GRAND RAPIDS, MICH. - The nation's economic distress seized the presidential candidates' attention again Wednesday as each tried to persuade voters that only he could get the financial markets back on track in order to right the economy.
On a day of more market turmoil, both John McCain and Barack Obama sounded populist notes in their appeals to get tough with Wall Street by imposing stringent new regulations on free-wheeling financial institutions.
But Obama expressed disbelief that anyone would believe McCain's newfound passion for government intervention. And McCain seemed almost disgusted by what he said was Obama's plan to raise taxes during tough economic times.
McCain blames corruption
McCain blamed Wall Street's "casino culture" for the financial turmoil that led to the government's takeover of the nation's largest insurer.
"The government was forced to commit $85 billion," McCain said in a statement about the Federal Reserve's loan Tuesday night to American International Group (AIG). "These actions stem from failed regulation, reckless management and a casino culture on Wall Street that has crippled one of the most important companies in America."
Campaigning Wednesday at a GM plant in Lake Orion, Mich., McCain told autoworkers: "I'm here to send a message to Washington and to Wall Street. We're not going to leave the workers here in Michigan hung out to dry while we give billions in taxpayers' dollars to Wall Street. We're going to take care of the workers. ... They're the ones that deserve our help."
McCain even invoked President Franklin Delano Roosevelt, a Democratic icon, as he told the workers that the economic crisis is not their fault. "I'll tell you whose fault it is," he said. "Corruption in Washington and corruption on Wall Street and as president I'm going to clean it up and I'm going to fix it and return you back to the strength of our economy that you have earned and deserve."
Obama's punch line
Obama, the Democratic presidential nominee, pounced, calling McCain's views "an eleventh-hour conversion to the language of reform" after decades of support for Republican policies deferring to markets and cutting government regulation of them.
The Fed's takeover of AIG "is the final verdict on the failed economic philosophy of the last eight years," Obama charged in a statement. "This crisis serves as a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary."
Campaigning in northeastern Nevada, Obama also criticized McCain for suggesting that he would to take on the "old boys" network in Washington.
"This is somebody who has been in Congress for 26 years," he told an outdoor audience in Elko, Nev. After pointing to lobbyist ties within the McCain campaign, Obama then fired his punch line.
"Now he tells us that he's the one who will take on the old boys' network," he said. "The old boys' network? In the McCain campaign, that's called a staff meeting."
With trepidation
For McCain, the embrace of government intervention came with some trepidation.
Throughout his congressional career, the Arizona senator usually has backed cutting federal regulation of industries in the name of promoting free markets and ending government interference, which is Republican ideology. However, he has sided with Democrats in voting for regulation of health maintenance organizations, background checks for sales at gun shows and tougher fuel-economy standards for autos.
On Wednesday, McCain and Obama stressed that the Fed should aim most to protect taxpayers, not financiers.
Regarding the AIG loan, McCain said: "The focus of any such action should be to protect the millions of Americans who hold insurance policies, retirement plans and other accounts with AIG. We must not bail out the management and speculators who created this mess."
His running mate, Alaska Gov. Sarah Palin, expressed little enthusiasm for the latest move to rescue AIG.
"The shot that has been called by the Feds -- it's understandable but very, very disappointing that taxpayers are called upon for another one," Palin told reporters in Cleveland.
And Obama said, "The Fed must ensure that the plan protects the families that count on insurance. ... It must not bail out the shareholders or management of AIG."
McClatchy News Service contributed to this report.
