The contenders for the Democratic nomination raced to inject themselves into the debate over the credit and housing crisis Monday, slamming the Bush administration's failure to do more to avoid an economic crisis.
Sens. Hillary Rodham Clinton of New York and Barack Obama of Illinois had expected to focus on Iraq this week, marking the fifth anniversary of the U.S. invasion with a renewed debate over which candidate could end the war more effectively. But Clinton's policy address on Iraq at George Washington University on Monday was immediately followed by a news conference dominated by economic questions.
"I am reminded every day as I meet with families and listen to their stories that the effective functioning of our financial markets isn't just about Wall Street. It's about Main Street," she said.
Obama urged the government to cut middle-class taxes this year to ease the spreading crisis, as he and Clinton criticized Bush for failing to take the lead in addressing the nation's economic woes. "Our economy is in a shambles," Obama said at a town hall meeting near Pittsburgh.
Obama said the economic stimulus package signed by Bush needs to be supplemented by enacting this year the tax cuts for middle-income Americans that he had earlier proposed for the first year of the next administration. And he hinted that, if market conditions continue to deteriorate, he might even reconsider his call to roll back Bush tax cuts on capital gains and dividends.
Clinton said she spoke Monday with Treasury Secretary Henry Paulson and New York Federal Reserve President Tim Geithner about their actions to insure liquidity and restore confidence in the market. Obama said he talked to the heads of some Wall Street firms and had other calls scheduled.
Obama is the biggest recipient of donations from JP Morgan employees -- Obama received $270,000, Clinton's contributions were nearly $200,000 and likely Republican nominee Sen. John McCain's were more than $60,000. Bear Stearns employees contributed the most to Clinton with total donations of $152,000. McCain received $47,000 from Bear Stearns employees and Obama got $36,000.
FLORIDA WON'T VOTE AGAIN, OFFICIAL SAYS
Florida's Democratic chairwoman officially buried the possibility of redoing the state's January primary, saying there was no practical way to conduct a new election. Karen Thurman, leader of the Florida Democratic Party, said the matter now goes back to the national party's Rules and Bylaws Committee.
Meanwhile, Michigan Democratic leaders proposed a bill to conduct a new primary June 3, but the plan cannot move forward unless both campaigns agree to it soon, officials said.
ONE FEWER DELEGATE
The number of delegates needed to secure the Democratic nomination fell to 2,024. The highest profile change was the resignation of New York Gov. Eliot Spitzer, a superdelegate who quit over his involvement in a prostitution ring. The numbers could increase if the seat left vacant by the death of Rep. Tom Lantos, D-Calif., is filled by a Democrat. Obama has 1,617 delegates and Clinton has 1,498, the Associated Press said.
ELTON JOHN SIGNS ON
Singer Elton John will help Clinton raise cash with a concert next month at Radio City Music Hall in New York. Tickets for "Elton and Hillary: One Night Only" on April 9 go on sale Wednesday. Prices are $125 to $250.
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