As Americans are still trying to figure out the pros and cons of the proposed “bailout”, Sen. John McCain is attempting to decide his stance on the bailout plan. With Election Day looming, McCain’s decision could play a sizeable role in the minds of voters.
On one hand, conservative Republicans are reluctant to contributing a large amount of taxpayer’s money to the crisis on Wall Street. On the other hand, the White House, along with Democrats and Republicans, believes that the bailout is needed to divert a “potential economic disaster. http://www.iht.com/articles/2008/09/26/america/26campaign.php?page=2?pass=true
McCain needs the support of conservative Republicans. It took them awhile to come around to McCain, but the selection of Sarah Palin as his running mate made them buy into his candidacy. Otherwise, he could possibly lose their votes which would be a big blow to his chances at becoming the next president.
McCain is adamant that the bailout includes a group that observes the treasury secretary, and limits the compensations of executives of financial institutions applying for loans. https://mail.quinnipiac.edu/owa/redir.aspx?C=013ee892631642749d046cefef31e443&URL=http%3a%2f%2fwww.msnbc.msn.com%2fid%2f26940815%2f
The other presidential candidate for the upcoming election, Sen. Barrack Obama, completely disagrees with how President Bush and his administration are going about their bailout plan. As it stands, the current plan would have taxpayers give money and have decreased benefits. These benefits would in turn go to high-paid executives that are involved in the bailout.
Obama said of the current bailout plan, “It is wholly unreasonable to expect that American taxpayers would or should hand this administration or any administration a $700 billion blank check with absolutely no oversight or conditions when a lack of oversight in Washington and on Wall Street is exactly what got us into this mess.”
In order for the bailout to work, Obama believes the plan must be outlined by four principles:
1. A ban on generous payouts for "irresponsible CEOs on Wall Street."
2. Using a bipartisan independent board to oversee the bailout’s execution instead of Treasury Secretary, Hank Paulson, having sole control.
3. An investor stake for taxpayers.
4. Assisting those in danger of being foreclosed on.
According to Shailagh Murray of the Washington Post, Obama also would call for a stimulus package. However, this package would be omitted from the bailout bill.
In the current plan either the taxpayers or financial system will suffer. Obama says, “It is absolutely wrong to suggest that we cannot protect American taxpayers while still stabilizing our market and saving our financial system from collapse. We can and must do both.”
On Monday September 29, both John McCain and Barack Obama decided to carefully endorse President Bush’s projected bailout plan. This plan allows the administration to use billions of dollars that belong to taxpayers, in order buy the falling properties of the troubled financial firms.
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