Obama urges 10,000 in Reno to support bailout plan
RENO -- Democratic presidential nominee Barack Obama quieted a crowd of more than 10,000 cheering supporters Tuesday by speaking somberly of the hardships facing the country's working people if Congress does not act on a plan to rescue the ailing economy.
In a 37-minute speech in the quad at the University of Nevada, Reno, Obama said the purpose of the economic bailout bill that failed a critical House vote Monday is not to help greedy Wall Street financiers but ordinary Americans.
"What it means is that if we do not act, it will be harder for you to get a mortgage for your home or the loans you need to buy a car or send your children to college. What it means is that thousands of businesses could close. Millions of jobs could be lost. A long and painful recession could follow," he said.
The Illinois senator said he sought and won inclusion of protections for the controversial $700 billion plan to have the government buy up investments in distressed properties, letting the financial community lend money and help keep the economy running. They include:
• An independent board to provide oversight and accountability for how and where the money is spent.
• Help for homeowners trying to stay in their homes.
• Protections to keep the plan from becoming a "welfare program" for the Wall Street executives who helped create the crisis.
• The ability for taxpayers to get their money returned once the economy recovers.
That measure failed in the House on Monday, but lawmakers continue to work on a new version that could come to a vote as soon as today.
Obama said he has offered another idea to help the measure pass: increasing the federal insurance on bank deposits from the current $100,000 to $250,000. Such a change would help small businesses with financial requirements beyond the 28-year-old $100,000 limit, he said.
Supporters of Republican presidential candidate John McCain, including Sen. John Ensign, R-Nev., countered that the insurance increase mentioned by Obama was sought for inclusion in the failed bill by House Republicans over the weekend without success.
McCain is pushing for a bipartisan measure to get the economy back on track, Ensign said.
"This is too critical to the American people," Ensign said.
A solution is critical to Nevada, where, "our economy is on the brink," he said.
Ensign offered no specifics, but said several projects under construction in Nevada are having trouble finishing financial packages because of the economic problems. This translates directly to a threat to jobs, he said.
While some proposals might have to be postponed because of the country's economic malaise, Obama said, some cannot be delayed, including:
• Reforming the tax code so it favors U.S. workers and small businesses.
• Rebuilding the country's outdated electricity grid and adding new broadband lines.
• Transforming the energy economy by tapping into natural gas reserves, investing in clean coal technology and finding ways to safely harness nuclear power.
• Investing $150 billion over the next decade in affordable, renewable sources of energy.
But Obama focused on the economic crisis, asking those members of Congress who voted no on Monday to "step up to the plate and do what's right for this country."
"I won't pretend this will be easy or come without cost," he said. "We will all need to sacrifice and we will all need to pull our weight because now more than ever, we are all in this together. What this crisis has taught us is that at the end of the day, there is no real separation between Main Street and Wall Street."
Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.
