Tuesday Morning: Economic Plans Abound; McCain Returns To Form; And Vindication Semantics

Good morning, hope you all had a tremendous holiday weekend (and happy Thanksgiving to all you Canadians out there). THREE WEEKS OUT!

The country's financial situation remains perilous and confusing. Yesterday the Dow jumped more than 900 points (about 11%), posting the biggest one-day point gain ever and spurring similar gains in Asian and European Markets. The bounce likely stemmed from promises of market aid from central banks and governments worldwide. But while yesterday's news was certainly an improvement over the previous week's staggering losses, the enormous volatility in the market is still nervous-making for economists, politicians, and anyone who likes to buy things with money. This morning President Bush officially announced further programs to try to stem the country's financial slide. The plans he proposed include allowing the federal government to purchase equity shares in banks; government insurance for new bank debt and for the non-interest-bearing accounts primarily used by small businesses; and a proposal that has yet to be detailed allowing the Federal Reserve to buy commercial paper (a type of short-term IOU issued by businesses).

Meanwhile, the Presidential candidates are furiously proposing their own economic rescue plans.

In a speech in Toledo yesterday, Barack Obama announced a new rescue proposal that would provide tax credits to businesses that create new jobs; allow limited penalty-free withdrawals from retirement accounts; and implement a 90-day moratorium on home foreclosures. Today in Pennsylvania McCain will outline his proposal, which builds on the controversial mortgage rescue plan he announced during last week's debate. The new elements of McCain's plan focus largely on tax relief: cutting taxes on seniors using retirement accounts; eliminating taxes on unemployment benefits; reducing capital gains taxes; and accelerating write-offs for market losses.

Maybe the candidates will take advantage of tomorrow's debate to thoroughly hash out the relative merits of their two proposals instead of just slinging half-true barbs about the other guy's plan? Hey, a gal can dream...

On the political front, McCain seems to have shifted his rhetoric after last week's full frontal assault on his opponent's character and purported dangerousness to the country. Yesterday he switched to distancing himself from the current administration and talking up his biography as a fighter for America. He also portrayed himself as a scrappy underdog. Via the LA Times:

"Sen. Obama is measuring the drapes and planning with Speaker [Nancy] Pelosi and Sen. [Harry] Reid to raise taxes, increase spending, take away your right to vote by secret ballot in labor elections and concede defeat in Iraq," McCain said, offering his slant on the Illinois senator's positions. "But you know what they forgot? They forgot to let you decide. My friends, we've got them just where we want them."

The NYT's Elisabeth Bumiller calls the speech a throwback to "the more positive message of the old 'happy warrior,' his image during the primaries" and says campaign aides indicated that McCain is likely to stick with this tactic through the final campaign push. Will the tactical shift win back some independents who have recently turned against the more hard-edged McCain or shore up the Obama camp's claims that he is "erratic"? And is three weeks enough time to rehabilitate his tarnished image as a high-minded politician?

And finally, shortly after we went offline on Friday, the legislative panel investigating Sarah Palin's Troopergate scandal released its report. The panel found that Palin was well within her authority to fire Public Safety Commissioner Walt Monegan for any reason or no reason. But it also noted that Gov. Palin and her husband Todd behaved unethically in pressuring Monegan and others to fire State Trooper Michael Wooten, Palin's former brother-in-law. Palin's response: "I'm thankful that the report has shown that there was no illegal or unethical activity there in my choice to replace our commissioner." Sample quote from the report: "Governor Sarah Palin abused her power by violating Alaska Statute 39.52.110(a) of the Alaska Executive Branch Ethics Act." The Anchorage Daily News editorial board goes to town on Palin's seeming misinterpretation of the findings this morning, describing her claims of vindication as "Orwellian". The editorial says Palin's behavior wasn't "impeachable" or "indictable" but was nonetheless inappropriate, and excoriates her for not taking responsibility for her actions.

-- Evie Stone

10:30 AM ET | 10-14-2008 | permalink

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