Senate leadership comments on stimulus bill

Senator Reid began the press conference saying that this Sunday is the Superbowl and the stadium holds 75,000 people, however in one day 85,000 people got laid off in America. He is confident that they are going to get support for the bill and that they will take up the package on Monday and there will be no recess until the President has a bill to sign.

Then Senator Durbin (D- IL) said that Caterpillar has laid off 18% of its workforce which is approximately 20,000 employees. The stimulus bill contains 140 billion dollars in infrastructure which will translate into 1.5 million jobs and that there will be 51 billion dollars in energy infrastructure, translating into 350,000 to 500,00 jobs.

Senator Schumer (D- NY) pledged to work with his Republican colleagues. He said a third of the bill is tax cuts, and that whether alternative minimum tax (AMT) is part of this bill or not, it will get done.

Senator Reid, in response to a question about non stimulus type money in the bill, said this is a very large package. “Is everything perfect? Of course not. But it is a good package.” He also said if we did nothing else but energy, it would be good for America, and that what stimulus really is is in the eye of the beholder.

Senator Schumer concluded with the fact that they have bent over backwards to be bipartisan.

Pelosi pushes for economic recovery package

Speaker of the House Nancy Pelosi (D-Calif.) touched upon the plan for an economic recovery package and explained how it will be different from Roosevelt's New Deal.

"This is not a 1930s public works project: this is a broad band modernization of the grid initiative for the future. The only thing it has in common with the thirties is the bold and persistent experimentation of that era, the entrepreneurial spirit," said Pelosi during her final press conference for the 110th Congress.

While the Speaker did not say for certain the cost of the package, she did allude to a recent meeting between the Democratic Caucus and a series of economists, including McCain economic advisor Mark Zandi, who all agreed that the intensifying economic crisis called for a robust stimulus package.

"Mark talked about 600 billion dollars … 400 billion for investments in infrastructure [and aid to the States] and 200 billion in tax cuts."

Pelosi said that Democratic leadership in Congress has been communicating with the President elect, and is confident that they will arrive upon a consensus.

The Speaker also discussed the auto bailout and reaffirmed her view that Troubled Assets Relief Program (TARP) funds should be used to help the big 3 auto manufacturers. While the White House has been reluctant to use these funds, Pelosi believes the administration will not allow the companies to go bankrupt following Congress' failure to pass legislation supporting the big 3.

As for the rest of TARP funds, Pelosi said that she has been working with Rep. Barney Frank (D-Mass.) to create legislation that would only give the Treasury Department the second half of TARP funds when the provisions of the initial legislation, namely the requirement to provide aid to those suffering from the housing crisis, are met.

"It was very clearly spelled out in the initial legislation that funds would be used for mortgage foreclosure forbearance. As you recall, there were no votes to pass this legislation … and it was only until we intensified the provisions that related to keeping people in their homes that this legislation even passed the House of Representatives," said Pelosi.

"It has been totally ignored by the administration. Absolutely nothing has been done to respect that part of the legislation, which is the only part of the legislation that had support in the Congress and enabled it to pass."

Timothy Firestine: We need a reliable and confident government that will help the crisis

“We need to make sure these hearings aren’t merely a fact-finding expedition or whether it is laying the groundwork for action in Congress next month on a stimulus package,”Ranking member, Jim McCrery, said at the Ways and Means Committee hearing on Economic Recovery, Job Creation and Investment in America.

The Governor of New York, David Paterson, stated that as part of the second economic stimulus package, states need direct and immediate fiscal relief to help close their massive budget deficits. “Much of the good that would be done through proposals like expanding unemployment or food stamp benefits would be undone if states do not receive necessary federal budget relief,” Paterson said.

The Governor of South Carolina, Mark Sanford, said that he doesn’t believe that throwing more money to the institutions that put our economy in this situation is the way to go. Sanford said that no matter what amount of money is thrown at the consumer, individuals and businesses will likely choose to wait to make their purchases or investments. “Essentially, you’d be transferring taxpayer dollars out of the frying pan- the federal government- and into the fire- the states themselves,” Sanford said. Sanford believes that giving states more freedom, flexibility, and more options instead of more

Chief Administrative Officer for Montgomery County, Maryland, Timothy Firestine, said that it is important to note that while the state and local governments are suffering the effects of the current credit crisis, the general problems in the municipal market are not due to any fundamental problem with the underlying credits themselves. “In a quest to stimulate the economy, create jobs and help state and local governments, Congress could act to infuse capital in the municipal securities market in order for governments to begin vital infrastructure projects,” Firestine said.

Firestine and Sanford both agree that any taxation would exacerbate the economic crisis and they both stated that if anything needs to be done with taxes it would be to lower them.

White House Gaggle

Briefer: Dana Perino


President’s Schedule

President Bush had his normal briefings this morning at 8 am. At 11.05, he will meet with the President of Guatemala in the Oval Office. This afternoon, President Bush meets with the US- Brazil CEO Forum. Later, at 3.30 pm, he participates in a meeting with the National Commander of the American Legion.

White House Press Secretary Dana Perino will brief the press at 1.30 pm today.




Afghanistan

Perino was asked about what concerns the Administration has in regards to the recent violence in Afghanistan including the attempted assassination of President Kharzai, and what that says about the Afghan military’s abilities to not only keep order in the country but also to protect. Her response was that, when you are dealing with terrorists, “we have to be right 100 % of the time, and the a terrorist only has to be right once… we are very concerned about it. The terrorist threat is real, it is deadly, and defeating this enemy has to be a top priority of the United States, of the Afghan government, of the Iraqi government and NATO alliance. They will continue to look at how they could have done it better, and prevent it from happening again.


Meeting with President of Guatemala

President Bush and President Alvaro Colom will discuss the Merida initiative, trade and economy. Perino was also asked in there is anything on the agenda to talk about the on going situation of US adoptions of Guatemalan babies, and she said that there was not, but they have talked about it before.


Trucker protest

Perino was asked if the Administration has anything to say to the truckers that are protesting the high prices of gasoline, and she replied that we can “understand the frustration and concern they have.” We are very aware of the high price of gasoline and the impact it is having on people across the country. We are trying to move farther and faster. “I think that it would be disingenuous and unfortunate for American consumers for them to be lead to believe that there is a short term fix, and there is not going to be one. Another part of this is that we make sure to improve efficiency and find other alternatives and find for domestic oil here at home”, Perino said.


Stimulus Package

When asked about the Administration’s thought of a second stimulus package, Perino said that they want to give the first one a chance to work. When asked what the President wants the American people to do with the money from the rebate checks, Perino said that the President wants them to decide for themselves. “Certainly, President Bush is not going to dictate what people are supposed to do with their money.”
According economists in previous historical situations, Perino said that enough people will spend their checks so that it will have the desired impact. Many people will spend, others will save and “it will be up to the American people what they decide to do.”


Syria

When asked about reports of bombing of Syria, the South Korean CIA, and intelligence gathering, Perino referred the question to the intelligence community.


Hugo Chavez

When asked for a comment on Venezuelan President Hugo Chavez who has been said to help in the release of US hostages in North Korea; Perino said that she had not heard about it, but said that Chavez needs to stop supporting terrorists in the first place, but of course they would like the hostages to be released safely.

Hoyer on his anger toward gas prices and his goals as a super delegate

House Majority Leader Steny Hoyer (D-Md.) held a pen and pad news briefing today, and discussed gas prices, a second stimulus package, news out of Iraq, and the role of super delegates.

Hoyer said gas prices are angering him, and that yesterday’s record high of $3.51 impacts food prices and adversely impacts consumers. He said the good news is that recovery rebate checks are to go out next month from the stimulus package to stimulate the economy. He said that though Congress and the administration are trying to do what can be done for the increasing prices, there is no “short term fix” and that prices rose because of spiked demand from China and India. He said Ben Bernake, Chairman of the Federal Reserve, says statistically it looks like our country is entering a recession, though the administration does not agree.

Hoyer said Congress is working with the administration on a second stimulus package, which will focus on the needs of families and working Americans and will address the issues of unemployment insurance, food stamps, and infrastructure. He said the timing of the stimulus package will depend on cooperation between the House and the Senate.

Hoyer also said the news out of Iraq is not as positive as anyone would like, that there is continued civil strife and that we need a change of direction, even if the administration doesn’t think it is called for. He said that the Constitution says Congress is in charge of making policy, and the administration is in denial over that. He said that a supplemental bill is necessary, and will be on the floor next week or the following week. They are still trying to decide what should be in it, but it will include support of soldiers in the field and address issues here at home.

Finally, Hoyer discussed the role of super delegates, or as he refers to them, ex-officio leaders. He said that Democrats have two very good candidates for president in Sen. Hillary Clinton and Sen. Barack Obama, and that both can defeat Sen. John McCain. He said Americans want change and a different policy direction for the country. His goal is for the Democratic party to win in November, and he will declare to vote for whoever he thinks will best accomplish this objective. He said ex-officio leaders have experience and knowledge of the candidates and what constituents want, and that they were created to bring in new people, ideas, and perspectives to the decision making process, but that no one thought this election would be so close. He is against the suggestion of a “super-convention” of ex-officio leaders to talk before the national convention, but instead he is always talking informally with other leaders and his constituents. He said politics is so heightened that the media focuses on the differences between the candidates rather than their similarities and the fact that they agree on the same policy direction for the country. He said the policies pursued in the last eight years have been detrimental, and that the rest of the country agrees, as shown by the president’s approval rating.