he would not attend the debate if an agreement had not been reached on a $700 billion bailout plan for Wall Street.
The outcome was up in the air Friday as lawmakers scrambled to agree on a plan.
But by midday, McCain's campaign said the Republican presidential nominee believed enough progress had been made for him to travel to Mississippi to participate in the debate, set for 9 p.m. ET at the University of Mississippi campus.
"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 Rep. [Roy] Blunt as a designated negotiator for House Republicans," the campaign said in a statement.
"The McCain campaign is resuming all activities and the senator will travel to the debate this afternoon."
Both presidential candidates -- McCain and Democratic Sen. Barack Obama -- returned to Washington Thursday to participate in talks over the bailout package.
Don't Miss
McCain's move: Putting priorities or politics first?
Did McCain blindside Obama?
Begala: We need a debate now
CNN readers say bring on debate
The debate is expected to focus on foreign policy and national security, but the economic crisis is likely to be a dominant issue as well.
Debate planners got a big surprise when McCain called for postponing it. The university has invested millions of dollars preparing for it. Watch more on the fate of the debate »
Obama's campaign had argued over the past couple of days that both attending the presidential debate and working on the bailout plan could be accomplished and the event should go on.
"I think we can do both of these things at the same time. The next president is going to face multiple crises on the same day," Robert Gibbs, Obama's top adviser, had said on CNN's "American Morning."
"We've got a presidential debate scheduled. We've got a stage. We'll have an audience. My guess is we'll have a moderator and at least one of the presidential candidates," Gibbs said.
Workers put the finishing touches on the debate stage at the University of Mississippi on Thursday.
McCain said earlier this week he would not attend the debate if an agreement had not been reached on a $700 billion bailout plan for Wall Street.
The outcome was up in the air Friday as lawmakers scrambled to agree on a plan.
But by midday, McCain's campaign said the Republican presidential nominee believed enough progress had been made for him to travel to Mississippi to participate in the debate, set for 9 p.m. ET at the University of Mississippi campus.
"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 Rep. [Roy] Blunt as a designated negotiator for House Republicans," the campaign said in a statement.
"The McCain campaign is resuming all activities and the senator will travel to the debate this afternoon."
Both presidential candidates -- McCain and Democratic Sen. Barack Obama -- returned to Washington Thursday to participate in talks over the bailout package.
Don't Miss
McCain's move: Putting priorities or politics first?
Did McCain blindside Obama?
Begala: We need a debate now
CNN readers say bring on debate
The debate is expected to focus on foreign policy and national security, but the economic crisis is likely to be a dominant issue as well.
Debate planners got a big surprise when McCain called for postponing it. The university has invested millions of dollars preparing for it. Watch more on the fate of the debate »
Obama's campaign had argued over the past couple of days that both attending the presidential debate and working on the bailout plan could be accomplished and the event should go on.
"I think we can do both of these things at the same time. The next president is going to face multiple crises on the same day," Robert Gibbs, Obama's top adviser, had said on CNN's "American Morning."
"We've got a presidential debate scheduled. We've got a stage. We'll have an audience. My guess is we'll have a moderator and at least one of the presidential candidates," Gibbs said.
Wednesday, September 24, 2008
Is this what you want world leaders to think when they meet the vice president?
From From CNN's Peter Hamby and Wes Little
Pakistan president Asif Ali Zardari told Palin she's gorgeous.
NEW YORK (CNN) - Sarah Palin and the foreign leaders she has been meeting with in New York have said very little to reporters over the last two days, but the press happened to be in the room on Wednesday for one eyebrow-raising exchange, as the new president of Pakistan lavished praise on Palin's looks.
On entering a room filled with several Pakistani officials this afternoon, Palin was immediately greeted by Sherry Rehman, the country's Information Minister.
"And how does one keep looking that good when one is that busy?," Rehman asked, drawing friendly laughter from the room when she complimented Palin.
"Oh, thank you," Palin said.
Pakistan's new president Asif Ali Zardari, entered the room seconds later. Palin rose to shake his hand, saying she was “honored” to meet him.
Zardari then called her "gorgeous" and said: "Now I know why the whole of America is crazy about you."
"You are so nice," Palin said, smiling. "Thank you."
A handler from Zardari's entourage then told the two politicians to keep shaking hands for the cameras.
"If he's insisting, I might hug," Zardari said. Palin smiled politely.
The Alaska governor did not answer questions from reporters at her first two appearances on Wednesday, when she joined McCain in meetings with Georgia President Mikhail Saakashvili and Ukrainian president Viktor Yushchenko, and then traveled downtown to meet with Iraqi president Jalal Talabani.
But she did offer brief remarks to a reporter at the Zardari meeting who asked about her day.
"It's going great," Palin said. "These meetings are very informative and helpful, and a lot of good people sharing appreciation for America."
Pakistan president Asif Ali Zardari told Palin she's gorgeous.
NEW YORK (CNN) - Sarah Palin and the foreign leaders she has been meeting with in New York have said very little to reporters over the last two days, but the press happened to be in the room on Wednesday for one eyebrow-raising exchange, as the new president of Pakistan lavished praise on Palin's looks.
On entering a room filled with several Pakistani officials this afternoon, Palin was immediately greeted by Sherry Rehman, the country's Information Minister.
"And how does one keep looking that good when one is that busy?," Rehman asked, drawing friendly laughter from the room when she complimented Palin.
"Oh, thank you," Palin said.
Pakistan's new president Asif Ali Zardari, entered the room seconds later. Palin rose to shake his hand, saying she was “honored” to meet him.
Zardari then called her "gorgeous" and said: "Now I know why the whole of America is crazy about you."
"You are so nice," Palin said, smiling. "Thank you."
A handler from Zardari's entourage then told the two politicians to keep shaking hands for the cameras.
"If he's insisting, I might hug," Zardari said. Palin smiled politely.
The Alaska governor did not answer questions from reporters at her first two appearances on Wednesday, when she joined McCain in meetings with Georgia President Mikhail Saakashvili and Ukrainian president Viktor Yushchenko, and then traveled downtown to meet with Iraqi president Jalal Talabani.
But she did offer brief remarks to a reporter at the Zardari meeting who asked about her day.
"It's going great," Palin said. "These meetings are very informative and helpful, and a lot of good people sharing appreciation for America."
Bush is missing in action during the biggest financial crisis ever!
From Ed Henry and Elaine Quijano
CNN White House Correspondents
NEW YORK (CNN) -- President Bush will deliver a prime-time televised speech Wednesday night to pressure Congress to pass a $700 billion plan to bail out Wall Street, the White House announced.
President Bush will address the nation Wednesday night about the $700 billion Wall Street bailout package.
Federal Reserve chief Ben Bernanke warned Wednesday that the Wall Street crisis is the worst the nation has faced since the end of World War II and urged Congress to take action on a proposed bailout package.
But members of Congress -- including some of Bush's fellow Republicans -- are skeptical of the plan drafted by Bernanke and Treasury Secretary Henry Paulson.
Bush's speech is set to begin at 9:01 p.m. ET and will take just less than 15 minutes.
Minutes before the speech was announced, the Democratic leader in the Senate blasted Bush, accusing him of being "absent from what may well be the most important debate on economic policy in a generation."
"Where is President Bush?" Sen. Harry Reid of Nevada demanded on the Senate floor. "President Bush has sent Congress an unprecedented $700 billion bailout proposal -- $700 billion straight from the pockets of every single man, woman and child in America.
"It is time for him to explain how his plan, drafted literally under the cover of darkness, will help America weather this storm."
Congress is considering whether to allow Paulson to use federal funds to buy up to $700 billion in mortgage-related securities and other assets that have caused turbulence on Wall Street and have undermined credit markets worldwide.
Paulson and Bernanke faced deeply skeptical senators Tuesday, and are pitching their plan to the House Financial Services Committee on Wednesday.
On Tuesday, the White House said failure to pass the bailout package was "unthinkable."
"Every business, every employer, and, so, every employee in America depends every day on the flow of money coming through our financial system to sustain their normal business operations," White House spokesman Tony Fratto said.
House Republicans met with Paulson behind closed doors and with Vice President Dick Cheney, White House Chief of Staff Josh Bolten and Keith Hennessey, the president's top economic adviser.
Indiana Republican Mike Pence, a leading House conservative said, "There is growing discontent among House Republicans."
Conservative Republicans, in particular, have expressed doubts about the bailout, saying it is a departure from the free market principles.
Leaving the meeting with Cheney, Georgia Republican Rep. Phil Gingrey told reporters, "Hardly anybody in that room has made up their mind exactly on how they are going to vote on this."
When asked if he thought a presidential address would help pass the bailout, Rep. John Boehner, the top Republican in the House, replied, "They need to make that call," referring to the White House.
Rep. Adam Putnam of Florida, chairman of the GOP conference, said "no one has the bully pulpit" like the president.
CNN White House Correspondents
NEW YORK (CNN) -- President Bush will deliver a prime-time televised speech Wednesday night to pressure Congress to pass a $700 billion plan to bail out Wall Street, the White House announced.
President Bush will address the nation Wednesday night about the $700 billion Wall Street bailout package.
Federal Reserve chief Ben Bernanke warned Wednesday that the Wall Street crisis is the worst the nation has faced since the end of World War II and urged Congress to take action on a proposed bailout package.
But members of Congress -- including some of Bush's fellow Republicans -- are skeptical of the plan drafted by Bernanke and Treasury Secretary Henry Paulson.
Bush's speech is set to begin at 9:01 p.m. ET and will take just less than 15 minutes.
Minutes before the speech was announced, the Democratic leader in the Senate blasted Bush, accusing him of being "absent from what may well be the most important debate on economic policy in a generation."
"Where is President Bush?" Sen. Harry Reid of Nevada demanded on the Senate floor. "President Bush has sent Congress an unprecedented $700 billion bailout proposal -- $700 billion straight from the pockets of every single man, woman and child in America.
"It is time for him to explain how his plan, drafted literally under the cover of darkness, will help America weather this storm."
Congress is considering whether to allow Paulson to use federal funds to buy up to $700 billion in mortgage-related securities and other assets that have caused turbulence on Wall Street and have undermined credit markets worldwide.
Paulson and Bernanke faced deeply skeptical senators Tuesday, and are pitching their plan to the House Financial Services Committee on Wednesday.
On Tuesday, the White House said failure to pass the bailout package was "unthinkable."
"Every business, every employer, and, so, every employee in America depends every day on the flow of money coming through our financial system to sustain their normal business operations," White House spokesman Tony Fratto said.
House Republicans met with Paulson behind closed doors and with Vice President Dick Cheney, White House Chief of Staff Josh Bolten and Keith Hennessey, the president's top economic adviser.
Indiana Republican Mike Pence, a leading House conservative said, "There is growing discontent among House Republicans."
Conservative Republicans, in particular, have expressed doubts about the bailout, saying it is a departure from the free market principles.
Leaving the meeting with Cheney, Georgia Republican Rep. Phil Gingrey told reporters, "Hardly anybody in that room has made up their mind exactly on how they are going to vote on this."
When asked if he thought a presidential address would help pass the bailout, Rep. John Boehner, the top Republican in the House, replied, "They need to make that call," referring to the White House.
Rep. Adam Putnam of Florida, chairman of the GOP conference, said "no one has the bully pulpit" like the president.
Monday, September 22, 2008
Now she spends $25Million on a ROAD to nowhere!
Alaska town opens 'road to nowhere'
Alaska now has a Road to Nowhere going to what would have been the Bridge to Nowhere.
By STEVE QUINN
Associated Press Writer
JUNEAU, Alaska —
Alaska now has a Road to Nowhere going to what would have been the Bridge to Nowhere.
Alaska Gov. Sarah Palin's transportation department has completed a $25 million gravel road leading to the site of a bridge that Palin, as John McCain's vice presidential candidate, now boasts that she stopped, so as to save taxpayers money. The road was built with federal tax dollars.
Ketchikan Mayor Bob Weinstein said the 3.2-mile road will be useful for road races, hunters and possibly future development. But with no bridge to serve it, that's probably about it.
"I think it will be good for recreational things like a 5K and a 10K," Weinstein said. "And instead of people walking through brush, it may be used for hunting in the area."
Palin repeatedly tells campaign crowds she said "thanks but no thanks" to Washington when it came up with $400 million for a bridge linking Ketchikan to an island with 50 residents and an airport. In fact, she turned against the bridge only after it became a national symbol of wasteful spending and Washington had backed off financing the project.
Roger Wetherell, speaking for the state Transportation Department, said the road opened several days ago might someday get people to and from Gravina Island after all, if cheaper designs for a bridge become a reality. Meantime, it opens access to land development, he said.
McCain opposes the pet projects that lawmakers in Washington wring out of the federal budget for their constituents in the form of special spending, or earmarks. He's railed for years against the bridge, doing more than anyone to make the nickname Bridge to Nowhere stick. And as his running mate, Palin talks about how she killed the bridge project and "championed reform to end the abuses of earmark spending by Congress."
She supported the bridge during her campaign for governor in 2006, then pulled back state money for it a year later, after Washington had pulled the plug.
Alaska received about half the bridge money anyway, on condition it be used for other things. Palin's predecessor and the Legislature redirected all but $60 million in 2006 to other projects, and Palin has left the remainder untouched, to be used eventually to improve access to the island, her spokeswoman has said.
The airport is separated from its users by a quarter-mile-wide channel of water, forcing travelers to catch either a ferry or a water taxi for a 15-minute ride. Ketchikan, seven blocks wide and eight miles long, is Alaska's entry port for northbound cruise ships that bring more than 1 million visitors yearly.
Copyright © 2008 The Seattle Times Company
Alaska now has a Road to Nowhere going to what would have been the Bridge to Nowhere.
By STEVE QUINN
Associated Press Writer
JUNEAU, Alaska —
Alaska now has a Road to Nowhere going to what would have been the Bridge to Nowhere.
Alaska Gov. Sarah Palin's transportation department has completed a $25 million gravel road leading to the site of a bridge that Palin, as John McCain's vice presidential candidate, now boasts that she stopped, so as to save taxpayers money. The road was built with federal tax dollars.
Ketchikan Mayor Bob Weinstein said the 3.2-mile road will be useful for road races, hunters and possibly future development. But with no bridge to serve it, that's probably about it.
"I think it will be good for recreational things like a 5K and a 10K," Weinstein said. "And instead of people walking through brush, it may be used for hunting in the area."
Palin repeatedly tells campaign crowds she said "thanks but no thanks" to Washington when it came up with $400 million for a bridge linking Ketchikan to an island with 50 residents and an airport. In fact, she turned against the bridge only after it became a national symbol of wasteful spending and Washington had backed off financing the project.
Roger Wetherell, speaking for the state Transportation Department, said the road opened several days ago might someday get people to and from Gravina Island after all, if cheaper designs for a bridge become a reality. Meantime, it opens access to land development, he said.
McCain opposes the pet projects that lawmakers in Washington wring out of the federal budget for their constituents in the form of special spending, or earmarks. He's railed for years against the bridge, doing more than anyone to make the nickname Bridge to Nowhere stick. And as his running mate, Palin talks about how she killed the bridge project and "championed reform to end the abuses of earmark spending by Congress."
She supported the bridge during her campaign for governor in 2006, then pulled back state money for it a year later, after Washington had pulled the plug.
Alaska received about half the bridge money anyway, on condition it be used for other things. Palin's predecessor and the Legislature redirected all but $60 million in 2006 to other projects, and Palin has left the remainder untouched, to be used eventually to improve access to the island, her spokeswoman has said.
The airport is separated from its users by a quarter-mile-wide channel of water, forcing travelers to catch either a ferry or a water taxi for a 15-minute ride. Ketchikan, seven blocks wide and eight miles long, is Alaska's entry port for northbound cruise ships that bring more than 1 million visitors yearly.
Copyright © 2008 The Seattle Times Company
McCain wants to do for Social Security what he did for the stock market
Obama hammers McCain over Social SecurityStory Highlights
Obama says if McCain becomes president, he'll privatize Social Security
Obama: McCain is "the one who wants to gamble with your life savings"
Candidates exchange accusations of ties to failed mortgage lenders
New CNN Poll of Polls shows Obama leading in Michigan
From Ed Hornick, Sasha Johnson and Paul Steinhauser
CNN
DAYTONA BEACH, Florida (CNN) -- Sen. Barack Obama told voters in Daytona Beach, Florida, on Saturday that if Sen. John McCain became president, he would privatize their Social Security.
Sen. Barack Obama, with Kansas Gov. Kathleen Sebelius, speaks in Daytona Beach, Florida, on Saturday.
It's a debate over the program that could resurface as a major issue in the closing weeks of the campaign, given the wild swings in financial markets.
"If my opponent had his way, the millions of Floridians who rely on it would've had their Social Security tied up in the stock market this week. Millions would've watched as the market tumbled and their nest egg disappeared before their eyes," he said.
"I know Sen. McCain is talking about a 'casino culture' on Wall Street, but the fact is, he's the one who wants to gamble with your life savings, and that is not going to happen when I'm president. When I'm president, we're not going to gamble with Social Security."
The McCain campaign disputed Obama's assertion, calling it "a desperate attempt to gain political advantage using scare tactics and deceit." Election Center: Where the candidates stand on Social Security
Obama also highlighted an article McCain penned in this month's issue of the American Academy of Actuaries magazine, called "Contingencies," in which he said consumers would have more choices for health insurance products if the market was opened to more "vigorous nationwide competition, as we have done over the last decade in banking."
"He wants to run health care like they've been running Wall Street. Well, senator, I know some folks on Main Street who aren't going to think that's such a good idea," Obama said. Listen to Obama's Saturday radio address »
The Democratic nominee has one more event in Jacksonville before heading to North Carolina for an event Sunday in Charlotte.
The campaign announced that Obama will spend several days next week in Tampa, Florida -- a spot along the Interstate 4 corridor that is considered a crucial swing vote region for both candidates -- prepping for Friday's first presidential debate.
In a radio address Saturday, McCain blasted Obama's ties to failed mortgage lenders Fannie Mae and Freddie Mac.
"While Fannie and Freddie were working to keep Congress away from their house of cards, Sen. Obama was taking their money. He got more, in fact, than any other member of Congress, except for the Democratic chairman of the committee that oversees them," he added. Fact Check: Did Obama 'profit' from Fannie Mae, Freddie Mac?
Last week, Obama's campaign highlighted the fact that several of McCain's top advisers had lobbied on behalf of the two lenders.
Nonetheless, the McCain campaign released an ad Friday linking Obama to former Fannie Mae CEO Franklin Raines. Watch McCain lash out on Obama's financial plan »
"Who advises him?" the female announcer asks. "The [Washington] Post says it's Franklin Raines, for 'advice on mortgage and housing policy.' "
But on Saturday, Obama debunked those accusations.
"My opponent attacked me for being associated with a Fannie Mae guy who I met once and talked to for maybe five minutes. He did a TV ad saying this guy was my adviser. The guy actually had to send out a letter saying, 'That's not true. I actually don't really talk to the guy,' " Obama said.
And the head of the lobbying shop at Fannie Mae turned around and said, 'Wait a minute. When I see photographs of Sen. McCain's staff, it looks to me like the team of lobbyists who used to report to me.'"
Also Friday, McCain's team fired off an ad about Obama's relationship with Jim Johnson, the former Fannie Mae chairman who resigned as head of the Democrat's vice presidential vetting team after allegations that he had received preferential terms on a mortgage from Countrywide Financial. Watch an analysis of the new political ads »
Meanwhile, McCain will stop by his 50-year class reunion Saturday at the U.S. Naval Academy football game.
The Arizona senator, who often mentions his time as a prisoner of war during the Vietnam era, graduated from the Academy in 1958 along with John Poindexter and Robert "Bud" McFarlane, two consecutive national security advisers under President Reagan who played a role in the Iran-Contra affair.
Also Saturday, a new CNN poll of polls in Michigan suggests that Obama has a 5-point lead over McCain, 47 percent to 42 percent, with 11 percent of voters undecided.
Seventeen electoral votes are up for grabs in Michigan.
The current financial crisis from Wall Street to Main Street will more than likely be a major factor in Michigan, a state dealing with hard economic times.
"The struggling economy could be Obama's trump card," CNN Senior Political Researcher Alan Silverleib noted.
"Obama is doing slightly better in CNN's Michigan poll of polls than in CNN's national poll of polls in large part because Michigan is ground zero when it comes to the country's current economic hardship. The unsettling news from Wall Street over the last few days could play to Obama's advantage, especially in the Rust Belt," Silverleib added. Interactive: CNN's Electoral Map
Michigan has voted for the Democratic candidate in the past four presidential elections, but it was quite close in 2004, with Sen. John Kerry beating President Bush there by just 3 points.
The latest CNN poll of polls is an average of the three most recent surveys in Michigan. They are a Big Ten Battleground poll conducted September 14-17, an EPIC/MRA survey taken on the same days and a Marist poll conducted September 16-17.
Obama says if McCain becomes president, he'll privatize Social Security
Obama: McCain is "the one who wants to gamble with your life savings"
Candidates exchange accusations of ties to failed mortgage lenders
New CNN Poll of Polls shows Obama leading in Michigan
From Ed Hornick, Sasha Johnson and Paul Steinhauser
CNN
DAYTONA BEACH, Florida (CNN) -- Sen. Barack Obama told voters in Daytona Beach, Florida, on Saturday that if Sen. John McCain became president, he would privatize their Social Security.
Sen. Barack Obama, with Kansas Gov. Kathleen Sebelius, speaks in Daytona Beach, Florida, on Saturday.
It's a debate over the program that could resurface as a major issue in the closing weeks of the campaign, given the wild swings in financial markets.
"If my opponent had his way, the millions of Floridians who rely on it would've had their Social Security tied up in the stock market this week. Millions would've watched as the market tumbled and their nest egg disappeared before their eyes," he said.
"I know Sen. McCain is talking about a 'casino culture' on Wall Street, but the fact is, he's the one who wants to gamble with your life savings, and that is not going to happen when I'm president. When I'm president, we're not going to gamble with Social Security."
The McCain campaign disputed Obama's assertion, calling it "a desperate attempt to gain political advantage using scare tactics and deceit." Election Center: Where the candidates stand on Social Security
Obama also highlighted an article McCain penned in this month's issue of the American Academy of Actuaries magazine, called "Contingencies," in which he said consumers would have more choices for health insurance products if the market was opened to more "vigorous nationwide competition, as we have done over the last decade in banking."
"He wants to run health care like they've been running Wall Street. Well, senator, I know some folks on Main Street who aren't going to think that's such a good idea," Obama said. Listen to Obama's Saturday radio address »
The Democratic nominee has one more event in Jacksonville before heading to North Carolina for an event Sunday in Charlotte.
The campaign announced that Obama will spend several days next week in Tampa, Florida -- a spot along the Interstate 4 corridor that is considered a crucial swing vote region for both candidates -- prepping for Friday's first presidential debate.
In a radio address Saturday, McCain blasted Obama's ties to failed mortgage lenders Fannie Mae and Freddie Mac.
"While Fannie and Freddie were working to keep Congress away from their house of cards, Sen. Obama was taking their money. He got more, in fact, than any other member of Congress, except for the Democratic chairman of the committee that oversees them," he added. Fact Check: Did Obama 'profit' from Fannie Mae, Freddie Mac?
Last week, Obama's campaign highlighted the fact that several of McCain's top advisers had lobbied on behalf of the two lenders.
Nonetheless, the McCain campaign released an ad Friday linking Obama to former Fannie Mae CEO Franklin Raines. Watch McCain lash out on Obama's financial plan »
"Who advises him?" the female announcer asks. "The [Washington] Post says it's Franklin Raines, for 'advice on mortgage and housing policy.' "
But on Saturday, Obama debunked those accusations.
"My opponent attacked me for being associated with a Fannie Mae guy who I met once and talked to for maybe five minutes. He did a TV ad saying this guy was my adviser. The guy actually had to send out a letter saying, 'That's not true. I actually don't really talk to the guy,' " Obama said.
And the head of the lobbying shop at Fannie Mae turned around and said, 'Wait a minute. When I see photographs of Sen. McCain's staff, it looks to me like the team of lobbyists who used to report to me.'"
Also Friday, McCain's team fired off an ad about Obama's relationship with Jim Johnson, the former Fannie Mae chairman who resigned as head of the Democrat's vice presidential vetting team after allegations that he had received preferential terms on a mortgage from Countrywide Financial. Watch an analysis of the new political ads »
Meanwhile, McCain will stop by his 50-year class reunion Saturday at the U.S. Naval Academy football game.
The Arizona senator, who often mentions his time as a prisoner of war during the Vietnam era, graduated from the Academy in 1958 along with John Poindexter and Robert "Bud" McFarlane, two consecutive national security advisers under President Reagan who played a role in the Iran-Contra affair.
Also Saturday, a new CNN poll of polls in Michigan suggests that Obama has a 5-point lead over McCain, 47 percent to 42 percent, with 11 percent of voters undecided.
Seventeen electoral votes are up for grabs in Michigan.
The current financial crisis from Wall Street to Main Street will more than likely be a major factor in Michigan, a state dealing with hard economic times.
"The struggling economy could be Obama's trump card," CNN Senior Political Researcher Alan Silverleib noted.
"Obama is doing slightly better in CNN's Michigan poll of polls than in CNN's national poll of polls in large part because Michigan is ground zero when it comes to the country's current economic hardship. The unsettling news from Wall Street over the last few days could play to Obama's advantage, especially in the Rust Belt," Silverleib added. Interactive: CNN's Electoral Map
Michigan has voted for the Democratic candidate in the past four presidential elections, but it was quite close in 2004, with Sen. John Kerry beating President Bush there by just 3 points.
The latest CNN poll of polls is an average of the three most recent surveys in Michigan. They are a Big Ten Battleground poll conducted September 14-17, an EPIC/MRA survey taken on the same days and a Marist poll conducted September 16-17.
McCain Owns 13 cars to go along with his 8 houses
September 22, 2008
Dems seize on McCain's 13 cars
Posted: 07:09 AM ET
From CNN Ticker Producer Alexander Mooney
Democrats are seizing on a report the McCains own at least 13 cars.
(CNN) — Democrats eager to portray John McCain as out of touch with average Americans and as a flip-flopper seized on a report Sunday the Arizona senator and his wife, Cindy, own more than a dozen cars — including several foreign-made automobiles.
A Newsweek article published on the magazine's Web Site Sunday said registration records show the McCains currently own 13 cars — two of which are foreign-made: a Honda and a Volkswagen. That appears to contradict the Republican presidential nominee's past statements he only buys cars made in America. (Cindy McCain also drives a Lexus and daughter Meghan owns a Toyota Prius, but neither are registered to the McCains.)
Newsweek also reported Barack Obama owns one car: a Ford Escape Hybrid.
In a quickly-arranged conference call organized by the Democratic National Committee, United Auto Worker Union President Ron Gettelfinger — an Obama supporter — said the registration records show McCain is not being truthful with Americans and undermining autoworkers.
Listen: Gettelfinger blasts McCain on conference call with reporters
"The last thing we need is a presidential candidate who undermines autoworkers, and these days it seems that John McCain is doing just exactly that," he said. "When he's in the Midwest, he tells voters he supports the industry, when he is in other states he brags about buying a foreign car, as he did with the Prius." (It is not clear if McCain or his daughter bought the Prius)
Gettelfinger also pointed to comments McCain made in an interview with Detroit TV station WXYZ, saying, "I've bought American literally all my life and I'm proud."
"That's really a nice campaign line," Gettelfinger said of the comments. "But it turns out that John McCain wasn't being straight with the people of Detroit, or the state of Michigan, or our country as a matter of effect," adding later, "The American auto industry and the American voters deserve a president who will be straight with them.”
For the record, Honda has four major automobile and engine plants in the United States employing more than 25,000 Americans, according to its Web site. Volkswagen is scheduled to open a plant in Tennessee in 2011 that is expected to employ 2,000 people, the AP reported in July.
Brian Rogers, a spokesman for McCain, said "Barack Obama is more interested in childish political attacks than confronting the reality that his plans to raise taxes and close off trade will kill our American auto industry and the jobs of hardworking folks in Michigan and all around our nation."
Rogers also said McCain was referring to his own car in the WXYZ interview: "He drives a Cadillac today and has always driven American cars," Rogers said.
Newsweek's report comes a month after McCain now-infamously could not name how many houses he owned in an interview with Politico. The publication later reported he owns at least eight properties.
Dems seize on McCain's 13 cars
Posted: 07:09 AM ET
From CNN Ticker Producer Alexander Mooney
Democrats are seizing on a report the McCains own at least 13 cars.
(CNN) — Democrats eager to portray John McCain as out of touch with average Americans and as a flip-flopper seized on a report Sunday the Arizona senator and his wife, Cindy, own more than a dozen cars — including several foreign-made automobiles.
A Newsweek article published on the magazine's Web Site Sunday said registration records show the McCains currently own 13 cars — two of which are foreign-made: a Honda and a Volkswagen. That appears to contradict the Republican presidential nominee's past statements he only buys cars made in America. (Cindy McCain also drives a Lexus and daughter Meghan owns a Toyota Prius, but neither are registered to the McCains.)
Newsweek also reported Barack Obama owns one car: a Ford Escape Hybrid.
In a quickly-arranged conference call organized by the Democratic National Committee, United Auto Worker Union President Ron Gettelfinger — an Obama supporter — said the registration records show McCain is not being truthful with Americans and undermining autoworkers.
Listen: Gettelfinger blasts McCain on conference call with reporters
"The last thing we need is a presidential candidate who undermines autoworkers, and these days it seems that John McCain is doing just exactly that," he said. "When he's in the Midwest, he tells voters he supports the industry, when he is in other states he brags about buying a foreign car, as he did with the Prius." (It is not clear if McCain or his daughter bought the Prius)
Gettelfinger also pointed to comments McCain made in an interview with Detroit TV station WXYZ, saying, "I've bought American literally all my life and I'm proud."
"That's really a nice campaign line," Gettelfinger said of the comments. "But it turns out that John McCain wasn't being straight with the people of Detroit, or the state of Michigan, or our country as a matter of effect," adding later, "The American auto industry and the American voters deserve a president who will be straight with them.”
For the record, Honda has four major automobile and engine plants in the United States employing more than 25,000 Americans, according to its Web site. Volkswagen is scheduled to open a plant in Tennessee in 2011 that is expected to employ 2,000 people, the AP reported in July.
Brian Rogers, a spokesman for McCain, said "Barack Obama is more interested in childish political attacks than confronting the reality that his plans to raise taxes and close off trade will kill our American auto industry and the jobs of hardworking folks in Michigan and all around our nation."
Rogers also said McCain was referring to his own car in the WXYZ interview: "He drives a Cadillac today and has always driven American cars," Rogers said.
Newsweek's report comes a month after McCain now-infamously could not name how many houses he owned in an interview with Politico. The publication later reported he owns at least eight properties.
McCain's Deep Lobbying Ties to Fannie Mae and Freddie Mack
Loan Titans Paid McCain Adviser Nearly $2 Million
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By DAVID D. KIRKPATRICK and CHARLES DUHIGG
Published: September 21, 2008
Senator John McCain’s campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say.
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Andrew Councill for The New York Times
Rick Davis, Senator John McCain’s campaign manager, in 2007.
Related
2 Candidates Back Bailout, With Caveats (September 22, 2008)
Transcript: Interview With McCain on the Financial Crisis (September 21, 2008)
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The latest political news from around the nation. Join the discussion.
Election Guide | More Politics News
Enlarge This Image
A 2004 photograph from a report by the Homeownership Alliance, an advocacy group for Fannie Mae and Freddie Mac, shows John McCain with Ken Guenther, a former chairman of the group, left, and David Lereah of the National Association of Realtors.
Mr. McCain, the Republican candidate for president, has recently begun campaigning as a critic of the two companies and the lobbying army that helped them evade greater regulation as they began buying riskier mortgages with implicit federal backing. He and his Democratic rival, Senator Barack Obama, have donors and advisers who are tied to the companies.
But last week the McCain campaign stepped up a running battle of guilt by association when it began broadcasting commercials trying to link Mr. Obama directly to the government bailout of the mortgage giants this month by charging that he takes advice from Fannie Mae’s former chief executive, Franklin Raines, an assertion both Mr. Raines and the Obama campaign dispute.
Incensed by the advertisements, several current and former executives of the companies came forward to discuss the role that Rick Davis, Mr. McCain’s campaign manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat back regulatory challenges when he served as president of their advocacy group, the Homeownership Alliance, formed in the summer of 2000. Some who came forward were Democrats, but Republicans, speaking on the condition of anonymity, confirmed their descriptions.
“The value that he brought to the relationship was the closeness to Senator McCain and the possibility that Senator McCain was going to run for president again,” said Robert McCarson, a former spokesman for Fannie Mae, who said that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac together paid Mr. Davis’s firm $35,000 a month. Mr. Davis “didn’t really do anything,” Mr. McCarson, a Democrat, said.
Mr. Davis’s role with the group has bubbled up as an issue in the campaign, but the extent of his compensation and the details of his role have not been reported previously.
Mr. McCain was never a leading critic or defender of the mortgage giants, although several former executives of the companies said Mr. Davis did draw Mr. McCain to a 2004 awards banquet that the companies’ Homeownership Alliance held in a Senate office building. The organization printed a photograph of Mr. McCain at the event in its 2004 annual report, bolstering its clout and credibility. The event honored several other elected officials, including at least two Democrats, Gov. Edward G. Rendell of Pennsylvania and Representative Artur Davis of Alabama.
In an interview Sunday night with CNBC and The New York Times, Mr. McCain noted that Mr. Davis was no longer working on behalf of the mortgage giants. He said Mr. Davis “has had nothing to do with it since, and I’ll be glad to have his record examined by anybody who wants to look at it.”
Asked about the reports of Mr. Davis’s role, a spokesman for Mr. McCain said that during the time when Mr. Davis ran the Homeownership Alliance, the senator had backed legislation to increase oversight of the mortgage companies’ accounting and executive compensation. The legislation, however, did not seek to change their anomalous structure as private companies with federal support.
The spokesman, Tucker Bounds, also noted that the Homeownership Alliance included nonprofit organizations like Habitat for Humanity and the Urban League. “It’s not controversial to promote homeownership and minority homeownership,” Mr. Bounds said. More than a half-dozen current and former executives, however, said the Homeownership Alliance was set up mainly to defend Fannie Mae and Freddie Mac by promoting their role in the housing market, and the two companies paid almost the entire cost of the group’s operations.
“They were financed largely, possibly exclusively, by Fannie and Freddie,” said William R. Maloni, a Democrat who is a former head of industry relations for Fannie Mae. “We thought it would be helpful to have someone who was a broadly recognized Republican to be the face of the organization, and that person became Rick Davis.” Mr. Maloni added, “Rick, for that purpose, turned out to be quite good.” (Several executives said Mr. Davis’s compensation was not unusual for the companies’ well-connected consultants.)
The federal bailout of the two mortgage giants has become an emblem of what critics say is the outdated or inadequate regulatory system that allowed the financial system to slide into crisis this summer.
At the time that Fannie Mae and Freddie Mac recruited Mr. Davis to run the Homeownership Alliance in 2000, they were under new pressure from private industry rivals and deregulation-minded Republicans who argued that the two companies’ federal sponsorship gave them an unfair advantage and put taxpayers at risk. Critics of the companies had formed their own Washington-based advocacy group, FM Watch. They were pushing for regulations that would deter the companies from expanding into new areas, including riskier and more profitable mortgages.
Mr. Davis had recently returned to his lobbying firm from running Mr. McCain’s unexpectedly strong 2000 Republican primary campaign, which elevated Mr. McCain’s profile as a legislator and Mr. Davis’s as a lobbyist.
“You can say what you want about free-market distortions, but people like the system because it gets them into houses cheap,” Mr. Davis said to Institutional Investor magazine in 2000, adding that he would run the advocacy group out of his Alexandria, Va., lobbying firm.
The organization also hired Public Strategies, a communications firm that included former Bush adviser Mark McKinnon. Mr. Davis wrote letters and gave speeches for the group. In April 2001, he sent out a press release headlined, “It’s Tax Day — Do You Know Where Your Deductions Are? For Most Americans, They’re in Your Home.”
But by the end of 2005, Fannie Mae and Freddie Mac were recovering from accounting problems and re-examining costs, former executives said. The companies decided the Homeownership Alliance had outlived its usefulness, and it disappeared.
John Harwood contributed reporting.
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By DAVID D. KIRKPATRICK and CHARLES DUHIGG
Published: September 21, 2008
Senator John McCain’s campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say.
Skip to next paragraph
Andrew Councill for The New York Times
Rick Davis, Senator John McCain’s campaign manager, in 2007.
Related
2 Candidates Back Bailout, With Caveats (September 22, 2008)
Transcript: Interview With McCain on the Financial Crisis (September 21, 2008)
Blog
The Caucus
The latest political news from around the nation. Join the discussion.
Election Guide | More Politics News
Enlarge This Image
A 2004 photograph from a report by the Homeownership Alliance, an advocacy group for Fannie Mae and Freddie Mac, shows John McCain with Ken Guenther, a former chairman of the group, left, and David Lereah of the National Association of Realtors.
Mr. McCain, the Republican candidate for president, has recently begun campaigning as a critic of the two companies and the lobbying army that helped them evade greater regulation as they began buying riskier mortgages with implicit federal backing. He and his Democratic rival, Senator Barack Obama, have donors and advisers who are tied to the companies.
But last week the McCain campaign stepped up a running battle of guilt by association when it began broadcasting commercials trying to link Mr. Obama directly to the government bailout of the mortgage giants this month by charging that he takes advice from Fannie Mae’s former chief executive, Franklin Raines, an assertion both Mr. Raines and the Obama campaign dispute.
Incensed by the advertisements, several current and former executives of the companies came forward to discuss the role that Rick Davis, Mr. McCain’s campaign manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat back regulatory challenges when he served as president of their advocacy group, the Homeownership Alliance, formed in the summer of 2000. Some who came forward were Democrats, but Republicans, speaking on the condition of anonymity, confirmed their descriptions.
“The value that he brought to the relationship was the closeness to Senator McCain and the possibility that Senator McCain was going to run for president again,” said Robert McCarson, a former spokesman for Fannie Mae, who said that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac together paid Mr. Davis’s firm $35,000 a month. Mr. Davis “didn’t really do anything,” Mr. McCarson, a Democrat, said.
Mr. Davis’s role with the group has bubbled up as an issue in the campaign, but the extent of his compensation and the details of his role have not been reported previously.
Mr. McCain was never a leading critic or defender of the mortgage giants, although several former executives of the companies said Mr. Davis did draw Mr. McCain to a 2004 awards banquet that the companies’ Homeownership Alliance held in a Senate office building. The organization printed a photograph of Mr. McCain at the event in its 2004 annual report, bolstering its clout and credibility. The event honored several other elected officials, including at least two Democrats, Gov. Edward G. Rendell of Pennsylvania and Representative Artur Davis of Alabama.
In an interview Sunday night with CNBC and The New York Times, Mr. McCain noted that Mr. Davis was no longer working on behalf of the mortgage giants. He said Mr. Davis “has had nothing to do with it since, and I’ll be glad to have his record examined by anybody who wants to look at it.”
Asked about the reports of Mr. Davis’s role, a spokesman for Mr. McCain said that during the time when Mr. Davis ran the Homeownership Alliance, the senator had backed legislation to increase oversight of the mortgage companies’ accounting and executive compensation. The legislation, however, did not seek to change their anomalous structure as private companies with federal support.
The spokesman, Tucker Bounds, also noted that the Homeownership Alliance included nonprofit organizations like Habitat for Humanity and the Urban League. “It’s not controversial to promote homeownership and minority homeownership,” Mr. Bounds said. More than a half-dozen current and former executives, however, said the Homeownership Alliance was set up mainly to defend Fannie Mae and Freddie Mac by promoting their role in the housing market, and the two companies paid almost the entire cost of the group’s operations.
“They were financed largely, possibly exclusively, by Fannie and Freddie,” said William R. Maloni, a Democrat who is a former head of industry relations for Fannie Mae. “We thought it would be helpful to have someone who was a broadly recognized Republican to be the face of the organization, and that person became Rick Davis.” Mr. Maloni added, “Rick, for that purpose, turned out to be quite good.” (Several executives said Mr. Davis’s compensation was not unusual for the companies’ well-connected consultants.)
The federal bailout of the two mortgage giants has become an emblem of what critics say is the outdated or inadequate regulatory system that allowed the financial system to slide into crisis this summer.
At the time that Fannie Mae and Freddie Mac recruited Mr. Davis to run the Homeownership Alliance in 2000, they were under new pressure from private industry rivals and deregulation-minded Republicans who argued that the two companies’ federal sponsorship gave them an unfair advantage and put taxpayers at risk. Critics of the companies had formed their own Washington-based advocacy group, FM Watch. They were pushing for regulations that would deter the companies from expanding into new areas, including riskier and more profitable mortgages.
Mr. Davis had recently returned to his lobbying firm from running Mr. McCain’s unexpectedly strong 2000 Republican primary campaign, which elevated Mr. McCain’s profile as a legislator and Mr. Davis’s as a lobbyist.
“You can say what you want about free-market distortions, but people like the system because it gets them into houses cheap,” Mr. Davis said to Institutional Investor magazine in 2000, adding that he would run the advocacy group out of his Alexandria, Va., lobbying firm.
The organization also hired Public Strategies, a communications firm that included former Bush adviser Mark McKinnon. Mr. Davis wrote letters and gave speeches for the group. In April 2001, he sent out a press release headlined, “It’s Tax Day — Do You Know Where Your Deductions Are? For Most Americans, They’re in Your Home.”
But by the end of 2005, Fannie Mae and Freddie Mac were recovering from accounting problems and re-examining costs, former executives said. The companies decided the Homeownership Alliance had outlived its usefulness, and it disappeared.
John Harwood contributed reporting.
Friday, September 19, 2008
The truth on the Tax Policies
Click on the picture to enlarge. You WILL NOT get a tax increase if you make less than $603,000!!!! If you make less than $150,000 Obama gives you a BIGGER TAX SAVINGS!!!! Please look at the information objectively.
Monday, September 15, 2008
Maybe this list will help McCain's memory
The McCain Properties
By DAVID M. HALBFINGER
Published: August 23, 2008
The question of how many homes John McCain owns is more complicated than it might seem. Do you count the rental properties? The ones owned in a partnership with another couple? The guest houses? Or just the ones where Mr. McCain and his wife, Cindy, have actually overnighted?
Records show that the McCains have a total of 10 distinct residential properties.
Here’s a breakdown:
1. CONDO IN ARLINGTON, VA.
Description: 3-bedroom, 2.5-bath, 2,089-square-foot condominium in one of Crystal City’s most sought-after high-rises.
Price Paid: $375,000
When Bought: Feb. 19, 1993, from Senator William S. Cohen (who was best man at wedding of John and Cindy McCain)
Owner of Record: Cindy Hensley McCain Family Trust
2. PRIMARY RESIDENCE IN PHOENIX, ARIZ., HIGH-RISE
Description: Two-unit, 6,586-square-foot, 5-1/3 bath condo in 12-story tower near the Biltmore resort, built in 2006; other tenants include race-car driver Arie Luyendyk, singer Glen Campbell.
Price Paid: $4,666,814
When Bought: Oct. 18, 2006, from the developer, Anchor Centre Residential LLC
Owner of Record: Cindy Hensley McCain Family Trust
3. SECOND UNIT IN PHOENIX, ARIZ., HIGH-RISE
Description: 2,074-square-foot condo with 2-1/3 baths.
Price Paid: $830,000
When Bought: Aug. 17, 2007, from Drayton Group LLC
Owner of Record: Wild River Rental LLC
4. DUPLEX IN PHOENIX TOWNHOUSE COMPLEX,
Description: 1,904-square-foot duplex in The Biltmore Lofts with 2-car garage in upscale condo complex
Price Paid: $700,000
When Bought: May 24, 2007, from Verl and Judy Werre
Owner of Record: Wild River Rental LLC
5. CONDO IN LA JOLLA, CALIF.
Description: 1,429-square-foot, 2-bedroom, 2-bath condo in oceanfront complex with pool, built 1972, where Jim Hensley died in 2000.
Price Paid: $83,500
When Bought: June 2, 1972, from the developer, La Jolla Shores Clubdominium
Owner of Record: Marguerite Hensley Survivors Trust
6. FIRST CONDO IN CORONADO, CALIF.
Description: 3-bedroom, 3-bath, 1,749-square-foot condo in gated high-rise beachfront complex
Price Paid: $2.6 million
When Bought: July 22, 2004, from John and Cheryl Lindholtz
Owner of Record: Dream Catcher Family LLC
7. SECOND CONDO IN CORONADO, CALIF.
Description: 2-bedroom, 2-bath, 1,302-square-foot condo in same Coronado Shores tower
Price Paid: $2.1 million
When Bought: Feb. 27, 2008, from Stephen F. Kasbeer
Owner of Record: Dream Catcher Family LLC
8. FIRST HOME NEAR SEDONA, ARIZ.
Description: 3.47-acre property at bend in Oak Creek, with 2,482-square-foot dwelling and 868-square-foot guest house, bought by Western Leasing Co. LP, a Jim Hensley partnership
Price Paid: $237,000
When Bought: Sept. 4, 1985, from Ivan F. Finley
Owner of Record: Cindy Hensley McCain Family Trust
9. SECOND HOME NEAR SEDONA, ARIZ.
Description: 2.67-acre property with 2,251-square-foot dwelling along Oak Creek immediately upstream from former Finley property
Price Paid: $750,000
When Bought: May 2, 1996, from Robert V. Groat
OWNER OF RECORD Cindy Hensley McCain Family Trust
10. VACANT PROPERTY NEAR SEDONA, ARIZ.
Description: 6 acres of vacant land on opposite bank of Oak Creek from the McCain homes, reachable by wading, fording or cable ferry; bought by McCains and Sharon and Oliver Harper through a partnership; turned into a private bird sanctuary with Audubon Society’s help in 2003-2004
Price Paid: $120,000
When Bought: Nov. 24, 1992, from Ted and Betty Nakagawa
Owner of Record: Sedona Hidden Valley LP
11. THIRD HOME NEAR SEDONA, ARIZ.
Description: 2.39-acre property with 1,374-square-foot and 960-square-foot dwellings built in 1960’s, bought by McCains and Harpers
Price Paid: $838,750
When Bought: Aug. 31, 2000, from Kathleen Cashman
Owner of Record: Sedona Hidden Valley LP
Sources: Recorder’s and assessor’s offices in Arlington (Va.), Maricopa and Yavapai (Ariz.), and San Diego counties; Lexis-Nexis.
By DAVID M. HALBFINGER
Published: August 23, 2008
The question of how many homes John McCain owns is more complicated than it might seem. Do you count the rental properties? The ones owned in a partnership with another couple? The guest houses? Or just the ones where Mr. McCain and his wife, Cindy, have actually overnighted?
Records show that the McCains have a total of 10 distinct residential properties.
Here’s a breakdown:
1. CONDO IN ARLINGTON, VA.
Description: 3-bedroom, 2.5-bath, 2,089-square-foot condominium in one of Crystal City’s most sought-after high-rises.
Price Paid: $375,000
When Bought: Feb. 19, 1993, from Senator William S. Cohen (who was best man at wedding of John and Cindy McCain)
Owner of Record: Cindy Hensley McCain Family Trust
2. PRIMARY RESIDENCE IN PHOENIX, ARIZ., HIGH-RISE
Description: Two-unit, 6,586-square-foot, 5-1/3 bath condo in 12-story tower near the Biltmore resort, built in 2006; other tenants include race-car driver Arie Luyendyk, singer Glen Campbell.
Price Paid: $4,666,814
When Bought: Oct. 18, 2006, from the developer, Anchor Centre Residential LLC
Owner of Record: Cindy Hensley McCain Family Trust
3. SECOND UNIT IN PHOENIX, ARIZ., HIGH-RISE
Description: 2,074-square-foot condo with 2-1/3 baths.
Price Paid: $830,000
When Bought: Aug. 17, 2007, from Drayton Group LLC
Owner of Record: Wild River Rental LLC
4. DUPLEX IN PHOENIX TOWNHOUSE COMPLEX,
Description: 1,904-square-foot duplex in The Biltmore Lofts with 2-car garage in upscale condo complex
Price Paid: $700,000
When Bought: May 24, 2007, from Verl and Judy Werre
Owner of Record: Wild River Rental LLC
5. CONDO IN LA JOLLA, CALIF.
Description: 1,429-square-foot, 2-bedroom, 2-bath condo in oceanfront complex with pool, built 1972, where Jim Hensley died in 2000.
Price Paid: $83,500
When Bought: June 2, 1972, from the developer, La Jolla Shores Clubdominium
Owner of Record: Marguerite Hensley Survivors Trust
6. FIRST CONDO IN CORONADO, CALIF.
Description: 3-bedroom, 3-bath, 1,749-square-foot condo in gated high-rise beachfront complex
Price Paid: $2.6 million
When Bought: July 22, 2004, from John and Cheryl Lindholtz
Owner of Record: Dream Catcher Family LLC
7. SECOND CONDO IN CORONADO, CALIF.
Description: 2-bedroom, 2-bath, 1,302-square-foot condo in same Coronado Shores tower
Price Paid: $2.1 million
When Bought: Feb. 27, 2008, from Stephen F. Kasbeer
Owner of Record: Dream Catcher Family LLC
8. FIRST HOME NEAR SEDONA, ARIZ.
Description: 3.47-acre property at bend in Oak Creek, with 2,482-square-foot dwelling and 868-square-foot guest house, bought by Western Leasing Co. LP, a Jim Hensley partnership
Price Paid: $237,000
When Bought: Sept. 4, 1985, from Ivan F. Finley
Owner of Record: Cindy Hensley McCain Family Trust
9. SECOND HOME NEAR SEDONA, ARIZ.
Description: 2.67-acre property with 2,251-square-foot dwelling along Oak Creek immediately upstream from former Finley property
Price Paid: $750,000
When Bought: May 2, 1996, from Robert V. Groat
OWNER OF RECORD Cindy Hensley McCain Family Trust
10. VACANT PROPERTY NEAR SEDONA, ARIZ.
Description: 6 acres of vacant land on opposite bank of Oak Creek from the McCain homes, reachable by wading, fording or cable ferry; bought by McCains and Sharon and Oliver Harper through a partnership; turned into a private bird sanctuary with Audubon Society’s help in 2003-2004
Price Paid: $120,000
When Bought: Nov. 24, 1992, from Ted and Betty Nakagawa
Owner of Record: Sedona Hidden Valley LP
11. THIRD HOME NEAR SEDONA, ARIZ.
Description: 2.39-acre property with 1,374-square-foot and 960-square-foot dwellings built in 1960’s, bought by McCains and Harpers
Price Paid: $838,750
When Bought: Aug. 31, 2000, from Kathleen Cashman
Owner of Record: Sedona Hidden Valley LP
Sources: Recorder’s and assessor’s offices in Arlington (Va.), Maricopa and Yavapai (Ariz.), and San Diego counties; Lexis-Nexis.
McCain doesn't know how many houses he has
Obama Counts McCain’s Houses
By Katharine Q. Seelye AND Kitty Bennett
Barack Obama in Virginia with Gov. Tim Kaine. (Photo: Richard Perry/The New York Times)Updated CHESTER, Va. — If John McCain had tried to play into Barack Obama’s strategy of sounding out of touch with ordinary people, he could not have done better than to say in an interview that he didn’t know how many houses he had.
“I think — I’ll have my staff get to you,” Mr. McCain told reporters for The Politico in an interview in New Mexico on Wednesday. “It’s condominiums where — I’ll have them get to you.”
Mr. Obama seized on the remark at his first event here today to bolster his case that Mr. McCain is too rich to understand what’s going on with the economy and had recently said that it was “fundamentally strong.”
Here’s what Mr. Obama said next:
“This puzzled me. I was confused as to what he meant. Then there was another interview, where somebody asked John McCain, ‘How many houses do you have?’ He said, ‘I’m not sure I’ll have to check with my staff.’ True quote! ‘I’m not sure, I’ll have to check with my staff.’ So they asked his staff and he said, ‘at least four.’ ‘At least four.’
Now think about that. I guess if you think that being rich means you’ve got to make $5 million, and if you don’t know how many houses you have, then it’s not surprising that you might think the economy was fundamentally strong. But if you’re like me, and you got one house, or you were like the millions of people who are struggling right now to keep up with their mortgage so they don’t lose their home, you might have a different perspective.
By the way, the answer is, John McCain has seven homes. There’s just a fundamental gap of understanding between John McCain’s world and what people are going through every single day here in America. You don’t have to be a Nobel Prize-laureate economist, you just have to have a little bit of a sense of what ordinary people are going through to understand that we can’t afford eight more years or four more years or one more year of the failed economic policies that George Bush has put in place.”
For the record, Mr. Obama paid $1.65 million for his Chicago home and an adjacent parcel in 2005.
Mr. Obama was speaking to a group of perhaps 150 people at an outdoors town-hall meeting, under the shade of tall pines here at John Tyler Community College.
Mr. Obama returned to the subject later in an answer to a woman who asked him what he would do for poor people. He said that among other things he would expand the mortgage deduction beyond people who itemize their taxes.
“John McCain, with those homes, they get a mortgage deduction, up to $1 million,” he said. (The Obama plan would give a 10 percent tax credit on up to $8,000 of mortgage interest payments to households who take the standard deduction. The campaign estimates that 10 million homeowners would benefit from this proposal.)
The McCain campaign quickly fired back at Mr. Obama’s remarks, calling them a “personal attack.” Brian Rogers, a spokesman, issued this statement: “Does a guy who made more than $4 million last year, just got back from vacation on a private beach in Hawaii and bought his own million-dollar mansion with the help of a convicted felon really want to get into a debate about houses? Does a guy who worries about the price of arugula and thinks regular people “cling” to guns and religion in the face of economic hardship really want to have a debate about who’s in touch with regular Americans?
“The reality is that Barack Obama’s plans to raise taxes and opposition to producing more energy here at home as gas prices skyrocket show he’s completely out of touch with the concerns of average Americans.”
For its part, the Republican National Committee also is turning this controversy on its head, under the header “Flip That House,” by listing many news articles about how Tony Rezko’s family helped the Obamas on the house deal.
Campaigning with Mr. Obama today is Gov. Tim Kaine, who also hit the theme of Mr. McCain’s houses early this morning on CNN. “I understand that Senator McCain was asked yesterday this question, ‘How many houses do you own?,’ and he couldn’t answer that question,” Mr. Kaine said. “He couldn’t count high enough, apparently, to even know how many houses he owns.”
The Obama campaign also quickly cobbled together a TV ad for a national cable buy about the McCain homes, juxtaposed with residents dealing with foreclosure. It estimates that Mr. McCain owns seven homes, with a total worth of $13 million.
And, in another sign of how the Obama campaign has seized on Mr. McCain’s not remembering how many homes he owns, campaign workers have fanned out in various battleground states to ask voters if they remember how many homes they own. Among the states are Pennsylvania and Florida.
Now, two major labor organizations and Brave New Films teamed up earlier this week to produce a Web film that intersperses shots of some of those properties with the tale of a woman who lost her home in a mortgage foreclosure.
Mr. McCain’s Senate financial disclosures do not list these properties among his assets, because, according to public records, the homes and condominiums are in the name of a corporation trust listing his wife Cindy, the heiress to a beer distributorship whose worth is estimated to be anywhere from $35 million to $100 million.
Among those properties:
*Their ranch in Sedona, Ariz., where Mr. McCain is spending some down time this weekend, and its guest house and parcels, is valued at $1,766,440. (An earlier version of this post mistakenly referred to a piece in the Architectural Digest, which was not about Sedona.)
*In Phoenix, two adjacent condos with a price tag of $4.7 million in 2006.
*In Coronado, Calif., a condominium owned by Mrs. McCain’s “Dream Catcher Family” corporation is valued, according to recent tax assessments, at $2.7 million. And records show another condo there as well.
In La Jolla, Calif., Mrs. McCain’s trust owns another condo.
The couple also have a home in Arlington, Va., another condominium valued at $847,800 this year, according to public records.
Update: David M. Halbfinger has this list of the McCain’s properties.
By Katharine Q. Seelye AND Kitty Bennett
Barack Obama in Virginia with Gov. Tim Kaine. (Photo: Richard Perry/The New York Times)Updated CHESTER, Va. — If John McCain had tried to play into Barack Obama’s strategy of sounding out of touch with ordinary people, he could not have done better than to say in an interview that he didn’t know how many houses he had.
“I think — I’ll have my staff get to you,” Mr. McCain told reporters for The Politico in an interview in New Mexico on Wednesday. “It’s condominiums where — I’ll have them get to you.”
Mr. Obama seized on the remark at his first event here today to bolster his case that Mr. McCain is too rich to understand what’s going on with the economy and had recently said that it was “fundamentally strong.”
Here’s what Mr. Obama said next:
“This puzzled me. I was confused as to what he meant. Then there was another interview, where somebody asked John McCain, ‘How many houses do you have?’ He said, ‘I’m not sure I’ll have to check with my staff.’ True quote! ‘I’m not sure, I’ll have to check with my staff.’ So they asked his staff and he said, ‘at least four.’ ‘At least four.’
Now think about that. I guess if you think that being rich means you’ve got to make $5 million, and if you don’t know how many houses you have, then it’s not surprising that you might think the economy was fundamentally strong. But if you’re like me, and you got one house, or you were like the millions of people who are struggling right now to keep up with their mortgage so they don’t lose their home, you might have a different perspective.
By the way, the answer is, John McCain has seven homes. There’s just a fundamental gap of understanding between John McCain’s world and what people are going through every single day here in America. You don’t have to be a Nobel Prize-laureate economist, you just have to have a little bit of a sense of what ordinary people are going through to understand that we can’t afford eight more years or four more years or one more year of the failed economic policies that George Bush has put in place.”
For the record, Mr. Obama paid $1.65 million for his Chicago home and an adjacent parcel in 2005.
Mr. Obama was speaking to a group of perhaps 150 people at an outdoors town-hall meeting, under the shade of tall pines here at John Tyler Community College.
Mr. Obama returned to the subject later in an answer to a woman who asked him what he would do for poor people. He said that among other things he would expand the mortgage deduction beyond people who itemize their taxes.
“John McCain, with those homes, they get a mortgage deduction, up to $1 million,” he said. (The Obama plan would give a 10 percent tax credit on up to $8,000 of mortgage interest payments to households who take the standard deduction. The campaign estimates that 10 million homeowners would benefit from this proposal.)
The McCain campaign quickly fired back at Mr. Obama’s remarks, calling them a “personal attack.” Brian Rogers, a spokesman, issued this statement: “Does a guy who made more than $4 million last year, just got back from vacation on a private beach in Hawaii and bought his own million-dollar mansion with the help of a convicted felon really want to get into a debate about houses? Does a guy who worries about the price of arugula and thinks regular people “cling” to guns and religion in the face of economic hardship really want to have a debate about who’s in touch with regular Americans?
“The reality is that Barack Obama’s plans to raise taxes and opposition to producing more energy here at home as gas prices skyrocket show he’s completely out of touch with the concerns of average Americans.”
For its part, the Republican National Committee also is turning this controversy on its head, under the header “Flip That House,” by listing many news articles about how Tony Rezko’s family helped the Obamas on the house deal.
Campaigning with Mr. Obama today is Gov. Tim Kaine, who also hit the theme of Mr. McCain’s houses early this morning on CNN. “I understand that Senator McCain was asked yesterday this question, ‘How many houses do you own?,’ and he couldn’t answer that question,” Mr. Kaine said. “He couldn’t count high enough, apparently, to even know how many houses he owns.”
The Obama campaign also quickly cobbled together a TV ad for a national cable buy about the McCain homes, juxtaposed with residents dealing with foreclosure. It estimates that Mr. McCain owns seven homes, with a total worth of $13 million.
And, in another sign of how the Obama campaign has seized on Mr. McCain’s not remembering how many homes he owns, campaign workers have fanned out in various battleground states to ask voters if they remember how many homes they own. Among the states are Pennsylvania and Florida.
Now, two major labor organizations and Brave New Films teamed up earlier this week to produce a Web film that intersperses shots of some of those properties with the tale of a woman who lost her home in a mortgage foreclosure.
Mr. McCain’s Senate financial disclosures do not list these properties among his assets, because, according to public records, the homes and condominiums are in the name of a corporation trust listing his wife Cindy, the heiress to a beer distributorship whose worth is estimated to be anywhere from $35 million to $100 million.
Among those properties:
*Their ranch in Sedona, Ariz., where Mr. McCain is spending some down time this weekend, and its guest house and parcels, is valued at $1,766,440. (An earlier version of this post mistakenly referred to a piece in the Architectural Digest, which was not about Sedona.)
*In Phoenix, two adjacent condos with a price tag of $4.7 million in 2006.
*In Coronado, Calif., a condominium owned by Mrs. McCain’s “Dream Catcher Family” corporation is valued, according to recent tax assessments, at $2.7 million. And records show another condo there as well.
In La Jolla, Calif., Mrs. McCain’s trust owns another condo.
The couple also have a home in Arlington, Va., another condominium valued at $847,800 this year, according to public records.
Update: David M. Halbfinger has this list of the McCain’s properties.
A real economic outlook
Former Federal Reserve Chairman Alan Greenspan offered a woeful outlook of America's economic situation on Sunday, saying the crisis with the country's financial institutions was as dire as he had ever seen in his long career, and predicting that one or more of those institutions would likely collapse in the near future.
"Oh, by far," Greenspan said, when asked if the situation was the worst he had seen in his career. "There's no question that this is in the process of outstripping anything I've seen and it still is not resolved and still has a way to go and, indeed, it will continue to be a corrosive force until the price of homes in the United States stabilizes. That will induce a series of events around the globe which will stabilize the system."
Appearing on ABC's This Week, Greenspan would not definitively say whether the government should come to the rescue of Lehman Brothers, which has been forced to consider a possible sale after its stock shares plunged drastically this past week. Instead he called the situation surrounding the investment bank -- and the bailout that occurred this past spring of Bear Stearns -- as a "once in a half century, probably once in a century type of event."
The circumstances for Lehman may, as Greenspan noted, be different. Bloomberg News reported on Friday: "Rising speculation that Lehman Brothers Holdings Inc. may fail is generating less concern among investors than when Bear Stearns Cos. imploded in March."
Much of the issue, Greenspan added, was the trouble in the housing market, which he predicted would become stabilized by next year. Pressed by host George Stephanopoulos as to whether another major financial institution -- such as the struggling Washington Mutual, American International Group, or Merrill Lynch -- would fail in the interim, the former Fed chair responded in the affirmative.
"I suspect we will [see one fail]," he said, "but in and of itself that does not need to be a problem. It depends on how it's handled and how the liquidations take place. And, indeed, we shouldn't try to protect every single institution. the ordinary cost of financial change has winners and losers."
In light of these dynamics, Greenspan noted that the government was left with tough decisions: which institutions are "so fundamental to the functioning" of society that they demanded a federal safety net? Earlier in the week, the former fed chairman noted that such choses extended to tax policy as well. In an interview with Bloomberg Television, Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
"Oh, by far," Greenspan said, when asked if the situation was the worst he had seen in his career. "There's no question that this is in the process of outstripping anything I've seen and it still is not resolved and still has a way to go and, indeed, it will continue to be a corrosive force until the price of homes in the United States stabilizes. That will induce a series of events around the globe which will stabilize the system."
Appearing on ABC's This Week, Greenspan would not definitively say whether the government should come to the rescue of Lehman Brothers, which has been forced to consider a possible sale after its stock shares plunged drastically this past week. Instead he called the situation surrounding the investment bank -- and the bailout that occurred this past spring of Bear Stearns -- as a "once in a half century, probably once in a century type of event."
The circumstances for Lehman may, as Greenspan noted, be different. Bloomberg News reported on Friday: "Rising speculation that Lehman Brothers Holdings Inc. may fail is generating less concern among investors than when Bear Stearns Cos. imploded in March."
Much of the issue, Greenspan added, was the trouble in the housing market, which he predicted would become stabilized by next year. Pressed by host George Stephanopoulos as to whether another major financial institution -- such as the struggling Washington Mutual, American International Group, or Merrill Lynch -- would fail in the interim, the former Fed chair responded in the affirmative.
"I suspect we will [see one fail]," he said, "but in and of itself that does not need to be a problem. It depends on how it's handled and how the liquidations take place. And, indeed, we shouldn't try to protect every single institution. the ordinary cost of financial change has winners and losers."
In light of these dynamics, Greenspan noted that the government was left with tough decisions: which institutions are "so fundamental to the functioning" of society that they demanded a federal safety net? Earlier in the week, the former fed chairman noted that such choses extended to tax policy as well. In an interview with Bloomberg Television, Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
McCain-anomics
McCain On 'Black Monday': Fundamentals Of Our Economy Are Still Strong
stumble digg reddit del.ico.us news trust mixx.com September 15, 2008 10:19 AM
Share Print CommentsJohn McCain may want to refine his economic message a bit more during this potentially disastrous week for the financial sector.
On the campaign trail in Jacksonville, Florida, the Senator declared this morning that "the fundamentals of our economy are strong," despite what he described as "tremendous turmoil in our financial markets and Wall Street."
The line may seem like GOP boilerplate, save for the fact that this morning, the McCain campaign released a television ad that began: "Our economy is in crisis." Moreover, with financial and job markets in disarray, and with Lehman Brothers, the troubled investment bank, filing for bankruptcy, it may not be the wisest political message to tell voters that the fundamentals are a-okay.
"You know," said McCain, "there's been tremendous turmoil in our financial markets and Wall Street and it is -- people are frightened by these events. Our economy, I think, still the fundamentals of our economy are strong. But these are very, very difficult time. And I promise you, we will never put America in this position again. We will clean up Wall Street. We will reform government."
Many conservatives and McCain supporters have argued, against the prevailing sentiment, that despite Wall Street's failings, the economy is actually on firm footing. Donald Luskin, who described himself as "an adviser to John McCain's campaign," made such an argument in Sunday's Washington Post. But despite modest growth and relatively low unemployment rates, many economists see dire signs in today's economic landscape. On Sunday, former fed chairman Alan Greenspan said the market was the worst he had ever witnessed and predicted another major bank would close soon. Meanwhile, inflation is rising, real wages are declining, and the problems in the housing market persist.
McCain acknowledged, to various degrees, these topics in his Monday morning speech.
"I promise you we will never put America in this position again," McCain said. "This is a failure. We've got take every action to build an environment of robust energy supplies, lower inflation, control health care costs, access to international markets, low taxes and reduce burden of government to allow people to move forward toward a future of prosperity."
Story continues below
advertisement
But his proclamation that the fundamentals of it all remained positive is surely music to Democratic ears.
UPDATE: Sure enough, Obama spokesman takes aim...
Today of all days, John McCain's stubborn insistence that the 'fundamentals of the economy are strong' shows that he is disturbingly out of touch with what's going in the lives of ordinary Americans. Even as his own ads try to convince him that the economy is in crisis, apparently his 26 years in Washington have left him incapable of understanding that the policies he supports have created an historic economic crisis.
And, an hour or so later, Joe Biden weighs in as well:
"John McCain has confessed, and I quote - I want to make sure I get it right - he said, it's easy for me to be in Washington and frankly be somewhat divorced from the day-to-day challenges people have. Well, he's right. He's right. If all you do is walk the halls of power, all you'll hear is the wants of the powerful. Ladies and gentleman, I believe that's why John McCain could say with a straight face as recently as this morning, and this is a quote, the fundamentals of the economy are strong. That's what John said. He says that we've made great progress economically, in the Bush years. Ladies and gentlemen, I could walk from here to Lansing, and I wouldn't run into a single person who thought our economy was doing well, unless I ran into John McCain."
stumble digg reddit del.ico.us news trust mixx.com September 15, 2008 10:19 AM
Share Print CommentsJohn McCain may want to refine his economic message a bit more during this potentially disastrous week for the financial sector.
On the campaign trail in Jacksonville, Florida, the Senator declared this morning that "the fundamentals of our economy are strong," despite what he described as "tremendous turmoil in our financial markets and Wall Street."
The line may seem like GOP boilerplate, save for the fact that this morning, the McCain campaign released a television ad that began: "Our economy is in crisis." Moreover, with financial and job markets in disarray, and with Lehman Brothers, the troubled investment bank, filing for bankruptcy, it may not be the wisest political message to tell voters that the fundamentals are a-okay.
"You know," said McCain, "there's been tremendous turmoil in our financial markets and Wall Street and it is -- people are frightened by these events. Our economy, I think, still the fundamentals of our economy are strong. But these are very, very difficult time. And I promise you, we will never put America in this position again. We will clean up Wall Street. We will reform government."
Many conservatives and McCain supporters have argued, against the prevailing sentiment, that despite Wall Street's failings, the economy is actually on firm footing. Donald Luskin, who described himself as "an adviser to John McCain's campaign," made such an argument in Sunday's Washington Post. But despite modest growth and relatively low unemployment rates, many economists see dire signs in today's economic landscape. On Sunday, former fed chairman Alan Greenspan said the market was the worst he had ever witnessed and predicted another major bank would close soon. Meanwhile, inflation is rising, real wages are declining, and the problems in the housing market persist.
McCain acknowledged, to various degrees, these topics in his Monday morning speech.
"I promise you we will never put America in this position again," McCain said. "This is a failure. We've got take every action to build an environment of robust energy supplies, lower inflation, control health care costs, access to international markets, low taxes and reduce burden of government to allow people to move forward toward a future of prosperity."
Story continues below
advertisement
But his proclamation that the fundamentals of it all remained positive is surely music to Democratic ears.
UPDATE: Sure enough, Obama spokesman takes aim...
Today of all days, John McCain's stubborn insistence that the 'fundamentals of the economy are strong' shows that he is disturbingly out of touch with what's going in the lives of ordinary Americans. Even as his own ads try to convince him that the economy is in crisis, apparently his 26 years in Washington have left him incapable of understanding that the policies he supports have created an historic economic crisis.
And, an hour or so later, Joe Biden weighs in as well:
"John McCain has confessed, and I quote - I want to make sure I get it right - he said, it's easy for me to be in Washington and frankly be somewhat divorced from the day-to-day challenges people have. Well, he's right. He's right. If all you do is walk the halls of power, all you'll hear is the wants of the powerful. Ladies and gentleman, I believe that's why John McCain could say with a straight face as recently as this morning, and this is a quote, the fundamentals of the economy are strong. That's what John said. He says that we've made great progress economically, in the Bush years. Ladies and gentlemen, I could walk from here to Lansing, and I wouldn't run into a single person who thought our economy was doing well, unless I ran into John McCain."
For McCain, economy still strong
McCain Says "Fundamentals" Of U.S. Economy Are Strong
Posted by John Bentley| 2
(CBS)From CBS News' John Bentley:
(ORLANDO, FLA.) – John McCain tried once again to assure voters that the "fundamentals" of the American economy are strong, despite the ongoing financial meltdown.
“The economic crisis is not the fault of the American people. Our workers are the most innovative, the hardest working, the best skilled, most productive, most competitive in the world, that’s the American worker,” McCain said at a town hall meeting here.
“My opponents may disagree, but those fundamentals, the American worker and their innovation, their entrepreneurship, the small business, those are the fundamentals of America and I think they’re strong.”
That sentiment was blasted by Barack Obama today. “It’s not that I think John McCain doesn’t care what’s going on in the lives of most Americans. I just think doesn’t know. He doesn’t get what’s happening between the mountain in Sedona where he lives and the corridors of Washington where he works. Why else would he say that we’ve made great progress economically under George Bush?” Obama said today in Colorado.
“Why else would he say, today, of all days – just a few hours ago – that the fundamentals of the economy are still strong? Senator – what economy are you talking about?”
Posted by John Bentley| 2
(CBS)From CBS News' John Bentley:
(ORLANDO, FLA.) – John McCain tried once again to assure voters that the "fundamentals" of the American economy are strong, despite the ongoing financial meltdown.
“The economic crisis is not the fault of the American people. Our workers are the most innovative, the hardest working, the best skilled, most productive, most competitive in the world, that’s the American worker,” McCain said at a town hall meeting here.
“My opponents may disagree, but those fundamentals, the American worker and their innovation, their entrepreneurship, the small business, those are the fundamentals of America and I think they’re strong.”
That sentiment was blasted by Barack Obama today. “It’s not that I think John McCain doesn’t care what’s going on in the lives of most Americans. I just think doesn’t know. He doesn’t get what’s happening between the mountain in Sedona where he lives and the corridors of Washington where he works. Why else would he say that we’ve made great progress economically under George Bush?” Obama said today in Colorado.
“Why else would he say, today, of all days – just a few hours ago – that the fundamentals of the economy are still strong? Senator – what economy are you talking about?”
McCain; "the economy is strong!" Do you think so?
By Robert Barnes and Michael D. Shear
JACKSONVILLE, Fla. -- Wall Street's economic meltdown prompted sharp exchanges between the presidential campaigns on Monday, as Barack Obama and John McCain sought to appear both tough and empathetic.
McCain pledged to clean up and reform Wall Street, making his initial remarks on the financial markets this morning at a rally here by insisting that taxpayers should not be part of the solution.
"We've got to be focused on ensuring that the deposits of hard-working Americans are protected and that taxpayers are not involved," he said, adding taxpayers already are burdened with helping bail out Bear Stearns and protecting mortgage giants Fannie Mae and Freddie Mac.
McCain noted "tremendous turmoil in our financial markets and Wall Street" but continued to say he believes the economy is sound.
"Our economy, I think, is still -- the fundamentals of our economy are strong, but these are very, very difficult times," McCain said. "I promise you we will never put America in this position again. We will clean up Wall Street."
McCain also released a new television ad, titled "Crisis," which argues that McCain and his running mate, Alaska Gov. Sarah Palin, will clean up Wall Street and impose "tougher rules" without "special-interest giveaways."
"Our economy in crisis," the ad says. "Only proven reformers John McCain and Sarah Palin can fix it. ... Leadership, experience for the change we need."
Obama's campaign seized on McCain's assessment of the health of the economy, blasting him for being "disturbingly out of touch" with the reality that everyday Americans face.
"Even as his own ads try to convince him that the economy is in crisis, apparently his 26 years in Washington have left him incapable of understanding that the policies he supports have created an historic economic crisis," Obama spokesman Bill Burton said.
In a statement, Obama called the economic news "the most serious financial crisis since the Great Depression" and attempted to link the failures of the institutions to Bush policies that McCain supported.
"This country can't afford another four years of this failed philosophy," Obama said.
McCain officials continued to press their case that Obama would raise taxes, a move they said would worsen the financial crisis and threaten the pocketbooks of middle-class taxpayers. (Objective observers have disputed McCain's reading, noting the Obama tax plan does not raise taxes on those households earning less than $250,000.)
"Today's economic news is a reminder of how out of touch Obama's plans to raise taxes are." said Republican National Committee spokesman Alex Conant. "With Americans' jobs and savings in jeopardy, this is no time to raise taxes like Obama proposes."
In Jacksonville, McCain said, "We believe that the time has come and gone that the taxpayers should be viewed as the solution to the problems that are not of their making.''
He called for an "environment'' of "robust energy supplies, lower inflation, control health care costs, access international markets'' and reducing the "burden" of government.
Without specifics, he said,"The McCain-Palin administration will be replacing the outdated patchwork quilt of regulatory oversight and bring transparency and accountability to Wall Street.''
Damien LaVera, a spokesman for the Democratic National Committee, accused McCain of repeating "widely debunked lies about Barack Obama's record on tax cuts and his false claim to have never requested a single earmark or pork project for the state of Arizona."
Posted at 12:00 PM ET on Sep 15, 2008 | Category: Barack Obama
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JACKSONVILLE, Fla. -- Wall Street's economic meltdown prompted sharp exchanges between the presidential campaigns on Monday, as Barack Obama and John McCain sought to appear both tough and empathetic.
McCain pledged to clean up and reform Wall Street, making his initial remarks on the financial markets this morning at a rally here by insisting that taxpayers should not be part of the solution.
"We've got to be focused on ensuring that the deposits of hard-working Americans are protected and that taxpayers are not involved," he said, adding taxpayers already are burdened with helping bail out Bear Stearns and protecting mortgage giants Fannie Mae and Freddie Mac.
McCain noted "tremendous turmoil in our financial markets and Wall Street" but continued to say he believes the economy is sound.
"Our economy, I think, is still -- the fundamentals of our economy are strong, but these are very, very difficult times," McCain said. "I promise you we will never put America in this position again. We will clean up Wall Street."
McCain also released a new television ad, titled "Crisis," which argues that McCain and his running mate, Alaska Gov. Sarah Palin, will clean up Wall Street and impose "tougher rules" without "special-interest giveaways."
"Our economy in crisis," the ad says. "Only proven reformers John McCain and Sarah Palin can fix it. ... Leadership, experience for the change we need."
Obama's campaign seized on McCain's assessment of the health of the economy, blasting him for being "disturbingly out of touch" with the reality that everyday Americans face.
"Even as his own ads try to convince him that the economy is in crisis, apparently his 26 years in Washington have left him incapable of understanding that the policies he supports have created an historic economic crisis," Obama spokesman Bill Burton said.
In a statement, Obama called the economic news "the most serious financial crisis since the Great Depression" and attempted to link the failures of the institutions to Bush policies that McCain supported.
"This country can't afford another four years of this failed philosophy," Obama said.
McCain officials continued to press their case that Obama would raise taxes, a move they said would worsen the financial crisis and threaten the pocketbooks of middle-class taxpayers. (Objective observers have disputed McCain's reading, noting the Obama tax plan does not raise taxes on those households earning less than $250,000.)
"Today's economic news is a reminder of how out of touch Obama's plans to raise taxes are." said Republican National Committee spokesman Alex Conant. "With Americans' jobs and savings in jeopardy, this is no time to raise taxes like Obama proposes."
In Jacksonville, McCain said, "We believe that the time has come and gone that the taxpayers should be viewed as the solution to the problems that are not of their making.''
He called for an "environment'' of "robust energy supplies, lower inflation, control health care costs, access international markets'' and reducing the "burden" of government.
Without specifics, he said,"The McCain-Palin administration will be replacing the outdated patchwork quilt of regulatory oversight and bring transparency and accountability to Wall Street.''
Damien LaVera, a spokesman for the Democratic National Committee, accused McCain of repeating "widely debunked lies about Barack Obama's record on tax cuts and his false claim to have never requested a single earmark or pork project for the state of Arizona."
Posted at 12:00 PM ET on Sep 15, 2008 | Category: Barack Obama
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Does he understand the econony?
To the best of McCain's economic knowledge
Email|Link|Comments (9) Posted by James F. Smith January 25, 2008 11:22 AM
During the Republican debate last night on MSNBC, moderator Tim Russert asked candidate John McCain about his previous comments that he didn't know as much about economics as he did about other issues. McCain's answer suggested he had never made such a comment. In fact he did so as recently as December, as the Globe's Sasha Issenberg reported at the time.
Here's the exchange from the debate transcript last night:
RUSSERT: National security, the war in Iraq had been the dominant issue in the campaign until a few weeks ago. And now the economy has taken hold. Ask any of the voters; it's the economy. Senator McCain, you have said repeatedly, quote, I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated. Is it a problem for your campaign that the economy is now the most important issue, one that by your own acknowledgment you're not well versed on?
MCCAIN: Actually, I don't know where you got that quote from. I'm very well versed in economics. I was there at the Reagan revolution. I was there when we enacted the first -- or just after we enacted the first tax cuts and the restraints on spending.
But Issenberg quoted McCain as telling reporters on December 17 in New Hampshire: "The issue of economics is not something I've understood as well as I should," McCain said. "I've got Greenspan's book."
Here's the link to Issenberg's account, which appeared on the Boston Globe's campaign blog, Political Intelligence, on December 18.
Email|Link|Comments (9) Posted by James F. Smith January 25, 2008 11:22 AM
During the Republican debate last night on MSNBC, moderator Tim Russert asked candidate John McCain about his previous comments that he didn't know as much about economics as he did about other issues. McCain's answer suggested he had never made such a comment. In fact he did so as recently as December, as the Globe's Sasha Issenberg reported at the time.
Here's the exchange from the debate transcript last night:
RUSSERT: National security, the war in Iraq had been the dominant issue in the campaign until a few weeks ago. And now the economy has taken hold. Ask any of the voters; it's the economy. Senator McCain, you have said repeatedly, quote, I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated. Is it a problem for your campaign that the economy is now the most important issue, one that by your own acknowledgment you're not well versed on?
MCCAIN: Actually, I don't know where you got that quote from. I'm very well versed in economics. I was there at the Reagan revolution. I was there when we enacted the first -- or just after we enacted the first tax cuts and the restraints on spending.
But Issenberg quoted McCain as telling reporters on December 17 in New Hampshire: "The issue of economics is not something I've understood as well as I should," McCain said. "I've got Greenspan's book."
Here's the link to Issenberg's account, which appeared on the Boston Globe's campaign blog, Political Intelligence, on December 18.
McCain doesn't understand the Economy
John McCain Doesn't Understand the Challenges America's Families FaceMarch 6, 2008
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With oil prices hitting a new record high today, people across the country are feeling the pinch. America's working families are struggling with skyrocketing health care, energy, and college costs, stagnant wages, and a foreclosure crisis that has many Americans struggling to pay their mortgages. But John McCain just doesn't understand the challenges working families face and is offering nothing more than a third Bush term on the economy that will leave America worse off.The candidate who himself admitted "[t]he issue of economics is not something I've understood as well as I should" and said that the economy is strong has shown time and time again he just doesn't understand the challenges confronting the American people. Asked this week what short-term relief he would offer, all he could come up with was making Bush's budget-busting tax cuts for the wealthy permanent in 2010--nearly two years from now. Not only are the Bush tax cuts skewed to the wealthy, as McCain himself argued in 2001 and 2003, but McCain has refused to explain how he will pay for the never-ending war in Iraq while making Bush's tax cuts permanent. Together, they would cost $6.3 trillion over 10 years. [Boston Globe, 12/18/07; Wall Street Journal, 3/3/08; Senate Budget Committee Fact Sheet, 1/24/08]McCain has backed President Bush's decision to veto a children's health insurance bill, skipped a key vote on the economic stimulus package, and refused to say whether he supports President Bush's threat to veto a Democratic mortgage relief bill. [AP, 2/6/08; Politico.com, 2/6/08; Congressional Quarterly Today, 2/27/2008]"John McCain just doesn't understand the challenges American families face every day," said DNC Communications Director Karen Finney. "If he did, he wouldn't try to defend and extend Bush's economic policies that have been devastating for America. Instead, McCain offers more of the same out-of-touch policies that do nothing to help working families, and that's the last thing voters want."
McCain Is Sure No Expert On the Economy…McCain Says He Doesn't Understand the Economy. McCain admitted to reporters "[t]he issue of economics is not something I've understood as well as I should." [Boston Globe, 12/18/07]McCain's Short-Term Solution For the Economy? Tax Cuts for the Wealthy in Two Years, Of Course. When asked what efforts would have a short-term impact on the economy, McCain responded "In the shorter term, if you somehow told American businesses and families, 'Look, you're not going to experience a tax increase in 2010,' I think that's a pretty good short-term measure. And as far as confidence is concerned, I think if you say, 'Congress is going to cut corporate taxes right away,' if you say that you've got a plan to eliminate the AMT, I think some of those are kind of short-term measures right now." [Wall Street Journal, 3/3/08]Republicans Postponing Consideration of Housing Bill So McCain Doesn't Have to Make a Hard Vote. "Consideration of the mortgage package was delayed earlier in the week when a debate over the Iraq War lasted longer than expected. At the time, Majority Whip Richard J. Durbin, D-Ill., maintained that Republicans were intentionally delaying consideration of the mortgage package so that Arizona Sen. John McCain -- the presumptive GOP presidential nominee -- would not have to cast a vote on the bill before the March 4 Ohio primary." [Congressional Quarterly Today, 2/27/2008] McCain Skips Vote to Give Tax Rebates to Seniors and Disabled Veterans. "McCain skipped a difficult Senate vote Wednesday on whether to make 20 million seniors and 250,000 disabled veterans eligible for rebate checks as part of a proposed economic stimulus package" despite the fact that he "was actually in Washington -- his plane landed at Dulles Airport by 5 p.m., leaving plenty of time to make" the vote." [AP, 2/6/08; Politico.com, 2/6/08]Cost of "Four More Years" Placed At $6.3 TRILLION. Yesterday's CBO "January Budget and Economic Outlook" showed continued deterioration in the budget outlook with the projected 2008 deficit growing to $219 billion. But as bad as the budget situation has become under the current Republican Administration, continuation of the Republican policies by any of the Republicans on stage tonight will only make things worse. The majority staff of the Senate Budget Committee estimates that funding Republican priorities like making the Bush tax cuts permanent and funding ongoing - and perhaps permanent - operations in Iraq will add $6.3 trillion to the CBO's already dismal ten-year predictions. [http://budget.senate.gov/democratic/documents/2008/cbojanupdatefactsheet2008.pdf ]
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With oil prices hitting a new record high today, people across the country are feeling the pinch. America's working families are struggling with skyrocketing health care, energy, and college costs, stagnant wages, and a foreclosure crisis that has many Americans struggling to pay their mortgages. But John McCain just doesn't understand the challenges working families face and is offering nothing more than a third Bush term on the economy that will leave America worse off.The candidate who himself admitted "[t]he issue of economics is not something I've understood as well as I should" and said that the economy is strong has shown time and time again he just doesn't understand the challenges confronting the American people. Asked this week what short-term relief he would offer, all he could come up with was making Bush's budget-busting tax cuts for the wealthy permanent in 2010--nearly two years from now. Not only are the Bush tax cuts skewed to the wealthy, as McCain himself argued in 2001 and 2003, but McCain has refused to explain how he will pay for the never-ending war in Iraq while making Bush's tax cuts permanent. Together, they would cost $6.3 trillion over 10 years. [Boston Globe, 12/18/07; Wall Street Journal, 3/3/08; Senate Budget Committee Fact Sheet, 1/24/08]McCain has backed President Bush's decision to veto a children's health insurance bill, skipped a key vote on the economic stimulus package, and refused to say whether he supports President Bush's threat to veto a Democratic mortgage relief bill. [AP, 2/6/08; Politico.com, 2/6/08; Congressional Quarterly Today, 2/27/2008]"John McCain just doesn't understand the challenges American families face every day," said DNC Communications Director Karen Finney. "If he did, he wouldn't try to defend and extend Bush's economic policies that have been devastating for America. Instead, McCain offers more of the same out-of-touch policies that do nothing to help working families, and that's the last thing voters want."
McCain Is Sure No Expert On the Economy…McCain Says He Doesn't Understand the Economy. McCain admitted to reporters "[t]he issue of economics is not something I've understood as well as I should." [Boston Globe, 12/18/07]McCain's Short-Term Solution For the Economy? Tax Cuts for the Wealthy in Two Years, Of Course. When asked what efforts would have a short-term impact on the economy, McCain responded "In the shorter term, if you somehow told American businesses and families, 'Look, you're not going to experience a tax increase in 2010,' I think that's a pretty good short-term measure. And as far as confidence is concerned, I think if you say, 'Congress is going to cut corporate taxes right away,' if you say that you've got a plan to eliminate the AMT, I think some of those are kind of short-term measures right now." [Wall Street Journal, 3/3/08]Republicans Postponing Consideration of Housing Bill So McCain Doesn't Have to Make a Hard Vote. "Consideration of the mortgage package was delayed earlier in the week when a debate over the Iraq War lasted longer than expected. At the time, Majority Whip Richard J. Durbin, D-Ill., maintained that Republicans were intentionally delaying consideration of the mortgage package so that Arizona Sen. John McCain -- the presumptive GOP presidential nominee -- would not have to cast a vote on the bill before the March 4 Ohio primary." [Congressional Quarterly Today, 2/27/2008] McCain Skips Vote to Give Tax Rebates to Seniors and Disabled Veterans. "McCain skipped a difficult Senate vote Wednesday on whether to make 20 million seniors and 250,000 disabled veterans eligible for rebate checks as part of a proposed economic stimulus package" despite the fact that he "was actually in Washington -- his plane landed at Dulles Airport by 5 p.m., leaving plenty of time to make" the vote." [AP, 2/6/08; Politico.com, 2/6/08]Cost of "Four More Years" Placed At $6.3 TRILLION. Yesterday's CBO "January Budget and Economic Outlook" showed continued deterioration in the budget outlook with the projected 2008 deficit growing to $219 billion. But as bad as the budget situation has become under the current Republican Administration, continuation of the Republican policies by any of the Republicans on stage tonight will only make things worse. The majority staff of the Senate Budget Committee estimates that funding Republican priorities like making the Bush tax cuts permanent and funding ongoing - and perhaps permanent - operations in Iraq will add $6.3 trillion to the CBO's already dismal ten-year predictions. [http://budget.senate.gov/democratic/documents/2008/cbojanupdatefactsheet2008.pdf ]
Republican Economy
WASHINGTON (CNN) -- Sen. Barack Obama on Monday used the news of more troubles on Wall Street to tie his Republican rival, Sen. John McCain, to the economic legacy of President Bush, while McCain called for an overhaul of the "patchwork quilt of regulatory oversight."
The investment bank Lehman Brothers, a pillar of Wall Street, has been hurt by losses in the real estate market.
Lehman Brothers, a 158-year-old investment bank that has been a pillar of Wall Street, announced Monday it was filing for bankruptcy, while Bank of America said it was buying another Wall Street institution, Merrill Lynch.
Lehman Brothers has been hurt by losses in the real estate market, and its stock value has declined 94 percent this year. Merrill Lynch also has been struck by real estate loses.
The problems with Lehman Brothers and Merrill Lynch come as financial markets were still recovering from the government takeover of mortgage giants Fannie Mae and Freddie Mac. Both institutions had experienced troubles as a result of the crisis in the mortgage industry caused by a record number of defaults and foreclosures. Watch why Lehman Brothers got into trouble »
The recent troubles "are more evidence that too many folks in Washington and on Wall Street weren't minding the store," Obama said in a statement Monday, adding that "eight years of polices... have brought us the most serious financial crisis since the Great Depression."
"I certainly don't fault Sen. McCain for these problems, but I do fault the economic philosophy he subscribes to," the Democratic presidential nominee said. "It's a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crisis."
Don't Miss
Changes rock Wall Street
CNN/Money: Stocks plummet on Lehman, Merrill news
Ticker: Biden to sharpen attacks on McCain
Obama called for modernizing regulations "to suit a 21st-century market" to protect investors and consumers.
For his part, McCain said in a statement he was happy that the federal government decided not to use taxpayer dollars to bail out Lehman Brothers and that he was carefully monitoring the markets -- including the situation with Lehman, which he called "the latest reminder of ineffective regulation and management."
"The McCain-Palin administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street."
The news of more troubles on Wall Street comes as voters place the economy as their No. 1 concern. More than half, 56 percent, of voters surveyed September 5-7 in a CNN/Opinion Research Corp. poll placed the economy as the most important issue. Watch why the economy worries voters »
The poll, which involved interviews with 1,022 adults, had a margin of error of plus or minus 4.5 percentage points.
If economic problems continue to dominate the headlines, they could help Obama in the tight race for the White House, the recent CNN/Opinion Research poll suggested.
According to the poll, Obama was viewed as being better at handling economic issues by 52 percent of the voters surveyed. In comparison, McCain was viewed as better on economic issues by 44 percent. The margin of error on that question was plus or minus 4.5 percentage points.
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All About Lehman Brothers Inc. • Merrill Lynch & Co. Inc.
The investment bank Lehman Brothers, a pillar of Wall Street, has been hurt by losses in the real estate market.
Lehman Brothers, a 158-year-old investment bank that has been a pillar of Wall Street, announced Monday it was filing for bankruptcy, while Bank of America said it was buying another Wall Street institution, Merrill Lynch.
Lehman Brothers has been hurt by losses in the real estate market, and its stock value has declined 94 percent this year. Merrill Lynch also has been struck by real estate loses.
The problems with Lehman Brothers and Merrill Lynch come as financial markets were still recovering from the government takeover of mortgage giants Fannie Mae and Freddie Mac. Both institutions had experienced troubles as a result of the crisis in the mortgage industry caused by a record number of defaults and foreclosures. Watch why Lehman Brothers got into trouble »
The recent troubles "are more evidence that too many folks in Washington and on Wall Street weren't minding the store," Obama said in a statement Monday, adding that "eight years of polices... have brought us the most serious financial crisis since the Great Depression."
"I certainly don't fault Sen. McCain for these problems, but I do fault the economic philosophy he subscribes to," the Democratic presidential nominee said. "It's a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crisis."
Don't Miss
Changes rock Wall Street
CNN/Money: Stocks plummet on Lehman, Merrill news
Ticker: Biden to sharpen attacks on McCain
Obama called for modernizing regulations "to suit a 21st-century market" to protect investors and consumers.
For his part, McCain said in a statement he was happy that the federal government decided not to use taxpayer dollars to bail out Lehman Brothers and that he was carefully monitoring the markets -- including the situation with Lehman, which he called "the latest reminder of ineffective regulation and management."
"The McCain-Palin administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street."
The news of more troubles on Wall Street comes as voters place the economy as their No. 1 concern. More than half, 56 percent, of voters surveyed September 5-7 in a CNN/Opinion Research Corp. poll placed the economy as the most important issue. Watch why the economy worries voters »
The poll, which involved interviews with 1,022 adults, had a margin of error of plus or minus 4.5 percentage points.
If economic problems continue to dominate the headlines, they could help Obama in the tight race for the White House, the recent CNN/Opinion Research poll suggested.
According to the poll, Obama was viewed as being better at handling economic issues by 52 percent of the voters surveyed. In comparison, McCain was viewed as better on economic issues by 44 percent. The margin of error on that question was plus or minus 4.5 percentage points.
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All About Lehman Brothers Inc. • Merrill Lynch & Co. Inc.
John McCain is out of touch with current reality
Please take a look at this video of McCain. It shows McCain speaking in various interviews and appearances. Judge for yourself if he is the man you want running the country. I think this video speaks for itself.
http://vodpod.com/watch/927574-tpmtv-dazed-and-confused
http://vodpod.com/watch/927574-tpmtv-dazed-and-confused
Video of McCain Campaign Lies being disputed by the actual Facts!
Please take a look at this video if you may be confused about the ads you see on TV or the rumors you may have heard concerning Obama.
http://www.harmonicguru.wordpress.com/2008/09/12/lipstick-on-pig-tales-28/
http://www.harmonicguru.wordpress.com/2008/09/12/lipstick-on-pig-tales-28/
Thursday, September 11, 2008
McCain taking $112,000 is not change
The story of "the Keating Five" has become a scandal rivaling Teapot Dome and Watergate
By Tom Fitzpatrick
Published on November 29, 1989
You're John McCain, a fallen hero who wanted to become president so desperately that you sold yourself to Charlie Keating, the wealthy con man who bears such an incredible resemblance to The Joker.
Subject(s):
John Mc John McCain, Keating FiveObviously, Keating thought you could make it to the White House, too.
He poured $112,000 into your political campaigns. He became your friend. He threw fund raisers in your honor. He even made a sweet shopping-center investment deal for your wife, Cindy. Your father-in-law, Jim Hensley, was cut in on the deal, too.
Nothing was too good for you. Why not? Keating saw you as a prime investment that would pay off in the future.
So he flew you and your family around the country in his private jets. Time after time, he put you up for serene, private vacations at his vast, palatial spa in the Bahamas. All of this was so grand. You were protected from what Thomas Hardy refers to as "the madding crowd." It was almost as though you were already staying at a presidential retreat.
Like the old song, that now seems "Long ago and far away."
Since Keating's collapse, you find yourself doing obscene things to save yourself from the Senate Ethics Committee's investigation. As a matter of course, you engage in backbiting behavior that will turn you into an outcast in the Senate if you do survive.
They say that if you put five lobsters into a pot and give them a chance to escape, none will be able to do so before you light the fire. Each time a lobster tries to climb over the top, his fellow lobsters will pull him back down. It is the way of lobsters and threatened United States senators.
And, of course, that's the way it is with the Keating Five. You are all battling to save your own hides. So you, McCain, leak to reporters about who did Keating's bidding in pressuring federal regulators to change the rules for Lincoln Savings and Loan.
When the reporters fail to print your tips quickly enough--as in the case of your tip on Michigan Senator Donald Riegle--you call them back and remind them how important it is to get that information in the newspapers.
The story of "the Keating Five" has become a scandal rivaling Teapot Dome and Watergate. The outcome will be decided, not in a courtroom, but probably on national television.
Those who survive will be the sociopaths who can tell a lie with the most sincere, straight face. You are especially adept at this.
Last Friday night, on The John McLaughlin Show, which features well-known Washington journalists, the subject of the Keating Five was discussed. Panelist Jack Germond suggested that three of the Keating Five were probably already through in politics.
So you spend your days desperately trying to make sure you will be one of the survivors. You keep volunteering to go on radio and television stations to protest your innocence. Last week you made ABC's Nightline.
Not long before that you somehow managed to get James Kilpatrick, the national columnist, to write a favorable paragraph about you. Last Sunday morning, you made it to national television again; this time on ABC's This Week With David Brinkley. You smiled at the panel with your usual studied insouciance. Sitting next to you was Senator John Glenn of Ohio.
Brinkley, Sam Donaldson, and George Will were the interrogators.
It was a sobering scene. There you sat with Glenn, both sweating before the cameras, waiting to answer questions: two badly tarnished American icons.
No one forgets that Glenn was the first American astronaut to orbit the Earth. You won't let anyone forget that you were a prisoner of war. But you have played that tune too long. By now your constant reminders about your war record make you seem like a modern version of Arthur Miller's tragic failure Willy Loman.
Clearly, both you and Glenn sold your fame for Charles Keating's money.
It was a Faustian bargain. It was also a bad joke on the rest of us and a disaster for many old people who lost their life's savings to Keating.
The money was never really Keating's to give. But he never would have got his hands on it if you and the rest of the Keating Five didn't halt the government takeover for two long years while Keating's people continued their looting.
And now, the tab for the Savings and Loan heist must be paid from taxpayer pockets.
On Sunday, Senators Dennis DeConcini, Alan Cranston, and Riegle refused offers to appear on the Brinkley show. What must we make of that?
You, the closest of them to Keating and the deepest in his debt, have chosen the path of the hard sell. You may even make it out of the pot, but to many, your protestations of innocence taste like gall.
You are determined to bluff your way. You will stick to your story that you were acting to help a constituent and intended to do nothing improper. The very fact you attended the meeting makes you guilty, just as every man who entered the Brinks vault went to prison.
Subject(s):
John Mc John McCain, Keating FiveYou insist that an accounting firm Keating hired told you Lincoln was sound. Alan Greenspan, who Keating also hired, wrote a report saying it was sound. Why shouldn't you believe the people Keating hired? You were, after all, fellow employees.
Perhaps you might silence your own conscience about all this someday.
Just keep telling everyone that it was your wife's money invested in that shopping center with Keating and that you knew nothing about it.
Keep saying that cynical newspaper people don't understand that every move you make has always been for the enrichment of Arizona . . . the education of our Native Americans on the reservations . . . for the love of the elderly in Sun City and Green Valley.
Keep telling them that it wasn't that you were bought off but that Charlie Keating got special help only because he was one of the biggest employers in the state.
Just keep sitting there and staring into the camera and denying that Keating bought you for money and jet plane trips and vacations.
So what if he gave you $112,000? Just keep smiling at the cameras and saying you did nothing wrong.
Maybe the voters will understand you took those tiring trips to Charlie's place in the Bahamas in their behalf. Certainly, they can understand you wanted to take your family along. A senator deserves to travel on private jets, removed from the awful crush of public transportation.
You sought out a master criminal like Keating and became his friend. Now you've discarded him. It shouldn't be surprising that you are now in the process of selling out your senatorial accomplices.
You're John McCain, clearly the guiltiest, most culpable and reprehensible of the Keating Five. But you know the power of television and you realize this is the only way you can possibly save your political career.
By Tom Fitzpatrick
Published on November 29, 1989
You're John McCain, a fallen hero who wanted to become president so desperately that you sold yourself to Charlie Keating, the wealthy con man who bears such an incredible resemblance to The Joker.
Subject(s):
John Mc John McCain, Keating FiveObviously, Keating thought you could make it to the White House, too.
He poured $112,000 into your political campaigns. He became your friend. He threw fund raisers in your honor. He even made a sweet shopping-center investment deal for your wife, Cindy. Your father-in-law, Jim Hensley, was cut in on the deal, too.
Nothing was too good for you. Why not? Keating saw you as a prime investment that would pay off in the future.
So he flew you and your family around the country in his private jets. Time after time, he put you up for serene, private vacations at his vast, palatial spa in the Bahamas. All of this was so grand. You were protected from what Thomas Hardy refers to as "the madding crowd." It was almost as though you were already staying at a presidential retreat.
Like the old song, that now seems "Long ago and far away."
Since Keating's collapse, you find yourself doing obscene things to save yourself from the Senate Ethics Committee's investigation. As a matter of course, you engage in backbiting behavior that will turn you into an outcast in the Senate if you do survive.
They say that if you put five lobsters into a pot and give them a chance to escape, none will be able to do so before you light the fire. Each time a lobster tries to climb over the top, his fellow lobsters will pull him back down. It is the way of lobsters and threatened United States senators.
And, of course, that's the way it is with the Keating Five. You are all battling to save your own hides. So you, McCain, leak to reporters about who did Keating's bidding in pressuring federal regulators to change the rules for Lincoln Savings and Loan.
When the reporters fail to print your tips quickly enough--as in the case of your tip on Michigan Senator Donald Riegle--you call them back and remind them how important it is to get that information in the newspapers.
The story of "the Keating Five" has become a scandal rivaling Teapot Dome and Watergate. The outcome will be decided, not in a courtroom, but probably on national television.
Those who survive will be the sociopaths who can tell a lie with the most sincere, straight face. You are especially adept at this.
Last Friday night, on The John McLaughlin Show, which features well-known Washington journalists, the subject of the Keating Five was discussed. Panelist Jack Germond suggested that three of the Keating Five were probably already through in politics.
So you spend your days desperately trying to make sure you will be one of the survivors. You keep volunteering to go on radio and television stations to protest your innocence. Last week you made ABC's Nightline.
Not long before that you somehow managed to get James Kilpatrick, the national columnist, to write a favorable paragraph about you. Last Sunday morning, you made it to national television again; this time on ABC's This Week With David Brinkley. You smiled at the panel with your usual studied insouciance. Sitting next to you was Senator John Glenn of Ohio.
Brinkley, Sam Donaldson, and George Will were the interrogators.
It was a sobering scene. There you sat with Glenn, both sweating before the cameras, waiting to answer questions: two badly tarnished American icons.
No one forgets that Glenn was the first American astronaut to orbit the Earth. You won't let anyone forget that you were a prisoner of war. But you have played that tune too long. By now your constant reminders about your war record make you seem like a modern version of Arthur Miller's tragic failure Willy Loman.
Clearly, both you and Glenn sold your fame for Charles Keating's money.
It was a Faustian bargain. It was also a bad joke on the rest of us and a disaster for many old people who lost their life's savings to Keating.
The money was never really Keating's to give. But he never would have got his hands on it if you and the rest of the Keating Five didn't halt the government takeover for two long years while Keating's people continued their looting.
And now, the tab for the Savings and Loan heist must be paid from taxpayer pockets.
On Sunday, Senators Dennis DeConcini, Alan Cranston, and Riegle refused offers to appear on the Brinkley show. What must we make of that?
You, the closest of them to Keating and the deepest in his debt, have chosen the path of the hard sell. You may even make it out of the pot, but to many, your protestations of innocence taste like gall.
You are determined to bluff your way. You will stick to your story that you were acting to help a constituent and intended to do nothing improper. The very fact you attended the meeting makes you guilty, just as every man who entered the Brinks vault went to prison.
Subject(s):
John Mc John McCain, Keating FiveYou insist that an accounting firm Keating hired told you Lincoln was sound. Alan Greenspan, who Keating also hired, wrote a report saying it was sound. Why shouldn't you believe the people Keating hired? You were, after all, fellow employees.
Perhaps you might silence your own conscience about all this someday.
Just keep telling everyone that it was your wife's money invested in that shopping center with Keating and that you knew nothing about it.
Keep saying that cynical newspaper people don't understand that every move you make has always been for the enrichment of Arizona . . . the education of our Native Americans on the reservations . . . for the love of the elderly in Sun City and Green Valley.
Keep telling them that it wasn't that you were bought off but that Charlie Keating got special help only because he was one of the biggest employers in the state.
Just keep sitting there and staring into the camera and denying that Keating bought you for money and jet plane trips and vacations.
So what if he gave you $112,000? Just keep smiling at the cameras and saying you did nothing wrong.
Maybe the voters will understand you took those tiring trips to Charlie's place in the Bahamas in their behalf. Certainly, they can understand you wanted to take your family along. A senator deserves to travel on private jets, removed from the awful crush of public transportation.
You sought out a master criminal like Keating and became his friend. Now you've discarded him. It shouldn't be surprising that you are now in the process of selling out your senatorial accomplices.
You're John McCain, clearly the guiltiest, most culpable and reprehensible of the Keating Five. But you know the power of television and you realize this is the only way you can possibly save your political career.
(McCain) Keeting 5 Scandal
Keating Five
From Wikipedia, the free encyclopedia
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Alan Cranston (D-CA)
Dennis DeConcini (D-AZ)
John Glenn (D-OH)
John McCain (R-AZ)
Donald W. Riegle (D-MI)
The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s. The five senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board (FHLBB).
After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised "poor judgment".
All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they were both re-elected.
Contents [hide]
1 Circumstances
2 Corruption allegations
3 Failure of Lincoln
4 Relationships of senators to Keating
5 Conclusion of investigation
5.1 Cranston: severely reprimanded
5.2 Riegle and DeConcini: criticized for acting improperly
5.3 Glenn and McCain: cleared of impropriety but criticized for poor judgment
5.4 Reactions
6 Aftermath
7 See also
8 Notes
9 References
[edit] Circumstances
See also: Savings and Loan crisis
The U.S. Savings and Loan crisis of the 1980s and 1990s was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. taxpayer.[1].
The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War II.[2]
The Keating Five scandal was prompted by the activities of one particular savings and loan: Lincoln Savings and Loan Association of Irvine, California. Lincoln's chairman was Charles Keating, who ultimately served five years in prison for his corrupt mismanagement of Lincoln.[3] In the four years since Keating's American Continental Corporation (ACC) had purchased Lincoln in 1984, Lincoln's assets had increased from $1.1 billion to $5.5 billion.[4] Such savings and loan associations had been deregulated in the early 1980s, allowing them to make highly risky investments with their depositors' money, a change of which Keating took advantage.[4] Lincoln's investments took the form of buying land, taking equity positions in real estate development projects, and buying high-yield junk bonds.[5]
[edit] Corruption allegations
The core allegation of the Keating Five affair is that Keating had made contributions of about $1.3 million to various U.S. Senators, and he called on those Senators to help him resist regulators. The regulators backed off, to later disastrous consequences.
Beginning in 1985, Edwin J. Gray, chair of the Federal Home Loan Bank Board (FHLBB), feared that the savings industry's risky investment practices were exposing the government's insurance funds to huge losses.[5] Gray instituted a rule whereby savings associations could hold no more than ten percent of their assets in "direct investments",[5] and were thus prohibited from taking ownership positions in certain financial entities and instruments.[6] Lincoln had become burdened with bad debt resulting from its past aggressiveness, and by early 1986,[5] its investment practices were being investigated and audited by the FHLBB:[7] in particular, whether it had violated these direct investment rules; Lincoln had directed FDIC-insured accounts into commercial real estate ventures.[4] By the end of 1986, the FHLBB had found that Lincoln had $135 million in unreported losses and had surpassed the regulated direct investments limit by $600 million.[5]
Keating had earlier taken several measures to oppose Gray and the FHLBB, including recruiting a study from then-private economist Alan Greenspan saying that direct investments were not harmful,[5] and getting President Ronald Reagan to make a recess appointment of a Keating ally, Atlanta real estate developer Lee H. Henkel Jr., to an open seat on the FHLBB.[5] But by March 1987, Henkel had resigned, upon news of his having large loans due to Lincoln.[5]
It appeared as though the government might seize Lincoln for being insolvent.[6] The investigation was, however, taking a long time.[7] Keating was asking that Lincoln be given a lenient judgment by the FHLBB, so that it could limit its high risk investments and get into the safe (at the time) home mortgage business, thus allowing the business to survive. A letter from audit firm Arthur Young & Co. bolstered Keating's case that the government investigation was taking a long time.[8] Keating now wanted the five senators to intervene with the FHLBB on his behalf.
By March 1987, Keating and DeConcini were asking McCain to travel to San Francisco to meet with regulators regarding Lincoln Savings; McCain refused.[8][6] DeConcini told Keating that McCain was nervous about interfering.[6] Keating called McCain a "wimp" behind his back, and on March 24, Keating and McCain had a heated, contentious meeting.[8]
On April 2, 1987, a meeting with chairman Gray of the FHLBB was held in DeConcini's Capitol office, with Senators Cranston, Glenn, and McCain also in attendance.[6] DeConcini started the meeting with a mention of "our friend at Lincoln."[6] Gray told the assembled senators that he did not know the particular details of the status of Lincoln Savings and Loan, and that the senators would have to go to the bank regulators in San Francisco that had oversight jurisdiction for the bank. Gray did offer to set up a meeting between those regulators and the senators.[6]
On April 9, 1987, a two-hour meeting[4] with three members of the FHLBB San Francisco branch was held, again in DeConcini's office, to discuss the government's investigation of Lincoln.[8][6] Present were Cranston, DeConcini, Glenn, McCain, and additionally Riegle.[6] The regulators felt that the meeting was very unusual and that they were being pressured by a united front, as the senators presented their reasons for having the meeting.[6] McCain said, "One of our jobs as elected officials is to help constituents in a proper fashion. ACC [American Continental Corporation] is a big employer and important to the local economy. I wouldn't want any special favors for them.... I don't want any part of our conversation to be improper." Glenn said, "To be blunt, you should charge them or get off their backs," while DeConcini said, "What's wrong with this if they're willing to clean up their act? ... It's very unusual for us to have a company that could be put out of business by its regulators."[6] The regulators then revealed that Lincoln was under criminal investigation on a variety of serious charges, at which point McCain severed all relations with Keating.[6] Glenn continued to help Keating after that revelation, by setting up a meeting with then-House Majority Leader Jim Wright, which turned out to be the only questionable thing Glenn did throughout the whole affair.[9]
The San Francisco regulators finished their report in May 1987 and recommended that Lincoln be seized by the government due to unsound lending practices.[6][4] Gray, whose time as chair was about to expire, deferred action on the report, saying that his adversarial relationship with Keating would make any action he took seem vindictive, and that instead the incoming chair should take over the decision.[5] Meanwhile Keating filed a lawsuit against the FHLBB, saying it had leaked confidential information about Lincoln.[5] The new FHLBB chair was M. Danny Wall, who was more sympathetic to Keating and took no action on the report, saying its evidence was insufficient.[4][6] In September 1987, the Lincoln investigation was removed from the San Francisco group and in May 1988, a new audit of Lincoln began in Washington.[6]
News of the April meetings between the senators and the FHLBB officials first appeared in National Thrift News in September 1987, but was only sporadically covered by the general media for the next year and a half.[10]
[edit] Failure of Lincoln
Lincoln stayed in business; from mid-1987 to April 1989, its assets grew from $3.91 billion to $5.46 billion.[5] During this time, the parent American Continental Corporation was desperate for cash inflow to make up for losses in real estate purchases and projects.[11] Lincoln's branch managers and tellers convinced customers to replace their federally-insured certificates of deposit with higher-yielding bond certificates of American Continental; the customers later said they were never properly informed that the bonds were uninsured and very risky given the state of American Continental's finances.[11]
American Continental went bankrupt in April 1989, and Lincoln was seized by the FHLBB on April 14, 1989.[4] More than 21,000 mostly elderly investors lost their life savings. This total came to about $285 million.[citation needed] The federal government was liable for $2 billion to cover Lincoln's losses when it seized the institution.[11]
Keating was hit with a $1.1 billion fraud and racketeering action, filed against him by the regulators.[4] Asked whether his contributions had bought him influence, Keating said: “I want to say in the most forceful way I can: I certainly hope so.”[12]
When the former chairman of the FHLBB went public about the Senators' assistance to Keating, that set off a series of investigations by the California government, the United States Department of Justice, and the Senate Ethics Committee. The Ethics Committee's investigation focused on all five senators, who soon became known as the "Keating Five". The initial charges against the five Senators were brought by Common Cause, a public interest group, and the Senate’s inquiry subsequently lasted 22 months.[13]
[edit] Relationships of senators to Keating
Once Lincoln failed, the relationships of all the senators to Keating came under intense press scrutiny.
Cranston had received $39,000 from Keating and his associates for his 1986 Senate re-election campaign. Furthermore, Keating had donated some $850,000 to assorted groups founded by Cranston or controlled by him, and another $85,000 to the California Democratic Party.[4]
DeConcini had received about $48,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] In September 1989, DeConcini stated he would return the money.[4]
Glenn had received $34,000 in direct contributions from Keating and his associates for his 1984 presidential nomination campaign, and a political action committee tied to Glenn had received an additional $200,000.[4]
McCain and Keating had become personal friends following their initial contacts in 1981.[8] Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates.[14] In addition, McCain's wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating's expense, sometimes aboard Keating's jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.[6][15]
Riegle had received some $76,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] Riegle later announced in April 1988 he was returning the money.[5]
[edit] Conclusion of investigation
The Senate Ethics Committee's report regarding the Keating matter came out in August 1991, and addressed each of the five senators.[16]
[edit] Cranston: severely reprimanded
The Senate Ethics Committee ruled that Cranston had acted improperly by interfering with the investigation by the FHLBB.[16] He had received more than a million dollars from Keating, had done more arm-twisting than the other Senators on Keating's behalf, and was the only Senator officially rebuked by the Senate in this matter.[17]
Cranston was given the harshest penalty of all five Senators. In November of 1991, the Senate Ethics Committee voted unanimously to reprimand Cranston, instead of the more severe measure that was under consideration: censure by the full Senate. Extenuating circumstances that helped to save Cranston from censure were the fact that he was suffering from cancer, and that he had decided to not seek reelection, according to the Chairman of the Ethics Committee, Democratic Senator Howell Heflin of Alabama. The Ethics Committee took the unusual step of delivering its reprimand to Cranston during a formal session of the full Senate, with almost all 100 Senators present.[13]
Cranston was not accused of breaking any specific laws or rules, but of violating standards that Heflin said “do not permit official actions to be linked with fund-raising.” The Ethics Committee officially found that Cranston’s conduct had been “improper and repugnant”, deserving of "the fullest, strongest and most severe sanction which the committee has the authority to impose." The sanction was in these words: "the Senate Select Committee on Ethics, on behalf of and in the name of the United States Senate, does hereby strongly and severely reprimand Sen. Alan Cranston.”[13]
After the Senate reprimanded Cranston for repugnant conduct, Cranston took to the Senate floor to deny key charges against him. In response, Senator Warren Rudman of New Hampshire, the Republican Vice-Chairman of the Ethics Committee, charged that Cranston’s response to the reprimand was “arrogant, unrepentant and a smear on this institution," and that Cranston was wrong to imply that everyone does what Cranston had done. Alan Dershowitz, serving as Senator Cranston's attorney, alleged that other Senators had merely been better at “covering their tracks.”[13] Likewise, political historian Lewis Gould has written that, “the real problem for the 'Keating Three' who were most involved was that they had been caught.”[18]
[edit] Riegle and DeConcini: criticized for acting improperly
The Senate Ethics Committee ruled that Riegle and DeConcini had acted improperly by interfering with the investigation by the FHLBB.[16]
DeConcini later charged that McCain had leaked to the press sensitive information about the investigation that came from some of the closed proceedings of the Ethics Committee.[6] McCain denied doing so, although one congressional investigator concluded that McCain had been one of the main leakers during that time.[6]
[edit] Glenn and McCain: cleared of impropriety but criticized for poor judgment
The Senate Ethics Committee ruled that the involvement of Glenn in the scheme was minimal, and the charges against him were dropped.[16] He was only criticized by the Committee for "poor judgment."[19]
The Ethics Committee ruled that the involvement of McCain in the scheme was also minimal, and he too was cleared of all charges against him.[17][16] McCain was criticized by the Committee for exercising "poor judgment" when he met with the federal regulators on Keating's behalf.[6] The report also said that McCain's "actions were not improper nor attended with gross negligence and did not reach the level of requiring institutional action against him....Senator McCain has violated no law of the United States or specific Rule of the United States Senate."[20] On his Keating Five experience, McCain has said: "The appearance of it was wrong. It's a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it was the wrong thing to do."[6]
Several accounts of the controversy contend that McCain was included in the investigation primarily so that there would be at least one Republican target.[21][22][23][9] Glenn's inclusion in the investigation has been attributed to Republicans who were angered by the inclusion of McCain, as well as committee members who thought that dropping Glenn (and McCain) would make it look bad for the remaining three Democratic Senators.[21][23] Democrat Robert S. Bennett, who was the special investigator during the scandal, suggested to the Senate Ethics Committee that it pursue charges against neither McCain nor Glenn, saying of McCain, "that there was no evidence against him."[22] The Vice Chairman of the Ethics Committee, Senator Warren Rudman of New Hampshire, agreed with Bennett, but the Chairman, Senator Howell Heflin of Alabama, did not agree.[9]
Regardless of the level of their involvement, both senators were greatly affected by it. McCain would write in 2002 that attending the two April 1987 meetings was "the worst mistake of my life".[24] Glenn has described the Senate Ethics Committee investigation as the low point of his life.[7]
[edit] Reactions
Not everyone was satisfied with the Senate Ethics Committee conclusions. Fred Wertheimer, president of Common Cause, which had initially demanded the investigation, thought the treatment of the senators far too lenient, and said, "The U.S. Senate remains on the auction block to the Charles Keatings of the world."[25] Joan Claybrook, president of Public Citizen, called it a "whitewash".[25] Jonathan Alter of Newsweek said it was a classic case of the government trying to investigate itself, labelling the Senate Ethics Committee "shameless" for having "let four of the infamous Keating Five off with a wrist tap."[26] Margaret Carlson of Time suspected the committee had timed its first report to coincide with the run-up to the Gulf War, minimizing its news impact.[25]
[edit] Aftermath
Cranston left office in January of 1993, and died in December of 2000. DeConcini and Riegle continued to serve in the Senate until their terms expired, but they did not seek re-election in 1994. DeConcini was appointed by President Bill Clinton in February 1995 to the Board of Directors of the Federal Home Loan Mortgage Corporation. [27]
Glenn did choose to run for re-election in 1992, and it was anticipated that he would have some difficulty winning a fourth term in the Senate. However, Glenn handily defeated Lieutenant Governor R. Michael DeWine for one more term in the Senate before retiring in 1999.
After 1999, the only member of the Keating Five remaining in the U.S. Senate was John McCain, who had an easier time gaining re-election in 1992 than he anticipated,[28] and who ran for president in 2000 and became the Republican nominee in 2008. McCain survived the political scandal by, in part, becoming friendly with the political press, and in part by not letting the controversy detract from his work as a senator.[28]
The scandal was followed by a number of attempts to adopt campaign finance reform—spearheaded by U.S. Sen. David Boren (D-OK)—but most attempts died in committee. A weakened reform was passed in 1993. Substantial campaign finance reform was not passed until the adoption of the McCain-Feingold Act in 2002.
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Alan Cranston (D-CA)
Dennis DeConcini (D-AZ)
John Glenn (D-OH)
John McCain (R-AZ)
Donald W. Riegle (D-MI)
The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s. The five senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board (FHLBB).
After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised "poor judgment".
All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they were both re-elected.
Contents [hide]
1 Circumstances
2 Corruption allegations
3 Failure of Lincoln
4 Relationships of senators to Keating
5 Conclusion of investigation
5.1 Cranston: severely reprimanded
5.2 Riegle and DeConcini: criticized for acting improperly
5.3 Glenn and McCain: cleared of impropriety but criticized for poor judgment
5.4 Reactions
6 Aftermath
7 See also
8 Notes
9 References
[edit] Circumstances
See also: Savings and Loan crisis
The U.S. Savings and Loan crisis of the 1980s and 1990s was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. taxpayer.[1].
The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War II.[2]
The Keating Five scandal was prompted by the activities of one particular savings and loan: Lincoln Savings and Loan Association of Irvine, California. Lincoln's chairman was Charles Keating, who ultimately served five years in prison for his corrupt mismanagement of Lincoln.[3] In the four years since Keating's American Continental Corporation (ACC) had purchased Lincoln in 1984, Lincoln's assets had increased from $1.1 billion to $5.5 billion.[4] Such savings and loan associations had been deregulated in the early 1980s, allowing them to make highly risky investments with their depositors' money, a change of which Keating took advantage.[4] Lincoln's investments took the form of buying land, taking equity positions in real estate development projects, and buying high-yield junk bonds.[5]
[edit] Corruption allegations
The core allegation of the Keating Five affair is that Keating had made contributions of about $1.3 million to various U.S. Senators, and he called on those Senators to help him resist regulators. The regulators backed off, to later disastrous consequences.
Beginning in 1985, Edwin J. Gray, chair of the Federal Home Loan Bank Board (FHLBB), feared that the savings industry's risky investment practices were exposing the government's insurance funds to huge losses.[5] Gray instituted a rule whereby savings associations could hold no more than ten percent of their assets in "direct investments",[5] and were thus prohibited from taking ownership positions in certain financial entities and instruments.[6] Lincoln had become burdened with bad debt resulting from its past aggressiveness, and by early 1986,[5] its investment practices were being investigated and audited by the FHLBB:[7] in particular, whether it had violated these direct investment rules; Lincoln had directed FDIC-insured accounts into commercial real estate ventures.[4] By the end of 1986, the FHLBB had found that Lincoln had $135 million in unreported losses and had surpassed the regulated direct investments limit by $600 million.[5]
Keating had earlier taken several measures to oppose Gray and the FHLBB, including recruiting a study from then-private economist Alan Greenspan saying that direct investments were not harmful,[5] and getting President Ronald Reagan to make a recess appointment of a Keating ally, Atlanta real estate developer Lee H. Henkel Jr., to an open seat on the FHLBB.[5] But by March 1987, Henkel had resigned, upon news of his having large loans due to Lincoln.[5]
It appeared as though the government might seize Lincoln for being insolvent.[6] The investigation was, however, taking a long time.[7] Keating was asking that Lincoln be given a lenient judgment by the FHLBB, so that it could limit its high risk investments and get into the safe (at the time) home mortgage business, thus allowing the business to survive. A letter from audit firm Arthur Young & Co. bolstered Keating's case that the government investigation was taking a long time.[8] Keating now wanted the five senators to intervene with the FHLBB on his behalf.
By March 1987, Keating and DeConcini were asking McCain to travel to San Francisco to meet with regulators regarding Lincoln Savings; McCain refused.[8][6] DeConcini told Keating that McCain was nervous about interfering.[6] Keating called McCain a "wimp" behind his back, and on March 24, Keating and McCain had a heated, contentious meeting.[8]
On April 2, 1987, a meeting with chairman Gray of the FHLBB was held in DeConcini's Capitol office, with Senators Cranston, Glenn, and McCain also in attendance.[6] DeConcini started the meeting with a mention of "our friend at Lincoln."[6] Gray told the assembled senators that he did not know the particular details of the status of Lincoln Savings and Loan, and that the senators would have to go to the bank regulators in San Francisco that had oversight jurisdiction for the bank. Gray did offer to set up a meeting between those regulators and the senators.[6]
On April 9, 1987, a two-hour meeting[4] with three members of the FHLBB San Francisco branch was held, again in DeConcini's office, to discuss the government's investigation of Lincoln.[8][6] Present were Cranston, DeConcini, Glenn, McCain, and additionally Riegle.[6] The regulators felt that the meeting was very unusual and that they were being pressured by a united front, as the senators presented their reasons for having the meeting.[6] McCain said, "One of our jobs as elected officials is to help constituents in a proper fashion. ACC [American Continental Corporation] is a big employer and important to the local economy. I wouldn't want any special favors for them.... I don't want any part of our conversation to be improper." Glenn said, "To be blunt, you should charge them or get off their backs," while DeConcini said, "What's wrong with this if they're willing to clean up their act? ... It's very unusual for us to have a company that could be put out of business by its regulators."[6] The regulators then revealed that Lincoln was under criminal investigation on a variety of serious charges, at which point McCain severed all relations with Keating.[6] Glenn continued to help Keating after that revelation, by setting up a meeting with then-House Majority Leader Jim Wright, which turned out to be the only questionable thing Glenn did throughout the whole affair.[9]
The San Francisco regulators finished their report in May 1987 and recommended that Lincoln be seized by the government due to unsound lending practices.[6][4] Gray, whose time as chair was about to expire, deferred action on the report, saying that his adversarial relationship with Keating would make any action he took seem vindictive, and that instead the incoming chair should take over the decision.[5] Meanwhile Keating filed a lawsuit against the FHLBB, saying it had leaked confidential information about Lincoln.[5] The new FHLBB chair was M. Danny Wall, who was more sympathetic to Keating and took no action on the report, saying its evidence was insufficient.[4][6] In September 1987, the Lincoln investigation was removed from the San Francisco group and in May 1988, a new audit of Lincoln began in Washington.[6]
News of the April meetings between the senators and the FHLBB officials first appeared in National Thrift News in September 1987, but was only sporadically covered by the general media for the next year and a half.[10]
[edit] Failure of Lincoln
Lincoln stayed in business; from mid-1987 to April 1989, its assets grew from $3.91 billion to $5.46 billion.[5] During this time, the parent American Continental Corporation was desperate for cash inflow to make up for losses in real estate purchases and projects.[11] Lincoln's branch managers and tellers convinced customers to replace their federally-insured certificates of deposit with higher-yielding bond certificates of American Continental; the customers later said they were never properly informed that the bonds were uninsured and very risky given the state of American Continental's finances.[11]
American Continental went bankrupt in April 1989, and Lincoln was seized by the FHLBB on April 14, 1989.[4] More than 21,000 mostly elderly investors lost their life savings. This total came to about $285 million.[citation needed] The federal government was liable for $2 billion to cover Lincoln's losses when it seized the institution.[11]
Keating was hit with a $1.1 billion fraud and racketeering action, filed against him by the regulators.[4] Asked whether his contributions had bought him influence, Keating said: “I want to say in the most forceful way I can: I certainly hope so.”[12]
When the former chairman of the FHLBB went public about the Senators' assistance to Keating, that set off a series of investigations by the California government, the United States Department of Justice, and the Senate Ethics Committee. The Ethics Committee's investigation focused on all five senators, who soon became known as the "Keating Five". The initial charges against the five Senators were brought by Common Cause, a public interest group, and the Senate’s inquiry subsequently lasted 22 months.[13]
[edit] Relationships of senators to Keating
Once Lincoln failed, the relationships of all the senators to Keating came under intense press scrutiny.
Cranston had received $39,000 from Keating and his associates for his 1986 Senate re-election campaign. Furthermore, Keating had donated some $850,000 to assorted groups founded by Cranston or controlled by him, and another $85,000 to the California Democratic Party.[4]
DeConcini had received about $48,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] In September 1989, DeConcini stated he would return the money.[4]
Glenn had received $34,000 in direct contributions from Keating and his associates for his 1984 presidential nomination campaign, and a political action committee tied to Glenn had received an additional $200,000.[4]
McCain and Keating had become personal friends following their initial contacts in 1981.[8] Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates.[14] In addition, McCain's wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating's expense, sometimes aboard Keating's jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.[6][15]
Riegle had received some $76,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] Riegle later announced in April 1988 he was returning the money.[5]
[edit] Conclusion of investigation
The Senate Ethics Committee's report regarding the Keating matter came out in August 1991, and addressed each of the five senators.[16]
[edit] Cranston: severely reprimanded
The Senate Ethics Committee ruled that Cranston had acted improperly by interfering with the investigation by the FHLBB.[16] He had received more than a million dollars from Keating, had done more arm-twisting than the other Senators on Keating's behalf, and was the only Senator officially rebuked by the Senate in this matter.[17]
Cranston was given the harshest penalty of all five Senators. In November of 1991, the Senate Ethics Committee voted unanimously to reprimand Cranston, instead of the more severe measure that was under consideration: censure by the full Senate. Extenuating circumstances that helped to save Cranston from censure were the fact that he was suffering from cancer, and that he had decided to not seek reelection, according to the Chairman of the Ethics Committee, Democratic Senator Howell Heflin of Alabama. The Ethics Committee took the unusual step of delivering its reprimand to Cranston during a formal session of the full Senate, with almost all 100 Senators present.[13]
Cranston was not accused of breaking any specific laws or rules, but of violating standards that Heflin said “do not permit official actions to be linked with fund-raising.” The Ethics Committee officially found that Cranston’s conduct had been “improper and repugnant”, deserving of "the fullest, strongest and most severe sanction which the committee has the authority to impose." The sanction was in these words: "the Senate Select Committee on Ethics, on behalf of and in the name of the United States Senate, does hereby strongly and severely reprimand Sen. Alan Cranston.”[13]
After the Senate reprimanded Cranston for repugnant conduct, Cranston took to the Senate floor to deny key charges against him. In response, Senator Warren Rudman of New Hampshire, the Republican Vice-Chairman of the Ethics Committee, charged that Cranston’s response to the reprimand was “arrogant, unrepentant and a smear on this institution," and that Cranston was wrong to imply that everyone does what Cranston had done. Alan Dershowitz, serving as Senator Cranston's attorney, alleged that other Senators had merely been better at “covering their tracks.”[13] Likewise, political historian Lewis Gould has written that, “the real problem for the 'Keating Three' who were most involved was that they had been caught.”[18]
[edit] Riegle and DeConcini: criticized for acting improperly
The Senate Ethics Committee ruled that Riegle and DeConcini had acted improperly by interfering with the investigation by the FHLBB.[16]
DeConcini later charged that McCain had leaked to the press sensitive information about the investigation that came from some of the closed proceedings of the Ethics Committee.[6] McCain denied doing so, although one congressional investigator concluded that McCain had been one of the main leakers during that time.[6]
[edit] Glenn and McCain: cleared of impropriety but criticized for poor judgment
The Senate Ethics Committee ruled that the involvement of Glenn in the scheme was minimal, and the charges against him were dropped.[16] He was only criticized by the Committee for "poor judgment."[19]
The Ethics Committee ruled that the involvement of McCain in the scheme was also minimal, and he too was cleared of all charges against him.[17][16] McCain was criticized by the Committee for exercising "poor judgment" when he met with the federal regulators on Keating's behalf.[6] The report also said that McCain's "actions were not improper nor attended with gross negligence and did not reach the level of requiring institutional action against him....Senator McCain has violated no law of the United States or specific Rule of the United States Senate."[20] On his Keating Five experience, McCain has said: "The appearance of it was wrong. It's a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it was the wrong thing to do."[6]
Several accounts of the controversy contend that McCain was included in the investigation primarily so that there would be at least one Republican target.[21][22][23][9] Glenn's inclusion in the investigation has been attributed to Republicans who were angered by the inclusion of McCain, as well as committee members who thought that dropping Glenn (and McCain) would make it look bad for the remaining three Democratic Senators.[21][23] Democrat Robert S. Bennett, who was the special investigator during the scandal, suggested to the Senate Ethics Committee that it pursue charges against neither McCain nor Glenn, saying of McCain, "that there was no evidence against him."[22] The Vice Chairman of the Ethics Committee, Senator Warren Rudman of New Hampshire, agreed with Bennett, but the Chairman, Senator Howell Heflin of Alabama, did not agree.[9]
Regardless of the level of their involvement, both senators were greatly affected by it. McCain would write in 2002 that attending the two April 1987 meetings was "the worst mistake of my life".[24] Glenn has described the Senate Ethics Committee investigation as the low point of his life.[7]
[edit] Reactions
Not everyone was satisfied with the Senate Ethics Committee conclusions. Fred Wertheimer, president of Common Cause, which had initially demanded the investigation, thought the treatment of the senators far too lenient, and said, "The U.S. Senate remains on the auction block to the Charles Keatings of the world."[25] Joan Claybrook, president of Public Citizen, called it a "whitewash".[25] Jonathan Alter of Newsweek said it was a classic case of the government trying to investigate itself, labelling the Senate Ethics Committee "shameless" for having "let four of the infamous Keating Five off with a wrist tap."[26] Margaret Carlson of Time suspected the committee had timed its first report to coincide with the run-up to the Gulf War, minimizing its news impact.[25]
[edit] Aftermath
Cranston left office in January of 1993, and died in December of 2000. DeConcini and Riegle continued to serve in the Senate until their terms expired, but they did not seek re-election in 1994. DeConcini was appointed by President Bill Clinton in February 1995 to the Board of Directors of the Federal Home Loan Mortgage Corporation. [27]
Glenn did choose to run for re-election in 1992, and it was anticipated that he would have some difficulty winning a fourth term in the Senate. However, Glenn handily defeated Lieutenant Governor R. Michael DeWine for one more term in the Senate before retiring in 1999.
After 1999, the only member of the Keating Five remaining in the U.S. Senate was John McCain, who had an easier time gaining re-election in 1992 than he anticipated,[28] and who ran for president in 2000 and became the Republican nominee in 2008. McCain survived the political scandal by, in part, becoming friendly with the political press, and in part by not letting the controversy detract from his work as a senator.[28]
The scandal was followed by a number of attempts to adopt campaign finance reform—spearheaded by U.S. Sen. David Boren (D-OK)—but most attempts died in committee. A weakened reform was passed in 1993. Substantial campaign finance reform was not passed until the adoption of the McCain-Feingold Act in 2002.
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