The Michigan Daily - michigandaily.com
Thursday, September 25, 2008 - 3A
The Michigan Daily - michigandailycom Thursday, September 25, 2008 - 3A
NEWS BRIEFS
NEW YORK
Obama: "more
important than
ever" to hold debate
Republican John McCain said yes-
terday that he wants to postpone Fri-
day's debate to deal with the nation's
financial problems, but Democrat
Barack Obamasaid "it's more impor-
tant than ever" that the country hear
from its next president.
The White House rivals maneu-
vered to claim the leadership role
on the financial crisis that has over-
shadowed their campaign, leaving
the question of whether they will
hold their first debate in doubt.
Obama said he would continue
ahead with his debate preparations,
while McCain said he would stop
all advertising, fundraising and
other campaign events to return to
Washington and work for a biparti-
san solution.
"It's my belief that this is exactly
the time when the American peo-
ple need to hear from the person
who, in approximately 40 days,
will be responsible for dealing with
this mess," Obama said at a news
conference in Clearwater, Fla. "It's
going to be part of the president's
job to deal with more than one
thing at once."
WASHINGTON
Dems call for smaller
bailout plan
Democratic officials say leaders
are asking the Bush administration
to dramatically cut the size of the
$700 billion bailout of the finan-
cial industry and then come back to
Congress later if they need more.
Under the plan, which is still
emerging, Congress would ap-
prove a fraction of what President
Bush is asking for - perhaps $150
billion or $200 billion - to allow
the government to begin rescuing
tottering financial companies.
Houe Speaker Nancy Pelosi
has privately suggested the idea
to Treasury Secretary Henry
Paulson - that's according to of-
ficials who spoke on condition of
anonymity because the negotia-
tions are private.
GALVESTON
Galveston residents
allowed to return
Thousands of people returned on
yesterdayforthefirsttimesincetheir
island city was blasted by Hurricane
Ike nearly two weeks ago, choosing
home over warnings that Galveston
is "broken" and infested with germs
and snakes.
Some returned to find homes in
ruins.
Traffic was backed up for 10 miles
on the one major highway leading
into Galveston, but things appeared
to go smoothly once the city of about
57,000 started lettingpeople in about
6 a.m. Many people had been waiting
in their cars along Interstate 45 since
before dawn.
Police officers were stationed to
direct traffic at major intersections
where signal lights were ripped away
by the hurricane's 110-mph wind and
12-foot storm surge on Sept.13.
NEW YORK
Paln said nation
could be headed for
a Great Depression
Republican vice presidential
candidate Sarah Palin said yester-
day that the United States could be
headed for another Great Depres-
sion if Congress doesn't act on the
financial crisis.
Palin made the comment in an
interview with CBS evening news
anchor Katie Couric while visiting
New York to meet foreign leaders
for the first time in her political
career. As Palin sought to establish
her credentials in world affairs,
first lady Laura Bush said that Palin
lacked sufficient foreign policy
experience but was "a quick study."
- Compiled from
Daily wire reports
4,171
In address, Bush says 'our Campus case of
entire economy is in danger' E. coli confirmed
President begs
Congress to take
immediate action
WASHINGTON (AP) - Presi-
dent Bush yesterday warned
Americans and lawmakers reluc-
tantto pass a $700 billion financial
rescue plan that failing to act fast
risks wiping out retirement sav-
ings, rising foreclosures, lost jobs
and closed businesses. "Our entire
economy is in danger," he said.
His dire warning came not long
after the president issued extraor-
dinary invitations to presidential
candidates Barack Obama and
John McCain, one of whom will
inherit the mess in four months, as
well as key congressional leaders to
a White House meeting on Thurs-
day to work on a compromise.
"Without immediate action by
Congress, American could slip into
a financial panic and a distressing
scenario would unfold," Bush said
in a 12-minute prime-time address
from the White House East Room
that he hoped would help rescue
his tough-sell bailout package.
Bush explicitly endorsed. sev-
eral of the changes that have been
demanded in recent days from the
right and left. But he warned that
he would draw the line at regula-
tions he.determined would ham-
per economic growth.
"It should be enacted as soon as
possible," the president said.
The bailout, which the Bush
administration asked Congress
last weekend to approve before
it adjourns, is meeting with deep
skepticism, especially from con-
servatives in Bush's own party
who are revolting at the high price
tag and unprecedented private-
sector intervention. Though there
Japan
elects new
prime
minister
TOKYO (AP) - A quick-
smiling former Olympic skee-
tshooter with a penchant for
tailored suits and manga comic
books took power as Japan's
third prime minister in two
years yesterday, vowing to
boost a languishing economy.
Lawmakers elected Taro
Aso, a 68-year-old conserva-
tive popular with the young
and known for his straight
talk, after quelling an attempt
by the upper house to install a
rival as premier.
In his first news conference
as premier, he also vowed to
rescue the ruling party from
disaster in parliamentary elec-
tions. He pledged to go head-
to-head with the resurgent
opposition.
is general agreement that some-
thing must be done to address the
spiraling economic problems, the
timing and even the size of the
package remained in doubt and the
administration has been forced to
accept changes almost daily.
Seeking to explain himself to
conservatives, Bush stressed he
was reluctant to put taxpayer
money onthe line to help business-
es that had made bad decisions and
that the rescue is not aimed at sav-
ing individual companies. He tried
to address some of the major com-
plaints from Democrats by promis-
ing that CEOs of failed companies
won't be rewatded.
"With the situation becoming
more precarious by the day, I faced
a choice: to step in with dramatic
government action or tostand back
and allow the irresponsible actions
by some to undermine the financial
security of all," Bush said. "These
are not normal circumstances."
The president turned him-
self into an economics professor
for much of the address, tracing
the origins of the problem back a
decade to a large influx of money
into the U.S. system from over-
seas, low interest rates, the "faulty
assumption" that home values
would continue to skyrocket, easy
lending by mortgage companies,
over-borrowing by home owners
and exuberant building by con-
struction firms.
But while generally acknowl-
edging risky and poorly thought-
out financial decisions at many
levels of society, Bush never
assigned blame to any specific
entity, such as his administration,
the quasi-indepedent mortgage
giants Fannie Mae and Freddie
Mac, or the Wall Street firms that
built rising profits on increasingly
speculative mortgage-backed
securities. Instead, he spoke in
terms of investment banks that
"found themselves saddled with"
toxic assets and banks that "found
themselves" with questionable
balance sheets.
Intensive, personal wheeling
and dealing is not usually Bush's
style as president, unlike some pre-
decessors. He does not often call or
meet with individual lawmakers to
push a legislative priority.
But with the nation facing the
biggest financial meltdown in
decades, Bush took the unusual
step of calling Democrat Obama
personally about the meeting, said
presidential spokeswoman Dana
Perino. White House aides extend-
ed the invitations to Republican
McCain and to GOP and Demo-
cratic leaders from Capitol Hill.
Obama spokesman Bill Burton.
said the senator would attend and
"will continue to work in a bipar-
tisan spirit and do whatever is
necessary to come up with a final
solution." Senior McCain advisers
said McCain will attend, too. The
plans of the other invitees were
unknown, and the exact details
of the meeting, which Perino said
was aimed at making fast progress
to stem the biggest financial melt-
down in decades, were still being
set.
In another move welcome at the
White House, Obama and McCain
issued a joint statement urging
lawmakers - in dire terms - to
act.
"Now is a time to come together
Democrats and Republicans in a
spirit of cooperation for the sake
of the American people," it said.
"The plan that has been submitted
to Congress by the Bush adminis-
tration is flawed, but the effort to
protect the American economy
must not fail."
Another case is student may have also fallen ill
from the bacteria, but the case has
under investigation not been confirmed, Cunningham
added.
By KELLY FRASER Cunningham said there doesn't
Daily News Editor appear to be any direct connec-
tion between either of the ill
One University student has students and the cases reported
been confirmed of being infected around the state. She said both
of the same strain of E. coli bac- students were initially treated at
teria that has caused an outbreak University Health Service.
across the area. Another potential When a case is suspected at
case is under investigation. UHS, it is reported to the Washt-
The student fell ill two weeks enaw County Health Department
ago, sickened by the same strain for testing.
that has affected more than two Cunningham said UHS doesn't
dozen Michigan State University "see any cause for alarm at this
students over the past two weeks. point."
The strain has also been linked Investigators at the Michi-
to seven other cases in the state, gan Department of Community
including five cases at the Lenaw- Health believe the strain may
ee County Jail. have come from the same con-
The University of Michigan taminated food but haven't iden-
student, whose name has not tified a source.
been released, has since recov-
ered, University spokeswoman - The Associated Press
Kelly Cunningham said. Another contributed to this report.
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