Senator McCain's Top Economics Advisor

[FarmerJohn]

Here is what a little research uncovered about Senator McCain's top economics advisor. (Remember, Sen. McCain admits not knowing much about economics so therefore be expected to rely heavily on his advisor in that area....

Also, thanks to the efforts of Sen. Gramm, we are the recipients of the consequences of the banking deregulation that Sen. Gramm sponsored:



FJ

Gramm was one of five co-sponsors of the Commodity Futures Modernization Act of 2000,[4] which critics blame for permitting the Enron scandal to occur.[5] At the time, Gramm's wife was on Enron's board of directors. Gramm left his Senate seat a few weeks before the expiration of his term in December 2002 so that his successor, fellow Republican John Cornyn, could gain seniority over other newly-elected senators.

http://en.wikipedia.org/wiki/Phil_Gramm

McCain Adviser Phil Gramm Shaped McCain’s Economic Policy While Lobbying For Foreign Bank

Sen. John McCain (R-AZ) has repeatedly said he relies on his economic advisers, including former senator Phil Gramm — “McCain’s econ brain” — to make up for his lack of experience on economic issues. “I would rely on the circle that I have developed over many years of people like…Phil Gramm,” he said in February.

But yesterday evening, MSNBC revealed that Gramm worked for the bank UBS “to lobby Congress about the U.S. mortgage crisis at the same time he was advising McCain” about economic policies. The revelations come as McCain banned several advisers from advising him on subjects covered by their lobbying work.

While Gramm was advising McCain, he was paid by UBS to lobby the Senate about the mortgage crisis, strongly opposing increased government regulation and several consumer protection bills, which, as Keith Olbermann noted, “might have mitigated the current crisis”:

As recently as December 31 of last year, still working for Swiss bankers, specifically to help kill the Emergency Home Ownership And Mortgage Equity Protection Act and the Helping Families Save Their Homes and Bankruptcy Act, a bill that would have let bankruptcy judges adjust mortgages terms so American families facing foreclosure could repay their loans and keep their homes.

Gramm’s deregulation [as a senator] help set the stage for an explosion of banks slicing up subprime mortgages, bundling them with other mortgage slices, to hide the credit risks, and stelling mortgage stew to other investment firms. That gave lenders powerful incentive to make as many loans as possible, regardless of risk.

Graham registered as a UBS lobbyist in 2004. But as early as October 2006, Gramm was reportedly advising McCain on economic issues. McCain advisers also said Gramm had input on McCain’s March 26 speech on the economy. UBS, however, only deregistered Gramm last month.

Other McCain advisers have direct ties to the mortgage industry. John Green, McCain’s chief congressional liaison, and Wayne Berman, his national finance co-chairman, “billed more than $720,000 in lobbying fees from 2005 through last year to Ameriquest Mortgage through their lobbying firm.” “They would be defined as the most blatant and aggressive predatory lenders out of everybody,” said Bruce Marks of the Neighborhood Assistance Corporation of America.

http://thinkprogress.org/2008/05/28...nomic-policy-while-lobbying-for-foreign-bank/

 

[FarmerJohn]

McCain's top Economic Adviser Calls Recession "Mental"...Says "We have a nation of whiners."

http://www.huffingtonpost.com/

McCain Campaign Initially Stood By Gramm Remarks

The McCain campaign is working hard to distance itself from statements made by economic adviser Phil Gramm describing the current economic downturn as a "mental recession" and saying America had "sort of become a nation of whiners."

But in an initial statement published by Politico and then, seemingly, removed from its site, a McCain campaign aide actually stood by Gramm's remarks, saying the interview as a whole was merely meant as a preview of the Senator's economic agenda.

"Mr. Gramm was simply saying that we are laying out the economic plan this week," the piece quoted a "McCain official" as saying. "The plan is comprehensive, providing immediate near-term relief for Americans hurting today as well as longer-term solutions to get our economy back on track, secure our energy future and deliver jobs, prosperity and opportunity for the next generation. We're laying out that plan this week with an emphasis on the critical importance of job creation, and it's been a great success so far."

Only after the fallout from Gramm's statement did the McCain campaign fully backtrack.

"Phil Gramm's comments are not representative of John McCain's views," read a campaign statement. "John McCain travels the country every day talking to Americans who are hurting, feeling pain at the pump and worrying about how they'll pay their mortgage. That's why he has a realistic plan to deliver immediate relief at the gas pump, grow our economy and put Americans back to work."

The two statements - the first one issued to Politico and the one offered to the press list this morning - are diametrically different. And they seem to reflect recognition, by the McCain camp, that Gramm's remark on the economy is simply un-spinnable.

The former Texas Senator, speaking to the Washington Times said that the media had been single-mindedly focused on reporting bad economic news, which, in turn, had contributed to the sentiment that the economy was in shambles.

"You've heard of mental depression; this is a mental recession," he said. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline."

There is no word as to why the initial quote in the Politico piece was removed from the site. But a cached version of the story (and the quote) can still be seen via a Google search.

Update: Gramm is also standing by his recession remark:

Former senator Phil Gramm -- under fire for saying the United States has "become a nation of whiners" -- said in an interview today that he meant the nation's leaders were whiners, not its citizens.
But the top adviser to Sen. John McCain repeated his assertion that the economy is not in recession, and he declined to retract the comments quoted yesterday in the Washington Times.

"I'm not going to retract any of it. Every word I said was true," Gramm said.

Updated Further: Mike Allen, the author of the Politico piece, explains why the quote was removed (he's been updating the article as the story progresses):

The second one is the latest--it refers to Senator Gramm's specific quotes, which is what we were more interested in. The older one was non-specific, about the plan that McCain put out this week. The quote distancing Senator McCain from Senator Gramm seemed more interesting and newsworthy.

http://www.huffingtonpost.com/2008/07/10/mccain-campaign-initially_n_111929.html

 

[FarmerJohn]

McCain Distances Himself from Gramm

By Michael D. Shear

BELLVILLE, Michigan -- Sen. John McCain said flatly today that he does not agree with one of his top economic advisers, saying that former senator Phil Gramm "does not speak for me. I speak for me. I strongly disagree."

Gramm had said the nation's economic problems amount to a "mental recession," and added that, "We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline."

To that, McCain, who is campaigning in the struggling communities of Detroit, said that "the person here in Michigan who just lost his job isn't suffering from a mental recession."

Asked whether Gramm would play a significant role in shaping economic policy in a McCain administration, the senator joked that "I think Senator Gramm would be in serious consideration for ambassador to Belarus, although I'm not sure the citizens of Minsk would welcome that."

McCain also responded to criticism from Sen. Barack Obama, calling the Democratic nominee "Dr. No" for opposing efforts to drill for more oil offshore and build new nuclear plants.

"I believe that he doesn't understand our energy needs nor does he understand our national security needs," McCain said.

The Republican nominee quickly added a press conference to his schedule in Michigan to respond to press questions about Gramm's remarks, which threatened to undermine his week-long focus on the plight of the American economy and the need for action.

But back on the East Coast, Gramm told The Post his comments about a "nation of whiners" were directed at the nation's leaders, not its people. But he insisted in an interview that the economy is not in recession, and he declined to retract the comments quoted yesterday in the Washington Times.

"I'm not going to retract any of it. Every word I said was true," Gramm said in an interview.

Even as Gramm refused to back down, McCain was in this hard-hit Detroit suburb trying desperately to empathize with the plight of the auto worker.

And not having much luck.

Speaking at an auto parts supplier, McCain said repeatedly that he understands how much the Michigan economy had declined, with unemployment over 8 percent and 70,000 lost jobs since the beginning of the year.

"America is hurting today. Michigan is hurting today. The automotive industry is hurting," he said to open a town hall here. "We have to understand the urgency of the situation and we should remind ourselves time after time."

But the crowd of about 100 sat on their hands in stony silence throughout most of his speech, especially his lecture about the need for free trade -- a policy not embraced in this town.

The first question was from a man who urged a different point of view, saying that "what we need to do is control some of those trade issues going on. What we want is fair trade."

McCain again expressed his sympathy, but refused to back down on trade, instead singing the praise of the American spirit of innovation and an education system that he said can be repaired to effectively retrain displaced workers.

But in sharp contrast to Gramm's comments, McCain repeatedly returned to the pain felt by Americans because of economic problems right now.

"The state of Michigan is hurting very badly as we all know," McCain told reporters after the town hall. "We've suffered from severe job losses and even other problems that have been very very severe and impacted families and individuals and companies and corporations."

http://blog.washingtonpost.com/the-trail/2008/07/10/mccain_distances_himself_from.html