Today on the presidential campaign trail
The Associated PressIN THE HEADLINES
Opposed to taxpayer bailouts, McCain says govt 'forced' to propose $85 billion plan for AIG ... Obama pitches voters on economy in national ad ... Biden says it took a crisis in financial sector to convince McCain that economy is in trouble ... Clinton avoids Palin, focuses on McCain ... Wall Street gives generously to Obama, McCain ... Michelle Obama says husband's policies will focus on families
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McCain says government 'forced' to bail out AIG
ORION TOWNSHIP, Mich. (AP) — Republican presidential candidate John McCain, a day after flatly rejecting the idea of a taxpayer bailout for American International Group Inc., said Wednesday that the government had been "forced" into proposing an $85 billion loan to the nation's largest insurer.
McCain appeared to soften his opposition to the bailout by the Federal Reserve, treating the plan as a necessary evil to protect those with financial ties to AIG — and asserting that such a financial collapse should not be allowed to happen again. He also called for an investigation to uncover any wrongdoing.
"The government was forced to commit $85 billion," McCain said in a statement. "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."
"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," he added. "We must not bail out the management and speculators who created this mess."
Democratic rival Barack Obama blamed the Republican anti-regulatory fervor of recent years for part of the mess, saying the crisis is "a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary."
Neither candidate said how regulation should be improved.
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Obama buys 2-minute commercial on economy
BEVERLY HILLS, Calif. (AP) — Barack Obama sought to put a personal stamp on his economic policies in troubled times, appearing Wednesday in a two-minute television commercial to outline his plans and caution it won't be easy to fix the nation's worsening financial problems.
The new ad was to be broadcast nationally in the wake of one of the worst periods on Wall Street, after the bankruptcy of Lehman Brothers and the takeover of Merrill Lynch on Monday, followed by the Federal Reserve's extraordinary $85 billion rescue of insurance giant AIG Inc.
Obama's point is that people don't have to read the papers or watch TV to know the economy is struggling.
"Six hundred thousand Americans have lost their jobs since January. Paychecks are flat and home values are falling. It's hard to pay for gas and groceries and if you put it on a credit card they've probably raised your rates," Obama says.
"You're paying more than ever for health insurance that covers less and less," he said. "This isn't just a string of bad luck. The truth is that while you've been living up to your responsibilities, Washington has not. That's why we need change. Real change."
The ad is set to air in Pennsylvania and 13 other states.
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Clinton avoids Palin, focuses criticism on McCain
NEW YORK (AP) — Sen. Hillary Rodham Clinton is avoiding a public face-off with Republican vice presidential candidate Sarah Palin while still raising money and votes for the Democrat who wrested the presidential nomination from her.
Advisers to party nominee Barack Obama and Clinton say she will resist pressure to speak out against Palin, believing it would diminish her own stature while creating a sideshow that would only distract voters from the contest at the top of the ticket. Any mention Clinton makes of Palin will only be in the context of her partnership with GOP nominee John McCain, aides said.
The New York senator abruptly canceled an appearance at a rally protesting Iranian President Mahmoud Ahmadinejad after learning that Palin had also been invited to the event scheduled next week outside the United Nations. Clinton spokesman Philippe Reines said Clinton was never told the Alaska governor would be there.
A spokeswoman for Palin, Tracey Schmitt, said of Clinton's cancellation: "Gov. Palin believes that the danger of a nuclear Iran is greater than party or politics."
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Biden says Wall Street woes awoke McCain to crisis
MAUMEE, Ohio (AP) — Democratic vice presidential candidate Joe Biden said Wednesday it took a financial crisis on Wall Street for Republican John McCain to realize the U.S. economy is in trouble.
"Where was he a week ago, a month ago?" Biden asked as he campaigned in suburban Toledo.
The Democratic campaign of Barack Obama has been relentless in criticizing McCain on the economy, trying to depict him as out of touch when he says the "fundamentals" of the economy remain strong.
McCain spokesman Ben Porritt dismissed Biden's talk. "No matter how fiery the sales job, Ohio voters prefer John McCain's maverick record of reforming government and fighting for change," Porritt said.
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Battered Wall Street gives to Obama, McCain
WASHINGTON (AP)_ Some of John McCain's and Barack Obama's biggest fundraisers are executives from the stricken financial services industry, which will need all the help it can get from whoever wins the White House.
Merrill Lynch & Co.'s chief executive, for example, has raised more than $500,000 for McCain's campaign. Obama has received at least $1.5 million collected by three senior executives at Lehman Brothers.
McCain and Obama each are considering how to avoid future collapses and the need for further costly government bailouts, steps that may include tougher banking and investment regulations. But executives from the same companies in the cross hairs of such decisions are helping these candidates get elected.
Obama is promising more regulation, as is McCain, and if the winner of the November election acts on the tough talk, a battle with banks, securities and investment firms and insurance companies could follow.
The tough talk is coming from candidates who have fueled their campaigns with Wall Street money.
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Michelle Obama holds women's economic talk
RICHMOND, Va. (AP) — Michelle Obama said Wednesday people are looking for policies to help them in their everyday lives, but do not expect government to have all the solutions. She said her husband's policies will focus on families.
"As president, Barack is determined to change Washington so that instead of just talking about family values that we also work to develop policies that actually value families," she said to applause.
Michelle Obama promoted her husband's plans on taxes, health care and paid sick time for workers to a group of about 170 people, most of them women. She also asked for their support.
"We are so close," Michelle Obama said. "We have the opportunity to make change. Women's votes will make the difference in this race."
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DAILY TRACK
Democrat Barack Obama and Republican John McCain are running even — Obama has 47 percent to McCain's 45 percent — among registered voters in the presidential race, according to the latest Gallup Poll daily tracking update.
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THE DEMOCRATS
Barack Obama campaigned in Elko, Nev., before heading to a rally in Las Vegas.
Joe Biden talked to voters in Maumee, Ohio, and planned to stop in Wooster, Ohio.
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THE REPUBLICANS
John McCain and Sarah Palin are scheduled to hold a town hall meeting in Grand Rapids, Mich.
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QUOTE OF THE DAY:
"Industries sink their tentacles into these candidates." — Taylor Lincoln, on the presidential candidates accepting money from Wall Street. Taylor is a research director at Public Citizen, a nonpartisan watchdog group.
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STAT OF THE DAY:
Eighty percent of respondents in a recent AP-GfK poll say Republican John McCain, with nearly three decades in Congress, has the right experience to be president. Just 46 percent say Obama, now in his fourth year in the Senate, is experienced enough.
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Compiled by Ann Sanner.