The Corner

Obama Was For Bear Stearns Bailout Before He Was Against It

John McCain has a new website up — the McCain Report — and today they have a doozy of an item:

Obama today:

“It took [McCain] three different tries to figure it out, and in the end, his plan does nothing to help 1.5 million homeowners who are facing foreclosure, even as he supported spending billions to bail out Wall Street.”

Obama on the CBS Evening News in March of this year:

CBS: “Let’s talk about money. Bear Stearns has been helped out a lot by the Federal Reserve. Should the federal government be in the business of bailing out companies that were involved in the subprime mess?”

SEN. OBAMA: “Well, this was, I think, slightly different than a bailout. We had a situation here where a run on one of the investment banks on Wall Street could have created a domino effect that could have plunged this economy into a even more severe crisis than it’s already in. So I wasn’t privy to Bear Stearns’ balance sheets, but I think the idea that the Federal Reserve has to step in, in emergency situations, is something I wouldn’t challenge.”

More at the McCain Report here.

UPDATE: So I appreciate the emails suggesting it’s not necessarily a contradiction — but it sure sounds like the Obama campaign is trying to cast the Bear Stearns bailout as a negative thing in and of itself, not solely in relation to the willingness to help out homeowners.


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