McCain, Obama camps trade barbs on negative ads

Source: AP

ASHEVILLE, N.C. (AP) — The McCain and Obama presidential campaigns traded accusations of mudslinging Monday in the wake of new ads dredging up infamous events from 20, 30, even 40 years ago.

Nancy Pfotenhauer, an adviser to the McCain campaign, said it's "absolutely essential" that Americans hear not only about his plans for the future but also "about the decision they have to make about these two individuals." She said she thought that commercials that raise new questions about Obama's associations "have struck a nerve" with the Democrat.

Obama's communications director, Robert Gibbs, countered that the new McCain offensive — including GOP vice presidential nominee Sarah Palin's allegation that Obama "pals around with terrorists" _is happening because Republicans want to talk about something other than the struggling economy.

Gibbs, who appeared with Pfotenhauer on ABC's "Good Morning America" Monday, charged that the McCain campaign is resorting to "a despicable smear campaign."

Democrats on Sunday had denounced Palin's charge and warned that it would trigger reexaminations of McCain's past. Sure enough, Obama's campaign released a Web video and a letter about McCain's role in the Keating Five scandal from the early 1990s.



Read more: http://ap.google.com/article/ALeqM5jhuvykO59IdvmX5dGMBSQ-wcfQ6wD93KVPQ02

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A Pal Around McCain...Phil Gramm


~snip~

The story of Obama's interaction with Ayers is drenched in irony, since it is basically a tale of Obama being co-opted into Chicago's civic establishment. In 1995, Obama, then a young lawyer with political ambitions but as yet no office, was recruited to chair the board of a school reform organization funded and established by the Annenberg Foundation -- a group that distributes the wealth of the estate of Walter Annenberg, Richard Nixon's ambassador to Britain. It was only then that Obama met Ayers, who already was a board member and a figure in Chicago's education-policy elite. (Mayor Richard Daley, that known radical, told the Times that he had consulted Ayers on education issues for years.)

Go join your city's establishment, and see what it gets you.

But if the McCain people want to rummage through presidential candidates' associations, real or imagined, to turn up figures who threaten to pull down this proud republic, they should begin in-house. Chief among those to whom responsibility attaches for the financial crisis that is plunging the nation into recession is former Texas senator Phil Gramm, McCain's own economic guru.

Gramm was always Wall Street's man in the Senate. As chairman of the Senate Banking Committee during the Clinton administration, he consistently underfunded the Securities and Exchange Commission and kept it from stopping accounting firms from auditing corporations with which they had conflicts of interest. Gramm's piece de resistance came on Dec. 15, 2000, when he slipped into an omnibus spending bill a provision called the Commodity Futures Modernization Act (CFMA), which prohibited any governmental regulation of credit default swaps, those insurance policies covering losses on securities in the event they went belly up. As the housing bubble ballooned, the face value of those swaps rose to a tidy $62 trillion. And as the housing bubble burst, those swaps became a massive pile of worthless paper, because no government agency had required the banks to set aside money to back them up.

The CFMA also prohibited government regulation of the energy-trading market, which enabled Enron to nearly bankrupt the state of California before bankrupting itself.

The problem with this exercise, of course, is that Gramm's relationship to McCain is not comparable to the relationships that Ayers or Wright have with Obama. The idea that either Ayers or Wright would have any impact on the workings of an Obama administration is nonsensical. But Gramm and McCain do have an enduring political and economic alliance. McCain chaired Gramm's short-lived presidential campaign in 1996; Gramm is co-chair of McCain's current effort. McCain has not repudiated reports that Gramm is on the shortlist to become Treasury secretary if McCain is elected, even after Gramm labeled America "a nation of whiners."

more:http://www.washingtonpost.com/wp-dyn/content/article/2008/10/05/AR2008100501816.html