The McCain Leadership Factor & Obama's Decision

Today John McCain showed what it meant to put country first.

He put everything on the line to try to put together a bipartisan sizable economic package to replace the failed Paulson bailout package.

This is the greatest single act of responsibility ever taken by a presidential candidate and rivals President Eisenhower saying, ‘I will go to Korea.’

Every House and Senate Republican should join him in seeking the best ideas and the best solutions from across the country.

This is the day the McCain-reform Republican Party began to truly emerge as a movement which puts country first, solutions first, and big change first.

If House and Senate Republicans can help McCain put together a three part economic package history could be made.

We need: an economic growth component; an energy solution; and a work-out (not a bail-out) for the financial sector.

If McCain can develop this plan, bring enough Democrats to support it to get passage, and then convince President Bush to sign it, this will be one of the most amazing achievements in the history of presidential campaigns.

It will also be a great service to the country and proof of what putting country first really means.

***UPDATE ON SEN. OBAMA'S DECISION NOT TO SUSPEND HIS CAMPAIGN

As Speaker of the House, I know what being in deep negotiations is and what it takes to get members in Congress to get something done. We were able to work through welfare reform and a balanced budget. Let me just tell you first hand, what Senator McCain is proposing will take extraordinary hard work and it is going to take many long hours.

It is surprisingly irresponsible and politically dangerous for the Obama campaign to try and insist on a debate Friday night.

While both of these men are candidates for president, they are still both currently serving as United States Senators. The American people, in this kind of economic situation, want to see their elected leaders working to solve this crisis, not debating. They want this problem fixed and that will mean getting real bipartisan agreement. .All members on both sides in both houses including Senators McCain and Obama are going to have to roll up their sleeves, sit down, listen to each-other, and work very hard to get it done.

I’m not sure Senator Obama has ever participated in a crisis of this magnitude at this level, but he should set aside politicking and commit to working with Senator McCain to find a solution to this problem.

The economy can’t wait, postpone the debate. We can get back to talking later. For the moment, let’s produce a real solution for America.

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By Anonymous @ Wednesday, October 08, 2008 11:26 PM

Newt
If McCain doesn't listen to you and O'Reilly and follow your advise he will lose'
He has to show some anger and emotion and he has to do it now !!!!
Jack Greiner Wacoway@Hotmail.com

By dvb @ Monday, September 29, 2008 10:00 PM

Who are the companies that will receive these bailout dollars ? Anyone know? Why are the names kept secret?
I suspect they are NOT "Banks" at all but Wall St investment houses.
BTW, several of the troubled "Banks" have already been purchased by BOA, JP Morgan and Citi. Are they anticipating an inflow of taxpayer dollars to fund these aquisitions. If so, I would prefer doing my own stock purchases and so can Dodd, Frank and the others.

By Anonymous @ Monday, September 29, 2008 12:57 AM

If it is we that value ourselves, and a system delegated to the states for assessing value to a community's "stake" in the great American dream is left to our local real estate development, zoning, and regulatory bodies having accepted such a fate to the spending and growth policies of its participants.

Should these assessments become a baseline c-note of value on ourselves and "we" may have supported overextending the growth patterns and migrations of society, then it is these local bodies that may become affected by man's greed and avarice.

Funding/loaning at lower interest rate levels well into a potential surplus pre-inflationary atmosphere allows moderated growth to move back to these areas. Through supporting local/community banking and allowing these entities to continue to service their communities, local governments may potentially take advantage from principal pre-payment on previously securitized long-term municipal bonds with higher rates.

Historical 30-yr mortgages average in the range of 8.25%, however are not “standardized” on the prime rate, but rather on Libor, which lends us the ability to strengthen the viability of the previously secured loan collateral/asset against any further reductions in “value” as the dollar strengthens against international currencies and allowing us to better balance the budget in advance of increasing inflationary pressures.

Any redemptions of securitized “assets” or born interest on the “assessed” would allow local failures to lessen, resulting in leveling the “associated citizens” previous valuations of their surroundings. These funds can be used to help support the multitude of civic embodiments, including education, social outreach, recreation and community parkland initiatives, thereby increasing the value of each respective community going forward.

A pending home sale vs. any potential for benefiting a realized "gain in liberties" through the receipt of any interest payments from the bridge-loan, which can be used to cover overhead and any insurance associated with the “assessed” and provide us a period of pause, which can then be used to moderate the value we all place on ourselves.

You build it and they will come….eventually.

By Anonymous @ Sunday, September 28, 2008 7:59 PM

Why dd Congress not provide authority for Treasury to pay the local taxes on assets they buy that have non-performing mortgages? Who knows how many assets will be seized by local taxing authorities and auctioned off. This will make the securities the Treasury buys worth far less then they expect.

By Anonymous @ Sunday, September 28, 2008 4:03 PM

MaCain needs to understand: fiscal conservatives will not tolerate 8 more years of liberal Republicans coercing conservatives into voting for fiscal and socially liberal policies. We are DONE. I will sit this election out.

By Anonymous @ Sunday, September 28, 2008 1:03 PM

McCain needs to NOT back the democrat bill NEVER NEVER He needs to do what you suggested and a lot of my friends and volunteers believe this. He should NOT swallow hard this could make or break the campaign. Your GOPAC should ge the truth about Obama out. His taking the American flag off his plane his meeting in Iraq trying to stall an agreement till after the election his social istic views if you don't why have GOPAC in the first place. The republicans need to know that the people do not want the democrats bill in anyway. They have said this the phone lines are full. All the republicans on the hill need to say you have YOUR bill vote we all know the do not need the republican vote stand up be really strong tell all your friends on the hill they had better listen or we will have another 2006 and Obama will be pres. We didn't vote in 2006 and if the republicans don't show some back bone we all will let the chips fall were they may. I hate Obama but if McCain can not handle the majority of the Democrats he should not be in DC as pres.

By Anonymous @ Sunday, September 28, 2008 1:36 AM

These are videos proving that it was the democrats that let his happen Then knew in 2004 and it also shows that you tried to warn them. Also something that Obama is doing now.
Go to youtube and C-span hearing on Fannie mae Freddie Mac. if these will not pull up but you have to see them all

http://www.kmov.com/video/index.html?nvid=285793&shu=1

Obama campaign cracks down on misleading TV ads
September 23rd, 2008
The Barack Obama campaign is asking Missouri law enforcement to target anyone who runs false ads He is a Christian and wants to cut taxes.
Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis
http://www.youtube.com/watch?v=_MGT_cSi7Rs

http://www.youtube.com/watch?v=H-_HlpZ8azA

http://www.youtube.com/watch?v=usvG-s_Ssb0
http://www.youtube.com/watch?v=H5tZc8oH--o

http://www.youtube.com/watch?v=63siCHvuGFg

http://www.youtube.com/watch?v=9nU3fNh-PRk

http://www.youtube.com/watch?v=G7VrvxJ1HxU

http://www.youtube.com/watch?v=gXXX9gR9K6E

By Anonymous @ Saturday, September 27, 2008 1:22 PM

If Obama is so smart, what evidence would he need as president to go to war. As far as I know, all governments and all intelligence said that Iran had weapons of mass destruction. The UN resolutions kept mounting against Iraq and we had to act. In fact almost every person in congress voted to go to war. Since Obama was one of the only holdouts, maybe he had bad judgment.

As president, would he use intelligence and advice to go to war, or would he go to war on a feeling. I believe even though the decision on WMD were incorrect, at the time of decision, what would a prudent president do? I am tired of everyone running away from a unanimous decision that appeared correct based on every aspect of a correct decision. History is full of mistakes made by presidents and people in charge.

If all information was known, including how history recorded actual events, no mistakes would ever be made. I am sick and tired of prognosticators of the war.
Thank You
Dr. Frank

By Anonymous @ Saturday, September 27, 2008 10:21 AM

Well, my first time on a blog! On the recent events, I would have liked to have seen the following:

Let Sarah Palin fill in for McCain at the debate. It could have quitened critisim of her, and left John free to continue the nation's business. Short of that, I would have preferred he show up via tele conferencing.

On the bailout, I believe we should take a step back and see the bigger picture. Rather than bailing out the financial firms, adopt the suggestions noted on Newt.org that do not require public spending like the temporay adjustments to accounting standards. Then, if we still need more help spend the dollars on something that would help the country long term. My suggestion is a civil works projects that would build the pipeline structure necessary to convert a significant portion of our energy sector from oil to natural gas. This would provided a return on investment every year (i.e. stimulus to the economy), not to mention drive down the price of oil around the world, lowering inflation and limiting funds for those who hate us. The bailout is a help in year one, but payout for 30 years.

Another reason for this option? Do you really think any monies recovered in the out years by selling properties/mortgages will actually be applied to the debt incurred to buy them in the first place? History says it will just be a slush fund for new government programs that require no new taxes (until the new program becomes a new entitlement).

Who is on board with this plan???

By Anonymous @ Friday, September 26, 2008 8:30 PM

Newt, I think that you should be running for President. I know that you must steering your course in ways that I do not know, but your veiws are the same as mine and the country needs you.

By Anonymous @ Friday, September 26, 2008 4:50 PM

I find it intriguing that Politicians and Media types recognize the $700 billion proposed to bail out Wall Street is “taxpayer” money. I have even seen that figure broken down as “cost per family.” In response Americans have risen up in outrage. Now I wonder if those same Politicians and Media Mouths will do the same when it comes to adding up the trillions of dollars Senator Obama’s proposed new spending will cost American taxpayers. How much will that add up per family? Better yet, make that how much per taxpaying family. Going one step further, wouldn’t it be nice if Washington could bring itself to acknowledge ALL government spending, including those infamous earmarks, is taxpayer money?

By warussell @ Friday, September 26, 2008 4:40 PM

Newt, you are a genius. My husband and I wish you would run for president. We have contacted all of our congressman and begged them to NOT support this bailout. We love your ideas. We love McCain/Palin. We are praying for this country. Keep fighting for this cause, continue your work speaking on every show you can. We are blessed to have your voice. Thank you Mr. Gingrich

By hopspusher @ Friday, September 26, 2008 4:30 PM

Mr. Speaker, I saw you last night on H&C and prior to your appearance, was dismayed by the news of the day leading up to your segment. While I have always had respect for you and valued your opinion...your 10 minutes had me pumping my fist in the air! Thank you for telling it like it is...and reminding Americans of how it should be with clarity.

By Anonymous @ Friday, September 26, 2008 3:43 PM

I recently got an e-mail from a good buddy of mine. He has an idea that is just wacky enough to actually work. His name is Ernie and his e-mail is below.

I’m against the $85,000,000,000.00 bailout of AIG.

Instead, I’m in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend".

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child.

So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend". Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

• Pay off your mortgage – housing crisis solved.

• Repay college loans – what a great boost to new grads • Put away money for college – it’ll be there • Save in a bank – create money to loan to entrepreneurs.

• Buy a new car – create jobs

• Invest in the market – capital drives growth • Pay for your parent’s medical insurance – health care improves • Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG –

• liquidate it.

• Sell off its parts.

• Let American General go back to being American General.

• Sell off the real estate.

• Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can "never work." But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 billion

We deserve the "We Deserve It Dividend" more than the geniuses at AIG or in Washington DC.

And remember, The Family plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest

By turtlehead @ Friday, September 26, 2008 3:38 PM

Of course they both absolutely needed to be there. Even if just flies on the wall, one of them (McCain) needs to have a full understanding of what decisions are made and how it all goes down. They can't do that from a cell phone in Mississppi (nObama).

By Wally @ Friday, September 26, 2008 10:00 AM

Another Great Idea and Possible Solution by an American Serf. This time by Michael Lesher. Super! Thanks.

By jmichaellesher @ Friday, September 26, 2008 9:06 AM

I still don't quite understand why no one has come in and said one word on the Federalist Republic idea of home/real-estate assessment values which are established at the state and municipality levels. We need taxation WITH representation and for the media to say that these CDOs, CDSs have no intrinsic "mark-to-market" value makes no sense to me. There IS a baseline market value on these properties; it's called a local assessment value, which is used to pay for local schools, etc.

Why can't the Republicans come out and provide an amendment to this bill for permanently establishing "market-value" in the form of local jurisdiction assessment values that post-reverse auction can be "settled" on value on this simple premise.

If local assessment values are overstated, then we have a situation of taxation without representation, which is a core fundamental level of rights that we have as citizens of this great country.

In my opinion, we need some clarity on this short-term, get this in writing and down before Saturday and move-forward on the longer-term solutions to address govt ownership in these companies (warrants vs convertible preferred shares) and the regulatory enhancements that will compliment a money center bank model going forward.

By wwillard @ Friday, September 26, 2008 4:34 AM

One thing that would really jump start the economy would be for Congress to repeal capital gains taxes for 48 months. Can you imagine the billions of dollars that would come out of the closet and enter the marketplace.

By Anonymous @ Thursday, September 25, 2008 11:17 PM

Newt - Great job in your analysis and proposals. I hope McCain employs them as the centerpiece of the solution to be presented Friday. Friday evening McCain can "close the deal" and leave Obama in the dust. I forwarded your proposal/email to friends who are Obama supporters - and guess what - you have won them over! Let's hope reason wins out - and put America First!

By Anonymous @ Thursday, September 25, 2008 9:26 PM

Speaker, I just watched you on H&C and saw you last night on Greta, and ALWAYS find you the smartest man in the room. You're the only one who seems to understand what McCain understands, that this plan needs major revision. McCain is LEADING the GOP in trying to broker a better deal for Americans. Please call get YOUR ideas to McCain! The nation needs your help here!

By Wally @ Thursday, September 25, 2008 7:51 PM

Bravo Mr. Speaker. I Pray & Hope that You Are Correct. You Probably Are.

I have, unfortunately, lost All Faith in 90% of Washington including The President, The President's Cabinet, The Senate Led by Democrats and the Nancy Pelosi side of the House.

Without Hope, I still pray that it plays out in Washington as you indicate - ushering in a New McCain-Reform Movement in Washington.

Washington is Broke - Send In McCain-Palin.

By Anonymous @ Thursday, September 25, 2008 6:39 PM

Sorry Mr. Speaker, but it is of my humble opinion that we need to let the free market fall where it may. I smell corruption that has been brewing long and strong. Our country is going to regret bailing these private companies out. There will be investigation after investigation and it's likely the culprits will be long gone before anyone's the wiser!! Suckers!

By Anonymous @ Thursday, September 25, 2008 4:00 PM

Any Future Proceeds From Bailout Should Go to Shore Up Social Security Trust

There has been a lot of consternation among Republicans that the mortgage bailout amounts to Socialism. I agree in principle, but there may be a way to make this work for all of us. We the People are collectively taking a risk by purchasing ailing securities and financial institutions. When the economy turns around these assets may be worth substantially more than their current, depressed value. Any proceeds or profits derived from eventually divesting these assets should go directly toward shoring up Social Security.

By Anonymous @ Thursday, September 25, 2008 12:46 PM

I strongly commend McCain's actions to suspend his campaign and put his country first, as always... but what assurance do we have that the work out plan that is being outlined will calm the markets and keep us from heading straight into a frightening recession? Has anyone talked to Bernanke and Paulson about this? The bail out will not actually cost us 700 billion dollars in the long run after we sell some of the assets when the markets stabilize... I don't see anyway around this plan given the urgency of the situation and it seems unwise to rally the Republican base against McCain if he supports it, as some have suggested may happen... what is the alternative, an Obama presidency?

By Anonymous @ Thursday, September 25, 2008 11:48 AM

Newt. Regarding McCain suspending campagne activity, you describe it as the "greatest single act of responsibility ever taken by a presidential candidate."
Its great to see how consistent you are: You are as stridently partison and biased as you were as Majority Lead. And you are just as full of shit as you ever were. Congratulations. - Bill

By LB @ Thursday, September 25, 2008 8:17 AM

Newt,

The country needs to meet Obama's staff and decisionmakers that obviously will be running the country under his administration. He was unconcerned or unaware of the gravity of the situation but made it clear yesterday that nothing ruffles him because he is not going to be involved. FYI: One of his deputy directors for media is Josh Orton, who is also political director for Netroots (as of July 2008). See: www.netrootsnation.org/downloads/program/NN_Program_2008_lores.pdf
Pelosi was a scheduled speaker at this event and brought Al Gore. See: http://getsatisfaction.com/netrootsnation/topics/pelosi_gore_bait_and_switch_perfomance

By ladymcbeath @ Thursday, September 25, 2008 2:24 AM

Newt, you say "to replace the failed Paulson bailout package". Has it failed then? Thank God! You wouldn't know by listening to the President tonight. If there was a time for McCain to do the Maverick thing and go against the President, this is it! Btw, Obama sounded like a fool today. "Call me if you need me" indeed! That's ok, Senator, you just keep giving your speeches. The grownups will handle this.

By paulwilkerson @ Thursday, September 25, 2008 2:11 AM

Newt,

Please post what we can do to help get your great ideas to Sen. McCain in time. Are you advising him?

By Anonymous @ Thursday, September 25, 2008 12:46 AM

We see through this trick. Nice try but I don't think it is going to work. We are not that stupid. We weren't going to vote left but we will now becuasue you think we are stupid!

By Anonymous @ Thursday, September 25, 2008 12:28 AM

What is the possibility of a tax payer strike against this bailout?

By Anonymous @ Wednesday, September 24, 2008 11:32 PM

Dear Mr. Speaker,
I want to know why you are not running for President. This election is a joke!! I think of better leaders.

By Anonymous @ Wednesday, September 24, 2008 11:30 PM

Sorry folks,
I did not make grammatical fixes.

By Anonymous @ Wednesday, September 24, 2008 11:28 PM

Dear Ryan Zinna:

I have a solution. The only way sadly to repair the economy is to allow a fall out in the economy. We may have to allow a bad recession so we can recover. Just throwing more money at a failing economy is increasing more failure. I would also reccommend in the future that there be a better choice of leadership. Newt Gingrich, Rudy Giuliani, or Mitt Romney are the only people with the leadership experience to fix the nation. In 2013, I hope Mr. Gingrich will be running for President, its way past due, and I hope Rudy Giuliani will try again. Its time, my fellow Americans to put your feelings aside, and allow real leadership. Stop watching MSNBC news and read the facts. This election is a joke.

By Anonymous @ Wednesday, September 24, 2008 10:26 PM

Instead of giving 700 billion back to the financial institutions why not give 10 million to each of the 300 million citizens of America. We could pay off all personal loans which would stimulate the economy. This would include mortgages, credit cards, autos, whatever. The banks and financial entities would recover thier losses and the American people would be solvent and could invest in various markets. Better to give the money to us than to them. This would absolve us from further debt and higher taxes to pay for this bailout. It is our money , so why can't we get it ???

By Anonymous @ Wednesday, September 24, 2008 10:11 PM

There are moments when certain words are said and one instantly recognizes them as pure genius or "apples of gold". This week you have done so and inspired me. Your response yesterday about the bailout and the one today on Fox was right on the mark. I was thinking the exact same things but could not figure out why nobody else was saying anything as the Republicans and Democrats were planning to ram the plan down our throats. That was until I heard and read your remarks today. THANK YOU!!

By Anonymous @ Wednesday, September 24, 2008 9:57 PM

NEWT!!!! you shouldn't even be making any kind of statements after what you have been through, you and Hannity are a great pair, when interviewing someone give them a chance to reply. If its something you two don't want the people to hear you start yelling it stupid.

By Anonymous @ Wednesday, September 24, 2008 9:46 PM

Mr. Speaker: How can we the people organize against this plan? This thing is being pushed through this FRIDAY! I appreicate the President's efforts, but this is a bad deal for us. I've contacted my congressman, and other Republicans in Congress, but I'm afraid they will cave.

HELP!

By Anonymous @ Wednesday, September 24, 2008 8:01 PM

Great points Mr. Speaker. This is a quantifiable evaluation of both candidates judgement during National crisis. I'm hoping that the House and Senate will recognize the needs of the American people and invest long hours this weekend to bring us a solution.

Thanks for all you've done to promote this theme, real solutions for real change.

By Anonymous @ Wednesday, September 24, 2008 5:46 PM

I am pleased with the decision for McCain and Obama to prioritize their duties and making this bailout #1. But couldn't they get to the debate in MS friday night? and take care of this business???
Trish from MS

By Clute @ Wednesday, September 24, 2008 5:12 PM

Newt...

Are you advising the McCain Campaign? He needs your advice to mobilize the electorate. If McCain can enuciate the message that if people can get the government off their backs so they can generate real income, any undertaking they or the government might embark on can be achieved.

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