Update: McCain: "Let's not call it a bailout"

Updated post: The Bush White House is now complaining that the media has unfairly labeled the $700-billion bailout bill as a ... bailout. Sen. John McCain, also chafing at the "b" word, is suggesting, "Let's not call it a bailout."

From CNN today: "The first thing I'd do is say, Let's not call it a bailout," McCain said this morning. "Let's call it a rescue. Because it is a rescue of Main Street America..."

"We haven't convinced people that this is a rescue effort not just for Wall Street but for Main Street,'' McCain said in an appearance on CNN's American Morning. "All over America, people are going to lose credit. ... We didn't do a good-enough job.''

Here's the update: Alert commenter Nancy points out that Laura Tyson, an economic adviser to Sen. Barack Obama, made the same argument last night on "The Rachel Maddow Show" on MSNBC. Highlights of Tyson's comments:

You know, all along, this has been called a bailout bill. It's such a misnomer. We are in the midst of a massive credit contraction. It's strangling the economy. ...

So, yes, we have to communicate this to the American people so the American people understand this is not about Wall Street. It's not about a bailout. It is about Main Street and jobs.

The Bush White House was making the same case yesterday, whining really, complaining that critics of the $700-billion Paulson plan had somehow tarnished the bailout bill by labeling it as a "bailout":

"It's really unfortunate shorthand for a very complicated issue," said Deputy White House Press Secretary Tony Fratto.

"Our critics took the language of a 'bailout for Wall Street,'" he said, and the news media adopted it as the shorthand to describe the administration's aid package.

He insisted at the daily White House news briefing: "It is not a bailout for Wall Street. It is not a bailout for CEOs."

Two cents: This is kind of silly. If you take $700 billion in public money and use it to buy nearly worthless toxic securities from overpaid bankers, that, my friends, is a bailout. That's not the same thing as saying it is wrong or foolish. Perhaps it's necessary. Perhaps it's the only way to avoid financial Armageddon. But it's still accurately described as "a bailout."

As always, the comment section is open to those who would like to agree, or disagree.

-- Peter Viles

Photo credit: Getty Images

More from McCain, via the Swamp blog:

Comments

[Jbock220]

That's Mcain for you, skirting substance to tell you what you what you want to hear. Regardless of what it means, because you Americans aren't bright enough to see through the smoke an mirrors.

Just look at his anti-lobby cabinet, I mean staff, of lobbiers. Clinton was more conservative than Bush, and Obama is more conservative than Mcain - the "Maverick".

[jb]

Dear Congress,
The top 25 hedge fund managers earned an average of 890 million dollars EACH last year (for 1 year's work!). You know where the money is - go get it - we are broke.

can you imagine? 25 x 890 million? the top guy got ~ 3B personally. for one year. there is a substantial chunk of the 700B you seek.

If you come to us again, we will happily break out the pitchforks and send you away bleeding.

[buz]

These are professional liars an are not to be trusted. That is the general belief on main street. This IS a bailout. Fortunately people are not as naive as they used to be. I think the whole Iraq/WMD fiasco has and will continue to make the public very skeptical of Washington's proclaimations.

[the problemwithcaring]

Thank you, Karl Rove and your wordsmithing antics that have exposed the willfull ineptitude of American journalim. Enjoy what you and your ilk's "Talking Point" form of governance has wrought.

[Gene J]

You can put lipstick on a bailout and it will still be a bailout.

[CompaJD]

I could think of 1000 other things to call this but the most politically correct would be "Bailout".

[desmo]

Now I have to call Buck "YES" McKeon and apologize for calling his office and urging him to vote no.

[Tim K.]

What does McCain think we are, stupid?

Of course it's a bailout! He also probably believes taxpayers are going to "make money" on this too! Newsflash - the only way anyone is going to "make money" is if the underlying assets, HOUSES, appreciate back to bubble levels. That makes about as much sense as saying, sure, you can buy my overpriced $200K house for $800K and you'll MAKE MONEY when it hits $1million!

The other thing that is really disingenuous is this whole nonsense about the credit markets being frozen. Of course they are! Interbank loans are frozen for good reason - they don't trust that each other are solvent, and they SHOULDN'T TRUST EACH OTHER RIGHT NOW. Taking the bad loans off the books is not what creates trust - what creates trust is knowing that you're behaving responsibly and not going to create MORE of these. It means paying off your bad debts, not letting the taxpayer BAIL YOU OUT.

Seriously, do you think that if I, as a deadbeat, just have all my debts swept away that I DESERVE to be trusted? Do you think if I run up a $100K pile of debt, and someone just whisks it away from me that I should suddenly expect someone to loan me even more money? Of course not, but this is EXACTLY what is being proposed by Paulson's BAILOUT. It's not a rescue.

If I "rescue" a gambling addict who has maxed it his credit card by giving him more cash - is that really a rescue? It's a BAILOUT, plain and simple.

[l.a.guy]

The problem is the word "bailout" is pretty vague. Just because an entity needs money does make it a bailout? If you invest money in a start-up is that a bailout?

Let's not lose sight of the objective, which is to heal the international financial system. I don't think there's anyone who expects that the 700B would be a wipe out. Most estimates I've seen are more in the 200B range. Irrespective of how it's accomplished, if we can fix our financial markets for $200B and mitigate the pain to main street I think most people would agree it would be a good investment.

What if the 700B "bailout" ends up turning a profit? Was it a "bailout" or a prudent investment?

[jbunniii]

We've already endured eight years of a President who tells us black is white, up is down, left is right. Do we really need to add "this is not a bailout" to the list?

[MyLessThanPrimeBeef]

Let's not call it Congress, he said.

Le'ts call it the Washington branch of Wall Street.

He could fool me, but I swear Paulson still works for Goldman.

[anonymous]

I agree with you, Peter. It's a BAILOUT. I also agree with Obama. Yeah, we are going to have to put the fire out.

It will be a rare, rare incumbent that gets re-elected this year.

[Ben]

For some reason, this is starting to remind me of the "amnesty" name game.

[Jackie Romulo]

Talk about the right to say "I told you so":

Peter Schiff Predicted The US Economic Collapse With Unbelievable Accuracy in August 2006
http://www.youtube.com/watch?v=LfascZSTU4o

[KateNonymous]

Nice verbiage.

[TrojanDLA]

It's a bailout.

[Jason]

Peter,
It is good to see that someone with a vested interest in the bailout going through, seams to understand it isn't a good idea, and it is what it is. I'm in the same boat. I personally would benefit from it, but it is wrong, we need to eliminate the IRS and the FEDs

[The Original RZ]

The only thing I need rescuing from is high house prices, and this bailout will certainly not help me with having those prices come down!

[French Official]

Allow the free market system to adjust itself.
Vote no bailout.

[Robert Rowley, Tucson, Arizona]

WAAAAAAAAAA! The media (and most of America) doesn't like me!!!!

Look, it IS a bailout, regardless of what McCain, Bush and the rest of the Republican criminals (opps, I mean insiders and administration) want it to be called.

McCain/Palin...another 4 years of dumb and dumber Republican Bush/Cheney games.

[janer]

''Let's not call it a bailout,'' McCain said this morning. "Let's call it a rescue."

Now that is putting lipstick on a pig. It's still a bailout.

[janer]

''Let's not call it a bailout,'' McCain said this morning. "Let's call it a rescue."

Now that is putting lipstick on a pig. It's still a bailout.

[TakeFive]

McCain on CNN today: "The first thing I'd do is say, ''Let's not call it a bailout,'' McCain said this morning. "Let's call it a rescue.

Ugh. I’m being forced to have flashbacks to 2006:

“You all know it’s not amnesty.” Said McCain, addressing Vitter, “Call it a banana if you want to …"

I called my congressman’s office in Washington yesterday and made it clear: No Bailout. Guess I will need to call again today and say: No Rescue.

[David]

If you blame the captain for hitting the iceberg, urge the passengers not to try plugging the hole. He deserves to go down. That makes sense provided you understand you'll go down too and it's OK.

Myself I also blame the captain. But I don't accept the drink. Floating the ship for my benefit overshadows my instinct to sink it for his detriment.

Yes it is a bailout. It's a bailout for Wall Street that will save you and me from sinking. Saving bad guys while saving us is a side effect that matters nothing if it's the cure for our danger. I'm not interested in punishing them right now; I'm interested in staying alive.

[Steve Crain]

Ok, lets not call it a bailout, lets call it TREASON