The Economy will not be fixed in a few months

The House Majority Leader Steny H. Hoyer spoke about Obama’s news budget at a weekly press conference. Hoyer spoke about President Obama and his administrations new budget. Hoyer stated that the budget proposal was bold and honest and that the American people have to realize that the economy will not be fixed in a few months. He said that the Obama’s economic policies can turn the economy around, but in a matter of years according to some financial experts.

Hoyer discussed the importance of patient when it comes to U.S. finances, since Obama inherited an economy in deep recession. When talking to different financial experts most of them say that it will take time before any results can be shown, he said.

Hoyer also stated that the D.C Voting Bill regarding gun control is making progress. He said his prediction will be passed this year by the House.

Hoyer also brought up what he thinks are two challenges in America’s current politics; Healthcare and energy are both areas were there is a lot of interest groups involved and the challenges will be to try to please as many as possible.

Speaker Pelosi: "No more just here's the money, sit on it so that your capitalization is improved."

by Christina Lovato, University of New Mexico-Talk Radio News Service


Today in Speaker Nancy Pelosi’s weekly press conference the economy was still a big issue. Pelosi started off the conference by speaking about the deterioration of the economy and how President Obama is putting forth initiatives in just the four weeks he has been in office. “Yesterday the President put forth the details and guidelines for a housing initiative that he announced earlier. Under it 79 million of Americans over the next couple of years will be able to modify their loans, they will have the opportunity to modify or re-finance their homes, stay in their homes. Today Congress will pass legislation on housing and bankruptcy which will help some more.” she said.

Pelosi addressed the housing, regulatory reform recovery package, stating that she is very positive about it. “A package that cuts taxes for the middle class, 95% of the American people. A package that will create or save 3-4 million jobs over the next few years and a package that strives to bring stability to our economy.” she said. 

Today, President Obama is holding a health care summit and Pelosi said that healthcare costs are the biggest problem of the American people. “It’s about a healthier America, it’s about recognizing that health care reform is regulatory reform and it recognizes that health care is an economic issue.” 

The Speaker also said that she agreed with President Obama stating that we need to have fewer earmarks. “This whole thing about the Republican side about earmarks is so disingenuous...The idea is lower number, more transparency, total accountability.” she said. 

When it came down to talking about money, Pelosi said that distribution of the TARP funds must fulfill the purpose of why the money is given to them. “No more just here’s the money, sit on it so that your capitalization is improved.” When it came down to talk about the auto industry Pelosi concluded by saying, “Any money that we give to the auto industry must be considered a lifeline, not life support. This all has to be about viability of the auto industry to survive.”

China: "Hope to increase economic growth by 8%" in 2009

Minister Counsellor and Head of the Political Section for the Embassy of China, Weilin Kuang discussed "China's Development and its Role in the World," today at a Humanity Peace and Security meeting for the Korean Peninsula Issues in Washington D.C.

Weilin Kuang said in his opening remarks: "Over the last 30 years the economic progress China has made is truly remarkable…over 200 million Chinese people have been lifted out of poverty."

However, despite China's progress in the economic market, Kuang noted some challenges facing China: "Although we are the third largest economy in the world our GEP is behind the 100th largest economy in the world."

Talking about the current economic crisis, Kuang said: "China is faced with very serious economic difficulties and challenges."

Talking about China's relations with the world, Kuang said: “After 30 years of reform China's relations with the world has changed. China needs the world, and the world needs China."

Kuang stated that maintaining and building on external relations is vitally important to help China get through this economically demanding period.

Speaking of hope for China, Kuang said: “I am confident that a rising, confident and more prosperous China will make positive contributions to the world…China hopes to increase its economic growth by 8 per cent this year and I am very hopeful."

In regard to US-China relations, with the new Obama administration, he said: "We hope to see a continuation of these two dialogues…we have put our ideas to the US side, now its their turn, the ball is in their court…I am confident a formula can be formed to allow these two dialogues to continue…it is up to the United States to make a position."

"We have seen positive signs from President Obama and Secretary of State Hillary Clinton…I hope more can be done to move forward and expand talks…face-to-face talks could be very helpful to help express mutual understanding," he concluded.

Whistleblowers Welcome

By Kayleigh Harvey - Talk Radio News Service

Deputy Director of the FBI, John Pistole, Special Inspector General for the Troubled Assets Relief Program, the Honorable Neil Barofsky and Acting Assistant Attorney General Rita Glavin from the Criminal division testified before a full room at a Senate Judiciary Hearing today, to discuss "The Need for Increased Fraud Enforcement in the Wake of the Economic Downturn."

Chairman of the Committee, Senator Patrick Leahy (D-Vt) said: "This is not a partisan issue...we want to strengthen fraud enforcement, the Justice Department, the FBI, the Office of the Inspector General, the Department of Housing and Urban Development and even the Postal Inspection Service."

"One thing I learned as a prosecutor...you can have all the laws of the world in the books but if you don't have the resources to enforce the laws, and actually go out there after people who have broken the laws, they are meaningless."

"We do know that banks and private mortgage companies relaxed their standards for loans, proving ever riskier mortgage and less and less due diligence, it's almost like open the door and saying, 'Hey, come on in fraud is welcome'," Senator Leahy continued.

Also discussed at the hearing were the measures on how to tackle fraud now and in the future in relation to the economic crisis, catching criminal activity, and the Madoff scandal.

With regard to whistleblowers there seemed to be a unanimous agreement by the witnesses, that whistleblowers are an important tool in tackling fraud.

John Pistole said: "Anybody who has credible information, that can help either predicate or enhance investigation we look forward to working with."

Rita Glavin stated that "The Department has enjoyed tremendous success from working with whistleblowers...we have obtained essentially $10 billion in the past 10 years...the Department believes that whistleblowers, who are often insiders, can serve a vital function in our law enforcement efforts in exposing potential fraud in connection with government programs."

Neil Barofsky announced at the hearing that the TARP program encourages people to contact their hotline which can be found on their website if they have any information on fraud. TARP has hired a lawyer to follow all hotline enquiry leads. Barofsky said he would rather they went through 99 false lines of enquiry in order to avoid missing that one real piece of information.

Asked by Senator Edward Kaufman (D-Del) what were the most obvious fraud cases that TARP would move on quickly in order to attempt to get the most number of prosecutions, Neil Barofsky said: "Going after licensed professionals...focussing on exclusively the gatekeepers; the lawyers, the appraisers, the licensed mortgage brokers...making examples of those and letting their colleagues know that criminal behavior in these types of mortgage frauds is unacceptable, because they have the most to lose."

Federal Reserve to be more transparent about lending policies

By Kayleigh Harvey - Talk Radio News Service

Federal Reserve Board Chairman, Ben Bernanke testified before the House Financial Services Committee concerning "An Examination of the Extraordinary Efforts by the Federal Reserve Bank to provide Liquidity in the current Financial Crisis."

Chairman Barney Frank, (D-Mass) said in his opening statement: "I read before coming here, the new Treasury of the Secretary's announcement of his plans to use the TARP funds. It is very clear that the Obama administration, as did the Bush administration is using the money in the TARP program in conjunction with the lending authority of the Federal Reserve."

"There are also some important questions in the ways in which we govern ourselves. The Chairman of the Federal Reserve and indeed the Federal Reserve system, I believe were responding to the very real needs in society and people need not agree with every specific decision that the Federal Reserve made, to appreciate the sense of very important public purpose that has motivated them," Chairman Frank said.

The Trouble Assets Relief Program (TARP), was a program set up, in October 2008, by the United States government to allow them to purchase assets and equity from financial institutions to help strengthen them during the economic recession.

The Ranking Member of the Committee, Representative Spencer Bachus, (R-Ala) said: "I believe in a democracy it should be a requirement in any agreement or transaction involving the government that...in the event that our governing officials come to the decision that the commitment of public funds is necessary, if a commitment of taxpayer funds or guarantees cannot be disclosed because of the circumstances involved it cannot and should not be made."

Chairman Bernanke answered questions for over two hours to the Committee concerning the Federal Reserve’s problems in this economic crisis.

"I firmly believe that central banks be as transparent as possible both for reasons of democratic accountability and because many of our policies are likely to be more effective if they are well understood by the markets and the public...The Federal Reserve is committed to keeping the Congress and the public informed about its lending programs and its balance sheet."

"To improve public access to information concerning Federal policies and programs, Federal Reserve staff are developing a new website that will bring together a new systematic and comprehensive way to find a full range of information the Federal Reserve already makes available, supplemented by new explanations, discussions and analysis. Our goal is to have this website operational in a few weeks."

Chairman Bernanke also referred to a new committee that will revue the Federal Reserve’s current publications and disclosure policies that will relate to the Federal Reserve's balance sheet and lending policies.