STEPHANOPOULOS: And get them to the table and have them write down the mortgages so no one is paying more than 31 percent of their income. Makes sense to you?
GRAHAM: Yes, it does. And that's why I put $20-something billion in the bill for the FDIC to do that. If you don't stabilize housing, you're never going to fix this problem. The way you stabilize housing is you try to get control of foreclosures.
WATERS: That's right.
GRAHAM: You try to stop the bleeding of the housing market.
WATERS: That's right.
GRAHAM: That's why you needed the full Isakson amendment to get excess inventory. You've got a huge inventory problem. You've got foreclosures that have to be dealt with. And that goes back to banks.
I think we've done too little, too late. I think the TARP opportunity was a missed opportunity. We've soured the public on bailouts. This bill makes it harder for all of us to come together and get another $500 billion.
So the country needs to understand this puzzle: banking, housing, and general economy. The general economy will never prove -- improve until you do something about credit and banking and housing. And we've just scratched the surface to the major problem this country faces. So taking an idea off the table...
SCHUMER: Let me just say...
STEPHANOPOULOS: Let me just say, you put one other idea on the table. You think it's going to take another $500 billion that hasn't been asked for yet...
GRAHAM: I've been to the Budget Committee...
STEPHANOPOULOS: ... for the banks?
GRAHAM: ... and they tell me that $350 billion left in TARP will not isolate the toxic assets and jump-start housing.
STEPHANOPOULOS: We're running out of time. I just want to know, do you all agree with that?
STEPHANOPOULOS: Is it going to take more money?
WATERS: ... buy up those toxic assets. They're going to write them down to about 5 cents on the dollar. Get the private sector involved, and they're going to get rid of all of those toxic assets.
SCHUMER: I would just make one other point.
STEPHANOPOULOS: We have five seconds.
SCHUMER: You can have a big, bold, successful plan without nationalization. That's what the administration is trying to do.
KING: And let's -- let's -- and let's try to work together on it. Let's really work together from the start and won't be repeating this, what we're doing today.
STEPHANOPOULOS: On that note, we have to stop. Thank you all for a great, great discussion.
Before we go, a quick shoutout to one of your colleagues. John Dingell became the longest-serving congressman in American history this week, big celebration at the Capitol. He first won the House seat once held by his father back in 1955.
Congratulations, Congressman Dingell.