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Press reaction to bailout | UK banks could benefit | US critics gloat | Gerard Baker
The Wall Street bailout threatened to swamp the US election last night as John McCain abruptly left Washington to face Barack Obama in his first presidential debate, with a planned $700 billion rescue deal teetering on a knife-edge.
The Republican nominee appeared to blink first in a game of the highest stakes as he raced down to Mississippi for the debate. He had previously pledged to remain in the capital until a deal to save the banks was agreed.
The presidential campaign was overwhelmed by the turmoil raging in financial markets as America’s political leadership was stalked by the fear of failing to agree a deal — and of a voter backlash if they did agree one.
President Bush admitted yesterday that "we got a big problem" as the bailout’s prospects see-sawed.
He told Congress and rebel Republicans that they must move quickly to avert an economic catastrophe. "There are disagreements over aspects of the rescue plan but there is no disagreement that something substantial must be done," he said.
Mr Bush later held crisis talks with Gordon Brown, who assured him of Britain’s support for the bailout plan, "whatever the details". Mr McCain’s retreat from Washington came as Democrats claimed that his intervention in negotiations on Thursday had wrecked an outline deal, with a White House meeting between congressional leaders, presidential candidates and Mr Bush descending into a shouting match.
Hank Paulson, the US Treasury Secretary, was later reported to have resorted to getting down on his knees as he pleaded with Nancy Pelosi, the Democratic House of Representatives Speaker, to help him to save the deal.
But the mood on Capitol Hill may have shifted with the overnight collapse of the Washington Mutual Bank concentrating minds.
Republicans, who have pushed an alternative insurance-based scheme, insisted they were not being obstructive and Democrats talked of a deal being done before markets reopen on Monday.
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this is a much deeper systemic problem than a "bail out". it is about an economic frame of mind that has its roots in all our hearts. take care of myself and let the weaker and dumber people deal with things as best they can.
fixing it means letting it bleed out, unfortunately.
rodney, elmont, usa
Does the American people not understand that if this deal doesn't go through, we will be paying a much higher price than what the government is asking us to pay. There should definitely be regulations, government ownership, and salary caps. God Has Blessed Us, Greatly !!!!
Stacy, Linconton, USA
So McCain's solution to our financial problems is to cut government spending? Recall that was Herbert Hoover's response to the market crash of '29, which turned a burst stock bubble into the Great Depression
Allan A, Oakland CA, USA
Learn how this situation was created;
Plausible deniability? by Dr. John R. Lott Jr. 9/22/08
Then understand McCain had nothing to do with it while NObama was missing in action.
Chris, Colorado,
John B - I think you'll find it was McCain who'd prepared copy declaring himself the debate's winner in advance, and released while he was still refusing to take part.
Kate, Southampton, UK
A proper president should be ready to act courageously for the sake of his country like a man chopping off an own gangrenous leg or arm to save himself. It appears Bush, McCain or Obama not to be such men.
Alexey, Moscow,
So we have a VP potential who fumbles every time she opens her mouth teamed with a man who could not even look Obama in the eyes. Some contest. McCain pulled the sympathy string at the end as he knew he had been weak.
Red neck support will not vote Obama - more likely string him up as they used to.
Paulo, London,
Americans should gather up buy up GOLD and wait it out. Got a patch of ground start planting your own vegetables, Don't buy anything new, start to recycle, brew your own. Invest in some Solar panels, some generators. Keep chickens. Don't pay any property tax tell the government to take the bail out.
Daphne Kenward, Cambridge, UK
McCain was visibly the stronger more experienced candidate. Obama obviously studied his lines. Sorry Obama you can' t study for a month before each presidential decision. McCain is our choice. Obama keep studying!
Jan, OHIO,
Americans are seething. Now more and more the question is being asked: "Who are we going to hold the most accountable?"
In the US McCain has been the champion of de-regualation the 'free market's.
It is all coming to roost on the greedy, incompent Republican Brand. It is dead.
Ken Humphrey, Emerald Isle, NC, USA
Does noone realise that this deal is ACTUALLY the least of two evils? Western economies are all linked and primarily based on the financial institutions. If this deal doesnt go through then all other industries will have no money to continue working either and the entire global economy will collapse
lee, Congresbury, England
They just sold a couple of generations of working class American youth into slavery to the Chinese and the Arabs who are holding the US debt in their coffers... Or forced them to become hired guns in the US military as the only way to make a living.
Peter, Vincentia, Australia
McCain wants to do something whilst Obama wants his big debate.Does Obama realize he is not still at Harvard winning accolades for winning debates. This guy ought to get real and so do Americans and realize that he is a big talker ONLY.
Gene, Sydney,
We can be sure The Times has its "Obama hands-down winner in debate" story already written.
John B, Middlesbrough, UK
Bunk!
Dem(s) complained that he would try to play politics and avoid debate and play-up the crisis, then after crisis seemed to have been resolved by a coalition, he headed to debat. But, these bogus newswires are just liberal gibberish
Rx, DC, USA
Palin's selection as the VP followed by the actions taken during the economic termoil demonstrates that Mr. McCain lacks what it takes to be a President. With two conflicts raging in the world, his tendency to be confrontational and impulsive should be a concern to the voters.
Mac Qurashi, Leesburg, FL, USA
Even Bush will find Prudence a complete waste of time. Brown has single-handedly bankrupted the UK through an economic miracle fuelled by crippling levels of personal and government debt. Brown's definition of transparency is the hiding of more than £100Bn of PFI debt from the public accounts.
Melchet, Edinburgh, UK
As an 'audition' for the U.S. presidency:
McCain gets 1. Obama, 9.
SanYing, Montreal, Canada
Bush is a politician who thrives on putting fear into voters.
But he cannot fight a real war, he is no Churchill.
Bush is not a peacetime politician either, his lack of intellect meaning that he is unable to understand how to deal with financial and other problems.
Hence the mess we are in
K. Urban, London, UK
US government is BROKE. From where is this $700 billion is going to POP UP from? I think that there is another SCSM is on in the name of BAIL OUT to rob US TAXPAYERS.
Long Live America.
Uma Shankar, UK,
Like an old dog limping home with his tail between his legs. Sad. Nice to know most Americans saw it as a sham and called him on it.
Sid, Seattle, USA
This is certainly seen as a Republican Frankenstein - McCain's supporters may cash in their chips before being deep-fried by the Democrats.
Pam, Wirral, UK
If the US agrees to this reward for failure, America will forever be the laughing stock of the world.
Tom Franklin, London, UK
It is now becoming obvious that McCain is just a buffoon, no wonder he has had to wait for nearly 30 years as an undistinguished Senator before getting any preferment.If he wins against the honourable but inexperienced Obama we had better watch out! Especially if he then leaves Mrs Palin in charge.
JOHN WALKER, London , UK
And so the American people are to be sold down the river, and by the very men who are meant to be protecting them.
What a disgracefull state of affairs, instead of the BANKERS having to suffer/pay for their mistakes, THE LOWLY WORKING MAN WILL HAVE TO PAY/SUFFER INSTEAD.
CIGAR/BRANDY ANYONE.
Andrew, Haworth, England
John 'Mr Burns' McCain is a ticking time bomb for world peace and economic stability.Him and Palin are a recipe for disaster .Third term for Bush behind closed doors.It's so sad.
g, london, U.K
McCain was right, not to allow this bail out to go ahead. But what he should have done is continue with his debate. And say no decision would be made till after the election. But the fatc is out there McCain is a part of the system which got America in the mess it is in. Obama had no part of it.
Daphne Kenward, Cambridge, UK
McCain & Obama should read the history books. Faced with a similar plea for involvement in the crisis from the outgoing President Hoover, Roosevelt refused to get involved and went fishing and commenced his first 100 days as President with uncompmised freedom of action to attack the financial crisis
Peter Murray, Kenmore, Australia
The Democrats have a majority in both the House and the Senate, and could pass Bush's proposed bill without any Republican support at all. But they all know the American people are against it, 3 to 1, and so need Republican support as "cover" if it fails. McCain simply called their bluff.
Russ Armstrong, Becker (pop 2600), Minnesota, USofA
House Republican Whip Roy Blunt of Missouri in an interview on MSNBC said John McCain's involvement in the discussion yesterday ``stopped a deal from finalizing.'' McCain, in his arrogant, flailing attempts to regain momentum, is making a mockery of this election . McCain's new slogan-"Me First"
jefflz, San Francisco, USA
Did GB really say that "Britain" would support the other GB on the bailout "whatever the details"? That's as bad as Blair saying Britain (ie he) would support Bush on invading Iraq "whatever the details". Doesn't Brown understand Hegel's point about the lessons of history?
Lizzie Walls, Edinburgh,
Of course we'll bail everyone out. Personal responsibility is dead in this country. If u work and pay your bills youre a fool. Better to be a deadbeat and just let the government(taxpayer) foot the bill. We 're on our way to being a socialist state. Womb to tomb control by big government. Cheers.
Al, Cburg, USA