‘I Won:’ President Obama Works to Be Bipartisan But Shows There Are Clear Limits
EmailIn an hour-long private meeting with Republican and Democratic Congressional leaders this morning on the economic stimulus package, President Barack Obama stressed the urgency of getting the $825 billion stimulus plan passed quickly for the good of the country, and mentioned the political stakes for both parties.
According to a source present at the meeting, President Obama said, "Look, we are all political animals here, If we don’t do this, we may lose seats. I may not be re-elected. But none of that’s going to matter if we don’t pass this because the economy will be in a crisis and the American people will be hurting."
The meeting was attended by House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., Senate Minority Leader Mitch McConnell, R-Ky., House Majority Leader Steny Hoyer, D-Md., House Minority Leader John Boehner, R-Ohio, Senate Majority Whip Dick Durbin, D-Ill., Senate Minority Whip Jon Kyl, R-Ariz., House Majority Whip Jim Clyburn D-SC, and House Minority Whip Eric Cantor, R-Va.
Vice President Joe Biden, National Economic Council director Larry Summers, Office of Management and Budget director Peter Orszag and White House chief of staff Rahm Emanuel were also in attendance.
Despite being the lowest person on the totem pole in attendance, sources say the ideas presented by Cantor — who brought handouts to the meeting — provided some of the day’s most engaging moments.
House Republicans have been complaining about not being consulted, and as Cantor explained the details of some of the ideas he and his GOP colleagues would like to see in the package, President Obama read the one-pager and told him, "Eric, I don’t see anything crazy in here."
Among some of the things Republicans requested: tax deductions for some small businesses, making unemployment benefits tax free and a provision that would let businesses losing money carry the losses over to pay fewer taxes in a different fiscal year.
Mr. Obama did voice opinion on some differences on the issue of whether the lowest individual tax rates should be cut from 15 percent to 10 percent and from 10 percent to 5 percent.
As the president, he had told Kyl after the Arizonan raised objections to the notion of a tax credit for people who don’t pay income taxes, Obama told Cantor this morning that "on some of these issues we’re just going to have ideological differences."
The president added, "I won. So I think on that one, I trump you."
After the meeting, Boehner said Republicans relayed their concerns to Obama about the size and spending of the economic stimulus package during the meeting. He specifically mentioned a provision in the bill that would allow 50 states to offer Medicaid family planning service, like contraceptives, with the federal government’s 9-to-1 match. Republicans say that whether this is good public policy, it has nothing to do with an economic stimulus.
While Republican leaders felt that Obama was at least receptive to their ideas, unlike their Democratic counterparts, they continued to express reservations about the plan despite the meeting.
"How you can spend hundreds of millions of dollars on contraceptives — how does that stimulate the economy?" Boehner said at a news conference following the meeting. "You can go through a whole host of issues in this bill that have nothing to do with growing jobs in America."
The bill will be taken up for a vote in the House next week. Among a few elements in the bill — $726 million for after-school snacks, $50 million for the NEA, $44 million to repair the USDA, and $200 million to work on the National Mall, including grass.
– Jake Tapper and Huma Khan
ABC News’ Jonathan Karl and Rick Klein contributed to this report
Rick Santorum Defends Earmarks 
Ron Paul Ad's Call Santorum a 'Fake'
Notice how Obama keeps leaking details of “private” meetings in order to benefit him?
We should be worried about what else they’ll leak and to who.
Posted by: Hope N. Change | January 23, 2009, 5:02 pm 5:02 pm
Obama should be a bit partisan after what the GOP did in the past. My only complaint is now my tax dollars are going to be used for the unlimited slaughter of babies at the abortion mills even overriding a state or community’s rights to oppose abortions in their midst.
Posted by: Huh | January 23, 2009, 5:04 pm 5:04 pm
I am so sick of hearing from the GOP. They lost and poll after poll after poll shows America is tired of them and tired of their ideas. It’s time for change and I personally could care less what the GOP thinks about anything.
Posted by: Robert Stinnett | January 23, 2009, 5:06 pm 5:06 pm
Well guess what, my tax dollars went to fund religious activities which I am against. So I guess you can just call it even to spend some on abortion.
And it’s funny how all the conservatives and Republicans are screaming for bipartisanship after 8 years of Republican terror.
Posted by: Robert Stinnett | January 23, 2009, 5:07 pm 5:07 pm
Obama:
I may not be re-elected. But none of that’s going to matter if we don’t pass this because the economy will be in a crisis and the American people will be hurting.”
——–
Reminds me of the arguments to go to war in Iraq. We have to act now, everyone has to support the President’s choice of actions, because there is a crisis at hand.
It may be true, but I’d like to hear a real case for why this bill, in particular, will work.
And I want to hear that they have an exit plan.
Posted by: MayBee | January 23, 2009, 5:08 pm 5:08 pm
Hope N. Change, please explain your worries. “What else” and “to who” do you have in mind? N I understand you prefer getting no info abt gov’t business?
Obama got elected to do exactly what he is doing now. Congress should be careful about obstructing his job in the name of bipartisanship. That goes for republicans as well as democrats.
Posted by: Question | January 23, 2009, 5:11 pm 5:11 pm
MayBee, the economy is America’s problem. Iraq was not. The economy is a real crisis. Iraq was a fake one.
Posted by: Question | January 23, 2009, 5:14 pm 5:14 pm
Robert: And it’s funny how all the conservatives and Republicans are screaming for bipartisanship after 8 years of Republican terror.
—-
You know that the Dems have had both houses of Congress for the past two years, right?
As for polls, please keep in mind their fickle nature. George W Bush once had an approval rating of 88%, and a majority of Americans supported the Iraq war. Polls don’t tell us what is right, and one bad outcome can send opinion in the other direction.
Posted by: MayBee | January 23, 2009, 5:17 pm 5:17 pm
Not taxing unemployment benefits should be a no-brainer.
Posted by: Mack | January 23, 2009, 5:19 pm 5:19 pm
“It may be true, but I’d like to hear a real case for why this bill, in particular, will work.
And I want to hear that they have an exit plan.”
Ha! I dont think there is an exit plan. Business cycles run in errr, cycles- so there will be another downturn at some point. Obama plans on borrowing trillions.
When the economy comes out of the recession, there wont be enough good years to pay off trillions plus more interest before the next recession when you will need another stimulus.
“How do you plan to pay that back” is a good question that should have been asked more during the mortgage crisis.
Posted by: BertieW | January 23, 2009, 5:20 pm 5:20 pm
I am tired of Republicans. Thank you Obama for asserting the fact that you DID win.
Posted by: Amoreena | January 23, 2009, 5:25 pm 5:25 pm
Let me see if I got this right. Obama says “I won” and therefore, no matter what crap he wants, no matter who he wants to give it to, everyone is supposed to just smile and say “fine!”. Doh.
Posted by: Old Timer 46 | January 23, 2009, 5:32 pm 5:32 pm
Yes you did win Mr. President. The people who elected you, are the same people who will re-elect you. They bought what you sold to them during the campaign, and they are now impressed that you are keeping your words by acting accordingly.
Posted by: Anne | January 23, 2009, 5:41 pm 5:41 pm
Well, selective ethics, that is new one.
As it turns out within the week there are campaign promises that are not and ehtics but only for those chosen by the president.
Do what I say or else…….Sound familiar?
Obama is just another politician, not a messiah or superman. There is and will continue to be bi partisen politics, after all we have two parits.
Posted by: harold | January 23, 2009, 6:11 pm 6:11 pm
Yes, we voted the Republicans out. They lost the Presidency and seats in Congress – they were given the boot.
Sure we want our President to listen to them, but he sure as punch doesn’t have to follow their agenda – we had enough of that thanks very much.
Posted by: pefros | January 23, 2009, 6:12 pm 6:12 pm
harold:
regarding ethics . .
The provision for a waiver in certain cases (regarding lobbyists) was clearly stated. And the waiver was executed in full public view.
Again, what is shocking to the ‘right wing’ is that its open and can be seen – you’re so used to the hidden decisions, secrecy and paranoia from the Bush administration it’s hard for you to fathom.
Posted by: pefros | January 23, 2009, 6:15 pm 6:15 pm
Wait – Obama won? I hadn’t heard anything about that. Did the media cover that story? That aside – when Obama and Bush met in private, details of their private meeting were leaked to the press. So here’s another private meeting, and more leaks. Let’s see,WHO was at both of meetings? Well, we can rule out Bush. That leaves…..
Posted by: Interested08 | January 23, 2009, 6:19 pm 6:19 pm
uhm . . interested08 . . . there were Republicans at both meetings.
Posted by: pefros | January 23, 2009, 6:23 pm 6:23 pm
Oh no! Our country is being run by a bunch of 12 year olds!
Posted by: Brian | January 23, 2009, 6:47 pm 6:47 pm
MayBee,
I agree with your desire to know more about this plan… and I am confident we will, but it has to be put in a final form first. It will most likely be posted on whitehouse.gov as the administration has pledged “we the people” will have access to non-secure legislation.
As for an exit plan… the economic stimulus plan IS by very nature an exit plan. Exit from the recession/possible depression.
Posted by: serena | January 23, 2009, 6:47 pm 6:47 pm
More contraceptives leads to fewer babies leads to fewer people leads to more jobs for the people who are already here, and fewer mouths to feed. The Republicans didn’t think that one through.
Posted by: Bob | January 23, 2009, 6:56 pm 6:56 pm
Leaks?
I just saw (for the second time today) video footage from the meeting.
Private doesn’t necessarily mean confidential… you could get a dictionary and look it up…
Posted by: serena | January 23, 2009, 7:04 pm 7:04 pm
Right on Bob… and then there is the production and the latex manufacturing and the packaging etc. etc. — not to mention other related industries getting a boost. Don’t giggle, I am referring to health and counseling entities and professionals.
:-)
Posted by: serena | January 23, 2009, 7:07 pm 7:07 pm
ABC – maybe now is a good time to start reporting about the plan rather then what people say about the plan – give us excerpts from the plan.
I just don’t know who to trust anymore – this article makes it sound like Obama wants this plan to pass because he wants to get re-elected.
Posted by: Enough! | January 23, 2009, 7:16 pm 7:16 pm
oh fun, more Obama “post-partisan” nougatty goodness.
In case the Bamabots on here forgot, 48% of the vote did NOT go to The One.
The huge “stimulus” package is NOT a stimulus package, but a huge port payoff. Like the huge slush fund to payback the teachers’ unions
Chicago politics “pay for play” is now in the Oval office.
feh
Posted by: DarleenClick | January 23, 2009, 8:42 pm 8:42 pm
“port” should be “pork”
Posted by: DarleenClick | January 23, 2009, 8:42 pm 8:42 pm
President Obama said consistently throughout his campaign that education would be a priority for him, and that teachers would be better paid.
He said that repeatedly. He`s intending to up to another promise.
Posted by: pefros | January 23, 2009, 10:35 pm 10:35 pm
I understand that we are curious about our new president. Some concerns are legit and some are just from those who want to criticize before he’s been there a week. Funny how Bush destroyed our nation and we just watched until the worst couldn’t get worst. If you want this new era to work then do your part. As yourself what are you doing daily to make good changes occur. Stop complaining and DO YOUR PART!!
Posted by: Do your part | January 23, 2009, 11:07 pm 11:07 pm
Funny. I remember Representative James Sensenbrenner interrupting a Democratic caucus, cutting off the lights and telling people to leave. That was how they consulted our side when they were in power.
We (Democrats) won in November. We won big. Bush ramrodded and ran rough-shod over the people of this country for eight years, and he didn’t have anywhere near the “political capital” that Obama has.
Obama needs to get his programs going, tell the Right to get on board or suffer in the midterms, and just do what Bush did.
Basically ignore all critics, and institute everything by Executive Order. We own the House, and there are enough vulnerable Republicans in the Senate for a cloture vote. Rock on!
Posted by: Mark | January 23, 2009, 11:25 pm 11:25 pm
What strikes me as weird, is the fact that the GOP has in the past, and continues to UNDERESTIMATE the sheer brilliance of President Obama. What don’t you get? Not only do you not have the sense to realize that this man is so transformational that he was voted into the the highest seat in America…you also seem to forget that is the most popular president we have ever seen in the past! He has the majority of AMERICA behind him, and has close to 100% of the WORLD behind him.
Posted by: Obama 2012 (FOR SURE) | January 24, 2009, 12:43 am 12:43 am
Look,
Bipartisanship can only go so far! It is also a two-way street. So far, it is only President Obama and the Democrats who are truly trying to be bipartisan. If the Republicans continue to be obstructional, and refuse to, “Stop their childish ways,” as President Obama so eloquently asked them to do in his Inaugural Speech…then I say…to heck with them.
President Obama should just make a primetime TV appearance, label it “AMERICA’s Recovery and Reinvestment Program,” and proceed to let American know how hard he tried to be bipartisan, and how the republicans in the house and senate blatantly refuse to cooperate. Trust me, President Obama, Americans will understand.
I have personally watched CSPAN and seen how childish and unprofessional the republicans are. They are ABSOLUTELY OBSTRUCTIONAL. They blatantly posture, become aggressive, and really, the house and senate are unable to get any work done because of this ridiculous behavior.
PLEASE PRESIDENT OBAMA, realize that your hand can only be stretched so far. If they won’t meet you half way, then, please, for GOD’s SAKE, please move on with the recovery plan. My neighbors are losing their job, and perhaps their home. My husband’s business is slowing down to a standstill. We can’t go on at this rate for much longer just because Republicans want to PRETEND that they CARE ABOUT AMERICANS TAX DOLLARS. They blew through more money in the last 8 years than any one of us can even begin to imagine. It’s a facade…and we all know it!
Posted by: TIRED OF REPUBLICANS | January 24, 2009, 1:01 am 1:01 am
Yes he did win. He wants all of the glory then he can also have all of the blame when this horrible rape of the taxpayers money just leads to more economic problems.
Posted by: dlc | January 24, 2009, 1:10 am 1:10 am
No president can stay at 80 percent approval for long! You extreme left people that were going to start asking for things that you think you dewserve sinc you wee on your litle keyboards and think you were the ones who got him there… the truth is it was nothing but image that got him there and a balanced tone… no Democratic candidate that is not estrordinary like Obama can get elected because they cnnont be detached and disspassionate as the president was… all Im saying is you are going to be callign in favors and there is NO money for anything now… the Fed can print money but that doesnt make it worth anything!
Posted by: JG | January 24, 2009, 1:16 am 1:16 am
DLC
so true when spending almost a trillion dollars when when all that money for Iraq and afganistan etc went in a black hole.. thats what Hillary has been saying asbout doing some accountign for USAID and bringing that back under state department auspices… thats just one area we arent even talking about greedy banks here
Posted by: JG | January 24, 2009, 1:19 am 1:19 am
You Go Mr. President with your sexy self, give him a break He did win, and the GOP need to take a flying leap. I am six to death of them saying how much my president wants to spend when Mr Bush spent like crazy or 8 long years, and no one said anything. Shut up already you Republicans be quite and go some where and sit down.
Posted by: wane | January 24, 2009, 1:45 am 1:45 am
“the President”
Posted by: eric | January 24, 2009, 3:49 am 3:49 am
Not so fast. The Republicans will vote against this bill.
Posted by: anonymous | January 24, 2009, 5:03 am 5:03 am
“I won” – so we’ll do it my way. That doesn’t sounds like bipartisanship to me. Real bipartisanship will require the final plan to have substantial input from both sides, and “both sides” includes Republicans. Otherwise, all candidate Obama’s talk of a post partisan America will be seen as just the empty rhetoric needed to draw the votes of Independents.
Posted by: itsobvious | January 24, 2009, 6:21 am 6:21 am
RUMMY…..Whats going on?Tax Evaders…GITMO….EGOTISTICAL SPEAKER of the HOUSE…….I’m finally learning how to play Cards and Monopoly……or How to drive one way on a two way street……………Come on GOVT. Get it together,time is money and we’re running out of both………
Posted by: amstaffbru | January 24, 2009, 7:10 am 7:10 am
Making unemployment benefits tax-free will be the single-most motivator for each State’s politicians to do more to attract businesses and good jobs to their States instead of working on getting re-elected their entire terms.
Posted by: Common Sense | January 24, 2009, 8:26 am 8:26 am
This is getting better and better.
Posted by: LongT | January 24, 2009, 8:31 am 8:31 am
And why shouldn’t he get his way…He is the President. At least Obama is seeking Republican opinion unlike Bush who basically shut out Democrats. In the end, he should get to call the shots, that’s the job, if he is going to get the blame (and according to some, he was blamed for this whole mess before he ever got into office), he may as well be one with the final say… Simple…
But, not to fear, Republicans will play their little political games as will the Democrats, but in the end Obama will get what he wants done.
He’s the new guy, relatively young when the Congress is old and set in their ways.
None have said that change is easy, but it always comes…
Posted by: braith morgan | January 24, 2009, 9:32 am 9:32 am
Must be hard for seasoned politicians to watch this guy who has basically accomplished nothing, who voted present most of the time, who turned his back on corruption, and was elected because of the media.
To see this spoiled brat say “I won”
Must have been hard for both parties to swallow that display of immaturity.
Posted by: harry | January 24, 2009, 10:57 am 10:57 am
I agree with Boehner. We should have more teen and unwanted pregnancies to show off conservative values like Palin’s daughter, and more people get on welfare because of it, thus to stimulate our economy. What’s not to understand?
Posted by: Maddi | January 24, 2009, 11:01 am 11:01 am
I love this!
No more Bush-bashing.
It’s Obama’s turn.
Kudos to the reporters/media that have the guts to ask the hard questions and report the facts.
Posted by: sammy | January 24, 2009, 11:05 am 11:05 am
Did Mr.Cool really want everyone to know that he actually said “I Won”
Or see him get irritated with a reporter that asked a hard question in the Press Room?
He better be careful–the world may see the real Obama.
Posted by: bailey | January 24, 2009, 11:11 am 11:11 am
When the day comes when *everyone* stops having the urge for sex, maybe then we can have a discussion on eliminating government assistance with *contraceptives*. Did you know those things let you have your cake and not have to worry ’bout a bouncing little baby 9 months (or less) later?
Pregnancy is the result of unprotected sexual activity, not some divine intervention. When something goes really wrong, then we are in an abortion discussion. Contraceptives , heh, “TRUMP” that
C’mon eveyone! Tell me how we are all going top stop wanting to do it! And “bible study” AINT the way…..
Another idea: How about we do a DNA fingerprint of every aborted fetus, locate the Father of the child and jail him? It takes two to tango and we ought to make them more responsible than the female, no matter the circumstancees of the moment.
Posted by: hot pants | January 24, 2009, 11:14 am 11:14 am
OK…I had a problem with Bailing out the Banks, but understood the rationale of Why. I had a problem with Bailing out the Auto Industry, and still disagree with this as it struck me as a ploy to bail out the Union, not the Industry (haven’t seen any other industry such as Telecom assisted with Bailout money to avoid layoffs!). Now they want to sneak in a clause to give ‘Bailout’ to family planning??? HOW does that stimulate the economy??? This isn’t bailout money anymore to help the economy, this is a blank check to support pork projects. I voted for the president, but this is looking disappointing.
Posted by: WhatAJoke! | January 24, 2009, 11:38 am 11:38 am
Robert Stinnet__The money you are complaining about when through budget approval. The money designated in this package is specific for Economic Stimulus. Family Planning funding needs to go through regular budget sessions. Approving this as part of an Economic Stimulus Package is not just a joke, it’s a betrayal of the better govt promise the President gave.
Posted by: WhatAJoke | January 24, 2009, 11:42 am 11:42 am
tax cuts for poor people puts money right back into the economy, immediately. These people live on the edge and every dollar they get is spent at the grocery store.
Posted by: Amy | January 24, 2009, 3:04 pm 3:04 pm
The economy was improving greatly under President Bush and the Republican-controlled Congress…unemployment was for all practical purposes at 0 per cent…and then Frank/CRE combined with Pelosi-Reid the last two years reared their (literally) ugly heads. That same hand-out mentality…never has worked, isn’t working and never will work. There is no substitution for people being gainfully employed on their own and being able to buy what they can AFFORD and genuinely have the credit for.
As for Sensenbrenner, what he did was jerky, and unlike the Demobots I’m not going to blindly suck up to everybody that belongs to the party I tend to support.
Posted by: Grand Old Party | January 24, 2009, 6:04 pm 6:04 pm
“I WON”, I’m loving it! Cantor, Boehner, and the rest of the republican party really have their hands full. America is really getting a taste of what a real president does: Tell it to your face! Just think if Cantor had to hear that on TV, the next day. I’d feel sorry for the guy. But you have to appreciate someone who’d tell you what their thinking to your face.
Posted by: Grand New Party | January 24, 2009, 7:06 pm 7:06 pm
“We need to do something about the economy” – Obama
Ya get your greasy hands of it.
If you want the economy to be revived,
eliminate all federal,state held jobs etc. which are but leeches,
reduce taxes to 1% and keep your nose from getting into everything of people’s life.
We dont need you Father Obama!
Posted by: Pradeep | January 24, 2009, 8:31 pm 8:31 pm
First of all, you cannot give tax cuts to the poor (who do not pay taxes.) You can give them welfare. Soon more and more Americans will demand welfare benefits from the government. Soon over 50% of the population will be getting hand outs. This is how America will implode. When few are forced to work to pay many. In politics, it is also called “tyranny of the majority”.
Secondly, this is Rule 13 of Saul Alinksy’s Rules for Radicals. President Obama knows it well:
“Pick the target, freeze it, personalize it, and polarize it.”
Posted by: Nope | January 24, 2009, 8:42 pm 8:42 pm
“I won”. Is that the best retort the President can come up with when faced with a prepared opposition?
He’s going to have to do better than resort to junior high taunting tactics, and bring a real conversation to the table.
Posted by: Mike L | January 24, 2009, 8:43 pm 8:43 pm
Actually the meeting quotes were linked from the GOP..not Obama’s group. That’s obvious because the “I won” quote was first posted by JMart. We KNOW he didn’t get it from Obama’s team because the POTUS already gave him the “calm down son” slapdown for trying to roll him when he stopped by the press room..On a bigger issue: Can we please just get rid of the ENTIRE House of Representatives?..That body is Exhibit A when it comes to the manifestation of “childish things”. Why is Boehner giving a radio address about anything?? Boehner’s the voice of the GOP??..Why is Pelosi talking about “bi partisan” when she can’t comprehend what it really means??
Posted by: TruthHurts | January 24, 2009, 8:46 pm 8:46 pm
What are these old people doing in congress, if they can not grow up and get things done, we should just vote them out and bring in younger people who will get things done.
Posted by: jay | January 24, 2009, 11:17 pm 11:17 pm
Check out Britian’s Telegraph newspaper online, and read their article about this whole thing. Too funny – the Telegraph’s take on things. They might love Obama, but at least not to the point of wearing blinders.
Posted by: Interested08 | January 24, 2009, 11:45 pm 11:45 pm
Harry: well said!!!
Posted by: Interested08 | January 24, 2009, 11:47 pm 11:47 pm
This guy’s been in office for less than a week, and he’s already focusing on the next election.
Posted by: Interested08 | January 25, 2009, 12:03 am 12:03 am
“Look, we are all political animals here,…”-Obama
Hey, so he is a political animal-politician not the new-day-new-deal breath of fresh air guy all of the bleating sheep thought they where voting for. What a surprise. At least Obama proved one thing…the best thing to do when running for office is to make sure the voters no very little about your actual ideas. I hope you are happy America you have voted in the most anti-American President ever to hold office. Hey, if Senate seats in Chicago are bought and sold how much did Obama pay for his? This guy has sold his sole to the devil long ago. Thank you America. We now have a political figure that will deserve far more abuse than George Bush. The best part is this guy can’t stay out of the lime light and loves to hear himself talk. Mark my words, this POTUS will be the un-doing of the Democratic party and all the old-school scum it represents.
Posted by: Mattmon1NY | January 25, 2009, 12:10 am 12:10 am
Over the long term, the contraceptive assistance would help the economy significantly because it would be servicing people the most unable to financially provide for children. The social services system is bursting at the seams from children who can’t be afforded. Sorry for my rather impolitic input.
Posted by: kathy | January 25, 2009, 1:18 am 1:18 am
I understand the desire for some “BITTER” Americans to be skeptical about Mr. President;in that, every decision that is made will be criticized. I just wish these same people were critical of their educational resources as they fail to spell words properly. They should revisit some basic grammar school teachings and place RESPECT next to SPELLING in their list of priorities.
Posted by: Mz Asis | January 25, 2009, 3:49 am 3:49 am
It seems like the Republican posters here have been in a coma the last 8 years. They’re acting as if they have better ideas. Once again, from 1995-2007 the Republicans controlled congress. From 2001-2009, they controlled the whitehouse.
Question: How do you reconcile the state of the union with your policies now?
Also, for those with perfect foresight, we’re supposed to believe what you predict will happen when after you made your own messiah out of Bush and thought everything was going to be pefect?
Posted by: JV | January 25, 2009, 4:00 am 4:00 am
After all the devastation done to America by the Republicans by their policies and their actions they are still mouthing the same spectacularly failed ideas! Boehner is saying the same stupid stuff like a trained Myna bird. We have tried all those Republican stuff that almost got all of killed! We know Republicans have ruined America. But Boehner can’t help but to try selling the same snake oil to us Americans!
Posted by: rogeranwill | January 25, 2009, 8:30 pm 8:30 pm
As crafted, whether $775 billion or $1.2 trillion, the Obama Stimulus Plan fails to adequately address two primary causes of our current financial crisis: (1) millions of homeowners whose home mortgages exceed the value of their homes (the “Negative Home Equity Problem”) and (2) our dependency on foreign oil that resulted in gas prices exceeding $4.00 per gallon (more than 200% higher than norm) (“Foreign Oil Dependence”).
The 2008 simultaneous combination of a national Negative Home Equity Problem and our Foreign Oil Dependence was clearly primary cause of our great recession.
Negative Home Equity Problem
Until millions of homeowners awake in the morning with the burden of their Negative Home Equity Problem eliminated, they will not resume normal spending patterns. The $500 – $1,000 per year per household tax savings, though totaling $1.4 billion to $1.5 billion, will have little effect in stimulating the economy. Most individual tax cuts will go to reduce consumer debt, merely purchase “existing inventory” sold at deep discounts, and fail to create new permanent jobs in the United States.
Until homeowners resume normal spending patterns, most businesses will continue to be in a “contraction mode”. Any business tax incentives must be combined with a plan to eliminate the Negative Home Equity Problem. Without it, Consumers will not spend and businesses will not seek to take advantage of the Obama Stimulus Plan’s business tax incentives.
Few businesses will venture out to make new investments to create new jobs in the United States.
The Obama Stimulus Plan projects $100 billion to $150 billion in business tax cuts. I believe it is highly unlikely such tax cuts will be actually realized, unless the Negative Home Equity Problem is eliminated first.
I applaud the recent developments Congress has made towards developing a Homestead Owner Chapter 13 Bankruptcy Loan Modification solution to the Negative Home Equity Problem. However, this solution will have ramifications not anticipated by existing home mortgage investors. As a part of developing the Homestead Owner Chapter 13 Bankruptcy Loan Modification solution, Congress should quantify what those unanticipated ramifications will be and create a parallel plan to assure that such ramifications do not have a substantial negative impact of the home mortgage market in the future (“Negative Home Mortgage Market Ramifications”).
I would suggest Congress quantify the direct and indirect costs of the Negative Home Mortgage Market Ramifications caused by the Homestead Owner Chapter 13 Bankruptcy Loan Modification solution before Congress approves $300 billion or more in broad based (not targeted) individual and business tax incentives. If you fail to refinance us out of this problem now, before Congress increases deficit spending and causing interest rates to rise, the Negative Home Equity Problem and our economy will only get worse.
In summary, Congress should pass a comprehensive fully funded Negative Home Equity Problem solution before approving $300 billion or more tax cuts contemplated in the Obama Stimulus Plan. By assisting the Federal Reserve in implementing its monetary policy to drive down home mortgage rates, Congress would minimize such Negative Home Mortgage Market Ramifications. Conforming Home Loan Mortgage rates should be driven down to below 3.00%. Congress could simply allow FHA/Fannie/Freddie to refinance existing mortgages at the Treasury’s cost of funds (below 2.50% for a 10 year term; below 3.00% for a 30 year term).
PLEASE DO NO MISS THIS OPPORTUNITY TO REFINANCE US OUT OF THIS PROBLEM AT HISTORICALLY LOW INSTEREST RATES!
Foreign Oil Dependence
If we fail to make a substantial investment now towards a plan to eliminate our Foreign Oil Dependence, when will we ever be able to do it in the future? Before approving $350 billion to $400 for board-based infrastructure projects, Congress should pass legislation to fund all currently planned (but stalled) alternative energy projects across the country that will reduce our use of oil.
In Indiana alone, over the next 24 months, we could easily start planning and constructing over $10 billion in new Alternative Energy Projects (examples: bio-fuel production plants, wind energy farms and coal gasification plants), if the Federal government provided additional economy development incentives and credit enhancement. Many alternative energy projects started in the last 2 years have stalled with the recent drop in oil prices and the loss of financing sources due to the crisis. There is no better time to restart those projects with additional Federal subsidizing then now.
Alternative Energy Projects are extremely capital intensive, create immediate construction and service jobs, and offer a direct and indirect pay-back stream through the sale of energy and reduction of our Foreign Oil Dependence.
In summary, before Congress approves a $350 billion to $400 billion broad based infrastructure spending program, all currently-planned (but stalled) alternative energy projects across the nation should be adequately funded, moving us forward to eliminate our Foreign Oil Dependence.
PLEASE TO NOT MISS THIS OPPORTUNITY TO FUND HUNDREDS OF BILLIONS OF DOLLARS OF ALTERNATIVE ENERY PROJECTS THAT HAVE RECENTLY BEEN SHELVED. SUCH FINANCING CAN BE FUNDED AT HISTORICAL LOW INTEREST RATES IF THE FEDERAL GOVERNMENT GUARANTIES THE DEBT USED TO FINANCE THESE PROJECTS.
Making trillion dollar decisions can never be easy. You all are truly in our thoughts and prayers every day. And trying to “keep things simple” given the magnitude of this pending great regression is implausible, at best.
However, I ask you all to focus on the two critical and primary causes of our current financial crisis, (1) the Negative Home Equity Problem and (2) our Foreign Oil Dependence. Until you send a clear message that you have a solution for both now, the economy will continue to fall precipitously and we will never be able to afford or have confidence to invest in alternative energy in the future. Clearly, we can not afford to fund over $1.5 trillion (TARP: $700 billion; Obama Stimulus Plan: $775+ billion) in our attempts to fix the outcomes of the financial crisis, and fail to fix the primary causes of the financial crises.
Posted by: FRANK | January 26, 2009, 2:48 pm 2:48 pm