While Americans watch news of trouble on Wall Street on their flat-screen TVs, the candidates have hit back hard with criticism and calls for change. Both candidates addressed the financial crisis. McCain said this morning:
There’s nothing wrong with the workers of America. I believe that they’re the fundamentals. . . . Others may not. I think that the worker of America is the reason that we’ve been the preeminent economy in the world for a long, long period of time. America is in crisis today. . . . We need a 9/11 commission, and we need a commission to figure out what went wrong and how to fix it. And I know we can do it and how to do it.
After dismissing McCain's call for a commission as passing the buck, Obama said:
My priority as president will be the stability of the American economy and the prosperity of the American people. And I will make sure that our response focuses on middle-class Americans – not the companies that created the problem. To get out of this crisis – and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again – we must take immediate measures to create jobs and continue to address the housing crisis; we must build a 21st century regulatory framework.
McCain argues that his tax cuts for the wealthy and for corporations would simulate growth, while Obama says that he would prevent future crises, a plan he says is contrary to the GOP's philosophy of deregulation.
Nuance
Torrini
Pilgrim
If I didn't believe Obama would help the economy more than John McCain, I wouldn't be voting for him. I don't agree with deregulation and trickle-down economics, and I believe a great part of the blame for our current mess can be laid at the feet of Bush policies and Bush economics. Corporations need to be reined in, and the middle class needs tax cuts far more than the wealthy do.
Anyone who hasn't looked at that post featuring Yesteryear's brilliant graphs of how much each income bracket would stand to gain in tax cuts under the McCain and Obama plans really needs to. It's quite startling, and illustrates some basic untruths the McCain campaign have been spreading regarding Obama's economic plan.
1I think what Obama said has nothing to do with the "workers" or whatever tie to "fundamentals" McCain was trying to make. This week is really a referendum on two very different philosophies: the unfettered market vs a well regulated market. Which one truly does flourish? It's the choice voters will have to think about and make. It's hard to take McCain's promise of reform in this respect seriously though when, as the NYT put it, "he has no history prior to the presidential campaign of advocating steps to tighten standards on investment firms."
2OBAMA! hee hee.
If he puts in place the tax benefits that the Clinton admin did in
the 90's no doubt I think he'd do a much better job. I remember those times fondly. I had money to spend back then. 
3At this point, anything and anyone is a step up.
4Wow, it is falling right down party lines.
5I think Obama has spent more time focused on economic issues and anticipating at least some of the problems we're hitting now. McCain's call for a commission to figure out what's wrong with the economy is a too little too late and we don't have time for him to start trying to wrap his head around the issues now.
6Obama - I feel McCain will be more of the past eight years. I would also like to say I agree with Adrenalynn.
7McCain is planning to cut taxes for the wealthy. Obama is planning to raise their taxes. In my opinion, and I'm upper middle class, the wealthy can most definitely afford those tax hikes. Greenspan recently spoke out and said that we cannot afford McCain's tax cuts. That should speak for itself. Not to mention that McCain has admitted in the past that the economy is not his strong point. That coupled with his statement yesterday, when the crisis hit Wall Street, that our economy was fundamentally strong, makes me incredibly nervous about his abilities to handle our struggling economy. Furthermore, he seems to be fully prepared to go to war with Russia, which we can in no way afford. We already owe a massive debt, most of it to China and they happen to be Russia's greatest ally. War seems to be a bit too much on his mind.
I agree with stephley--we do not have the time for McCain to catch himself up on the economy. It's already failing.
8McCain admitted he doesn't know crap about the economy. I'd love the see the candidates debate the economy. Prosperity trickle down doesn't work -- it hasn't worked for 8 years.
9McCain! McCain! McCain for President!
10For someone like McCain who is wealthy the economy is sound and will always be for the rich. He is out of touch with the middle class and what they are experiencing. If people think that the GOP is the party of the people they need to think again.
11I don't agree with McCain's policy on economics particularly deregulation. Because most loans are now originated by brokers or mortgage companies their money is made through origination fees and payments from big, unregulated lenders. These loans are then sold as securities through the secondary mortgage market. These companies have every reason to make as many loans as possible (to make money) but absolutely no incentive to make sure they are lending to a legitimate person who can afford to pay back the loan, therefore many bad loans were made. New "sub-prime" products were introduced, credit standards were relaxed and no-document loans were issued. The problem has been hidden by complexities like securities that hid risk.
The market can't solve the problem because the people selling these loans have no incentive to make sure it's a good loan because securities were representing the risk and they could be sold a minute after being purchased.
The only solution to this problem is regulating the market!! Something the republicans are very against.
12damn livvy your good!
13I was kind of hoping for a Republican point of view on here, but all I see is Nikki 12 saying "McCain! McCain! McCain for President!" Boring...
Also, regulating the the credit market may help prevent a future credit crisis, however regulation isn't going to help the current situation. There is a two-fold need for institutional stability and also consumer confidence.
14The economy in large part will have to help it self. Government can only be the play ground attendant that's going to blow the whistle and say hey get back in the fence. Sen. McCain pointed out something this morning on the Today Show that I've been saying for some time. Capitalism has run amuck it's gotten to greedy. Even Matt Lauer was shocked and said now you sound like a populist.
15Hmm, 73% for Obama so far. It'll be cool to see this poll when it's generally done being voted on~
16I love Dorks too GS! Billy Gates is my favorite!!!!
I picked Obama, I think he's more aware and the tax breaks for the middle class will really help the economy.
17one of the many reasons i don't think mccain is qualified:
http://en.wikipedia.org/wiki/Keating_Five
18miss bonnie - it won't change much. through watching these polls, theres approx 3 liberals to 1 conservative on this website!
19I don't think either candidate will do the things that need to be done. However, McCain will do less damage.
And by the way, trickle-down economics isn't a theory, it's a fact.
20I think raising taxes on capital gains is a great way to jumpstart the economy.
21so if it's a fact, can you give examples of it actually working because last time i checked it was an economic theory. trickle down at the local level and trickle down at the national and global levels are QUITE different, i might add.
22If I knew, I would surely vote for them.
23Le Etiana, it's Barack. History has proven that socialism is the best way to lift us out of a recession in the market. Just look at FDR's policies which made sure we got out of it in only ten years.
24YY, it's pretty basic. For example, the McCain's have several homes (we can't figure out just how many). Some people see this as a disgusting display of wealth. But think about all the people he has to pay to keep these houses up. Plumbers, electricians, gardeners, maids. And maybe he hires a designer to spiff up the place. Those people have paying jobs because of the McCain family. All of his wealth is 'trickling down' to the rest of the economy when he spends his money. When the wealthiest do well, they spend their money, and everybody down the ladder benefits.
25We're in the middle of the "trickle-down" effect and it has turned into a disaster.
26If McCain cuts taxes for the wealthy then they just get wealthier, it doesn't trickle anywhere, it collects in their accounts.
If Obama taxes the corporations and the wealthy they will surely cut jobs as they are now anyway. And if he also cuts taxes for the middle class it will help some but not for monthly expenses. Especially if they lose their jobs.
Catch 22- Neither plan actually works.
The best thing for either one to do is to promote small business ownership, with non-credit based grants or loans (depending on the type of business) and larger amount college grants with stipends for low-income families with school-age children; funded my higher taxes for large corporations, especially those outsourcing.
But I doubt McCain will tax his friends.
27I know Obama will and that's why I'm voting for him; neither he nor his wife would have finished college without federal grants and loans...they understand how hard it is...
The trickle down effect is not the disaster.
The Fed lowering rates to allow everyone to buy homes, even if they could not afford it (and thus creating a dramatic rise in housing prices which has recently begun to burst) caused this situation.
We're not in this market because of tax cuts, we're here because of the Fed trying to "fix" the market and lenders lending money that never should have been lent in the first place.
28"neither he nor his wife would have finished college without federal grants and loans...they understand how hard it is..."
Silly rabbit, Tricks are for kids.....
29"If McCain cuts taxes for the wealthy then they just get wealthier, it doesn't trickle anywhere, it collects in their accounts." This doesn't even make sense. When people have more money, they spend more money.
3M, well said. People expect economics policies to take effect very quickly, but it doesn't always work that way. If the Fed keeps meddling with the market to avoid a recession, it doesn't fix the problem, it just prolongs it and makes it worse in the long run.
30"and larger amount college grants with stipends for low-income families with school-age children; funded my higher taxes for large corporations, especially those outsourcing."
Exactly. Those companies aren't outsourcing because the taxes on them are too high by the American government. They're obviously outsourcing because they think Americans aren't smart enough.
Good point.
31The Fed lowering rates to allow everyone to buy homes, even if they could not afford it (and thus creating a dramatic rise in housing prices which has recently begun to burst) caused this situation.
There are more reasons the Fed controls the interest rate that has nothing to do with helping people buy homes. It's a tool they use to stabilize the economy. If people are making loans but are making profit off origination fees instead off of people paying back the loans this situation is not going to change. There needs to be regulation of these companies.
32"It's a tool they use to stabilize the economy"
Yeah, and that's working out so well...
33I thought it worked okay in 1929.
34Wealthy people (millionaires) don't spend earned money, they spend interest and dividends.
And it only helps high-end merchandise markets; for example, overseas imported products like expensive Italian clothes, shoes, liquors, jewelry and small boutiques. The wealthiest people don't spend their money; they invest and that is how they became wealthy and remain wealthy. Not by shopping at Target and the mall. Many things are given to as gifts.
They buy expensive homes from other wealthy people, affecting only real estate agents, real estate lawyers and banks. Expensive cars and yachts which they get directly from overseas.
35Only poor or undereducated people think the rich spend money...
Because they keep their money in their inner circle. If you think the trickle down theory works then you're on the favorable and minority side of it.
And other wealthy people build those homes with their bare hands!
36". The wealthiest people don't spend their money; they invest and that is how they became wealthy and remain wealthy."
^ This is my favorite quote. I love it.
37Oh my, there's so much wrong with what you just said.
First of all, do you really think super-wealthy people don't have to eat? Don't have to pay workers for day-to-day maintenance on their huge estates? Do you think they don't throw parties, hire decorators, take expensive vacations, and send their children to private schools? Those things all pump money into the American economy.
"The wealthiest people don't spend their money; they invest" That statement is pure ignorance. Do you even know what investment is? That's giving other people the chance to use their money so that they might BOTH get wealthier.
38I don't know Mich. It really makes me mad when wealthy people give other lowely people the opportunity to use their money to fund business infastructure. I wish they would just spend it at Target. That sounds like a better use of money for the economy as a whole.
39What good are lower rates for a mortgage without a down payment? And if you don't have 20% down in most cases you will pay PMI which creates a mortgage payment you can't afford?
How can we afford to save 30K to purchase the lowest priced, fair market, single-family homes on incomes unparalleled to expense costs?
Income stability has to be restored so people can stay in the houses they have and renters can save to purchase homes.
There is no quick fix to a mess that took two decades to make... and I fail to see how insulting quips and cutting-down solutions will help or fix any of it.
40Personally, it angers me when then don't just volunteer to give it to the Fed as, of course, the Fed knows how to manage their money better than them.
41Don't worry, I'm sure the Fed will adjust the rate to insure income stability.
42IMO the trickle down effect just doesn't work.
Rich people have a high propensity to save, because money has diminishing returns, high income earners tend to save a high % of any tax cut. Therefore, little of the extra money will filter down into the rest of the economy. If you want to reduce relative poverty, it makes sense to target income tax cuts and benefits at those who need it. Cutting taxes for the rich, in the hope some may trickle down to the poorest is a very inefficient way of working.
43And I asked my uncle,a millionaire, who holds the patent for a topical migraine medicine and yes...I'm well versed in the 'art' of investment. Who finished his medical degree with grants and loans.
To answer your undignified questions:
They eat organic and imported foods.
They do not pay workers for day-to-day maintenance on their estates. One landscape company who is Mexican, who McCain wants to send back to Mexico.
They don't hire decorators.
Their children home school with a private tutor.
And they take vacations in other countries...
Michelin you just came to argue mindlessly and aimlessly. You did it on my blog as well as others.
44So, like McCain's ballot I'm going to ignore your disheveled point of view.
Hey some of us lowly middle class make our bread and butter in high end liquor/wine sales!
45Mes, if you don't want your ideas to be challenged or don't tolerate when they are, why do you post?
46Yeah Mich, your point of view is disheveled. She knows actually knows people in high places, so there.
47I miss posting over here on Citizen. I wish I had more time to spend here.
48"Rich people have a high propensity to save, because money has diminishing returns."
What? They save money in the bank because it has diminishing value?
49We wish you were here more too!
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