Obama blames Bush policies

By STEVEN R. HURST

WASHINGTON

Sept. 15: Democrat Barack Obama laid into the Republican opposition on Monday as Americans awoke to fearsome news from Wall Street — the disappearance of two investment banking stalwarts — as the United States economy faced what he called "the most serious financial crisis since the "Great Depression" of the 1930s.

Mr Obama is battling to overcome a significant boost in the polls for his opponent, Republican John McCain, who stunned Americans and solidified wavering support among his party’s Christian conservative base with the choice of Alaska governor Sarah Palin as running mate. After trailing Mr Obama throughout the run-up to both party conventions, Mr McCain has pulled even or edged slightly ahead in national polling — primarily riding the wave of Ms Palin’s initial popularity.

Deepening turmoil in the US economy, the No. 1 issue among voters despite the ongoing wars in Iraq and Afghanistan, could resonate in Mr Obama’s favour as he tries mightily to link Mr McCain to President George W. Bush, whose stewardship of the United States has left him with near-record disapproval ratings.

In a statement issued shortly after 6 am (1000 GMT) on the US east coast, Mr Obama said he did not blame Mr McCain, but "I do fault the economic philosophy he subscribes to. It’s a philosophy we’ve had for the last eight years — one that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else."

"It’s a philosophy that says even common sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crises," he said responding to the news overnight that the investment banking firm Lehman Brothers, burdened by $60 billion in soured real-estate holdings, said it was filing for Chapter 11 bankruptcy after attempts to rescue the 158-year-old institution failed. Its businesses in Britain were already placed in administration, said the administrator, accounting firm Pricewaterhouse-Coopers. Also, Bank of America Corp said it was buying Merrill Lynch & Co Inc in a $50 billion all-stock transaction. —AP