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September 19th, 2008
08:41 AM ET

Morning Buzz: Throw US a lifeline

Penny Manis
AC360 Senior Producer

Last night we reported on a dramatic meeting between leaders of the Bush Administration, Congress, the Federal Reserve and Treasury. They met on Capitol Hill to find a solution to the financial turmoil we have seen all week, which will take hundreds of billions of dollars to succeed. We are hearing some news of this plan taking shape this morning. We have reported on an emergency order to temporally ban short-selling of financial stocks, and the Treasury Dept announced it will provide temporary guarantees for the nation’s money market mutual funds. We can expect more news like this to trickle in throughout today as the nation’s top political and economic leaders converge to solidify a rescue plan which will stabilize the financial system.

These Wall Street woes have dominated the candidates’ focus all week. Obama and Mccain have each been trying to present himself as the candidate capable of fixing this current crisis. In truth, neither one is in a position to actually do anything about it here and now, (beyond their role as Senators) but the key is to sound and seem like the one who is Mr. Fix-It while implying the other guy is incapable.

The Mccain campaign has added what it calls a ‘detailed’ economic speech this morning before the Chamber of Commerce in Green Bay. Obama will be at an added meeting with his team of economic advisors, followed by an Obama statement at 11am. Dana Bash and Suzanne Malveaux will bring us reports from both campaigns tonight.

Of course it’s not just the Presidents-to-be throwing insults at each other, the Veeps have jumped in too. Sarah Palin went after Joe Biden yday over taxes for the wealthy. Biden had said that Americans making over $250,000 and paying higher taxes would be “patriotic”. Palin responded at a rally “to the rest of America, that’s not patriotism. Raising taxes is about killings jobs and hurting small businesses.

Just think, we still have 46 days to go. Interestingly in our CNN Poll of Polls for the second straight day, Obama is still in the lead, now 3 points over Mccain. It’s still too close to call but perhaps a sign that the initial Palin-mania is leveling. Meanwhile we have more state polls later on today from tight Midwest battlegrounds so we’ll be offering them to you tonight.

That’s where we start this morning, and ps: the first Presidential Debate is a week from tonight. See u at 10pmET


Filed under: The Buzz
soundoff (41 Responses)
  1. B Jackson

    I am personally sick and tired of big business getting over while the middle class struggles without a life raft. I believe the money would be better spent sending the help working americans pay off their debt. This would be the economic stimulus that would trickle up rather than allowing no hope the trickle down.

    September 19, 2008 at 7:44 pm |
  2. Uma, Liverpool, UK

    Thank you Ms Manis,

    I wish there were more (and more comprehensible) answers from the governments who are bailing out the world's economy.

    To those who want 'capitalism to take its course', you are absolutely failing to see the big picture. If those corporations were allowed to fail, the consequences for the global economy are worse than you can't begin to imagin!

    Wake up! Main Street would be EMPTY if AIG had not been bailed out. This IS looking out for the middle-class. You have no idea what you're saying.

    There is so much more at stake here than most Americans can grasp. I hate that it's in American hands. NOT the country I would choose, for stewardship of the global economy, any more than I would choose it for stewardship of the global environment!

    Americans think you are the only people suffering. Think again.

    Poor, in the UK, where the economy is as bad as it was in 1948, during the Post-War Depression.

    September 19, 2008 at 7:07 pm |
  3. Mindy Chatsworth, Ca.

    Cindy –

    There you go again, distorting Obama's plan for taxes. The Democrats do not want to raise taxed on the middle class. Hello! They want to raise taxes on those making more than $250,000. And guess what!! They can afford to pay their fair share. That is the patriotism that they are talking about. Those who have more than the rest of us should pitch in and help. You build this country from the ground up. If the middle class and the poor are being ravaged from every direction, then let the rich pay up!

    Nothing the Democrats can propose can possibly be worse than Bush's tax cut which favored the wealthiest 2% in our country. Talk about raising the deficit. And what happened with this largesse that the rich were given, courtesy of Bush and company? Precisely how did it benefit our economy? Aren't we losing more and more jobs overseas, hasn't there been more greed and corruption in huge corporations like Enron and Tyco? Isn't our dollar sinking like a stone in the international market? Was that patriotism? Give the rich a huge tax break at the expense of the working people of this country. Please! Enough already with the lies, misrepresentations and propaganda.

    You know, there are actually rich people who have given back to their country. What a concept! Not all the rich are greedy and want to hoard the wealth for themselves. That's what built this country and made it great and that's what we need to get back to now. We help those less fortunate and as they are helped, everyone benefits. Right now there is a bigger gap between the rich and the middle class than ever before and we have the Republicans to thank for it.

    Let's get real here and stop this nonsense. Of course, that comment coming from Palin is worth as much as stock in Lehman Bros. or Merrill Lynch these days.

    September 19, 2008 at 6:08 pm |
  4. Paul

    This morning I am riding in my car listening to the radio. I am still hearing "Good credit? Bad Credit? No credit? come on in and get a loan. At what point do we blame ourselves for being dupes? I am a child of parents who lived through the Great Depression and taught us to buy what we can afford. I would like to see a leader who asks us if we really need what we buy or better still if we can afford it. Take a look in the mirror America, YOU are part of the problem. Now you are paying for it.

    September 19, 2008 at 5:57 pm |
  5. peter weelmaa

    The theme, both candidates, are saying here is Change. So let's give it to them, The whole government is inept, an out of touch with the people it was to serve.

    We should change our whole government, from top to bottom. The Senate, The house of representatives have failed us all.

    Our government has failed the people, this failure is across the board, and across the aisle. This lack of leadership, got us into this whole mess. The checks and balances that is to prevent this from happening is not working. The sell outs in capital hill, created this whole mess and we the people always have to pay for their ignorance and lack of leadership. These people swore and oath to uphold the rights of the people. When do they pay for there failure to us?

    Americans our being asked to take reductions in salaries and accepting year after year without raises. The average American, has taken a 10% to 15% Reduction is income to cut business overhead cost.

    Here is the Question; When do the American people cut their overhead: of are overpaid, and over indulging government?. They admit they have done nothing to stop our current crisis. When does the government bear the burden of there fiscal negligence? The dollar, time and time again is forced to bail out our governments, lack of education in these matters and pure stupidity. How can we the people trust that this time, they have got us covered. Chicken little has more credibility then our government. So why not change these sell out in capital hill and send a clear message, and Say enough ?

    September 19, 2008 at 5:44 pm |
  6. Ted Gerard, Atlanta

    I don't like the fact that we are bailing out these banks, but as a student of economics I fully understand the logic.
    I am a democrat and have listened to the conservatives cry about too much government, too much regulation and too much control. That we need less government. I wonder what the situation would be like if we had less government at this time. I believe that as a result of the Bush administration attempting to gave the conservatives what they wanted (less government intervention) we are going to foot a hefty bill for these private banks. For if the administration had gotten involved months ago, this probably would not be happening.

    September 19, 2008 at 5:33 pm |
  7. Maria

    We wish to hear something positive from Ali tonight

    September 19, 2008 at 4:48 pm |
  8. dawn matlock

    I found this all strange. Why is Washington overnight fixing this problem? All came together ? I feel that Washington will ,themselves lose their money also , there was no need for protest and cops beating on Americans.....Never in my life did I see such coming together. What about the war....are they coming together. NO
    because Bush and his good old boys are making money.

    September 19, 2008 at 4:02 pm |
  9. Sandy, Arkansas

    It is time for the debates and some concise details on what each candidate will do to "change" or "reform" our broken system. They need to help us believe in the possibilities of our dreams – not the nightmare most people are living.

    People understand that America is not in good health financially. We have overspent, overindulged, fed the greediness of big business at the expense of the middle class, and created an economy that is broken and a working class citizenship who feel like they are rats in the wheel....just running and running as fast as they can and never getting anywhere. I do remember when America was the greatest nation, and we have the ability to still be that nation...we need good leadership and teamwork. The party system is not working. We need to be FOR each other – not AGAINST.

    Which candidate will help us be Americans again – people who pull together for the good of ALL?

    September 19, 2008 at 2:45 pm |
  10. Philiciann Bennett

    Why are all the experts saying the problem started with the housing market? That is not true.

    The problem started with Congress and the President pushing financial institutions to provide more loans to those who could not afford the loans. It began years ago with those easy loans which increased the demand for houses which increased the prices. Financial institutions and the borrowers knew they could not afford the houses. Compounding the problem was the deregulating of business – typical for Republicans and a good thing IF those same businesses had not also been pushed to relax lending standards.

    Relaxing regulations, typical of Republicans, at the same time Democrates are pushing to spend more or pressure private industry to provide more always results in a diaster. Both parties and both branches of government are responsible as are the finanical companies. They all need to take responsibility and stop pointing fingers.

    September 19, 2008 at 2:03 pm |
  11. Michelle

    Thank goodness Obama gets it. We are all in the same boat
    and Secretary Paulson is at the helm. Americans better have
    his back. McCain's same old political game is getting boring
    and silly. I would rather have a president who surrounds himself
    with an economic team and answers question than someone
    like McCain who seems to not get it.

    September 19, 2008 at 1:29 pm |
  12. James Lassiter

    Ok so this is great. We are going deeper into debt to bail out PRIVATELY owned companies, why? What are we going to do to the OVER PAID CEO's that got us into this mess. They are to blame they are responsible, but it seems that we are not going to hold them responsible we are going to let them go free with these huge corporate parachutes, again WHY? If I do some thing to mess up my finances I HAVE TO FIX IT! Not my neighbors, not my family and not my community. I like many I talk to am fed up!

    September 19, 2008 at 1:18 pm |
  13. JC- Los Angeles

    The bottom line is that all our leaders, executives and politicians are so inept that they actually need a do-over and the establishment of a new holding company to warehouse their fraud and trash.

    The hard working and ethical few that did not partake in this charade of fraud are not only rewarded with plummeting stocks, 401Ks and rising unemployment but the additional indignity of seeing no criminal remunerations or accountability.

    The Bush administration waited so long for the ship to come in that the pier collapsed; once they were soaking wet and drowning, they made a thinly veiled attempt at survival.

    I would suggest legislation that turns corrupt companies over to the employees; they then can determine filing lawsuits against worthless executives and boards.

    Lastly, I would suggest legislation that affords retirees tax free selling of securities; many didn't sell their stocks at the height of the market since they didn't want the tax hit; with companies being run into the ground, they can't sell now since there's nothing left.

    What an abject embarrasment our leaders, executives and politicians have become.

    September 19, 2008 at 1:15 pm |
  14. Brenda Harris

    If Big Business is getting a bail out. I THINK the AMERICAN PEOPLE who have had their credit ratings ruined by all of this mess should have their credit ratings restored. Lets just wipe out all debt and start over from scratch. Why is it that Big business is the only one that can ge breaks. We can not survive and 4.

    September 19, 2008 at 1:13 pm |
  15. Keith W.

    I was wondering if the government has considered the "REAL" economic problem – way beyond the mortgage crisis. It wasn't too long ago that American jobs were shipped to Mexico. Even more recently, China supplies most of the US consumer goods. What does this mean? Even if the government bails out the banks – again, how will the public be able to live without jobs. I think we should reconsider the loose trading policies until we get back on our feet. The US produces very little, but buys a lot of goods. How much longer can the economy support this? I think we just found out this week. I only hope the "BAILOUT" isn't anything more than a "BANDAID".

    Keith W.
    Upstate NY

    September 19, 2008 at 12:56 pm |
  16. Elise Bennett

    Hurting small business? What is hurting small business is big business.

    And is it just me, or did Pailin refuse to talk at all two weeks ago... now I see that face, and hear that mouth more than McCain. Did the Republicans change the bill and make her the presidential candidate?

    September 19, 2008 at 12:15 pm |
  17. Mary

    I just listened to the Presidents news conference! Well I was relieved that he didn't referred to this mess as the "housing bubble" and called it what it is. A major failure of the LENDING and CREDIT procedures, I can't say regulations cause there aren't any, of this country. We have been promised since the 80's that regulations would be put into place for the Mortgage Co's, the Credit Card Co's etc., but what have we gotten NOTHING. The Fat Cats got much fatter and contributed more and more to our elected officails and God only knows how many of them own stock in those companies. It would be very easy to simply blame this all on President Bush, ( I am NOT a fan of his and there is plenty to blame for ) but the truth is our illustrious Sentors and Represenitives , who are paid very well, have sat on the BUTTS for 20 years now, acting like a bunch of inmature children fighting on the play ground, and done nothing towards those regulations, or as far as that goes anything else. You know the sad reality is we need to clean them all out and start over with some common everyday people with good old common sense. It does not take an economic professor to know that unbridle credit on either side is destined to fail.

    If the people of this Great Nation do not stand up and scream at the top of their lungs STOP!!! we are not going to allow this to continue any longer, things are only going to get worse. We must get involved in our Schools, City Goverments, County Goverments etc. We must make them accountable. Become a part of the decision making. WE can NO LONGER sit back and say let someone else do it , I have other things to do.

    I'm a senior citizen and I apoligize to my Grandchildren and
    Great Grandchildren for the mess my generation has allowed to take place and that we are leaving to them.

    I have enormous faith in the spirit of Americans I can't and won't believe we will sit back and allow OUR country to be taken down like this.

    Mary From Oregon

    September 19, 2008 at 12:04 pm |
  18. Ed

    If sub=prime loans caused the problem, why doesn't Congress make them illegal as a part of this bailout?

    September 19, 2008 at 11:36 am |
  19. Elain

    What a Joke! If they are going to "erase" or corral all the bad loans and credit for the banks- why not the homeowners? Who is going to pay that bill? Banks buying another banks bad debt and so on- sounds a bit ridiculous and careless to me. That whole AIG thing- yeah I understand- but we as tax payers are going to have to foot the bill when they default....What a state....

    September 19, 2008 at 11:17 am |
  20. Susan

    Thats great that banks and financial institutions are getting a bailout. But what about the American consumer. We're the ones with the high credit card interest rates that effect the ability to pay off debt or establish new ones. There is no regulation when it comes to consumers debt and the ability to borrow. Banks and financial institutions have made their own rules and this is the result of it.

    What's the government going to do for us? And that needs to be done immediately.

    Susan

    September 19, 2008 at 11:14 am |
  21. Jan

    Someone compared this new plan to the bailout of the Savings and Loan Banks a few years ago. I thought to myself, isn't THAT strange? Wasn't the President's brother involved in that? Seems the Bush family has done it's best to ruin this country's economy.

    September 19, 2008 at 11:10 am |
  22. Maureen/CA

    Obama and Hillary have been saying all along that we need to do something to REALLY help the homeowners in danger of foreclosure. But banks were bailed out and nothing was done to help the homeowners. If a plan had been placed to avoid all of these foreclosures when we saw this first happening, the melt down could have been avoided. I'm no rocket scientist, but it seems to me that rewriting these loans to an affordable lower interest rate, would have been better for the homeowners and the banks. I think that part two of the Fed's solution to this problem should be to keep these people in their homes which will obviously keep money flowing into these lenders.

    September 19, 2008 at 11:09 am |
  23. J from DC

    McCain want to fire Christopher Cox, the chairman of the Securities and Exchange Committee. However, McCain's economic advisor is Phil Gramm. The man who created policies, which has contributed greatly to this recent Economic Meltdown. Yet, McCain has not even fired him from his own campaign. Unbelievable! Maverick or Mouse.

    September 19, 2008 at 11:09 am |
  24. J from DC

    McCain has nothing on the Economy. We already know that Palin has nothing to offer. We watched that sad ABC and even sadder Fox interview this week.
    Obama made a real quality pick, when he selected Biden and everyone has forgotten that. Biden may not have gotten a lot of primary votes, but Palin didn’t ever run. She knew she wasn’t ready then. Biden may very well be the most qualified of all the candidates.
    The story that is missing in this whole news cycle is: Why Biden makes McCain so uncomfortable? I am in DC, and I still have not figured it out. I know there is something there, but I can’t put my finger on it. Even still, if you watch McCain closely, the signs are there.

    September 19, 2008 at 10:54 am |
  25. Bruce Barnes

    Anderson;

    When are we going to wake up and realize that we, as taxpayers, should not be bailing out a bunch of greedy bankers and investors? I know all the arguments: if we don't bail out institution A then institution B will fail which will cause the British banking system to fail which will cause the Chinese banking system to fail . . . and on, and on, and on . . .

    That's a bunch of crap! The market will eventually settle down on its own. Sure, a lot of overlealous individuals will get burned in the process, but, if they had made sound investments in the first place none of this would have set the stage for the failures that have happened or will soon happen. Whether we pay for these bail outs as taxpayers – which we always do; or the investors pay for them in their lost earnings, they have to be paid for in some manner or another.

    As long as the carrot of a bail out is hanging in front of those who made a bunch of bad decisions to begin with, they will keep on making bad decisions and expect nothing short of a bail out in the future. Enough is enough. There are no gaurantees in life and there should be no gaurantees for those who didn't play by the established financial and banking system rules to begin with.

    Bruce Barnes
    Chicago IL

    September 19, 2008 at 10:49 am |
  26. Dave

    I am glad all the rich people are excited about Paulson's Speech; I personally resent the remark about irresponsible borrowing. The consumer is not irresponsible they trusted the mortgage industry you would expect that they new what they were doing and that our government would be sound. After all that’s what Mr. Bush kept telling everyone, Instead 600,000 people lost their jobs because of predatory lending and can not make their mortgage, where is the consumer irresponsible in that. My dad is 84 and I am 60. My wife and I opened an independent real estate agency 2 years ago and invested everything to take advantage of one of you wonderful new programs. Needless to say we have lost everything and have no where to go. None of you guys will be there when the sheriff shows up to set us in the street. I love my government they are doing everything to help the rich and say the hell with the poor like always. I am really to the point I don't care anymore all you people can do is blame someone that gets victimized. Both parties regulate for the rich and referee between the working class (slaves) and the elite (rich) by the way they funnel the money to the top and maintain the balance so the working class will always serve.

    September 19, 2008 at 10:45 am |
  27. apurva

    in my opinion paulson is not a hero, he is watching out for his own equity portfolio and his wall street friends..he is a hero for them for now until they mess up again and paulson will give them another 120 billion dollars..so they do it again and the american people pay for it ..in the end

    September 19, 2008 at 10:44 am |
  28. apurva

    Why must the fed and the treasury bail out wall street..this is a capitalistic country if you mess up you should pay the price. too bad, the american people should not have to pay for wall street mess..

    September 19, 2008 at 10:34 am |
  29. t

    Palin says raising taxes on the rich would kill jobs and hurt small business.Wake up women.....there are no rich people any more now that the economy has crashed.She is so funny.Perhaps her next job could be to anchor SNL.

    September 19, 2008 at 10:26 am |
  30. kimberly

    Everyone has a quck fix. This is not a quick fix.

    I am tired of our politicains bailing out everyone and giving business a free pass.
    When I runout of money no one gives me a free bailout.

    The problem is not the SEC it is businessman making bad decisions.

    I wish our politicians would stop bailing out business.
    Let the private industry either come together to absorb the business that is trouble or let the business go under.

    September 19, 2008 at 10:10 am |
  31. Annie Kate

    I hope the bailout or plan or whatever the Feds and Congress and Bush come up with will work and that the economy will get back on track and quit hurting us average citizens who are just trying to pay the bills and give our children a nicer life than the one we had growing up.

    What I don't understand is how can McCain, Biden, and Obama take so much time away from their current jobs to campaign for a new job. This election cycle seems like forever, but it has been going on in one way or the other for about 2 years. How many votes have they missed? How many pieces of legislation have they missed having input into? In their role as senators they could help on this economic package and if its so important I would think they would want to have some say in it – but they just stay on the trail. And Governor Palin – who's minding the state of Alaska while she campaigns? Seems to me that if you can be away from your job for as long as it takes to run for President then maybe you weren't doing much of anything anyway.

    46 days - seems like a lifetime away but I for one will be immensely glad when this election is over.

    Annie Kate
    Birmingham AL

    September 19, 2008 at 9:47 am |
  32. Terry Rouse

    Instead of us bailing out all of these companies and spending trillions of dollars to do so. Why can't the govt. invest in the american people and create a real stimulous package that would end alot of our woes. It may sound insane, but why not give everyone one million dollars. Alot of people and businesses would benifit. Mortgages would be paid and people could keep their houses. To me it sounds like a cheaper solution to a very expensive problem.

    September 19, 2008 at 9:34 am |
  33. J. McGuire

    I just don't understand these people making the financial decisions for OUR future. Are they EVER going to truly consider the American people and how they can help us? They keep throwing incredible amounts of money to the institutions and organizations that have screwed the average working American. Why do they continue to reward the unscrupulous, corrupt and lets not forget, wealthy rip-off artists?
    Hey, here's an idea. Instead of giving AIG 85 billion, why not divide that up and give it to the American people. If my math is right, that would be around 280,000 each. Most of us could pay off our mortgages and/or other burdensome debt which would infuse the same amount of money into the markets which could then stabilize these troubled banks. Why not reward the victims instead of the criminals? Would'nt that be a nice way to kind of reset the US economy? Instead Uncle Sam gives them debt relief and the American people stay in the same hopeless situation. How is that a Democracy? Fascinating how in an election year with the economy in such a mess, we see just how cheap TALK really is.

    September 19, 2008 at 9:20 am |
  34. Michelle

    I am finally glad to see a picture emerging of Sec'y Henry Paulson
    and Fed Reserve Chair Ben Bernanke and SEC Chris Cox as
    people who have been working behind the scenes to solve this
    problem here at home and globally. Since a lot of people on CNN
    are saying we have never seen anything like this before means
    that today's economic formulas are outdated and so 20th century.
    I was pleased with Ali, Suzie and Andy as guests on 360 last
    night it was very insightful to have people who know what they
    are talking about and having a decent conversion on a very
    complex issue. Although I am still looking for a segment to
    explain how we got here and how do we get out of this mess.

    September 19, 2008 at 9:19 am |
  35. Kevin Sumpter

    Good day mr cooper, I feel stongly that what has gone on with the housing thing.Is if people's home's are still empty they should be able to go back and reclaim their homes. And work out any payment they can work because these people didnt die and their paying to live some where why not back to what was stolen from them. and if the home has been sold then give the person who has lost a chance back into home ownership this way the tax payers donot have to take the full force blunt hit from this.

    September 19, 2008 at 9:17 am |
  36. Clarence, Albuquerque

    Where does illegal naked short selling fit in? I don't even know what that is....I read it on the web... while looking for a definition of "short selling".... which I still don't understand.

    September 19, 2008 at 9:06 am |
  37. Cindy

    Well it's about time that the pres, congress, fed. reserve and the treasury put their heads together and do something about this economic mess. They should have been doing this months ago before it got this bad. Instead they all did nothing and look at where we are. They all are to blame!

    Neither McCain nor Obama have really scored any points what so ever in this mess. I've not heard any detailed plan from them. At least McCain is putting out ideas while all Obama is doing is swiping them down and saying the same things he always has. Maybe today McCain will really have a detailed plan like he is saying. Guess we will see when he gives his speech.

    And I totally agree with Palin. Paying higher taxes is not patriotic. It will make people lose jobs and maybe even their businesses especially if they are just barely making it. Plus all of that higher tax these big businesses have to pay will trickle down to us paying for it...it always does!

    Cindy...Ga.

    September 19, 2008 at 9:01 am |