9-19-08, 1:25 pm

Linking the financial crisis on Wall Street to the economic struggles of working families, Barack Obama, in a speech today, Sept. 19th, in Miami, Florida, called for 'even bolder and more decisive action' than the Bush administration has been willing to take.

The financial meltdown has so far seen three major financial institutions close their doors and the US government nationalize one to try to stabilize the problem. Obama said that the crisis threatens the whole economy, not just Wall Street.

Obama endorsed the actions of the Federal Reserve and the Treasury Department to stabilize the markets and maintain credit, but more must be done he added. 'I am glad that our government is moving quickly to address the crisis,' he noted. 'But a similar crisis has threatened families, workers and homeowners for months and months and Washington has done far too little to help.'

'[W]e cannot only have a plan for Wall Street. We must also help Main Street as well,' he stated.

After eight straight months of job losses, the unemployment rate is at a five-year high. And Treasury Department Secretary Henry Paulson told the media this morning that as many as 5 million homeowners are right now delinquent on mortgage payments or are in foreclosure.

'For too long,' Obama continued, 'this [Bush] administration has been willing to hit the fast-forward button in helping distressed Wall Street firms while pressing pause when it comes to saving jobs or keeping people in their homes.'

While Obama made no overt comparison to the Bush's administration's woefully inadequate response to Hurricane Katrina and its response to the economic crisis, other commentators are likely to make the connection.

Because the financial crisis has taken such a turn, he suggested, the impact on an already struggling middle class will be much harsher, and solutions that address their needs must be part of the discussion.

'We need a more institutional response to create a system that can manage some of the underlying problems with bad mortgages, help homeowners stay in their homes, protect the retirement and savings of working Americans,' he stated.

Obama proposed that a comprehensive solution to the crisis would include an economic stimulus package for working families. 'Now that American taxpayers are being called on to share in this new burden, we must take equally swift and serious action to help lift the burdens they face every day,' he said.

In a separate campaign memo released yesterday, Sept. 18th, the Obama camp outlined key features of Obama's response to the economic crisis. The memo proposed rewriting federal bankruptcy and mortgage lending laws to help homeowners stay in their homes. In addition, the campaign called for aid to the states to prevent the need for tax increases and more budget cuts for health care programs or schools. Obama sought new investments in rebuilding the infrastructure in order to create new jobs, accompanied by a tax cut for 95 percent of working families.

Obama argued that the crisis stemmed from 'a philosophy in Washington and on Wall Street that viewed even common-sense regulation and oversight as unwise and unnecessary; that shredded consumer protections and loosened the rules of the road.'

'CEOs and executives got reckless,' he added. 'Lobbyists got what they wanted. Politicians in both parties looked the other way until it was too late. And it is the American people who have paid the price.'

For his part, John McCain has long-identified himself with the philosophy of deregulation and as being on the side of CEOs. According to media investigations, John McCain's campaign is staffed by as many as 177 Washington lobbyists from various special interests, including banking and insurance, big oil, foreign governments, and telecoms. Each of the industries represented on the McCain campaign have sought deregulation, government subsidies and tax loopholes, and special favors. In addition, John McCain has repeated 16 times during this campaign that the 'fundamentals of the economy are strong.'

Obama closed his speech with a call to unity and for better leadership. 'I know there are a lot of families out there right now who are feeling anxiety – about their jobs, about their homes, about their retirement savings.'

But, Obama added, 'here’s what I also know. This isn’t a time for fear or panic. This is a time for resolve and for leadership. I know we can steer ourselves out of this crisis. That’s who we are. That’s what we’ve always done as Americans.'