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NewsThursday, March 27, 2008 3:51 PM CDT
Obama, Clinton offer economic plans
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NEW YORK -- Democrat Barack Obama said Thursday tougher government regulations that reflect the realities of modern finance are needed to get a grip on the economy before it gets even worse.

Rival Hillary Rodham Clinton said Republican nominee-in-waiting John McCain isn't prepared to handle a call about an economic emergency.

"The phone is ringing, and he would just let it ring and ring," Clinton said, echoing the "3 a.m. phone call" TV ad she used earlier to suggest she was more qualified than Obama to handle a national security crisis. This time, she chastised the Arizona senator for opposing government intervention in the nation's credit and mortgage crisis.

The two Democratic contenders offered competing plans to tackle U.S. economic challenges: Clinton proposed a $2.5 billion job retraining program and Obama urged greater oversight of U.S. financial markets.

"We do American business - and the American people - no favors when we turn a blind eye to excessive leverage and dangerous risks," Obama said.

The presidential candidate spoke not far from Wall Street, hard hit by the mortgage meltdown and credit problems.

To fix the economy, Obama proposed relief for homeowners and an additional $30 billion stimulus package to address the nation's economic woes.

"If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling," he said.

New York Mayor Michael Bloomberg, the almost candidate, warmly introduced Obama but stopped short of an endorsement.

Bemoaning the nation's economic woes, Obama, like Clinton, dismissed McCain's approach as pure hands-off. On Tuesday, McCain derided government intervention to save and reward banks or small borrowers who behave irresponsibly though he offered few immediate alternatives for fixing the country's growing housing crisis. Obama said McCain's plan "amounts to little more than watching this crisis happen."

Instead, Obama said, the next president should:

-Expand oversight to any institution that borrows from the government.

-Toughen capital requirements for complex financial instruments like mortgage securities.

-Streamline regulatory agencies to end overlap and competition among regulators.

While he laid out a half-dozen principles for closer scrutiny of the financial markets, he offered no specifics, such as which agencies should be reorganized or exactly how the government should go about peering over the shoulders of bank executives.

At a community college in Raleigh, North Carolina, Clinton focused on job insecurity and said the government needed to step up its responsibility for helping displaced workers. The state holds its primary May 5.

"Our government is more focused on how you lost your job than how you can find a new one," Clinton said. "And while we have been rightly focused on trying to help people who are out of work, there's been too little thought and effort to help people gain new skills while they still have their existing jobs."

Among other things, the former first lady called for a new program to extend federal aid known as Pell Grants to workers enrolled in education programs aimed at updating their skills. She also promoted a pre-emptive training initiative to allow workers concerned about potential threats to their jobs to receive grants to help transition into other industries.

Even before the Democrats delivered their speeches, McCain said in a statement, "There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face."

The political debate comes as a new government report shows the economy nearly sputtered out at the end of the year and is probably faring even worse amid continuing housing, credit and financial crises.

The Commerce Department reported that gross domestic product - the value of all goods and services produced in the country - increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading - unchanged from a previous estimate a month ago - provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.

Take a look
Democratic presidential hopeful Sen. Barack Obama, D-Ill., speaks in the Great Hall of New York's Cooper Union, Thursday, March 27, 2008. (AP Photo/Richard Drew)
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Reader comments on this story - 21 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

meh wrote on Mar 28, 2008 10:54 AM:

" Live Wire!, the Democrats have to tone down the bills to avoid a fillibuster. If the Democrats sent to the table what their constituants really want, the bill would never get passed and even have a shot at the Decider's pen.

Even if McBush wins, he'll still have to content with an even stronger Democratic majority in the House and Senate. We might even see some veto overrides and the troops coming home over McBush's objections. "

Live Wire! wrote on Mar 28, 2008 10:28 AM:

" This nonsense about Dems not doing anything because of veto threats and filibusters is just that - NONSENSE! The GOP has not filibustered ANYTHING! And Bush has vetoed fewer bills than any President in history. The fact is, the Dems are proving to the American people that they are incapable of leadership, and the voters are taking notice. Hence the 17% approval rating for Congress. I'm happy they aren't doing anything, because I think most of their so-called solutions would be bad for the country. But don't pretend it's the GOPs fault that they can't get their act together. Reid and Pelosi are the worst congressional leaders in at least the last 50 years. "

ktlin wrote on Mar 28, 2008 9:10 AM:

" I do like the statement by Obama who said if we can help wall street why can't we help individuals? It is just like locally why are people like real estate fat cats favored but individuals aren't? They are not only favored but some are asked to move if someone wants their property in the interest of others. If you want the truth and how things actually work brought to the forefront Obama is the person to vote for. In fact he gets in trouble for telling the truth. The other person gets in trouble for teling stories. We may not always like it but it might be time to hear the truth. "

ktlin wrote on Mar 28, 2008 9:02 AM:

" Can't Hillary make up her mind? Just a few days ago she was saying how qualified McCain was and how nice they would play. Bill says if you don't want to get down and dirty you should go home. Which is it Clintons. Once thing I do know we are watching the Clintons self-destruct. They aren't quite as good as they thought. After the kitchen sink method what is next? We've tried crying, fitthrowing, telling untruths, playing nice. Does she not know we see all of that. When she goes on tv snarling and spouting, does she have any doubt why people think that is the real her. What is hilarious is when people were trying to force Hillary into the lead and destroy Obama the opposite effect occurred. Hillary's poll numbers went down a lot and Obama's didn't. I think the country is starting to get a true picture of the Clintons finally. "

interested party wrote on Mar 28, 2008 8:40 AM:

" Our family (thankfully) could afford a different house now. We currently have and would get a fixed rate mortgage. We're not even considering a new home because of the fear our taxes will raise considerably to bail out those (homeowners, lenders, investors and the government) who got us in this mess. "

Noober wrote on Mar 28, 2008 8:06 AM:

" It's obvious none of these politicians have a clue. They all want to borrow Billions from China to help the economy so we can purchase more products made in China by US companies. To fix the economy we need to penalize US corporations who send jobs out of the country. "

Annienap wrote on Mar 28, 2008 5:08 AM:

" Just wondering why we see this guy's face pasted all over the internet as well as getting all the air time on TV. Looks to me like the media has already moved Obama into the White House. Live Wire is right - this guy is CLUELESS. He preaches a good speech and that's all he does. I guess he's going to leave his aides and advisors in charge to run everything and to make the decisions. Sounds familiar - just like Bush and Cheney. This guy is total disaster for this country unless he can preach us out of the deep doo doo we are finding ourselves in. "

OGS wrote on Mar 27, 2008 11:20 PM:

" TO Crimson: Thanks for partial agreement and your 8:54 post isn't all bad but some regulation already existed for these companies you mentioned. However, if these regulations are not enforced, they serve no purpose. BTW many files for Enron, Worldcom, etc were located in the basement of WTC7, but due to it's collapse were lost forever. Dear Crimson how do you not understand (or agree with) repealing NAFTA and restoring our manufacturing (industry) base? When we work, we produce, we pay (illegal) income taxes, and our country is strong. Surely you know that the Federal Reserve is privately owned by foreign interests. They manipulate money and markets and are financially destroying our country. Wish you could see it. "

dwarf wrote on Mar 27, 2008 11:15 PM:

" Yep, floyd - it's downright simple to get everything you want done, simply by having congressional majorities. That is, if you ignore filibusters, vetoes, and small things like that...

Crimson - good post. In the current administration, profit is apparently privatized while risk is subsidized. Good thing the administration's heart is in the right place... sigh. "

Crimson wrote on Mar 27, 2008 8:54 PM:

" @Gov't Oppressed Mule: Your tax dollars are now backing up Bear Sterns and their poor risk management. Sure, a lot of people gamed the system to get a house, but they also got taken by profit-addicted companies than ran roughshod over the industry due to poor regulation. Business has only one concern: profit. This is why business needs to be regulated. Without regulation, you get Bear Sterns, you get Tyco, you get Enron. You get executives getting ridiculous bonuses for running their company into the ground and ruining their stock for common share holders, people who buy the stock via mutual funds in their 401k, typical employees who think they're doing the right thing by investing their retirement in the company they work for. It's deplorable. Their might be just a few bad apples, but using the same reasoning the fed did with Bear Sterns, regulation should be tighter because the stakes are so much higher. When a huge company fails like Bear Sterns, the public is on the hook for their poor management. Thats the shame. "

Crimson wrote on Mar 27, 2008 8:45 PM:

" @ OGS - there's a lot you say that I just don't agree with, however, the impeach Bush/Cheney idea is something I'm on board with. It's really too bad it didn't happen in 2005. "

buckeye wrote on Mar 27, 2008 6:58 PM:

" This combination of higher taxes , more stringent government regulations , and handouts rewarding people who borrowed more than they can pay back. Seems like a great idea. It will tax thoes who paid there payments on time to bail out the ones that didnt. These polititions just dont seem to get it . "

fluffyduffer wrote on Mar 27, 2008 5:20 PM:

" Great speech by Obama ! (as usual). It's nice to hear him talk, unlike Bush who I always feel like is lecturing us. Obama explained things in a very understandable way, and he seems to know what he's talking about He comes across as very intelligent and capable and as a good leader. He is someone I could get behind. "

Meh wrote on Mar 27, 2008 3:47 PM:

" floyd, apparently, you don't understand the concepts of a fillibuster and a veto override. Get back to us when you do and demonstrate your new found understanding of the Democrats' lack of action. "

Meh wrote on Mar 27, 2008 3:46 PM:

" Live Wire!, at least that's more honest than Bush/Cheney's "the Iraq War will pay for itself!!!" "

floyd wrote on Mar 27, 2008 3:35 PM:

" Lets see. Obama and Clinton are members of the DEMOCRAT party that's in the majority in the house and senate. Why is it they they haven't done squat with their party about the economy but promise that if they get elected they have the answers? Seems to me that people should be looking as to what the democrat party thats been in majority for over a year has done. Nothing and will continue to do nothing except hand out social program checks.They are in power but do nothing but spin and con!
Maybe Obama who doesn't even fill his Senator shoes should return and represent the people of Illinois that he promised to do when he ran as a senatorial candidate. "

Live Wire! wrote on Mar 27, 2008 3:22 PM:

" A few minutes ago on CNN, Obama was asked his thoughts on the cost of his programs and how he'd pay for all his proposals. After a brief deer-in-the-headlights look, he said that he'd have to wait til he was in office to see how much revenue was available. Clueless. "

lindini wrote on Mar 27, 2008 2:14 PM:

" There is a tendency for conservatives to completely ignore the American taxpayer (and distract them while bailing out their buddies) while they continue to do nothing to solve the very real problems the average man faces. I'd take a chance on a guy with a plan to help the little guy over a guy with no plan at all any day. "

Meh wrote on Mar 27, 2008 1:52 PM:

" Ah, good 'ol McBush. There is a tendency for conservatives to seek big government programs that sock it to American taxpayers while succeeding in blowing up countries that the Republican Regime doesn't like. "

Gov't oppressed Mule wrote on Mar 27, 2008 1:51 PM:

" Why must we as a society reward those who are irresponsible? If someone purchased a house and is unable to make the payments and the bank repos the house whats the problem? But now my tax dollars have to help those who can't pay there bills? Then why am I working? Why don't I sit at home and do nothing and have the gov't feed me, pay me, and make my mortgage payments? This is a crock. "

OGS wrote on Mar 27, 2008 1:00 PM:

" Repeal NAFTA. Restore our industry.
Abolish the Federal Reserve.
Impeach Bush/Cheney etc., bring to trial for treason. "

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