Obama Scoffs at McCain Economic Panel
Obama Scoffs at McCain Economic Panel
By JEFF ZELENYGOLDEN, Colo. – Senator Barack Obama scoffed at a proposal offered Tuesday by Senator John McCain to create a commission to study the turmoil in the nation’s financial markets, declaring: “We know how we got into this mess.”
Senator Barack Obama at a rally at the Colorado School of Mines in Golden on Tuesday. (Photo: Damon Winter/The New York Times)“Instead of offering up concrete plans to solve these issues, Senator McCain offered up the oldest Washington stunt in the book –- you pass the buck to a commission to study the problem,” Mr. Obama told an audience here. “But here’s the thing – this isn’t 9/11.”
Mr. McCain, in a round of morning television interviews, proposed creating a panel to study the upheaval on Wall Street similar to the one that investigated the Sept. 11 attacks. Such a group, he said, could “get to the bottom of this and get it fixed.”
On the second day of a campaign trip to Colorado, Mr. Obama seized upon his rival’s idea and offered it as an example of how he believes Mr. McCain had failed to present a serious plan to deal with the economic crisis on Wall Street and beyond. His campaign on Tuesday began airing a television commercial mocking Mr. McCain for declaring one day earlier that “the fundamentals of our economy are strong.”
“It’s hard to understand how Senator McCain is going to get us out of this crisis by doing the same things with the same old players,” Mr. Obama told a cheering crowd of about 2,000 people here. “Make no mistake: my opponent is running for four more years of policies that will throw the economy further out of balance. His outrage at Wall Street would be more convincing if he wasn’t offering them more tax cuts.”
In response to the turmoil that has roiled the domestic and worldwide financial markets, Mr. Obama delivered a 40-minute speech in this city west of Denver. He called for more aggressive regulation of Wall Street and a renewed emphasis on innovation.
“What we’ve seen the last few days ,” Mr. Obama said, “is nothing less than the final verdict on an economic philosophy that has completely failed.”
Mr. Obama essentially hit the rewind button on Tuesday, stepping back to remind voters of a series of economic proposals that he has offered over the last 19 months. His campaign’s movement was built on an opposition to the Iraq war, not a message of economic populism, so many of his proposals have received only moderate attention.
He called on increasing government oversight and supervision on all regulated financial institutions and strengthening capital requirements –- particularly for mortgage securities and other derivatives -– at the center of the financial crisis. He also proposed streamlining regulatory agencies as well as cracking down on trading activity that manipulates markets.
“We need to regulate institutions for what they do, not what they are,” Mr. Obama said. “Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies.”
Alex Conant, a spokesman for the Republican National Committee, defended Mr. McCain’s proposal to create a commission to study the financial crisis.
“Obama has supported creating several commissions and applauded their results during his short political career. Yet even on an issue as important as the country’s economy, Obama is now putting politics first,” Mr. Conant said in a statement. “In typical Washington fashion, Obama would rather attack John McCain than welcome a good bipartisan idea.”

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