Imadeamesss.com-The House's failure to pass a $700 billion financial intervention bill Monday not only held back billions for Wall Street, but also was a major blow to Sen. John McCain's presidential campaign, according to a report by CNN.com.
It said McCain raised the stakes for himself when he suspended his campaign and raced off to Capital Hill with the bill ultimately failing--effectively shooting himself in the foot twice.
Equally as unhelpful is the idea that Speaker of the House, Nancy Pelosi (D-San Fransisco) is to be blamed.
As pointed out by Presidential Candidate Barack Obama--who is seen as a stabilizing force voters can depend on during the turbulence created by the economy and McCain--Washington politics as usually is more likely the culprit.
Excerpts from Obama's campaign speech Tuesday in Nevada points out more of the truth.
"Over one trillion dollars of wealth was lost by the time the markets closed on Monday. And it was not just the wealth of a few CEOs or Wall Street executives. The 401Ks and retirement accounts that millions count on for their family’s future are now smaller. The state pension funds of teachers and government employees lost billions upon billions of dollars. Hardworking Americans who invested their nest egg to watch it grow are now watching it disappear.
But while the decline of the stock market is devastating, the consequences of the credit crisis that caused it will be even worse if we do not act and act immediately.
Because of the housing crisis, we are now in a very dangerous situation where financial institutions across this country are afraid to lend money. If all that meant was the failure of a few big banks on Wall Street, it would be one thing.
But that’s not what it means. What it means is that if we do not act, it will be harder for you to get a mortgage for your home or the loans you need to buy a car or send your children to college. What it means is that businesses won’t be able to get the loans they need to open new factories, or hire more workers, or make payroll for the workers they have. What it means is that thousands of businesses could close. Millions of jobs could be lost. A long and painful recession could follow.
Let me be perfectly clear. The fact that we are in this mess is an outrage. It’s an outrage because we did not get here by accident. This was not a normal part of the business cycle. This was not the actions of a few bad apples.
This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years. It’s the result of speculators who gamed the system, regulators who looked the other way, and lobbyists who bought their way into our government. It’s the result of an economic philosophy that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else; a philosophy that views even the most common-sense regulations as unwise and unnecessary. And this economic catastrophe is the final verdict on this failed philosophy – a philosophy that we cannot afford to continue."
Obama spoke to a crowd at University of Nevada, Reno laying out a point-by point plan on how he'd shore up America's economy and how House Resolution 3997 can help.
"All of us have a responsibility to solve this crisis. We'll punish the arsonist later but put the fire out for now," he said.
He was speaking to students at University of Nevada, Reno reminding them that what is done today by lawmakers can affect their future job market. However, intending to alleviate anxiety, he reminded them of America's resilience and recounted the improvements made to the bi-partisan bill, an example of his skills set.
Obama also said any profits from investing in mortgage backed securities will go to the taxpayer and to pay down the national debt. He said a fee structure will be instituted so that another rescue package will not be needed. He also pledged to modernize outdated financial regulations--a point he has been making since March.
"I spend most of my time in Washington being skeptical of this administration. Now is no different," he said.
But in spite of his skepticism, Obama spoke with President Bush Tuesday morning to discuss the economic bailout bill, according to CNN.
The two spoke about the need to push for a package that Congress can agree on.
Obama also raised his proposal to raise the amount of money the government insures in bank accounts from $100,000 to $250,000.