Whoa — McCain Suspends Campaign? Chickens Out on Debate?

[More and more updates below.]

I didn’t see this coming.

Republican John McCain said Wednesday he is directing his staff to work with Democrat Barack Obama’s campaign and the presidential debate commission to delay Friday’s debate because of the economic crisis.

In a statement, McCain said he will stop campaigning after addressing former President Clinton’s Global Initiative session on Thursday and return to Washington to focus on the nation’s financial problems.

I passed up a chance to get press credentials for CGI before it was announced McCain and Obama would be there, dammit.

Anyway, this move is —

  1. A maneuver to demonstrate McCain’s “leadership” and make him seem more “presidential”; or
  2. A signal either he or his campaign are cracking up.

Update: The Faux News announcement makes ducking the debate sound like McCain’s patriotic duty. Ben Smith of Politico calls it a “gambit.”

Steve Benen:

I’ve never even heard of a presidential candidate acting in such a reckless, compulsive, and ultimately haphazard fashion. McCain just decided to “suspend” campaign activities? This rivals picking Sarah Palin for the ticket on the list of desperation moves. …

… The moment the winds shifted and Obama had a growing lead in the polls, it’s time to suspend the campaign. Good lord, McCain really does think voters are idiots.

Update: This is from Joe Klein

McCain suspends his campaign because of financial crisis? Oh please. Given today’s poll numbers–even Fox has him dropping–it seems another Hail Mary (like the feckless selection of Palin) to try make McCain seem a statesman, which is difficult given the puerile tenor of his campaign’s message operation.

Obama should counter with a suggestion that the topic of the debate be changed form foreign policy to the financial crisis.

I like this headline — McCain: Can’t Debate, Gotta Save Country.

The Young Turks are mildly chagrined
.

Update: Barack Obama is supposed to issue a statement any minute now. Here he is.

Obama says he called McCain this morning to suggest the two candidates issue a joint statement on the financial crisis.

He says he’s been in touch with leaders in Congress and Secretary Paulson. Time for politics, and a time to put politics aside. Grrr, he’s not being clear.

OK, he says this is the time the people need to hear from the candidates. A president has to do more than one thing at once. More important than ever for candidates to present themselves to the people.

Debate is on, as far as Obama is concerned.

Update: You may have heard that the Creature is giving an address on the financial crisis tonight. Today WH mouthpiece Dana Parino said the White House thinks negotiations are going very well. There’s no crisis about the crisis, she said.

Update: The Debate Commission says the debate is on, according to MSNBC.

Good News/Bad News

The good news is that yesterday House Republicans rebelled against Dick the Dick.

The vice president traveled to Capitol Hill on Tuesday to silence a chorus of GOP complaints about Treasury Secretary Henry Paulson’s $700 billion plan. But House Republicans who walked into a closed-door meeting with Cheney steaming over the plan walked out just as angry, and they described what happened in between as both “a bloodbath” and “an unmitigated disaster.”

The bad news is that House Republicans are going to play the partisan politics game with the financial crisis.

Republican leaders are now hoping Democrats load the legislation with unrelated measures that would give them the political cover to oppose it, members and aides said. At the same time, party leaders are using back channels in the business community to gauge member support for a “clean” bill.

Former House Speaker Newt Gingrich (R-Ga.) warned his former colleagues that they would pay a price in November for backing the bailout now — and that John McCain could ride to victory over Barack Obama by persuading voters that the bailout is really the “Obama-Bush plan.”

Maybe I haven’t had enough coffee yet, but I find it baffling that some Senate Democrats are waiting to see how McCain votes on the measure before they decide how they will vote. See also Digby.

Back to good news/bad news. The good news is that Obama has a clear lead over McCain in the latest Washington Post-NBC News poll. Much of this lead is coming from white women switching their preference from McCain to Obama. Obama now has a small lead among white women.

The bad news is that media are still going with the “white women don’t like Obama” story.

File this under “weird news.” Michelle Malkin blames illegal immigrants for the financial crisis. The girl belongs in a carnival freak show.

More weird news, although I’m not surprised. Pew Research says 57 percent of the public favors the Wall Street bailout. On the other hand, the latest Bloomberg/Los Angeles Times poll says 55 percent of the public is opposed to the Wall Street bailout.

The Pew poll told respondents that the government is “potentially investing billions to try and keep financial institutions and markets secure” and asked whether that’s the right thing to do. The Bloomberg/Los Angeles Times poll asked whether “the government should use taxpayers’ dollars to rescue ailing private financial firms whose collapse could have adverse effects on the economy and market, or is it not the government’s responsibility to bail out private companies with taxpayers’ dollars?”

I extrapolate from this that about two-thirds of the public doesn’t know what the hell is going on. Anyway, the good news/bad news I see here is that, politically, it doesn’t much matter what Congress does. All that matters is how it’s explained. This opens the door to the possibility that Congress could do the right thing without political penalty. It also opens the door to the possibility that Congress could do the wrong thing without political penalty.

Sort of bad news: The Right thinks the Fannie-Freddie issue can be blamed on Democrats.

The good news is that John McCain’s campaign manager has been on Freddie Mac’s payroll from the end of 2005 until last month.

Bring it on, righties.

Update: The McCain campaign is slamming the New York Times for running the story about the campaign manager’s ties to Freddie Mac. Not true, says Michael Goldfarb. Freddie Mac did pay a monthly retainer of $15,000 to Rick Davis’s firm, Davis Manafort, but Davis himself did not take any of that money.

For the record, the New York Times story published a statement from the McCain campaign saying David is not receiving income from his company. The Times also said, however, that Davis “as a partner and equity-holder continues to benefit from its income.”

Goldfarb is having one major hissy fit and complaining that the New York Times has not published any nasty investigations into whatever nefarious things David Axelrod, Obama’s campaign manager, is into. Press bias!

David Isikoff at Newsweek is biased also, apparently.

See also John Cole.

Quote of the Decade, and Other Stuff

From an article written by John McCain and published in the current issue of the journal of the American Academy of Actuaries:

Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.

I’m starting to look forward to the debates.

At Salon, Joe Conason writes,

Now that we’re all about to take on hundreds of billions or perhaps a trillion dollars in new public debt to redeem the nation’s super-smart corporate financiers, there is one thing I hope we can expect in addition to postponing the apocalypse. Will they all please shut up about the wonders of the unfettered free market and the horrors of big government?

The die-hards will not shut up, of course. I just dropped by Lew Rockwell to see if there were any lights in the attic. Nope. They will all go to their graves believing that free markets solve everything.

Going by Memeorandum, right-wing bloggers aren’t saying much about the financial crisis. Today the leftie blogs are all over it. The top three concerns of rightie blogs are (1) Charlie Rangel said something nasty about Sarah Palin; (2) Sandra Bernhard said something nasty about Sarah Palin (she’s a standup comic, people! that’s what they do); (3) liberals hate God.

Yesterday there was some shrieking from the righties about the bailouts and how taxpayers (i.e., them) are getting soaked. There was not a glimmer of recognition from any of them that they had anything to do with what caused the financial crisis. They sounded like juveniles who had a party that trashed their parents’ house, and now Mom and Dad are telling them they have to clean it up and do without an allowance. Poor babies.

Speaking of Sarah Palin — Kos posts Palin’s favorability trajectory. Enjoy.

Democrats are better for the economy than Republicans. The record is clear. I especially liked …

The Ranking of the Last 13 Presidents by Job Creation (as of 2002)

1) Roosevelt (1933-45): +5.3%

2) Johnson (1963-69): +3.8%

3) Carter (1977-81): +3.1%

4) Truman: (1945-53): +2.5%

5) Kennedy (1961-63): +2.5%

6) Clinton (1993-2001): +2.4%

7) Nixon (1969-75): +2.2%

8) Reagan (1981-89): +2.1%

9) Ford (1975-77): +1.1%

10) Eisenhower (1953-61): +0.9%

11) Bush (1989-93): +0.6%

12) Bush (2001-present): -0.7%

13) Hoover (1929-33): -9.0%

Looks like a pattern to me.

The Last Vacation

By now it’s obvious that George W. Bush, who never quite got the hang of his POTUS job, or what a job is for that matter, can barely be bothered to go through the motions. He had to be pried out of the White House yesterday to deliver two minutes of platitudes about the financial crisis, an appearance Chris Matthews compared to a cuckoo popping out of a clock.

BTW, this is how a real president speaks to the nation about a financial crisis.

Things Are Being Done, but there’s grumbling that they aren’t the right things. I think we’re seeing a lot of fingers poking into a lot of holes in the dyke.

John McCain’s response so far has been so bone-headed that even Sebastian Mallaby is shocked.

John McCain has just demonstrated his vulnerability as a presidential candidate. Speaking from prepared remarks at an Iowa rally today, he said that he would fire Chris Cox, the chairman of the Securities and Exchange Commission. This outburst demonstrates McCain’s ignorance, his impetuousness and his vindictive streak. Not bad for one remark. …

…McCain is a loner rather than a team player. He is a political brawler rather than a manager. The financial turmoil is raising questions about how he’d perform in a crisis.

Are you watching this, America?

Obama’s response:

The Illinois senator said he would be discussing the Fed-Treasury proposal with his top economic advisers on Friday morning. Among those who have been advising Obama on his response to the financial crisis are former Federal Reserve Chairman Paul Volcker and former U.S. Treasury secretaries Lawrence Summers and Robert Rubin.

“Given the gravity of this situation, and based on conversations I have had with both Secretary Paulson and Chairman Bernanke, I have asked my economic team to refrain from presenting a more detailed blue-print of how an immediate plan might be structured until the Treasury and the Federal Reserve have had an opportunity to present their proposal.”

Obama said it was critical that the markets and public have confidence in the Fed and Treasury’s efforts and that their work be “unimpeded by partisan wrangling.”

There’s a lot more to this statement; read at the link.

McCain’s surrogates on the cable television politics shows: “Taxes liberal taxes liberal boogaboogaboogabooga.”

McCain campaign: Barack Obama is black and will steal money from your sweet white grandmother.

Help.

Related links:

Sean-Paul Kelley, “The Day Capitalism Died

Joseph Stiglitz, “The Fruit of Hypocrisy

Paul Krugman, “Crisis Endgame

Eugene Robinson, “Failing Econ 101

Update: Why Lehman Brothers crashed.

Now Running in Michigan

More like this, please.

McCain also has a new ad out, which you can view here. I did watch it this morning. It mostly consists of photos of Obama with the word “TAXES” across his face and a long, dark shadow of something that might be the Capitol Building. The voiceover is something like “Taxes. More taxes. Evil Taxes. Evil flesh-eating taxes. Evil flesh-eating taxes that are hiding under your bed with the bogyman and gonna GETCHA.”

That’s how I remember it, anyway.

Meanwhile, Joe Biden made the reasonable observation that for upper-income people, paying taxes is patriotic. I have to link to the AP again, sorry —

Democratic vice presidential candidate Joe Biden said Thursday that paying more in taxes is the patriotic thing to do for wealthier Americans. In a new TV ad that repeats widely debunked claims about the Democratic tax plan, the Republican campaign calls Obama’s tax increases “painful.”

Under the economic plan proposed by Democratic presidential candidate Barack Obama, people earning more than $250,000 a year would pay more in taxes while those earning less — the vast majority of American taxpayers — would receive a tax cut.

Although Republican John McCain claims that Obama would raise taxes, the independent Tax Policy Center and other groups conclude that four out of five U.S. households would receive tax cuts under Obama’s proposals.

Again, we see the startling new movement among journalists to do, um, journalism, and provide actual information. It’s been a while.

Anyway, Biden’s connection of taxes with patriotism has inspired many snorts and hoots of derision from the Right. Give money to the government? Puh-leeze.

Let’s see — They want a strong military and they want to run the military into the ground in the Middle East, but they won’t volunteer to fight — better things to do, you know — and they don’t want to pay for the war but instead want to continue to borrow money from China and cripple their children with debt.

Sing along —

Wing-nuts, yeah
What are they good for
Absolutely nothing
Uh-huh
Wing-nuts, yeah
What are they good for
Absolutely nothing
Say it again, y’all

Wing-nuts, good God
What are they good for
Absolutely nothing
Listen to me

Etc. They’re parasites, I say.

McCain Can’t See Spain From His House

Somebody pass this on to John McCain —

McCain confuses Spain with Mexico and seems to think the prime minister of Spain is a Latin American guerrilla. Early stage Alzheimer’s, I’m sayin’.

Or, McCain in Spain has fuzzies in the brain.

Update: Several hours behind the blogs, the professional press catches up.

Time, “The Pain in Spain Falls Mainly on McCain

Washington Post, The Trail, “McCain Slights Spanish Prime Minister” Boring head.

The Guardian, Thursday memo: Barack’s back (Subhead: McCain’s Spain brain-pain)

Is the Campaign Turning a Corner?

There are little indications here and there that the Obama campaign is regaining momentum while the Palin bubble is losing air.

There’s a tiny uptick for Obama in the Gallup daily tracking poll. Some other polls show that Sarah Palin’s popularity is fading fast.

The Obama campaign has released a two-minute ad explaining Obama’s economic plan. I understand this is already beginning to run in battleground states.

If you can stomach it, you can watch McCain’s new ad about the economy here. It amounts to blah blah blah American workers blah blah reform blah.

There’s a discussion at Washington Monthly about whether a two-minute ad is a good idea. Personally, I like it, and I think it is a good idea. The American people on the whole aren’t as stupid as some make them out to be. We have more than our share of idiots, yes, and the idiots make a lot of noise. But, particularly regarding domestic issues, most Americans really can come to sensible conclusions and sort shit from shinola if they are given accurate information. That last part is nearly always the catch. But not always.

For example, remember when President Bush was going all out to sell his social security privatization scheme to the public (and ain’t it good that didn’t happen)? A majority of Americans pretty much figured out by themselves — because news media weren’t helping much — that Bush’s plan was dangerous. The more they heard about it, the less they liked it.

One commenter at Washington Monthly remembered Ross Perot’s infomercials, which went on for a whole lot longer than two minutes. Think what you want of Perot (and you’re probably right), those infomercials helped a lot of Americans understand for the first time why a big federal budget deficit is bad.

This sort of calm, straightforward explanation of complex issues was a hallmark of the Franklin Roosevelt administration, and people loved FDR for it. Are Americans appreciably dumber now than they were then? We’ll see.

Meanwhile, news media are actually pointing out the McCain campaign’s, um, lies. See CNN:

Here’s the Associated Press — Yeah, I know, it’s the Associated Press, but I’m going to link to it anyway — “McCain has 2 faces: Washington in- and outsider.” So much for Mr. Straight Talker.

See also: Elitism for Elites.

Palin Could Run America, but Not Hewlett Packard?

Former Hewlett Packard CEO Carly Fiorina, now an adviser to John McCain, says Sarah Palin lacks the experience to run Hewlett Packard. Michael D. Shear writes for The Trail:

Fiorina made the comments on the McGraw-Hill Show on St. Louis KTRS Radio, a statement that was first reported by Huffington Post.

During the final minute of the interview, the host asked: “Do you think she has the experience to run a major company, like Hewlett Packard?”

“No, I don’t,” responded Fiorina. “But you know what? That’s not what she’s running for.”

There’s also a “McCain invented the Blackberry” story going around. This clearly is an attempt to get even for the phony “Al Gore invented the Internet” story the Right pushed awhile back.

Greg Sargent has the text of a speech Obama gave today. Really good. The economic crisis has suppressed the stupid “lipstick on a pig” distractions, for a time, anyway.

Update: McCain, Obama or Biden couldn’t run Hewlett Packard, either, Fiorina says. And Fiorina’s bio says she couldn’t run it, either. Must be a tough job.

Bogeyman Regulations

John McCain is calling for a “9/11 Commission”-style probe of the financial crisis to find out what caused it, although he has already decided the blame resides with “the old-boy network and the corruption in Washington.” Meanwhile, his running mate Sarah Palin said “We are going to reform the way Wall Street does business and stop multi-million dollar payouts and golden parachutes to CEOs who break the public trust.”

Although the commission idea has a certain amount of retro charm, I don’t believe the causes of the financial crisis are any big mystery. And the “multi-million dollar payouts and golden parachutes to CEOs who break the public trust” are just a symptom of the disease, not the disease itself.

One factor the wingnuts cannot truthfully blame on the financial mess — which of course doesn’t mean they won’t do it — is excessive government regulation. The nondepository institutions like Lehman Brothers that are collapsing right now got government off their backs several years ago. In fact, that’s when the trouble started.

There’s a good background article by David Lightman at McClatchy Newspapers that explains what happened, and I urge you to read it all. In a nutshell, what happened was the Reagan Revolution and the fantasy that markets and securities can regulate themselves without government oversight.

This isn’t just a problem with “Wall Street.” The entire financial system is breaking down. Further, the rolling disaster we’re seeing now could not have happened had some critical New Deal regulatory programs been left in place. For example, Lightman explains how dismantling the 1933 Glass-Steagall Act led directly to what’s happening on Wall Street.

Lightman also says that President Clinton signed the Glass-Steagall “reform” into law, which is true. But the driving force behind getting rid of Glass-Steagall was then-Senator Phil Gramm, who is now Senator John McCain’s economic adviser and a co-chair of his presidential campaign.

The talk is that if McCain is elected, Gramm would be first in line to be treasury secretary.

The free market true believers remain in denial of what’s actually happening, which tells me they will not learn from experience, and there’s no point pretending they will. Our only recourse is to be sure they aren’t the ones making real policy.

Good Reads:

Sasha Abramsky
on McCain’s pathetic attempt to capture the Reagan magic.

In Candidates, 2 Approaches to Wall Street” reveals McCain’s bottomless hypocrisy.

On Wall St. as on Main St., a Problem of Denial.” Or, why smart executives make stupid choices.