Tuesday, September 16, 2008

As financial crisis deepens McCain declares the economy strong

Fearing a worldwide financial crisis, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government control of the troubled insurance giant American International Group.

The decision, only two weeks after the Treasury took over the federally chartered mortgage finance companies Fannie Mae and Freddie Mac, is the most radical intervention in private business in the central bank’s history.

Despite these developments, Republican Presidential candidate John McCain declared the "fundamentals of the economy are strong."

In response, Democratic Presidential candidate Barack Obama asked:"How can you (McCain) fix the economy, when you don't think there is anything wrong?"

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