McCain Adviser Commits To Balanced Budget By 2013 — After Govt. Spends $900 Billion In Bailouts
McCain Adviser Commits To Balanced Budget By 2013 — After Govt. Spends $900 Billion In Bailouts
Recent Fed and Treasury rescues of Bear Sterans, AIG, Fannie Mae, and Freddie Mac, total $900 billion in cost, according to CNBC. The federal deficit, now at $400 billion, will likely explode from the bailouts.
Sen. John McCain has proposed doubling Bush’s tax cuts, resulting in a deficit of $505 billion. On Thursday, in an interview with Tom Ashbrook, McCain adviser John Taylor said McCain could still balance the budget by 2013 after the bailouts:
Q: So has Sen. McCain changed at all his plans on tax cuts? Can you lay out these big bailouts and still have these tax cuts that he’s been promoting — the Bush tax cuts extended and more?
TAYLOR: Well you need to have tax cuts that focus on creating jobs and getting America going. … Sen. McCain wants to make sure the economy grows. He has a detailed plan to balance the budget by the end of his first term. It requires discipline to keep spending keep spending growth from being too rapid.
Listen to it:
Former Treasury Secretary and Obama adviser Lawrence Summers was incredulous, challenging Taylor to “make available a detailed budget documenting your claim that Sen. McCain will balance the budget with 2013 for external scrutiny and to show where the cuts are from.” Taylor, however, refused, claiming the ” information’s already been available to the Tax Policy Center.” In a tense exchange, Summers shot back:
SUMMERS: John, I am sorry that you are speaking in this way. And I make the challenge. The Tax Policy Center has laid out $3.4 trillion of extra deficits from Sen. McCain’s plan. Show us the spending cuts! Show someone the spending cuts!
With the $900 billion in bailouts, McCain’s plan to eliminate the deficit by 2013 is impossible without the most paralyzing of spending cuts. This problem becomes even worse for McCain after Henry Paulson’s announced yesterday a new plan to help banks offload mortgage assets costing “hundreds of billions” of dollars.
“This cripples the domestic policy priorities of the next president,” said Rep. Jim Cooper (D-TN) of Paulson’s announcement. The McCain campaign, however, seems to believe their reckless tax cuts are immune to this financial crisis.
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Just another big, gigantic lie.
September 20th, 2008 at 12:35 pmHe's got an excuse.
McHoover flunked math at the academy.
September 20th, 2008 at 12:37 pmMcCain's Economy
September 20th, 2008 at 12:41 pmIts so simple. McClueless is just going to get the magical fairies to balance the budget for us. Why didnt we think of it before
September 20th, 2008 at 12:41 pmThe worst part is, they rapid right wing will blame Clinton and Obama for the bad economy. Somehow it will be their fault.
September 20th, 2008 at 12:43 pm“This cripples the domestic policy priorities of the next president,” ...
part of the plan, man!
September 20th, 2008 at 12:44 pmDidn't W commit to a balanced budget, too?
September 20th, 2008 at 12:46 pmWhy do people even listen to Republican lies anymore?
W's budget is balanced as long as you don't count the cost of the war in Iraq and Afghanistan, and Medcade. McCain will most likely do the same sort of thing.
September 20th, 2008 at 12:47 pmWe just need to print a few more trillion dollar bills, problem solved
http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/0/06/The_Simpsons_5F14.png/200px-The_Simpsons_5F14.png&imgrefurl=http://en.wikipedia.org/wiki/The_Trouble_with_Trillions&h=150&w=200&sz=55&hl=en&start=11&um=1&usg=__0buMUyS_PJ9DwuNFNBAdIhyelDU=&tbnid=3OTDPNhXK1ft2M:&tbnh=78&tbnw=104&prev=/images%3Fq%3Dtrillion%2Bdollar%2Bbill%2Bsimpsons%26um%3D1%26hl%3Den%26sa%3DN
September 20th, 2008 at 12:48 pmIt is now official; ALL members of the McDepends Zig-Zag Express must take drug tests on a daily basis.
September 20th, 2008 at 12:49 pmI don't usual like to repeat myself but I sort of feel strongly about this...
dbadass Says:
--------------------------------------------------------------------------------
Here’s an idea. Could a real leader come up and ask us all to bite the bullet in the interest of fixing the frickin’ mess we have made so as to not be so immoral as to pass our mistakes on to those undifferentiated cells they adore so. Raise taxes, ask people to pay them. Consume less and share more. Stop being babies and pony up some responsibility so as to be able to leave a tip when we leave the table. For god sake don’t preach that greatest nation shit if you are nothing more than a grifter…
September 13th, 2008 at 8:12 pm
September 20th, 2008 at 12:50 pm"it requires discipline to keep spending keep spending growth from being too rapid."
- - Wow, TRUE doubletalk.
September 20th, 2008 at 12:51 pmDerivatives + nonbalance sheet items = surprise corporate failure
Note the big failures have come from noncommercial banks. Bear Sterns, Lehman Brothers, Fannie Mae, Freddie Mac, & AIG.
Nearly a year ago, Yahoo Financial News ran a piece on the looming crisis.
Thomas Martin, president of the Homeowners Consumer Center, a Washington, D.C.-based consumer advocacy group, estimates that pension funds will take a $1 trillion hit from the devalued securities. 'This is going to be scary,' he said in an interview with Thomson Financial News. 'We think the Fed will have to step in and bail out at least the pension funds.'
They haven't directly helped a pension fund yet.
September 20th, 2008 at 12:54 pmThe repbulicans seem to love this shit. Why else would Sarah be able to get away with repeating the same over and over again about killing the bridge to nowhere. Republicans just seem to be in love with their perpetual dog and pony show.
September 20th, 2008 at 12:59 pmOops. "same LIE over and over again."
September 20th, 2008 at 1:00 pmLehman's last annual report showed $738 billion in derivatives contracts, more than the firms total assets. That's how a firm goes under overnight.
Carlyle Group lost an energy firm, SemGroup solely from derivatives losses. Derivatives trading wasn't listed as part of the core business of the firm.
Lehman's annual report says it makes extensive use of derivatives contracts.
September 20th, 2008 at 1:01 pmThis is really quite counterproductive. What is the purpose of making this sort of claim? No one is or should be expecting a balanced budget in 4 years. It is illogical to suggest. Pandering at its worst.
The best part of it all is that we have only McCain's word to go on. Any review of his policies would reveal this as a farce.
But, McCain 'knows how, he does,' and that is all he's willing to share with the people. It is a shame this election isn't over now.
However you'd like to look at it, we have a candidate that respects us and one who clearly doesn't. To McCain, we are all a means to an end. His campaign has said: "We are campaigning to WIN!" That's it.
September 20th, 2008 at 1:03 pmMcHoover---"but..but..but.. the fundamentals of our economy are strong"
mv McHoover.idiot /dev/null
September 20th, 2008 at 1:04 pmThe Economic situation may not be bad enough at this point. For all of the struggling of everyday Americans, I fear they have been somewhat conditioned to look inward. Which often prevents them from looking outward; understanding how and when this collapse started and the central figures behind it.
I could agree that Government should NOT be the solution to all of our problems, if it were agreed that Government would NOT cause our problems.
The GOP is right about the resilience of the American people on whole. Pride is an M'fer. They take advantage of this, finger pointing every step of the way; with a clear message: you use too much health care, get more training, etc, etc.
September 20th, 2008 at 1:11 pmWell done summers for the challenge but Taylor's answer was predictable.
But Taylor also said this:
"Well you need to have tax cuts that focus on creating jobs and getting America going"
So Summers instead of asking what McCain's detailed plan was ( he knew/knows doesn't have a detailed plan, just a boner for tax-cuts for the wealthy) Summers might have pointed out that Bush's tax cuts from 2003-on have not created jobs and made America strong, in fact its just the opposite and so McCain;s plan to continue such policies will result in an even worse economy than we have now.
.
September 20th, 2008 at 1:15 pmTax Cuts? You want Tax Cuts? I'll show you tax cuts my friend!
How about cutting S.S. by two-thirds? That's right, everyone 79 years of age or older off, like my boy PG says, 'Most people don't have the luxury of living to be eighty, so I don't feel their pain!' Fix this over crowding mess too!
How's that for a start?
September 20th, 2008 at 1:19 pmsatirev Says:
http://www.thenation.com/doc/20081006/ames
Wow. What-a-f-king-crooked-SOB-he-is.
Obama “For it before you were against it? I mean you can’t just make stuff up.."
September 20th, 2008 at 1:27 pmMcSame,Gramm, Palin are all Reaganites who believe that the government is the problem rather than the solution,but the government became the soltuion whent these giant businesses fail due to mismanagment of public's money.
September 20th, 2008 at 1:34 pmThe stock market crash of October 1987 was under Reagan's watch,so is the Savings & loans institutions bail out which cost taxpayers billions of dollars then, due to heavy de regulation laws passed.
Bush,Sr. adminstration was also involved in the rescue effort.
Now, and after 20 years since Reagan presidency we are facing a housing mortgage crisis because of sub prime rate and deregulations again.
These businesses and Reaganites believe in free market and the government is the problem, until they get into trouble they come hurriedly to government for taxpayers money bail out.
The government to these Reaganites is to spend and keep spending money of military and nothing else, like Star Wars of Reagn,and Missiles shield of Bush, and privatising the army.
Now and again the taxpayer's pockets is the source to rescue these businesses with close to a trillion dollars,which the government already does not have on hand.
Eelecting McCain and Palin will be no different than Reagn,Bush..but McCain is the fastest to pull the trigger and get us in more wars' besides his little knowledge about the economy,local and worldwide.
McCain now is blaming Obama for the finacial crisis.
That's his quick fix to these mega economic problems we have at hand.
This is when one laughs and cries when he sees that Sarah Palin might be his next president.
“This cripples the domestic policy priorities of the next president,” said Rep. Jim Cooper (D-TN) of Paulson’s announcement. The McCain campaign, however, seems to believe their reckless tax cuts are immune to this financial crisis.
Thuse "financial crisis" is the bathtub Grover Norquist's been begging for. This will effectively end any possibility of Universal Health Care.
You had to know they'd figure SOMETHING out to forestall it.
CorpoRats hate UHC cuz it deprives'em of a potent cudgel to wield against employee restiveness about wages and conditions.
The "crisis" kills that sucker deader than Ronald Raygun...
September 20th, 2008 at 1:35 pmI must admit I am beginning to hope something really really really bad (for them) happens to these GOPhascist Phux...
September 20th, 2008 at 1:36 pmPer usual, no trolls here to defend Johnny Boy and his 'financial intelligence'.
When ya got nothing, that's what ya bring to the table, right trolls?
September 20th, 2008 at 1:39 pmkaty Says:
“This cripples the domestic policy priorities of the next president,” …
part of the plan, man!
_______
Totally. I can't help but wonder if Botch & Co are secretly pleased w/ this situation. Let's face it, it would have taken another two full years of GOOP mismanagement to run up the amount of debt they've saddled the rest of us w/ in just a couple of weeks.
I'm beginning to think the real issue here isn't, "Do GOOPers or Dems run the govt?", but rather, "Is the Fed is now hopelessly and permanently under the control of its creditors, who simply happen to be the filthy rich and will collect billions and billions in interest in perpetuity, OR, just seize the govt's assets (YOUR NATIONAL PARKS...) in the all-time champ of fire sales.
Be very, very careful here... and it just might be too late already to stop something really, really bad from happening.
September 20th, 2008 at 2:03 pmIf this country is dumb enough (yet again) to vote a republican into the White House, then we deserve whatever is coming. Say like almost happened last week....a stock market crash.
How bad does it needs to get before people finally wake the f(uk up?!
September 20th, 2008 at 2:03 pmI don't know about the rest of you but I've pretty much have had it with both parties and our government. Doesn't it say in the constitution that we can remove those in government (other than by election) when they fail to represent we the people?
We have two parties which serve the same beast, corporations, the only difference is that the democrats throw we the people a bone or two now and then. As far as I'm concerned there are only a few politicians in DC who represent we the people. Bernie Sanders, Dennis Kucinich, Russ Feingold, Ron Paul and Jeff Flake and except for Sanders the others named are tied to their corrupt political party. God help our country!
September 20th, 2008 at 2:11 pmThe McCain campaign, however, seems to believe their reckless tax cuts are immune to this financial crisis.
____________
Perhaps it would be more honest to simply say the McPalin campaign is out of touch w/ reality.
September 20th, 2008 at 2:12 pm.
John Taylor's talking like we've hit the bottom...
.. By estimates, it's not even the seventh inning stretch.
.
September 20th, 2008 at 2:19 pm"“This cripples the domestic policy priorities of the next president,”"
Obama would have the same problem, even though his tax plans are more likely to push domestic consumption (which is not only a good thing*).
*: Because it's part of the terrible trade balance deficit.
September 20th, 2008 at 2:20 pmupside99 Says:
Per usual, no trolls here to defend Johnny Boy and his ‘financial intelligence’.
When ya got nothing, that’s what ya bring to the table, right trolls?
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How do those lyrics to a Dylan song go again?..."When you ain't got nothing, you got nothing to lose."
Well this is the McCain strategy, they've got nothing so they lie, distort, rewrite history, they use the Rove/Goebbels/GOP tactic of repeating lies over and over until they become the truth to their pea brained supporters.
I agree with the commenter who said if people are stupid enough to vote for a republican again, our country gets what it deserves. Sadly the 48+ who didn't will suffer when chaos consumes our country while the elite can just fly away in their private jets to their summer homes in another country and safely wait it out.
September 20th, 2008 at 2:21 pmSven Ortmann Says:
__________
The usual incoherent nonsense...
September 20th, 2008 at 2:25 pmBernie Sanders in opednews said for the next 5 years we should charge a 10% tax to all couples who make one million or more a year and 10% tax on every single person making $500,000.00 a year.
Face it, this crisis will effect the next four years and more which means we will all be taxed. Regardless of what Obama and McCain tell us we were going to have to have our taxes raised just to start paying for Bush's failed wars and to pay for social security and our healthcare system. Now throw in one trillion dollars to bail out the greedy bastards on Wallstreet and AIG and we will be heavily taxed. Which candidate will be the most honest with us?
September 20th, 2008 at 2:27 pmIs it time to roll out the guillotines yet? How about the torches and pitchforks?
Have you had enough? What will it take for the American public to wake up and take back their government? Will it take Americans fighting each other in the streets over a loaf of bread over a gallon of milk or over some prime real estate underneath a bridge?
WAKE UP REPUBLICANS AND DEMOCRATS! WE ARE ALL AMERICANS FIRST. WE NEED TO TAKE BACK OUR GOVERNMENT BE FOR IT IS TOO LATE!
September 20th, 2008 at 2:34 pmThe Stock Market rallied the moment the news came that the government is having A PLAN for all the markets ailments,domestic and foreign ...
September 20th, 2008 at 2:41 pmUnforunately, nobody yet knows what that plan is, other than the government and the big business insiders who cooked the plan,the rest is nothing but business gossip.
We don't know yet what the coming days will bring us.
Keep seat belts on.
What better way to put a republican in the white house in 2012 then to point at the failure of the democratic president to fix the economy. Never mind the policies that led to this disaster were put in place by the republicans.
September 20th, 2008 at 2:41 pmUncle Fester,
That was Kris Kristofferson's song, "Me and Bobby McGee", made famous by Janis Joplin.
Still rings true to day, doesn't it?
September 20th, 2008 at 2:43 pmNot to worry, the government uses an Enron style accounting, just keep those pesky things, such as war and bailouts, off the books.
September 20th, 2008 at 2:52 pmCan someone please explain the bailout?
Bank give mortgage to B
B can't payback mortgage
Bank can't get mortgage off its books
Gov comes in and loans Bank $$$ to offset bad mortgage
Gov now holds mortgage or is mortgage paid off?
Does Bank have to payback loan?
Does B have to payback mortgage
Or is everyone happy that bank got free $$$ at tavpayer expense (bank historically says "taxes, evil")
And now B is free and clear on mortgage, but their credit is fried?
Where does the taxpayer come into th eequation, and do we get repaid, and is it with high credit on the loan, because I will be damned if we do not, at this point in ttime, SCREW THE f uck out of the bank , and give them a does of the sh|t they have given us, and make it like 25% loan.
F UCK 'em, let them all go under. The free market system is perfect, and will produce new banks to fill the void, employing the same people that got laid off from bank A.
WHy do we equate "WALL St." with those that are presently the brokers on it?
September 20th, 2008 at 2:53 pmupside, Dylan penned the lyrics Fester is quoting, in Like a Rolling Stone.
September 20th, 2008 at 3:08 pmUncle Fester Lurks Says:
Is it time to roll out the guillotines yet? How about the torches and pitchforks?
_________
Whilst I can relate to your, uh, ... frustration... Uncle, let me make an alternative suggestion: first, we drive them into the streets. Next, strip them naked and hose them down w/ ice cold water. Finally we take cattle prods and rubber hoses to them.
Then... if they STILL won't listen to gentle persuasion, it'll be time for the guillotines...
September 20th, 2008 at 3:22 pmRalph and Fester, You are right, I was thinking of these lyrics from "me and Bobby McGee":
September 20th, 2008 at 3:23 pm
Well, what happens is that these mortgages, many of them, some good some bad, are bundled together into what is called an SIV [structured investment vehicles] and then given a stamp of approval be the SEC and stamped with a grade by a ratings agency, AAA, usually. [These bundled mortgages then becomes paper money, asset backed paper, basically a stock] Its like a pound of hamburger meat. Its nice to think it all came from one cow, but in reality there are pieces of a hundred cows in that pound of meat. These are 'securitized' meaning the investor is guaranteed payments on his investment.
Fannie and Freddie were highly leveraged at some 80 to 1. when these SIV's started to go bad they [investment banks] couldn't cover the losses. They become insolvent or bankrupt.
Im not sure how the homes, because there are many in each SIV, will be dealt with. As not all of the loans [mortgages] in that SIV are in default.
Government gets its money, basically, from two places, the taxpayer and thru sales of treasury bonds. The government can print money but they then must sell more treasury bonds or get it from the taxpayers. True, we are bailing out bad behavior. But the powers that be have determined that Fiat King Dollar, which is a global currency, cannot perish.
The free-market system, in theory, works. Just like communism, in theory, works. The problem with free markets is many take it to mean you can do whatever you want to make money. Greed and empowerment corrupt the free market. Its why the Glass-Steagall act which was done away with by lobbyists paid for by investment banks to do away with regulation. To make as much money as possible.
Greed is like a disease and it is self defeating in that it will kill the host and itself.
But the problem is not just with mortgages and SIV's we also now have a huge derivatives market, which is what AIG dealt mainly with, insuring. We arent out of the woods yet.
September 20th, 2008 at 3:31 pmAs for this thread, McCain will not be able to balance the budget. Its a political football thats been kicked around for years. I doubt people even believe this canard anymore.
September 20th, 2008 at 3:36 pmCEOs of these big financial instituions are costing the US government billions of dollars, they are also costing stockholders the loss of their shares values due to their greed and mismanagement, but these bosses always seem to come out of all of this with their pockets full of monny regardles.
Some of these CEO's get millions of dollars just for signing to be the boss, they also get nice packages when they leave the company they managed.
So they are always winners, no matter what happen to stock holders or taxpayers..
http://www.guardian.co.uk/business/2008/sep/18/merrilllynch.executivesalaries
September 20th, 2008 at 3:55 pmThere should be a 90% tax on every dollar over $2.5 mil earned, received by or paid to any US resident.
Under that line and above, say $20k/yr, should be taxed on a graduated scale. People whose gross annual income is less thatn $20k/yr shouldn't have to pay any Federal Income Tax (they get hosed enough with FICA and state/sales taxes).
September 20th, 2008 at 4:04 pmWhat pure liars. In mcchimpy's world by 2013 there will be 5 wars and an increase of world enemies.
Who seems more presidential?
September 20th, 2008 at 4:13 pmMcCain certainly knows how to prove he knows nothing about the economy.
September 20th, 2008 at 4:37 pm"The best lack all conviction, while the worst are full of passionate intensity." -Yeats
I just heard some pencil-necked, bean-counting pinhead from Money magazine say 'don't worry that your 401K has gone from 100,000 to 50,000; to some people 50,000 is an unimaginable fortune.'
Stop whining, and leave your money where it is... trust us. You're rich compared to an Ethiopian!
How much insult and injury can Americans take!? A country created by revolution has turned into a submissive glutton for punishment.
September 20th, 2008 at 4:42 pmXisithrus Says:
But the problem is not just with mortgages and SIV’s we also now have a huge derivatives market, which is what AIG dealt mainly with, insuring. We arent out of the woods yet.
Thanks.
Yes, I hear the Drivative market is valued at 450 TRILLION, more than all the money on earth, in all houses and gvernments. So, how do we capitate that ridulousness. That is where the oil sepcualators are, and why THAT "commodity" has NOT followed the laws of supply and demand.
We are so screwed.
September 20th, 2008 at 4:48 pmIf these people cannot see that the cutting taxes of the wealthy has not created jobs and it has not succeeded in anyway, then we have no reason to believe what they say. If someone continues doing the same thing over and over and getting the same result thinking it will change, they are FREAKING INSANE! Get all these deregulating fascists out of our government. They have never been right about anything.
September 20th, 2008 at 5:18 pmFew years ago, Bush and big business barons of Wall Street wanted to put their hand on Social Security fund so it can be invested in Stock Market.
September 20th, 2008 at 5:35 pmThey pomised higher returns,and assured Americans that this is the only way to protect and save the system.
Three years later...these barons are coming now to Uncle Sam for help , or as they say, the whole money and banking system will collapse.
How can the US government leave the Social Security money in these peoples hands as they were pushing the government to do so while Bush at the same time was selling the idea to the public?
This crisis should make everybody think twice before seeing Social Security fund in the hands of speculators and stock market players.
We were told SS money will be safe...but last week's events proved that the gate keepers themselves need help.
McCain as a de regulator champion wanted to see the SS money invested in Stock Market, now after this crisis,
he offered to fire the SEC chairman,which is not a solution..
then,
he said that he will not help these companies...which is not a solution either,
then,
he blamed the whole thing on Obama.
McCain and Palin is not the answer,because they love to privatize everything, in the name of free market...but last weeks events proved it was the taxpayers money that saved the markets.
"Commits to a balanced Budget"?
What does that mean? Does it mean that he agrees to be buried alive or be tossed in a wood chipper if the balance is not balanced?
September 20th, 2008 at 6:28 pmThere will be no impact on the federal deficit from the bail-out's. Why? Because they will be handled like the war in Iraq; off-book. Now, the debt will explode because it will be real money the government will have to borrow. Of course Enron and Fannie Mae learned this off-book trick from the federal government. How can the federal government require transparency from the private sector when they refuse to practice it themselves. The federal debt will have double under the George W. Bush administration and the economy is still in the dumpster. How much more proof is needed that trickle down economics results in a smaller pie but with the wealthy getting bigger pieces. It's lunacy.
September 20th, 2008 at 6:33 pmThey can't show you the spending cuts, cause then they'd have to kill you, cause there ain't no spending cuts, see?
September 20th, 2008 at 7:20 pmIt is all utterly, flabbergastingly, ludicrously, and incredibly gross moral and fiscal negligence that is trying to pass for intelligence. Serious mental illness is far more widespread than we thought.
September 20th, 2008 at 11:19 pmThe tax policy center did not count his health care plan which would add another 1.4 trillion over 10 years.
September 20th, 2008 at 11:58 pmincrease the deficit by another 1.4 trillion of course
September 21st, 2008 at 12:00 amFunny how we seem to be able to afford tax cuts for the wealthy, unnecessary wars and bailouts for wealthy investors but there's never enough money for healthcare, education and bridges that don't collapse.
http://progressiveworldreview.com
September 21st, 2008 at 10:55 amMcCain also promised to sell me a bridge in New York City!
He says I can pay for it with easy monthly payments. I just send all the money in my bank account each month!
September 21st, 2008 at 10:57 amI wonder if the academy's math department has a sign hanging on its door: "We passed John McCain"
September 21st, 2008 at 4:38 pm