'This Week' Transcript: Susan Rice

GEORGE WILL (OC) No, they don't have it yet, but we know where they'll get it and that's from the taxpayers. What the President said about Chrysler is sell yourself to Fiat, and the taxpayers will lend $6 billion to an Italian corporation. That's a tough political sale. What the administration said, and this, this trouble began with the Bush people who flinched from bankruptcy also. They've said, look, go away, come back with a plausible revitalization plan on the following deadline. So they came back. The administration said, we don't like your plan. Therefore, go away and write another plan for another deadline. Meanwhile, the billions keep flowing. They're not credible yet. And they're not credible when they envelope the, the phrase bankruptcy and all these qualifying adjectives.

GEORGE STEPHANOPOULOS (OC) Well that may be, George, the President actually used the word "bankruptcy" two or three times in an announcement...

GEORGE WILL (OC) But about essentially bankrupt companies.

ARIANNA HUFFINGTON He used it. And it is incredibly important. And the only problem is the double standard that became immediately clear in terms of how we're dealing with the banks. Because we are pouring hundreds of billions of dollars into insolvent banks. And that's where the President should stop listening to Larry Summers and Tim Geithner whose cosmology is basically the same as the center of the universe are the banks, everything has to revolve around them. If we continue believing that, we will continue doing the wrong thing and you'll see the consequences. First, we were told we need to do that in order to free up credit. Then, the President says well you didn't free up credit because the banks used the money to balance their balance sheets. So, now, we're just going to sell the toxic assets to five hedge funds guaranteed by the taxpayers. One of those participants is going to be Citigroup that's getting bailout money that it's going to use to buy toxic assets. It's not going to work.

GEORGE STEPHANOPOULOS (OC) You raised all the problems - you raised a lot of the problems with it, yet, on the other hand, you can say since these announcements have been made, the stock market has been jumped 25 points.

ARIANNA HUFFINGTON That's the only thing that has jumped.

GEORGE STEPHANOPOULOS (OC) Credit has been, credit has been flowing more. There is a bit more confidence at least in...

ARIANNA HUFFINGTON Not from the banks. Credit has been flowing from the separate arrangement that the administration has made.

DAVID FRUM Even if it's as deplorable as Arianna says, I mean we were talking about Pakistan a minute ago. The banks are the - are our domestic Pakistan. That is that they threaten...

GEORGE STEPHANOPOULOS (OC) No good answers?

DAVID FRUM But they also - they keep threatening, you have to give us stuff or we'll blow ourselves up and take you with us. It is a kind of hostage-taking situation. And...

ARIANNA HUFFINGTON We need to stop giving in to them.

DAVID FRUM But the auto - the automakers can go down without it destroying the United States and global economy. And the banks can't, unfortunately.

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