CBS: On Bailout Failure ‘John McCain Had Far More to Lose’

On Tuesday’s CBS Early Show, correspondent Jeff Glor reported on the presidential candidates’ reactions to the failure of the financial bailout, beginning with Obama: "Barack Obama's campaign had already released copies of a planned speech, saying lawmakers have agreed on an emergency plan. When that prediction went poof, Obama urged calm." Glor then turned to John McCain: "But Politico's Mike Allen believes John McCain had far more to lose. By suspending his campaign and jetting back to Washington, McCain staked a critical part of this campaign on a deal, then most of his fellow Republicans voted no and not a single representative from McCain's home state of Arizona voted yes." Half the Arizona congressional delegation are Democrats.

A clip Mike Allen was then played: "McCain set himself up for trouble. He came in late, he was a little half-hearted and now he owns a failure." Despite the bailout being characterized as a McCain failure in that report, earlier in the show, co-host Harry Smith questioned Virginia Congressman Jim Moran on the Democrats failure to pass the legislation: "Congressman Moran, let me ask you. You voted in the affirmative, yet, at least 40% of your Democratic colleagues voted against that. How -- how are you going to convince them that they should change their votes?"

Moran blamed Republicans: "What was shocking was that the Republicans voted against it, two-thirds of them. I mean, I don't know where the leadership was...You know, maybe if the market falls another thousand points, maybe they'll get some sense and they'll do something on Thursday-" Smith then interrupted: "Congressman, Congressman, though, it's -- hang on a second. It's -- it's easy enough to blame it on the...It's easy enough to blame it on the opposition. Democrats are always seemingly going to be happy to vote for putting on more debt or making government bigger. You -- all you needed was another dozen votes or so. How come the Democrats couldn't come up with them?"

Here is the full transcript of Glor’s report:

7:13AM TEASER:

JULIE CHEN: Up next, how the candidates are handling the economic meltdown. We'll head out to the campaign trail.

7:16AM SEGMENT:

JULIE CHEN: Both John McCain and Barack Obama are calling on Congress to quickly come up with a new bailout plan. Early Show national correspondent Jeff Glor is with the McCain campaign in Des Moines, Iowa. Good morning, Jeff.

JEFF GLOR: Hey Julie, good morning to you. Hard to believe it's been nine months since those first in the nation Iowa caucuses here. Since that time, the presidential contenders have been settled. This economic crisis has not. This is what you get when you combine a once every four years presidential election with a once every 80 years economic meltdown.

UNIDENTIFIED MAN: This bill is fueled by fear and hinges on haste.

UNIDENTIFIED WOMAN: There's got to be a better way.

GLOR: One big mess that has enveloped everyone. Washington, Wall Street, main street, and our next commander in chief.

MIKE ALLEN: Both of these candidates were caught flat-footed. They're Senators, a failure of Washington is a failure of them.

GLOR: Barack Obama's campaign had already released copies of a planned speech, saying lawmakers have agreed on an emergency plan. When that prediction went poof, Obama urged calm.

BARACK OBAMA: One of the messages that I have to Congress is get this done. Democrats, Republicans, step up to the plate. Get it done.

GLOR: But Politico's Mike Allen believes John McCain had far more to lose. By suspending his campaign and jetting back to Washington, McCain staked a critical part of this campaign on a deal, then most of his fellow Republicans voted no and not a single representative from McCain's home state of Arizona voted yes.

MIKE ALLEN: McCain set himself up for trouble. He came in late, he was a little half-hearted and now he owns a failure.

GLOR: On Monday, a short statement from McCain acknowledged a grim situation with no clear ending.

JOHN MCCAIN: I believe that the challenges facing our economy could have a grave impact on every American worker, small business owner, and family if our leaders fail to act.

GLOR: Both John McCain and Barack Obama will stay on the campaign trail today in key swing states. Both are expected to return to Washington when, if, there's a vote in the Senate. Julie.

CHEN: CBS's Jeff Glor in Des Moines, thanks Jeff. Meanwhile, vice presidential candidate Sarah Palin is answering charges that she and running mate John McCain were not on the same page when it came to attacking targets in Pakistan. In an interview with CBS 'Evening News' anchor Katie Couric, Palin blamed so-called 'gotcha journalism.'

KATIE COURIC: Are you two on the same page on this?

SARAH PALIN: We had a great discussion with President Zardari as we talked about what it is that America can and should be doing together to make sure that the terrorists do not cross borders and do not ultimately put themselves in a position of attacking America again or her allies and we will do what we have to do to secure the United States of America and her allies.

COURIC: Is that something you shouldn't say out loud, Senator McCain?

JOHN MCCAIN: Of course not. But, look, I understand this day and age, gotcha journalism. Was that a pizza place? In a conversation with someone who you didn't hear the question very well, you don't know the context of the conversation, grab a phrase. Governor Palin and I agree that you don't announce that you're going to attack another country.

CHEN: Palin is expected to spend today preparing for Thursday's vice presidential debate.

Here is the full transcript of Smith talking to Moran and Republican Marsha Blackburn about the bailout failure:

7:05AM SEGMENT:

HARRY SMITH: We want to talk to a couple of members of Congress who voted yesterday on this massive $700 billion bailout package. We're joined by Representative Marsha Blackburn, from Tennessee, who voted nay and Representative James Moran, of Virginia, who voted in the affirmative. Let me first start with Representative Blackburn, why did you vote the way you voted?

MARSHA BLACKBURN: Well, let me first say we're committed to finding a resolution to this and I think that by week's end, we will have a solution to this problem. There are some reasons that I cast a no vote yesterday. This was too much bailout and not enough workout in this plan. It also was $700 billion and an immediate $250 billion blank check. The federal debt limit was raised to $11.3 trillion in this bill. And there are some other things that could and should be done first and should be done in conjunction with the actions that were taken yesterday.

SMITH: Right-

BLACKBURN: Increasing FDIC insurance-

SMITH: Let me ask you this very -- let me ask you this very quickly.

BLACKBURN: Yes.

SMITH: Yeah, there's so much involved in this, but let me ask you very quickly-

BLACKBURN: Yes there is-

SMITH: -you make the vote, the stock market goes down 700 points. Do you feel in any way responsible for that?

BLACKBURN: We are all very concerned about the total picture and have been and that is why we've worked diligently all throughout the week and will continue to work this week until we solve this problem. This is something you can't leave on the table and leave Washington. This is something that affects every man and woman, every family in this country, and I have a commitment and I know that those that are negotiating have a commitment. We are going to solve this problem. We have to.

SMITH: Okay. Congressman Moran, let me ask you. You voted in the affirmative, yet, at least 40% of your Democratic colleagues voted against that. How -- how are you going to convince them that they should change their votes?

JIM MORAN: Harry, I'm surprised it was that high. This is a Republican bill. It was the Bush-Cheney administration with Secretary Paulson who offered it. Getting 60% of the vote was pretty impressive. What was shocking was that the Republicans voted against it, two-thirds of them. I mean, I don't know where the leadership was. The Democrats were willing to hold the vote open, so that the president could call members and get them to switch their vote, but it didn't happen. You know, maybe if the market falls another thousand points, maybe they'll get some sense and they'll do something on Thursday-

SMITH: Congressman, Congressman, though, it's -- hang on a second. It's -- it's easy-

BLACKBURN: Harry, this is not a partisan issue-

SMITH: -enough to blame it on the-

SMITH: Hang on -- hang on one second. Well let's -- just hang on a second. It's easy enough to blame it on the opposition. Democrats are always seemingly going to be happy to vote for putting on more debt or making government bigger. You -- all you needed was another dozen votes or so. How come the Democrats couldn't come up with them?

MORAN: Well, you know, the Speaker Pelosi had said to Minority Leader Boehner if you can put 110 votes up, we'll match it. We will at least do half of this task, but we don't want to own this bill. This is your bill. If it's our bill, we want to put in some mortgage protections to help out the homeowners as much as we do Wall Street. We want to pay for the bill so we can do other initiatives, rather than financially strapping the country for the next decade. There are a number of things the Democrats wanted, but nevertheless they realize the urgency of this situation and so almost, you know, two-thirds of them went ahead and voted for it. What we need to do now is to make this bipartisan, to get half, at least half of the Republicans as well and I thought that would happen. It didn't. And, now, I think you'll see continued crash. The key day is today. It's the last day of the financial quarter-

BLACKBURN: Harry, may I articulate a few things-

MORAN: -and as a result, there are a number of businesses that could go under without being able to get a cash infusion today.

SMITH: Alright-

BLACKBURN: Harry, this is a grave situation-

SMITH: -for the time being, we have to leave it exactly – we're -- it is a grave situation and for the moment-

BLACKBURN: And there are some things that we can do.

SMITH: -we have to leave it right there.

BLACKBURN: Some actions to take.

MORAN: Well, we should of done it and we should of done it when it needed to be done, Marsha. There's really no excuse.

BLACKBURN: We will have it done by week's end-

SMITH: Congressman Moran, thank you so much, do appreciate it-

BLACKBURN: We're committed to finding a solution-

SMITH: We're going to leave it right there for now.

BLACKBURN: Thank you.

SMITH: We will be watching, believe me.