Crisis vs. Campaign

The descriptions are frightening to some and seriously troubling to all. “Financial meltdown,” "the most serious financial situation since the Depression,” “crisis” seem to be the milder terms. The Secretary of the Treasury and the Chairman of the Federal Reserve are quoted as saying the situation, if not immediately addressed, could have dire consequences for our Wall Street as well as international markets. They also assert that, unaddressed, the situation would directly harm an American’s ability to maintain her home, his job and savings.

Senator Obama’s staffers contacted the McCain campaign staffers this morning and proposed a joint declaration of principles on the crisis by the candidates which would be presented to Congress and the Bush Administration. Senator McCain called back and, apparently speaking directly with Sen. Obama, agreed with the proposal. Sen. Obama showed initiative and Sen. McCain showed a willingness to adopt a reasonable proposal, even from an opponent.

Later, Senator McCain announced that he was suspending his campaign and returning to Washington to engage in the resolution of congressional/Administration efforts. In this announcement he asked Sen. Obama to do the same and join him in meeting directly with the President to help resolve the differences between the Administration’s proposal and congressional objections. McCain asked that the debate scheduled for Friday on foreign policy, perceived by a vast majority of knowledgeable people to be a McCain strength, be postponed. McCain’s campaign also announced that he had directed all campaign media efforts on his behalf to cease while this suspension continued. Senator Obama has rejected the McCain concept and said that the joint proposal would be sufficient to get their points across and that the American people were anxious to see the debate. Up until moments ago Democrats, Speaker Pelosi included, today (N.P.R. interview) spoke of a substantial gap between the Administration and Congress. Beginning tonight with the six o’clock news, however, a couple of Democrats, when questioned about the McCain effort, said it wasn’t needed and that an agreement was nearly completed. So sayeth the Dervishes.

“Ride to the sound of the guns," has been around in military lore and tradition for centuries. The sound of the cannons is considered to be where the center of action is on the battlefield. A leader belongs at the place of battle where the outcome may be influenced by the exercise of leadership. In some situations the presence of the leader may be enough to influence the outcome while at other times the leader’s continuing decisions are significant to the outcome. If you need me to state an example of the soundness of this exhortation I suggest you go back to your copy of “People” magazine.

Sen. McCain is “riding to the sound of the guns.” This most important debate on the financial crisis facing this country, at least, in our lifetimes is ongoing in Washington. If there are principles and issues of import to a sitting United States Senator on this issue, that Senator belongs in Washington within the arena fighting for those principles and issues. The idea of sending a document of concerns in lieu of standing and asserting those concerns, debating, negotiating, and compromising where essential for the best interests of our country, is not the action of a leader. Each of these candidates is the presumptive leader of his party and one will inherit the results of this effort. Being the leader of the party includes leading the party. Sen. Obama cannot respond “present” in this crisis. As far as the desire of Americans to see a debate, that position is now overtaken and overwhelmed by the concerns of the citizens about their own and the country's financial future.

The Bush proposal is a mere skeleton yet contains Cheneyesk demands that have to be eliminated. The Congress must report for duty whatever the impact on their political futures. McCain is correct in taking this action in moving to the sound of the guns. Obama presents himself as what we used to refer to as a “base camp warrior.” I refer you down the page to my quotation of Teddy Roosevelt, “[T]he credit belongs to the man who is actually in the arena…”

Trust me. Again.

Today, President Bush spoke of the economic instability on Wall Street and his approach to Congress for immediate implementation of his proposed response. "The whole world is watching to see if we can act quickly to shore up our markets and prevent damage to our capital markets, businesses, our housing sector, and retirement accounts," Bush said Monday. "Failure to act would have broad consequences far beyond Wall Street. It would threaten small business owners and homeowners on Main Street."

On Monday October 07 2002, in Cincinnati, Ohio President Bush also stressed the need for immediate, unquestioning approval of his policy initiative. Our President said then: "Knowing these realities, America must not ignore the threat gathering against us. Facing clear evidence of peril, we cannot wait for the final proof, the smoking gun that could come in the form of a mushroom cloud....Understanding the threats of our time, ..., we have every reason to assume the worst, and we have an urgent duty to prevent the worst from occurring."

The current situation calls to mind another quote from this president "Fool me once, shame on you; fool me twice, shame on me." Well, actually, he screwed that up too. Congress has a constitutional responsibility to approach proffered solutions to this mess with intelligence and a real concern for the common good. Congressional Republicans have an opportunity to salvage their honor lost in blind approvals of Bush's policies and Democrats, in control of Congress, have an opportunity to focus their oversight in a credible, timely manner for the common good as they have repeatedly said was their intention. All beware the lobbyists bearing gifts and draft proposals.

Financial Markets

Treasury Secretary Paulson in a briefing at the White House moments ago expressed relief and, more significantly, satisfaction that the private sector has come together to take over or bolster the failing financial institutions. Private commercial solutions would, I expect, relieve the federal government from direct intervention. Yet, it also appears to me that we are merely allowing bigger, more powerful profit-driven entities unregulated growth.

President Bush should immediately assemble an advisory panel consisting of non-partisan experts from a broad range of financial disciplines to review the current "corrective" efforts in the market and advise on immediate regulatory approaches. His Office and his administration, standing alone, have neither the confidence of the American people nor of the international community. Congress will take a long term view in the not distant future but by the time new books of regulations and new federal agencies are approved Congress will be able to merely massage rather than tame the beast.