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Last Updated: Oct 16th, 2008 - 13:33:17 |
In the wake of a nationwide economic crisis, Sen. Barack Obama, the Democratic presidential nominee, laid out his plan - with six principles - to fix Wall Street and Main Street. He said new rules for a new economy were needed.
"The news from Wall Street has shaken the American people's faith in our economy," he told a crowd of about 2,000 at the Colorado School of Mines.
The senator had spoken in Grand Junction and Pueblo the day before. The same day, one of the nation's largest banks, Lehman Brothers, filed for bankruptcy; Merrill Lynch, a powerful stock brokerage firm was purchased outright by Bank of America, and Wall Street suffered its worst lost since the 9/11 attack.
"We are in the most serious financial crisis in generations," Obama said. "Yet, Senator McCain stood up yesterday and said that the fundamentals of the economy are strong."
Before detailing his record and plan to fix the economy, the Democrat took his Republican opponent to task.
"I certainly don't fault Senator McCain for all of the problems we're facing," he said. "But I do fault the economic philosophy he subscribes to."
Obama used the turmoil to again link McCain to his party's sitting president, George Bush.
"What we've seen the last few days is nothing less than the final verdict on an economic philosophy that is completely failed," he said. "It's time to put an end to a broken system in Washington that is breaking the American economy."
The crowd cheered at every jeer to McCain and Bush.
Obama told the crowd that in 2006 he introduced legislation to halt mortgage transactions that could be fraudulent or at risk. He also said that, a year later, he shared his fears with top economic officials about risks of foreclosures and he urged them to find solutions for subprime mortgages. He said McCain did nothing.
Among other things, Obama said he called, in March, for a new regulatory framework to restore accountability and trust.
"Months later, Senator McCain told a newspaper that he'd love to give them a solution to the mortgage crisis, but he said - quote - 'I don't know one,'" Obama said.
Calling for sweeping reform, Obama said, "the American economy does not stand still, and neither should the rules that govern it."
Obama said while McCain would send problems to committee, he would lead: "To get out of this crisis - and to ensure that we are not doomed to repeat a cycle of bubble and burst again and again - we must take immediate measures to create jobs and continue to address the housing crisis; we must build a 21st century regulatory framework, and we must pursue a bold opportunity agenda that creates new jobs."
Obama pledged $50 billion for an emergency economic plan. The money would create or save at least one million jobs by rebuilding the nation's infrastructure, repairing schools and helping states avoid budget cuts, he said.
Beyond the immediate bandage, Obama said he'd demand oversight of any institution that borrows money from the government. Capital requirements need to be strengthened; a streamline of agencies needs to be created; regulations for what companies do, not what they are, must be in place; a crackdown on trading activity that crosses the line to market manipulation would be established; and tools that identify risk would be used.
But above all, Obama said, "the most important thing we must do is restore opportunity for all Americans."
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