When an American opens the newspaper they are guaranteed to read about one of two things; the US election or the US recession but what about the two together?
Surely, America's next president will now have the added responsibility of pulling the country out of this turmoil? Or can we just assume it's another publicity campaign to win votes? With only a few days to go America is holding tight for a future of new jobs, better healthcare and housing benefits, so it would make sense that whoever has the best economic policy will win. Simple right?
The Crisis began when American mortgage companies sold thousands of mortgages to people in poor areas with no credit history or financial backing. Hmm alarm bells? When these people could no longer keep up their financial payments due to increased interest rates they were forced to declare bankruptcy resulting in repossessions, this is what everyone means when they talk about the 'sub-prime crisis'. However, there is more to this than meets the eye, the mortgage companies with the bad mortgages then went on to sell the mortgages packaged as various different investments to banks worldwide. Once banks realized this they panicked and stopped lending each other money creating a liquidity freeze or otherwise known as 'The Credit Crunch'.
The knock on effect of 'no money in the markets' has sent stock market shares tumbling and the likes of banks such as Lehman Bothers declaring bankruptcy, leaving thousands of people unemployed in addition to the thousands already bankrupt and homeless. People are no longer able to borrow money and the cost of everything keeps rising, great! So what does this have to do with the election? Well surely everything? Americans are looking for a miracle and who or what could that be?
Senator Barack Obama (Democrat) vs. Senator John McCain (Republican) are head to head in the countdown to last few remaining days until the US election. So what do our two leaders have to say about this financial crisis crippling America and indeed the rest of the world? Well both parties have put forward similar economic proposals. The Obama camp promises tax relief and tax credits, creation of new jobs, allowing families to withdraw from savings without penalties and plans for the government to aid those who have lost their homes. In addition to this both candidates are looking to dip into the $700bn treasury rescue plan to ‘inject liquidity back into the markets’. The McCain camp is also looking to cut capital gains tax – however talk of this has been unclear, even among their own party and may have been premature campaign talk? Will these economic policies or tactics be enough to swing the results so far into the game? And is it their #1 campaign priority?
The Times newspaper reported: "Senator McCain calls himself the underdog that
never gives up even after falling far behind in the polls against an opponent already
measuring the drapes for the White House". At a speech to 18000 on Virginia Beach, Senator McCain made little reference to the economy and more so to his opponents and the 'fight' America had on its hands making it obvious that the republican side are beginning to show signs of worry. Not only is there a strong chance the republican candidate McCain will not be president, there is also strong chance of the republicans losing their seat in congress, giving the democrats all round power in the White House. With this in mind senator McCain is on the
attack and has been in several newspapers claiming that senator Obama is over confident and has already written his inauguration speech. One of Senator McCain's previous speeches concluded; "we will conduct a respectful race" but also added he would "whip his you-know-what" in the third and final presidential debate. Hmmm but what about the e-word?
Senator Obama on the other hand played the economy to his strength in his speech in Toledo, Ohio and talked about a 4 point economic plan and for America to stop living beyond it’s means and to become more responsible to break the cycle of debt. He quotes: "It's a plan that begins with one word that’s on everyone’s mind and it’s spelled J-O-B-S". With so many point leads in so many states it's no wonder Obama is looking calmer than ever and has cunningly implemented the current
crisis into his campaign. However, as the saying goes "it ain't over till its over" and anything can happen until November 4th. Lets just hope that whichever candidate wins actually puts their 'economic rescue plan' into action and FAST otherwise there may not be much of a country left to run.
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US Elections Obama McCain voting elections 
Once banks realized this they panicked and stopped lending each other money creating a liquidity freeze or otherwise known as 'The Credit Crunch'.
