September 26th, 2008
07:43 AM ET

Morning Buzz: Twists and Turns

Penny Manis
AC360 Senior Producer

So let’s see, where shall I start? Talks have imploded with regard to the bailout, Congress can’t agree on a final draft, and there is a debate tonight that we think may take place, but John McCain hasn’t confirmed he’ll be there. Did I mention that JPMorgan Chase acquired the banking assets of Washington Mutual last night after the feds seized it, marking the biggest bank failure in the nation’s history? This is the latest development in the credit crisis, and as Barack Obama points out this failure ‘shows the need for an agreement’. Like we needed any reminders? Anyways, that’s our starting point this morning. (oh and it’s raining cats and dogs in NYC too).

As of this writing, our regular programming is pre-empted due to special debate coverage. Preparations by election officials are underway in Oxford, Mississippi, so we are also gearing up to bring you this live event. Your favorite guy Anderson will be in the mix of anchors and reporters presenting this face-off. Hopefully we’ll get word soon confirming that John McCain indeed will head there tonight, but he had originally said he wouldn’t go unless there’s “enough of an agreement” on the bailout.

Late Thursday, Secretary Paulson and Congressional negotiators left without an agreement. They are meeting again this Friday morning to discuss the bailout. For his part, Obama said the debate should still go forward because this is a time when American people need to hear from the next President. Both candidates are in DC this morning so we’ll just have to see how the day unfolds.

Tonight’s debate is also meant to focus on Foreign Policy, though it will be hard not to bring up all the financial issues we have been discussing all week. However, there is, after all, a war in Iraq and Afghanistan that the US is waging. And amidst all the congressional and campaign hoopla yesterday, Pakistan fired at US helicopters that were conducting patrol operations along the Pakistan-Afghan border and there was a brief exchange of fire that ensued. This is a small snippet of what is going on in the world outside DC and our borders. However, even if US/Pakistan tensions are thick at the moment, this didn’t stop President Zardari of Pakistan from telling Sarah Palin that he thought she was gorgeous, could see why the American people love her, and offered her a hug instead of a handshake at the UNGA meetings this week. Ahem.

Have a great morning folks!

Filed under: The Buzz
soundoff (19 Responses)
  1. Monika

    @ shawn and others like her:

    If you don't have a clue what's going on, for God's sake, DON'T VOTE!!!!!!!!!! You'll ruin the lives of everybody else with your ignorant vote. DON'T DO IT!!!!!!

    September 26, 2008 at 4:14 pm |
  2. angel m

    people, everyone talks as if McCain actually suspended his campaign. He has still been running adds against obama, and speaking to who ever will listen to him. Is lieing and decieving is the new definition of maverick, I vote no Mcsame! I though he was supposed to go to washington to save the little people, not perpatrate another hoaks.

    September 26, 2008 at 3:22 pm |
  3. Camina T. in Arroyo Grande CA

    Many people have found recovery through a twelve step program. Why not the people who brought us this bank mess? Obviously they are intelligent poeple like many addicts are and something like addiction must be behind the mess. Here is a quick ten steps;
    admit powerlessness over greed, credit, money
    come to believe in a higher power to restore sanity
    make choice to turn will over to higher power
    make fearless moral inventory of self
    admit wongs
    be ready to have wrongs removed
    ask for the wrongs to be removed
    be willing to make amends
    make amends
    continue moral inventory
    (you don't have to approve this post but people who understand the 12 steps are obligated to pass them on)

    September 26, 2008 at 2:44 pm |
  4. Rose from Calif


    Yes, we do need to be reminded that our ECONOMIC future is going down for the count!
    If things don't work out with Secretary Paulson and Congress by the time of the DEBATE tonight, it's should be a very interesting debate. Obama knows more about Foreign Policy then Sarah Palin.
    Taking a CRASH COURSE on FOREIGN POLICY within a few weeks don't make anyone an EXPERT!
    Look, Sarah Palin met with Prez Zardan of Pakistan while, Pakistans government fired at U.S. helicopters!
    And Prez Zardan tells Sarah Palin she's GORGEOUS?
    And gives her a HUG not a handshake? Well, we know where this is going in the future. WHATS WRONG WITH THIS PICTURE?

    September 26, 2008 at 2:29 pm |
  5. Gary Chandler in Canada

    A McCain Palin debate would be more interesting.
    Palin said she would try 'Change McCain's mind on drilling in Anwar."
    Following is a list of issues McCain AND Obama disagree with Sarah Palin on...
    They support funding for pro choice groups, she does NOT
    They support abortion in rape cases, she does NOT
    They believe in sex education in schools, she does NOT
    They support the use of birth control, she does NOT
    They believe polar bears are endangered, she does NOT
    They would NOT shoot wolves from airplanes, she WOULD
    They believe Alaska should be a State, her husband does NOT
    Obama and Palin agree with earmarks, McCain does NOT
    They do not believe Alaska is the safe haven in End Times, she DOES
    They believe in global warming, she does NOT (She is right on this one) wrong on all the others
    YOU SEE??? an Obama and McCain debate against Palin would get BETTER ratings!!!
    If she would speak, we could ADD to the above list!!!

    September 26, 2008 at 2:22 pm |
  6. Michele Suito, FL

    Among women, men, employees, business owners, friends and just anyone that I meet and that we get in to talking about politics I feel that there are still too many undecided voters (people) who do not know who to vote for or cannot identify what each candidate is bringing to the table. This debate is necessary. We need to see and hear both candidates debate and answer questions on their strategies about our country. This is a very important election and I think that EVERYONE that can vote should vote. I do not beleive that it is time for people to stand back and not participate in our next presidential election. We all need to listen and make our own decision about the candidate that we think is best for us. Don't leave the decision to someone else.

    September 26, 2008 at 11:47 am |
  7. Dennijay

    I suggest a talk with Mr. Brian Wesbury from First Trust who contents that a bail out (of this magnitude at least) is not necessary because one of the problems is the new accounting requirement coming into effect. By allowing these banks and institutions to take these toxic papers off their books (as in the old rules of accounting though less transparent) would give them time for these papers to unwind naturally. Remember that there are two parties in each of the toxic contraction - the institution as mortgagee and the individual mortgagor as co-conspirators each is just as guilty as the other. By making an exception and allowing these toxic papers to be taken off the books along with instituting the necessary oversights it would not only spare the tax payers $700B but also does not trample on free enterprise which is the basis of the American way. This is also more palatable for Congress to come to an agreement. Setting a new agency with no oversight is not the answer. How are these toxic papers evaluated? Each contract has to be done separately to be even close to current market value and who is to know what the real current market values are. Also there are other institutions and corporations as well as individual American caught holding these bundled papers, are they going to be bailed out too? If not, why not? How about foreign institutional holders? Are they going to be bailed out too? What is going to be the ramifications of "leaving them holding the bag" in terms of buying future U.S. papers? As well the commercial papers are going to be next and not taken into account at this time. Once going down this slippery slope you will find that the $700B will only be a drop in the bucket while on a road with no return.

    September 26, 2008 at 11:43 am |
  8. Maureen / Newman, California

    The legislators were close to an agreement until McCain showed up. This is per a Republican legislator that I saw on CNN. McCain needs to go do his job that his followers nominated him to do, which is debate Barack Obama tonight. McCain showed up, stirred up trouble with Republicans outside of the meeting, and then said NOTHING inside of the meeting. He is not a proactive factor in these negotiations. He is quite the opposite. Furthermore, regarding his faux suspension – McCain is placing John McCain first, not "Country First". The McCain campaign has consistently played games instead of running an honorable campaign. This guy has no integrity, honor, or intelligence. I can't believe he got the nomination.

    September 26, 2008 at 11:28 am |
  9. Karen Nelson

    I am a small investor in the stock market...Not all banks are at risk, Northern Trust and other banks never lent subprime loans and it seems many pension, IRAs, and mutual funds, for example, may not be exposed to subprime lenders...Buffet took Goldman Saks, J.P.Morgan took Bear Sterns, and as of this AM Washington Mutual...there are mergers and acquisitions that can be made and the stock market will correct...subprime lenders and borrowers were encouraged by Barnie Franke and others, let them go down for their errors in judgement...keeping government separate from the market is crucial against Socialism...McCain needs to stay in Washington, and via satellite works for me.

    September 26, 2008 at 11:08 am |
  10. Lorie Ann, Buellton, California

    I think if the debate goes on it should mostly stick to the topic of Foreign Policy. We have troops on the ground and family members of those serving, who need to be talked about and not forgotten in all the meltdown stories on the news and the political fighting. Foreign Policy and the economy deserve equal discussions. Just my two cents.

    Lorie Ann, Buellton, Calif.

    September 26, 2008 at 11:03 am |
  11. Jim Palm Springs

    If Sarah Palin is up to being Pres. if something were to happen to Pres. McCain then why can't she fill in for him in a simple debate in Miss.

    September 26, 2008 at 10:51 am |
  12. David W, Florida

    Our republican president and his administration begs congress for a $700B wall street bailout. Congressional dems, though reluctant, work long hours and in good faith to come up with a plan that better protects the American tax payers. Congressional republicans acknowledge consensus with a bipartisan plan but then spring an alternative insurance based plan on the President and congressional leaders late in the process.

    What kind of circus/goat rodeo is this and why can't the Bush administration sell this to their own? If the experts agree this is the right thing to do and congress has provided as much tax payer protection as possible . . what's the problem?

    If someone has a better plan, let's get it on the table, agree, and get it done!

    September 26, 2008 at 9:48 am |
  13. Ann.

    Penny – it’s a balmy 14 degrees Celsius North of the Border from you in Toronto, Canada and it’s only going to get warmer as the day goes on. It actually is a really beautiful day here this morning. Sounds like you all have your hands full with the day’s events unfolding as jot down your notes. Looking forward to an interesting debate this evening (let’s hope it happens).

    September 26, 2008 at 9:22 am |
  14. Cindy

    Well it was told last week that WAMU was going under so that is no big surprise to me. Luckily JPMorgan Chase snatched up their assets so we don't have to bail them out also!

    I really don't see the need for the debate tonight. If they are going to have it they should change it to be about our economy and not foreign affairs. But then Obama would have a cow because he has been preping for it all week and doing nothing else.

    OK so no 360...I knew that but do you mean Anderson will do a show with the other anchors afterward to analyze the debate or is he going to be at the debate!?


    September 26, 2008 at 9:17 am |
  15. shawn

    I'm here posting this in the hope that the little person that doesn't follow politics gets heard a little bit. This person that I'm responding to has all the facts I would imagine and thats good...... I have never voted in my life...... But in my 30s now, i worry who knows best.... I recently called my mother to ask her opinion about the presidential election and who she would be voting for because i've heard in my small world of friends obama wont even pledge his allegence to our flag......? I know this may be a small thing to most, but to some little folk, this is a problem..... Then I hear back from my mom in an email that she is voteing for Mckain only because it is the lesser of two evils.... Well this is just not working for me, I guess I should have paid more attentiion, but when I vote it will be with my moms choice because she is very religious and one of the best people I know on this planet...... We are all about to be in some crazy times, lets hope who we pick will lead us in the right direction.....

    September 26, 2008 at 9:09 am |
  16. Nick Thomson

    I reckon McCain will show up at the debate. It's all politics. Here's what I think his master plan is. He calls a halt to his campaign. He goes to Washington. Some of his party comrades agree to go along with his dastardly plan of refusing to approve the revised bailout plan late Thursday. All panic breaks out Friday morning. John is then seen to step in, get his party comrades to come around, a few minor changes are made to the plan and it get approved by all Friday afternoon. John turns up for the debate and announces that he's saved the day in Washington thus proving his claim that he can fix things in Washington. As I said it's all politics.

    September 26, 2008 at 9:07 am |
  17. miles

    The only "word" that comes to mind reflecting the events of last 24 hours and the total idiocy of our elected leaders is, 'discombobulation'.

    September 26, 2008 at 9:06 am |
  18. don carli

    Tonight's Foreign Policy debate can and must address climate change policy commitments and the US role in bringing China and India into the fold on the sucessor to the Kyoto protocol.

    September 26, 2008 at 8:58 am |
  19. Rhonda

    This may seem cynicle, but I can't help but wonder if John McCain didn't stage the House Republican revolt on Thursday, only to plan to "rescue" the country hours before the scheduled debate on Friday night. He would then attend the debate and proclaim to be the hero that saved America from financial doom.

    Both parties were close to an agreement before John McCain arrived in Washington DC and had a private meeting with the House Republicans.

    Time will tell.....

    September 26, 2008 at 8:47 am |