Obama, Palin React to Mortgage Giant Bailout

TERRE HAUTE, Ind. — Barack Obama laid out benchmarks Saturday for a government takeover of troubled mortgage giants Fannie Mae and Freddie Mac, but said he’ll withhold judgment until he sees the Bush administration plan. The Democratic presidential nominee said Treasury Secretary Henry Paulson briefed him Friday night by phone on the mortgage crisis and the administration’s steps toward a government takeover of the two financial companies. Speaking to reporters during a campaign stop, Obama said any plan must put taxpayers first and not reward investors and speculators “who relied on the government to reap massive profits.” Obama also urged President Bush and Republican presidential nominee John McCain to reconsider their opposition to a second government spending bill to reinvigorate the economy. McCain and his running mate, Alaska Gov. Sarah Palin, addressed the crisis briefly at a rally in Colorado Springs, Colo. McCain cited the problems at Fannie Mae and ... (link)