Candidates say bailout should focus on consumers

Presidential nominees Sen. John McCain (R-Ariz.) and Sen. Barack Obama (D-Ill.) on Tuesday agreed that the federal bailout of American International Group (AIG) should focus on consumers. 

“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,” McCain said. “We must not bail out the management and speculators who created this mess. They had months of warnings following the Bear Stearns debacle, and they failed to act.”

{mosads}Obama stated that the Federal Reserve must make sure that the bailout “protects the families that count on insurance.”

“It should bolster our economy's ability to create good-paying jobs and help working Americans pay their bills and save their money,” Obama added. “It must not bail out the shareholders or management of AIG.”

Both nominees also sought to capitalize on the latest bailout by pushing their campaign rhetoric.

“We need strong and effective regulation, a return to job-creating growth and a restoration of ethics and the social contract between businesses and America,” McCain said, adding that, as president, he would change “the way Washington and Wall Street does business.”

Obama argued that the bailout is “the final verdict on the failed economic philosophy of the last eight years.”

“It is time for a new economic strategy, guided by the principle that America prospers when all Americans prosper, where common-sense rules of the road ensure that competition is fair, open and honest,” Obama said.