'This Week' Transcript: Stimulus Debate

Second, he doesn't go for the mistake, I think, that Secretary Paulson made, one-size-fits-all. Every bank needs capital injections. Every bank for -- every bank needs bad assets taken off their balance sheets.

Rather, he says, we have four basic tools. We're going to examine each bank that has trouble and see which policy meets their needs. Sometimes it'll be capital injections. Sometimes it'll be bad assets. Sometimes it'll be something else. That makes sense. But the third thing which people always discount is this TALF. The TALF goes around Wall Street and gets right to the buyers.

STEPHANOPOULOS: It's the Federal Reserve using their own capital.

SCHUMER: It's the Federal Reserve using its own capital to bolster the lending markets, and they're going to go right to the consumer. They're going to look at credit card loans. They're going to look at home loans. They're going to look at auto loans, which are now -- you can't get a car loan, even if you have a good credit rating.

(CROSSTALK)

SCHUMER: And they're going to look -- they're going to look at small business loans. Now, this worked when they did it for two smaller areas, commercial paper and interbank lending. They're now going to talk about that on a broad basis...

STEPHANOPOULOS: So let me -- let me...

SCHUMER: ... and that should get the economy kick-started.

STEPHANOPOULOS: Let me see if we have something of a consensus here. If I'm hearing correctly -- and do correct me if I'm not -- is that it sounds like you have a consensus here to give Geithner a chance. Let's see if these stress tests will work. But if not, it sounds like everyone, except Senator Schumer, is open to a much more radical infusion of...

(CROSSTALK)

KING: I hate to say, I think Chuck and I are somewhat on the same page here on this. And Lindsey and Maxine are almost on the same page, which -- I don't know what this means about the world.

GRAHAM: You may have to edit this program.

STEPHANOPOULOS: A new kind of bipartisanship.

(CROSSTALK)

KING: I'm sure -- I'm sure President -- I'm sure President Obama is watching this show this morning. I would just urge him not to repeat what happened with the stimulus bill. If everyone is at the table early on, I think you can see a chance for real progress.

SCHUMER: And, you know, let me just say...

(CROSSTALK)

WATERS: So, you know, Chuck, I have to say that I would like to see a lot more details from Geithner.

SCHUMER: There will be. WATERS: And I am absolutely focused on the foreclosure problem. We have to dedicate a significant amount of that money to dealing with these foreclosures.

STEPHANOPOULOS: We're going to see that from the president this week, right, $50 billion to reduce the -- the cost for most homeowners who are facing trouble.

SCHUMER: Right. Although, you know, on that one...

WATERS: That's right.

SCHUMER: ... I would try to move it up to $100 billion.

WATERS: Easily.

SCHUMER: I agree that the housing area is the key to this.

WATERS: It's the epicenter.

SCHUMER: And dealing with it -- the one thing I think they're going to do in housing, which I think is pretty good, is they're going to focus a little more on the servicer and the bondholder and use some sticks, as well as some carrots...

STEPHANOPOULOS: And so they're going to get...

SCHUMER: ... and get them to the table.

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