Journal Editorial Report, October 18

" Coming up next on the journal editorial report with just over two weeks ago Joe in the -- steals the show and put that tax and spend issue front and center in the presidential campaign Kenny helped John McCain close the gap plus. Another roller coaster ride on Wall Street recession fears -- Despite the government's historic plan to shore up US banks and cracking the acorn a closer look at that controversial group the allegations of fraud and -- past ties to Morocco Obama. The Journal Editorial Report begins right now."

" Welcome to The Journal Editorial Report I'm apology go well forget bill where's Joe the plumber is now the hottest name in the presidential race and what's just two weeks ago he's put that candidates tax plans front and senator. But the question remains can the McCain campaign make the most. This new opportunity joining the panel this week Wall Street Journal columnist and deputy editor Dan -- columnist Mary on -- Stacy O'Grady. Opinion journal dot com columnist John fine -- and Washington columnist Kim Strauss so -- Couple of weeks ago on the campaign in ever all the polls show that to John McCain is trailing from anywhere from two and a fourteen points depending on the poll. What's the McCain's strategy for the homestretch."

" that you until the plumber is that it really encapsulate what looks as though it's going to be McCain's closing argument here and that. McCain argument runs something like this. That with any luck this financial crisis the immediate immediate problem maybe we are getting through hopefully. So now people are starting to wonder how to we deal with the aftermath have a we ride out this downturn. And what John McCain is saying my opponent over here he believes government is always the answer he wants bigger government he's going to tax people to get bigger government. And I am saying to you I want Joe the plumbers out there to have their money keep their money make a decision create more jobs. So that's going to be the debate that he's going to try to make -- and I think that that's going to have probably his best shot and then closing up the selection."

" does that get him past. I guess over the -- Kenny can can that really make the argument especially when he still hasn't rebutted the Obama claimed but 95% of Americans are going to get a tax cut."

" Yeah I think it's for you know in all honesty it's a little bit late in the campaign to try to vote on mount an argument like that maybe it'll work you know if he could couple it with the of fact -- Obama is. Has so little experience and that your loading up all this responsibility on him it's possible that come November for people to say I cannot go there with Barack Obama. But he had he you know one of the problems is the financial crisis pretty much not the normal presidential campaign. Off the front pages for two weeks until they lost two weeks' time to make these arguments. Obama himself however persistently in the debates describes the level of spending that he intends to commit to edit it."

" Is enormous it's mine -- The Joe the plumber. Used to joke on me did open up I think maybe -- a threat to fundamental truth. About this race and about some of the Obama agenda that may be most many Americans. Haven't really seen which is that there's going to be an enormous tax increase leveled on this economy Barack Obama win."

" Yeah I think this is the great thing about what happened in that debate is that McCain finally got Obama to admit. That his idea of good government is that yes he's going to punish up and coming entrepreneurs. But it's okay as long as he makes people on the lower rungs. Better off and we call it socialism. And it not only is it is is that something most Americans don't want it but it's also. We know economically speaking it means a smaller -- And less to divide up every year that you go look back kind of --"

" John I guess the argument is you know that liberal. For the conservative dichotomy on taxes and other issues that Mary talked about might have worked has worked in the past we don't. But it doesn't seem to have the same ceiling -- this year is that because of the he cannot for the economy worry and nor is it just if they're tired argument."

" And also the Republicans haven't heard -- years. And that's a lot longer than Democrats have been in charge in congress believe they -- the -- I also think John McCain is not going to consistently. Anti government message for example. On the biggest part of the next tax increase which may be the cap and trade legislation. Which regulate so all economic accurate this country in order to control global warming capital laid out."

" All carbon energy emissions is an oil coal anything except for nuclear power and alternatives so just about the entire energy economy the unelected Environmental Protection Agency may be imposing this on the economy voting in the -- of congress both John McCain Barack Obama are pretty much on board. Let's face the economic reality here they're both going to be taking over a deep recession right. We need a policy to deal well we hope it's not a really deep for so what's probably going to be pretty severe and in neither candidate you ever hear the word economic growth. Obama is proposing something virtually equivalent to the new deal in the depression. His solution to the recession is to simply throw vast amounts of public spending -- it. But there's nothing for Joe the plumber or to Joe -- of the world who want to grow their businesses."

" I don't -- but Obama is that the idea is that he creates a higher culture of dependency. All those people vote for him so he's moving the number of people who are dependent on the government thought and that's good for him that's -- populism. If you go ahead camps."

" No I just don't they John wells on a crucial political point here McCain's got if he's going to make this -- theme he's got to keep it is theme for the rest of the collection. What is heard him in this economic crisis politically is he just seems to bounce around on these economic message question. Andy he's going to make this kicking -- and the cut away in his experience argument argument he's who you want in a crisis -- he's got to stick with us."

" Our job one thing -- who is not being widely reported here is the degree to which Obama is really outstanding. McCain and some of these crucial battleground states 456 when you go to some of these states you don't see of McCain -- but you see in Obama attacking and going after McCain's. Well in previous years we've seen a lot of complaints about the rise of money in politics. Too much money in the system. Barack Obama is spending more money on the presidential election -- any candidate since Richard Nixon. This is an astonishing amount of money and there's been a tremendous lack of curiosity and how Obama's -- this money because McCain has revealed. All of his donors under the 200 dollar limit. Which is not required by law Obama has refused to. There may be depending story after this election about how much of that Obama money came from questionable sources -- oversees the citizens and the irony is a great campaign finance reformer John McCain is a guy who wanted to limit campaign is not because -- is now getting crushed in the spending game. In part because of the rules he helped to an old expression twisted by your own guitars."

" John thanks when we come back the perils and pluses of the historic bank rescue have a look at. What was behind this week's wild ride on Wall Street."

" Another wild week on Wall Street as the announcement of the government's historic bank rescue plan combined with -- growing fears of a global. Recession sent stocks on the roller coaster ride Mary I have to say every day or every other day I get up and there's a once every twenty years story. I had -- financial story it's just an astonishing period and then stocks up 11% one day down 9% the next. What are they -- what are those prices telling us. We should know about the economy."

" Yeah I think a lot of the swings in the market are actually reflecting. The selling by mutual funds which are very large top players in the in the market. And those are redemptions coming from ordinary people who say get me out. And from hedge funds which have borrowed a lot of money to take on their positions so they have to do. Sell when the market goes against them and so ever got to -- for the volatility. Recently as a rally they sell into it. I think the mutual fund dot message we're getting is that people are afraid we're in a recession there they're panic there's a sense of panic -- you actually look at the individual stocks. There's a lot of good value. But people are worried."

" Not much now we're in a recession you were saying before you think it's going to be a severe one. Would David my office an economist -- we on the one likes as the economy just kind of hit a -- this quarter brick wall like a car slamming into it and we're gonna have a pretty steep downturn."

" Yup but you know I think that would be true in a normal situation what we have here is the double whammy of this financial cook. Market crisis which is sort of like a hundred year flood. To meet the thing I'm beginning to worry about Paul is that. There is this bias now against the risk and innovation. The idea is that Wall Street. Field across the port listen Wall Street and everyone else failed with sub prime mortgages. And I'm really afraid that as they try to restructure now they're going to so suppress the idea of risk taking that the new bankers will be looking for borrowers with Tripoli gold plated ratings. That the people coming up from below show the plumber shall we say are really silicone valley types are simply not going to be able to get cap."

" The ball well -- United States -- will be able to get your capital in around the rest of the world which may be part of the saving grace here that prevents Washington from going too far as it seeks to absolve itself. From any responsibility for causing this mess and blamed the private economy deregulation whatever."

" And I don't think we I don't think we know what's going to happen yet until we start seeing that the credit markets returning to normal and and leave the capital injections that the government. Made into the nine biggest banks this week. Began that process but it's going to take some time to get those credit now markets back to normal the fact of the matter is thanks make money. Lending money they have to go back to back so I don't think this scenario is is that -- I think what happens is we have a very sharp drop down on the fourth quieter. Probably extends into the beginning of next year but yeah I do think that -- we'll see recovering."

" Let me ask you about this historic. -- treasury capital injection into nine of our biggest banks -- 125 billion dollars worth of capital nonvoting shares -- capital public capital. Nonetheless is this something that you think could have been avoided."

" No I think it was actually necessary and it's probably the smarter way to go right now because what this is going to do is it's gonna get the banks. The capital cushion the kind of leeway they need to go out and and hopefully sell some of these -- assets. At market prices without -- about insolvency. So so this was something that was good but I think some of -- market volatility though Paul is because people are still unsure about how this treasury program is going to work and what is still coming from Washington is this a program with -- eight a -- An end his term you know what is Washington D next -- a regulatory standpoint what is the tax situation gonna look like this is scary stuff."

" John there are some real pitfalls in this capital public capital injection are there. Absolutely what's even worse is we don't know what the next congress and present are going to do you can make this recession worse there's not a single school of economic thought that says you raise taxes in a recession but that's what this congress and Barack Obama candidate Barack Obama has even disavowed that exactly ending the financial -- you add to that a health care plan which would. Nationalized in part the health care industry you have the environmental protections. Program that we just talked about. This could be enormous cost and economy could delay recovery for -- more politically."

" Directed credit you know we keep lecturing the Chinese you can't do that you can have a free economy and politically decide where credit goes in your banking system we tellem. Liberalize. You know their financial system and here there's a real danger now that the banks will be told led to these people went to these people like to these there --"

" Real danger I mean I I think that not all the banks and got a capital injection needed one or wanted one -- I I don't think that was the right way to go I think that should -- involuntary act and secondly the idea that a lot of things are now guaranteed. Deposits and so forth I think that opens up the possibility for a lot of ads of the banks beginning addicted to government support to him."

" And how about a tax cut the Fed is talking about reducing the Fed funds rate below one fine. But where else we gonna get the growth and John McCain I think should be talking about cutting taxes in January all right still ahead cracking a V8 corps won't take a closer look at the accusations of fraud being leveled at that controversial group as well as. Barack Obama's past ties to it."

" We need to know the full extent of senator Obama's relationship. -- who is now on the verge of maybe perpetrating one of the greatest fault frauds. In voter history in this country."

" John McCain using Wednesday's final presidential debate to question his rivals ties that acorn a far left advocacy group that has endorsed Barack Obama and -- registering one point three million new voters the question is. Just how many of those voters are real. Of the 5000 new registration to a foreign filed in the lake county Indiana an estimated 2500. Are fraudulent say county election officials in Philadelphia. Officials have identified at least 8000 suspicious ballots turned in by the group. And 1500 have been handed over to the US attorney's office and officials in Houston say some 40%. Of the groups submitted registrations have been deemed fraudulent in all over a dozen states are looking into the validity. Of acorns submitted voter registrations. John fund as the author of the book stealing elections. How voter fraud threatens our democracy John what is -- and why should we care."

" Acorn is -- poverty rights organization that is too frequently used intimidation. And street tactics to try to get its political agenda which is very liberal and very interventionist imposed. They were at the heart of the sub prime mortgage crisis and that is they push banks and Freddie Mac and Fannie Mae. To lower their banking standards that helped us get this in this mess they also a political arm. And that political arm. Is in the middle of another voter registration fraud scandal this follows on previous scandals in 20022004. And 2006. They always say they're going to clean up their act they never -- and reports are -- that the FBI. AP Associated Press reports that the FBI is now investigating. Acorn for. Voter fraud it is the first time that's happened Bob. Local prosecutors have often indicted acorn employees that often imprisoned them. Well that's because there's a pattern and practice here and in Nevada they hired 59 members from work release program from a local prison. And I believe reallocation. But -- with -- thankful we've been convicted of identity theft in charge of the registration program that's hiring special it was yeah the if either were -- that they got their response is look in the yet they might submit. False registration you jive Turkey and Mickey Mouse voters' register and under those names. But the the problem is. You've got to show up to vote actually to steal an election or to really influence on election and commit fraud if you if you don't get enough people to show up then who cares. Well we've already had examples of Ohio of people registered by a -- or to cast early ballots so there are examples of fake registrations showing up in as actual votes secondly former employees of -- tell me Paul. That the organization may have a plan to overload the election system. To make it so there's such chaos at the polls that they can bring a lot of voters there and to a lot of suspect votes counted at the polls simply saying you have to count every vote the system breaks down. Chaos is often acorns friend all right now Barack Obama has had ties to -- campaign gave 800000 to a corn for get out the vote efforts. What has -- done for Obama over the years. What -- and Obama are marinated with -- each other. Obama was their lawyer in key civil rights cases Obama was a top trainer although he denies -- for the group. Obama has also funneled over 200000 dollars when he was on the board of the woods fund to acorn -- bill Ayers was also -- word number. So what does this tell us about does it tell us anything at all this relationship about. Obama's style of government his brand of politics. Or is it just looked oh they're going to register a lot of voters and help win. I think Barack Obama. Has always been supportive of the corn he has never criticize their methods. Even though it's a very troubled organization -- sequence on board members are now suing the organization saying that they faction that was involved in scandals are still controlling the organization with all of this trouble Barack Obama should disassociate himself from -- court. Instead he is praised her efforts and he is hiding his own ties with a it's all makes you wonder if there's an agenda here that's not been fully revealed what it and it would have been. He radical. The agenda of expanding government and having greater power for groups like acorn which want to dramatically change America decide."

" Okay and the and then for the federal government does give a quite a lot of money again I think the way down I 31 million dollars since 1998."

" Dwellers you put you put your finger on kind of fundamental problem -- this there argument would be look what's the problem with registering new voters it's a public good and as John pointed out it's of the peace with the sub prime mortgage crisis. So the idea there was we want to put people into homes homeownership who maybe -- credit rating perhaps isn't so good. In both instances to get to that goal what we've done is lowered the rules lowered the regulations and and acorns case. Really pushed the edge of the envelope and so you end up with a crisis and mortgages and -- going to get -- crisis in voter fraud and with the economy to have elections. Disputed like this after the elections would be."

" Catastrophic -- no thanks we have to take one more break when we come back our hits and misses of the week. Winners and losers picks and pans hits and misses it's our way of calling attention to the best and the worst of the week -- one another. Class that Dan and anger would have loved to have taken in how would you still love to be accomplished. The face who would do --"

" The University of Wisconsin at Madison has just announced the course called the art of brewing and of frosting state producing of course across stories I'm gonna not like that and but wait a minute that's actually pretty good idea. It's going to promote two things this country needs most at this moment. Opera goers in new businesses it turns out the beer is a seven billion dollar a year industry in Wisconsin is at all. Is that. And you know basically Wisconsin is doing the same thing the California did for its wine industry you've just to set up courses and expand the industry. And there's also won silver lining to get into this course you have who have taken microbiology. And organic chemistry. Cheers."

" All right next -- the latest. Medium size -- if this is and that miss for the Scranton times Tribune. Last week one of the big campaign stories was that top. The McCain side was getting up a little bit too extreme and maybe even inciting violence and the Scranton times Tribune reported. That at a -- rallies somebody had mentioned the name of Obama and someone else yelled kill. And of course this became a big a big event at the debate and and in the media but it turns out the Scranton news leader went to talk to people. At the rally to find out. What was set and they could not find one person who heard it in fact they talked to this Secret Service detail how. Twenty law enforcement agents and they never found anybody who heard that's sad so. The spend times Tribune is standing by their story but they're the only one who heard it. Okay Mary thanks finally."

" I hit two mayoral rival journalist's job. Mark Halperin is a former political director ABC news sound editor large at time magazine. He was at a media conference on Monday he was asked do you think there's been any media bias in the campaign he said yes the media has been -- largely against. John McCain and for Barack Obama and its interest thing because he said the choices were. In how many stories were allocated. For investigative work on one candidate versus the other and he says basically Barack Obama going to pass on a lot of what happened in Chicago. And also the selection of stories what stories you choose not to report. And I think there's been an amazing amount lack of curiosity in much of Obama at the same time there's been an obsessive that would look at Sarah Taylor."

" Good for Halperin for bringing for admitting it. -- thanks and remember if you have your own hit -- please send it to us at JER at foxnews.com. That's it for this week's edition of the journal. Editorial report thanks to my panel and all of you for watching. I'm -- you don't we hope to -- right here next week."