U.S. Rep. Brad Miller is still feeling a little defensive about a ribbing he took two years ago.

In a guest post on the liberal TPM Cafe Web site, the Raleigh Democrat writes that "people laughed" at him when he argued in 2007 that innovation in the financial sector can be a bad thing.

During an off-the-cuff floor speech about predatory lending, Miller compared loans unfavorably to a stain-resistant silk necktie he was wearing, saying the tie was an "important innovation." He was mocked for the metaphor by a Capitol Hill paper.

"Serious economists are now arguing that we should not reflexively celebrate 'innovation' in the financial sector as we do innovation in the real economy," he writes. "I was ahead of my time. I said the same thing almost two years ago, and people laughed at me."

He noted that New York Times columnist Paul Krugman, economist James Kwak and Harvard law profess Elizabeth Warren have made similar arguments in recent months, with Warren saying the government should regulate financial instruments just like toasters.

"So why did my comparison of a mortgage and a necktie provoke snickering, and Elizabeth Warren's comparison of a mortgage and a toaster was seen as serious, scholarly insight?" he wrote.

Now that 2008 is so last year, the 2010 campaign has begun.

The Democratic Senatorial Campaign Committee today put out a new Web video blasting Republican Sen. Richard Burr for telling his wife to take money out of an ATM during the banking crisis, Jim Morrill reports.

"When the banking crisis hit, Sen. Burr reassured the public saying the systems and protections were working," a narrator grimly says. "In private, Burr panicked, and told his wife to go to the ATM and take out as much of their money as she could ... In times of crisis, we need steady and responsible leaders."

Liberal bloggers and Democrats jumped on Burr last month when his ATM comments were reported. Burr has downplayed the flap, saying he did what many people did.

"When you look at the financial industry that is not exchanging capital, it immediately says you better have a little bit of cash set aside," he told a reporter later.

Burr consultant Paul Shumaker says the new ad is typical of what voters should expect.

"No great surprise, considering (Democrats) are still struggling to find a candidate to run in North Carolina," he said.

"North Carolina is a competitive state, these races are national races. We are going to be on the national stage for the next year and a half. This is part of what one can expect from both sides."

The flap over U.S. Sen. Richard Burr ATM remarks just got another boost.

The Washington-based Politico newspaper reported this afternoon on a statement that Burr put out when Citigroup bought Wachovia reassuring North Carolinians not to worry — around the same time he told his wife to withdraw money from the bank: 

"Today's news of Citigroup's acquisition of Wachovia might be unsettling to many in North Carolina. While these are difficult times in our economy, it is important to remember that this move provides for the protection of accounts and the soundness of savings for Wachovia's customers. FDIC has said that all services for customers should continue uninterrupted." 

"Today's news once again shows that our financial markets are currently facing tremendous uncertainty, and it is an absolute necessity to move quickly to bring some stability to the crisis." 

The press release was posted to Burr's Web site at 12:46 p.m. on Sept. 29, 2008.

On Thursday, Burr spokesman David Ward said that the senator had called his wife around the last weekend in September. 

"When you think about the three weeks prior to this, you saw some of the biggest investment banks and commercial banks fail. You saw Lehman collapse, Fannie and Freddie propped up, WaMu fall, and Merrill Lynch acquired by Bank of America," he said. "The outlook was pretty grim at the time." 

U.S. Sen. Richard Burr downplayed the flap over his withdrawing of money from an ATM during last fall’s banking crisis, saying he did what many people did.

Burr, a Winston-Salem Republican, said today that there were questions about the liquidity of the banking industry that led to the first emergency federal bailout.

So while he was in Washington, he called his wife, Brooke, at their Winston-Salem home, and asked that she withdraw $500 from an ATM over the weekend, reports Rob Christensen.

"There are individuals in this country who keep cash at home,” Burr said in an interview after a talk to coalition of officials from the biopharmaceutical industry. “I don’t happen to be one of those. I live from ATM machine to ATM machine. The reality is when you look at the financial industry that is not exchanging capital; it immediately says you better have a little bit of cash set aside.”

During the past two days, Burr has come under sharp criticism from liberal commentators. MSNBC Rachel Maddow called him “bank run Burr” and MSNBC’s Keith Olbermann, designated him as “the worst person in the world.”

The flame has been fanned by Democrats in Washington and Raleigh, who hope to unseat Burr when he faces re-election in 2010.

More after the jump.

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A liberal talk show host took aim at Sen. Richard Burr last night.

The Winston-Salem Republican was once again harshly criticized by MSNBC liberal talk host Rachel Maddow — a sign of his increased visibility as he runs for re-election.

Maddow, who previously criticized the senator for holding up President Obama's veterans appointee, called him "bank-run Burr" for having told his wife to take money out of an ATM during the banking crisis last fall.

Her guest, N.C. Democratic Party chairman David Young, said Burr "helped frame our case" for the 2010 Senate race, which has no announced Democratic candidate yet.

"I was shocked ... at the selfishness of somebody who would use insider information ... that he got in Washington ... to enrich himself," he told the host.

If Burr wasn't on notice before yesterday, he is now.

A spokesman says Sen. Richard Burr has told that anecdote before.

David Ward, press secretary for the Winston-Salem Republican, said that Burr has told audiences before about the time he was so spooked by the nation's financial situation that he told his wife to take money out of the ATM.

"The Senator is simply trying to express to North Carolinians what was on his mind as Congress was attempting to respond to the financial crisis last fall," he said in a statement. "It is part of a much longer anecdote that he has been using for some time to convey to constituents the severity of what we were being told was happening in the financial system."

Ward said that it would be "disingenuous and irresponsible" to misconstrue Burr's recent speech to the Henderson County Chamber of Commerce.  

Burr, who is traveling in Western Carolina, was unavailable for comment. 

U.S. Sen. Richard Burr said he panicked when he first learned of the banking crisis.

The Winston-Salem Republican told the Henderson County Chamber of Commerce that he called his wife, Brooke, and told her to withdraw money from the bank after talking with former Treasury Secretary Henry Paulson.

The remarks, first reported by the Hendersonville Times-News, have since been picked up by The Hill, a Washington-based newspaper, and various political blogs:

"On Friday night, I called my wife and I said, 'Brooke, I am not coming home this weekend. I will call you on Monday. Tonight, I want you to go to the ATM machine, and I want you to draw out everything it will let you take. And I want you to tomorrow, and I want you to go Sunday.' I was convinced on Friday night that if you put a plastic card in an ATM machine the last thing you were going to get was cash."

Burr also said that he does not think the current economic problems — which he termed a depression — would have a U-shaped or V-shaped recovery, as past recessions have had.

"Those are the only things they talk about," he said. "Either it’s a lack of imagination or some belief that you can make everything fit into those two. Let me suggest to you today, I think we are in a Nike swoosh."

U.S. Rep. Brad Miller harshly criticized the head of troubled insurer AIG today.

During testimony by American International Group Chairman Edward Liddy this afternoon, the Raleigh Democrat went after the company for using $49.5 billion of federal bailout money to pay off credit insurance policies held by banks.

In an exchange that was broadcast live on CNN, Miller said that the research on banking crises in other countries shows it is crucial to maintain "market discipline" by ensuring that businesses that made bad decisions suffer.

"Are we maintaining market discipline by continuing to give money to AIG to pay unsecured creditors?" he asked, brusquely.

Liddy responded that the company was no longer paying off its insurance policies, then added that the company had to honor its contracts.

"To your basic point, we owe those people that money," he said. "It's just a fact of life. ... The result of not paying them is an event of default, and it forces the (other) company into bankruptcy."

Previously: Miller criticizes Treasury Department.

Correction: An earlier version of this post included an incorrect link. 

U.S. Sen. Elizabeth Dole said President Bush's announcement on bank guarantee seems to be a way to boost credit without putting taxpayers at much risk.

In a prepared statement, she cited two institutions, Bank of America, and Wells Fargo/Wachovia, with North Carolina bases, Barb Barrett reports.

She also said Americans ought to be able to access their retirement accounts without penalties.

"I applaud the treasury for changing course by taking steps to inject liquidity into financial institutions such as Wells Fargo/Wachovia and Bank of America," Dole said. "This seems more sound than spending taxpayer dollars on buying up assets and hoping to turn a profit later. 

"While I dislike these expensive interventions into the markets, this course of action does seem to be less risky to the taxpayers and should  free up credit to help jumpstart the economy. I still feel it is vital to take steps to provide direct relief to individuals, such as allowing Americans to access their 401k/Individual Retirement Accounts without taxes and penalties."

Previously: Hagan praises bank guarantee plan. 

State Sen. Kay Hagan, the Democratic candidate for U.S. Senate, called President Bush's announcement on bank guarantees "an important confidence-building step."

But she said more should be done for families and small businesses.

"Just this morning, it was announced that school construction had to be delayed in Wake County because of the credit crunch. The plan announced this morning is an important confidence-building step for an economy still dangerously close to the edge," Hagan said in a statement released by her campaign. 

"I'm pleased with the provisions giving taxpayers an ownership stake in the investment of their tax dollars, but the fact remains that not enough is being done for families and small businesses on the front lines of this failed Bush economy. As the finishing touches are being put on Wall Street’s rescue plan, we need to get busy on a rescue plan for America’s middle class."

Bush announced this morning that $250 billion of the $750 billion bailout bill approved by Congress will be used to buy equity in nine banks. Also, the FDIC will insure bank-to-bank loans and guarantee non-interest-bearing accounts in the banks and thrifts it now insures.

Both Hagan and her opponent, incumbent Republican U.S. Sen. Elizabeth Dole, opposed the bailout plan.