Thursday
Jul092009
Frank Unveils Plan To Bailout Main Street
Thursday, July 9, 2009 at 12:45PM
By Joseph Russell- Talk Radio News Service
Rep. Barney Frank (D-Mass.) introduced the “TARP for Main Street Act of 2009” during a House Financial Services Committee meeting Thursday. The legislation is designed to use money made available under the Troubled Assets Relief Program, to help struggling homeowners and neighborhoods as the economy worsens.
Frank said “the program is one where money is provided to communities to buy-up property that was foreclosed.”
However, committee Republicans said that the program will continue to add to the massive national deficit. They also criticized the plan because it circumvents the appropriation process by taking $6.2 billion directly from the general fund, a procedure they say violates the Constitution.
“There seems to be a competition by Democrats, especially in this committee, who can come up with the most outlandish way to spend tax payer’s dollars,” Rep. Scott Garrett (R-N.J.) said. “The current proposal is to take the TARP program and turn it into something of a Madoff like Ponzi scheme.”
Frank plans to fund “TARP for Main Street” with money that was originally appropriated for bank bailouts. Some $68 billion has been given back by banks who did not need the money. Frank believes the money should be “recycled” and given to struggling homeowners.
TARP originally appropriated $700 billion in emergency bailouts as a measure to stabilize the financial markets.
Rep. Barney Frank (D-Mass.) introduced the “TARP for Main Street Act of 2009” during a House Financial Services Committee meeting Thursday. The legislation is designed to use money made available under the Troubled Assets Relief Program, to help struggling homeowners and neighborhoods as the economy worsens.
Frank said “the program is one where money is provided to communities to buy-up property that was foreclosed.”
However, committee Republicans said that the program will continue to add to the massive national deficit. They also criticized the plan because it circumvents the appropriation process by taking $6.2 billion directly from the general fund, a procedure they say violates the Constitution.
“There seems to be a competition by Democrats, especially in this committee, who can come up with the most outlandish way to spend tax payer’s dollars,” Rep. Scott Garrett (R-N.J.) said. “The current proposal is to take the TARP program and turn it into something of a Madoff like Ponzi scheme.”
Frank plans to fund “TARP for Main Street” with money that was originally appropriated for bank bailouts. Some $68 billion has been given back by banks who did not need the money. Frank believes the money should be “recycled” and given to struggling homeowners.
TARP originally appropriated $700 billion in emergency bailouts as a measure to stabilize the financial markets.
Clinton Seeks To Boost U.S. Foreign Aid, Realign Global Governance
Secretary of State Hillary Clinton addressed the Council on Foreign Relations (CFR) on Wednesday to outline the Obama administration’s broad foreign policy objectives. Clinton highlighted the administration’s plan to use more tax dollars for foreign aid and realign global governance, and underscored its dedication to U.S. security.
“We advance our security, our prosperity, and our values, by improving the material conditions of people’s lives around the world,” Clinton said. “These efforts also lay the ground work for greater global cooperation by building the capacity of new partners and tackling shared problems from the ground up.”
U.S. foreign aid has not significantly improved global conditions according to Clinton. “We have devoted a smaller percentage of our government budget to development than almost any other advanced country,” despite giving more money than any other nation. “I want more of our tax dollars to be used effectively and deliver tangible results,” Clinton said.
Clinton asserted that the Obama administration will work to build a global consensus through partnerships, saying “we’ll work through existing institutions and reform them, but we’ll go further.”
Amidst a record deficit, pundits have criticized the Obama administration’s foreign policy objectives, calling the goal of providing more foreign aid unsustainable. Additionally, some have criticized the U.S.'s desire to realign global governance, arguing that it weakens U.S. power and leaves the country vulnerable to threats by North Korea and other unfriendly nations.
Clinton addressed these concerns by saying that if the U.S. uses its power to build relationships through common values, the world will be safer because countries will seek to find solutions to the world's problems.