By Lindsey Ellerson

Mar 10, 2010 5:35pm

Congressman Tells Geithner To Expect GOP “Tidal Wave” in November Due to Soaring Deficits

ABC News' Matthew Jaffe reports:  Only hours after the Obama administration announced a record monthly budget deficit of $220 billion in February, Treasury Secretary Tim Geithner was beating back criticism from Republican lawmakers railing against the rising amount of red ink. “It just defies common sense for this administration to pretend that you’re paying any attention at all to deficit reduction,” Rep. John Culberson, R-TX, told Geithner. “It doesn’t square with reality.” Geithner fought back, noting that the Obama administration inherited from their Bush predecessors a severe recession and soaring debt. Spending money to stop the economic downturn, Geithner explained, was necessary, even if it led to record deficits. “If you care about fiscal responsibility, there is no way you could have argued that the response from the government should have been to stand back and let this economy collapse – that would have been far more costly,” Geithner said. Replied Culberson, “The level of spending is unprecedented. The level of debt that you’ve asked our kids to pay off is unprecedented. The deficits are unprecedented. We want you to live up to what your words are and we have not seen it yet.” “You’ve spent more money in less time than any administration in history, you have driven the deficits to unprecedented levels, and you’re trying to sell a bill of goods to the country claiming that you’re going to create the mother of all entitlements, insure 30 million more Americans, and we’re going to save you money,” he continued. “Nobody believes that.” “The great thing about our country is we get to have a national debate about what makes sense for our country,” responded Geithner. “And that’s why the November election is going to be a tidal wave,” Culberson fired back. Geithner today also encountered criticism from Rep. Mark Kirk, R-IL, who accused the Treasury boss of being “naïve” to think that the Ahmadinejad regime in Iran would not use $250 million from the World Bank for non-humanitarian projects. “I don’t have a naïve bone in my body,” replied Geithner. At the start of this afternoon’s hearing, Geithner kicked off his opening remarks by applauding Bank of America’s decision to end overdraft fees on debit cards and he urged other banks to follow suit. “We welcome these efforts by banks to try to begin the process of restoring the trust and confidence of their customers,” Geithner said. “We welcome the fact that we’re now seeing banks try to get ahead of the President’s financial reform effort that is now working its way through the Congress.” “After years in which we saw many financial companies competing to exploit vulnerable borrowers, it’s good to see banks once again competing to benefit their customers,” he added. “And I want to urge other large banks that have not acted to follow the lead of some of their competitors.” On the administration’s embattled $75 billion housing help program, Geithner said that “the number that matters now” is not that only 116,000 borrowers have received permanent loan modifications, but that over a million homeowners have received temporary loan modifications.

User Comments

While I agree with the alarming deficits, the fact is that republicans have been as bad if not worse than the democrats over the last 25 years with regards to out of control spending. The only guy to never vote for an unbalanced budget is Ron Paul. Maybe folks should write in Dr. Paul in 2012. Just a thought.

Posted by: Huh | March 10, 2010, 6:02 pm 6:02 pm

Great story, ABC exclusive and all! Never seen a story like this before! What news! You really know how to dig up the real scoop!
Just have a little problem with your headline writer, though. They should have titled it “GOP issues talking points”

Posted by: Flash Override | March 10, 2010, 6:09 pm 6:09 pm

Tim Geithner’s response is playbook….

Posted by: LongT | March 10, 2010, 6:28 pm 6:28 pm

Isnt there a way to get rid of the republicans? I mean they can legally buy elections through corprate ties so how do we get them out of office? The good of the country is at stake here the must be stoped.

Posted by: Mike | March 10, 2010, 6:33 pm 6:33 pm

“Just have a little problem with your headline writer, though. They should have titled it “GOP issues talking points”
*chuckle*

Posted by: Ryan C | March 10, 2010, 6:45 pm 6:45 pm

What loser democrats. They just don’t get it othewr than listening lemming like to their beloved hero.

Posted by: jonny | March 10, 2010, 6:49 pm 6:49 pm

What’s the deal here?
Bush gets to initiate 2 wars and not pay for them, initiate a major prescription drug program and not pay for it, cut taxes for the rich and not pay for it, plunge the country into debt and deficit – and then watch as the country plunges into an economic breakdown – and the Republicans get to whine about the results?

Posted by: tierra | March 10, 2010, 7:26 pm 7:26 pm

tierra-You are right. Both parties have failed us in order to further their own careers. They have told us what we wanted to hear, and we were dumb enough to buy it not understanding the destruction that their regulatory policies have reeked on the not-so-free market.

Posted by: Huh | March 10, 2010, 8:05 pm 8:05 pm

tierra – I agree with you 100%. Huh, you are right that both parties are the problem. I hope the leadership of both parties get voted out. Maybe the new leaders of both parties will pay more attention to the voters and less to the rich and powerful.

Posted by: MikeMo1947 | March 10, 2010, 8:17 pm 8:17 pm

Duh !!! When you are campaigning, you
hit at your opponents most vulnerable
spot. No defending the runaway spending!!
If they can look at the citizens and can
tell them (with a straight face), I was
looking out for you, more power to
them. Its an impossible feat. Time for
a change!!! Yes a good mantra.

Posted by: wis134 | March 10, 2010, 8:26 pm 8:26 pm

Those who keep repeating the sound byte about Repubs in the pocket of corporations…how about answering for Dems getting the majority of the donations for corporations and unions. How about answering for why Unions don’t have to pay Cadillac health care tax while the rest of the people of this country does?!??!?

Posted by: free_dude | March 10, 2010, 8:41 pm 8:41 pm

Tierra you can’t keep telling yourself your fighting the establishment… Obama IS the establishment!!!
Wake up CALL… Hell-O! Anybody home in there!?! (Crickets)
Jesus, Democrat House, Senate, White House and they have to ram through a Healthcare bill a majority of the American people HATES just so they (wait for it…) can say they “Accomplished Something” in his first wasted, out of touch, insulated from the American publics problems, year.
Remember James Carvile, “It’s THE ECONOMY STUPID!” Continue the unpopular wars, raise taxes, ignore unemployment, but spend a WHOLE YEAR pushing to give health care to the last 20% of the country, when 80% are happy with their health care, and half of that 20% are young adults who aren’t sick and ILLEGAL IMMIGRANTS!
Face it, next to carrying out anything more difficult that a TeLePROMPTeR speech or a town hall without cue cards, Obama can’t set his priority’s worth a damn!
Unsatisfied with Obama, (not to mention Reid and Pelosi) hell welcome to the “new majority!”

Posted by: jafo | March 10, 2010, 9:12 pm 9:12 pm

“Continue the unpopular wars, raise taxes, ignore unemployment”
Posted by: jafo | Mar 10, 2010 9:12:33 PM
___________________________________
What raised taxes? This administration has provided tax relief to individuals and businesses.
What raised taxes?

Posted by: tierra | March 10, 2010, 10:24 pm 10:24 pm

Those who keep repeating the sound byte about Repubs in the pocket of corporations…how about answering for Dems getting the majority of the donations for corporations and unions. How about answering for why Unions don’t have to pay Cadillac health care tax while the rest of the people of this country does?!??!?
================================
Amen to that. Unions own the Democratic Party.
And please show an example of Keynesian economics working – in real life, not in theory. Making the rich poor will never, ever make the poor rich.

Posted by: ConservativeWoman | March 10, 2010, 11:11 pm 11:11 pm

Americans aren’t pleased with the Democrats, but the GOP is wrong to think they’ve put lipstick on pigs and made themselves attractive. I don’t see any “tidal wave”, but I guess I’d be saying it if I was campaigning.
Culberson and others are playing the trick of trying to divert attention from the tremendous damage the GOP did to America by doubling the national debt during G W Bushes presidency, despite inheriting “surpluses as far as the eye could see” in Bushes own words. Surpluses that Newt Gingrich says were due to Clinton’s resistance to large tax cuts.
Culberson and other GOP members passed bills in 2001-6 that did something seldom done by Congress – they passed Ways and Means bills and spending bills that extend well into the future before expiring. A good example is Medicare prescriptions. The GOP passed it with no care in the world about how it was to be paid for – and made sure it became fairly permanent.
Consequently there’s not only the $5.4 trillion in debt the GOP’s responsible for from G W Bush, but there’s $8 trillion of debt built into the 2010′s because of those extended-time bills they passed from 2001-6.

Posted by: The_Mick | March 11, 2010, 1:20 am 1:20 am

Making the rich poor will never, ever make the poor rich.
___________________________________
Not much worry about that – the top 5% just keep getting more and more of the wealth. The rest of us fall further and further.

Posted by: tierra | March 11, 2010, 1:40 am 1:40 am

No matter how bad the GOP was in spending, it pales in comparison. Folks that try really are comparing mole hills to mountains. Obama’s DEFICIT is about the size of Bush’s first budget. I think Bush’s largest deficit was 400-460 billion. Obama is about 4 times that size. You can’t have an 80% INCREASE in spending (TARP included in that figure) and not increase DEFICIT. Heck, you can’t have 20+% increase in spending(the increase without TARP) and not increase deficits. Obama and the Dem control congress (since 2006) is spending like drunken GOP sailors on PCP.

Posted by: rolltr | March 11, 2010, 1:43 am 1:43 am

Posted by: rolltr | Mar 11, 2010 1:43:44 AM
President Bush inherited a budget surplus of $128 billion when he took office in 2001 but posted a budget deficit every year.
He doubled the national debt – and then presided over the free-fall collapse of the economy. Do you have any idea what a collapse of the economy has on unemployment, tax revenues and deficits?
Do you know that the ‘stimulus’ money went to 1) provide tax relief, 2) shore up local and state budgets so they wouldn’t collapse, 3) ensure hard-working americans who had lost their jobs would get some kind of unemployment assistance and COBRA assistance, and 4) more?
Are you not aware those things were crucial by almost any economist to prevent a collapse of the economy into a depression? Do you have any idea what a depression is like?
Bush doubled the national debt during ‘good’ economic times – and then presided over the near collapse of the economy. He had already busted the bank by the time he oversaw the incoming ‘bad’ economic times.
Figure it out.

Posted by: tierra | March 11, 2010, 2:41 am 2:41 am

What a MESS!

Posted by: stevemb12 | March 11, 2010, 6:18 am 6:18 am

I agree with Culberson that there’s going to be a tidal wave overtaking the Demo_rats camping out in Washington in 236 more days, but I disagree that it’ll be a win for the GOP.
BOTH Parties are on their last leg. They are BOTH heading to the same place we relegated the Whigs and the Federalists to – history.
It’s time to put INDEPENDENTS in Washington – representatives of WE THE PEOPLE, not representatives of their PARTY.
We’re FED UP, and we’re NOT GOING TO TAKE IT ANY MORE!!!

Posted by: Laughing_All_the_____Way | March 11, 2010, 6:24 am 6:24 am

Everyone is forgetting the housing bubble that was building for years. This bubble was building during the democrats years with Clinton at the helm, with Barney Frank and Chris Dodd pushing sub-prime loans from inside Fannie Mae and Freddie Mac.
The bubble burst just as the election was over and hence everyone wants to put the blame on Bush and company. Well you had a Democratic majority in congress, what did they do? NOTHING, just like they are doing now, NOTHING!
The Democrats have re-written the rules on government spending and deficits, while bringing our national debt to highs never before seen.
The pay-as-you-go spending that Obama blabed during the election was just BS rehtoric, like evrything else.

Posted by: indymind | March 11, 2010, 7:36 am 7:36 am

The Democrats are the party of big business and the rich? The GOP is for the little people?
If the American people are dumb enough to buy that junk- they deserve to be enslaved by the Health Insurance companies which the republican party supports- as well as the corporations and wealthy.

Posted by: Peter | March 11, 2010, 8:25 am 8:25 am

Both republicans AND Democrats accept corporate money…wake up people!

Posted by: LongT | March 11, 2010, 8:28 am 8:28 am

Making the rich poor will never, ever make the poor rich.
___________________________________
Not much worry about that – the top 5% just keep getting more and more of the wealth. The rest of us fall further and further.
=================================
You whine a lot about it, but still believe that wealth should be redistributed? You really can’t dispute the fact that wealth will never trickle up.

Posted by: ConservativeWoman | March 11, 2010, 8:37 am 8:37 am

Tsunami.. November?

Posted by: DontGet818OnMeNow | March 11, 2010, 9:06 am 9:06 am

Wake up people. It does not matter which party is in power. The deficit has gone up every year. Some years not as much. But trying to push a program through that will raise the deficit by 1 trillion will set a record. Either Obama is looking to have some sort of a record, even a bad one, or he has promises from the large insurance companies. Only you can guess what they are. Ever think that the reason the deficit goes up is the MIND SET the Congress and government has, SPEND OVER YOUR BUDGET OR YOU WON’T GET A LARGER BUDGIT. Watch any government local up to federal. If a department has not spent or over spent it’s budget it will go on a buying frenzy of things it does not need. Then you taxes go up because they can not work at a lower budget. So here we have a president with the same MIND SET also has to fill some past obligation to some one or company. Instead of trying to get the deficit from rising and putting people back into livable wage jobs he is only spending money on something that is not needed. For healthcare open Medicare to everyone and then work on jobs for people. Medicare can be saved and fixed, unlike what Congress and the president say, but it would mean making it run and abide by the laws governing large insurance companies. This can be done and at a LOT CHEAPER PRICE.

Posted by: gandar | March 11, 2010, 9:09 am 9:09 am

What we need are laws that outlaw lobbyists, contributions from any type of business, politicians who get jobs from business for themselves, family or friends. Sounds great UTOPIA. It won’t happen so lets just try to get politicians that actually know something about economics and business management. The government is a large business. I know little about the TEA party but from what the Democratic and Republican party’s have done maybe its time to look else where. November is coming. Start researching you local congress people that will be running. Look at their voting record, try and find what deals they were involved in, (see how and what they voted for) look at the new guy. The new guy if he has been advisor, campaign manager etc for any politician you are looking at someone who knows how to get the graft quickly. If the person has experience and education in economics, accounting and business management they maybe okay. Don’t believe what politicians say. Have you ever seen a promise kept after election? Scandals, read the back ground not listen to the politician. Be honest with yourself. Is the dirt they turn up really bad, one instance when divorce has started and something was said during a heated argument, is that worth not electing someone? It shows the person is human. This is what I am saying don’t listen to the opponents trying to run someone down look the the person running, cheating on taxes is not good though.

Posted by: Dan | March 11, 2010, 9:38 am 9:38 am

I agree with those that say both parties have been hijacked by extremists. Both parties are defined by what they oppose, not what they are for. I like fiscal conservatism, but cannot vote Repub because of the ties to religious nutjobs and related social issues. I like social liberalism (i.e. I and only I own my body and what I can do with it), but throwing money at every problem just sustains the problem rather than solving it. All I want is a rational party defined by science and factfinding – a party that can accurately identify and solve problems – a party that cares about a sustainable future – a party that can produce a leader worth following. I fear the future, but I shouldn’t have to. We are a nation of wasted talent when we cannot find a common path to tomorrow. The best part is yet to come, though. America will produce a resolution to this anxiety like we have always done. Our collective fear and anger is just a prelude to some major change. Stick around, people, the next 20 years will be some serious history someday.

Posted by: CentrismWorks | March 11, 2010, 9:43 am 9:43 am

From the AP:
—The government ran up the LARGEST MONTHLY DEFICIT IN HISTORY in February, keeping the flood of red ink on track to top last year’s record for the full year.
The Treasury Department said Wednesday that the February deficit totaled $220.9 BILLION, 14 PERCENT HIGHER THAN THE PREVIOUS RECORD set in February of last year.
The deficit through the first five months of this budget year totals $651.6 billion, 10.5 PERCENT HIGHER THAN A YEAR AGO.
The Obama administration is projecting that the deficit for the 2010 budget year will hit an all-time high of $1.56 trillion, surpassing last year’s $1.4 trillion total. The administration is forecasting that the deficit will remain above $1 trillion in 2011, giving the country THREE STRAIGHT YEARS OF $1 TRILLION-PLUS DEFICITS.—

Posted by: Most Fiscally Responsible Government EVER! | March 11, 2010, 10:24 am 10:24 am

Both parties are defined by what they oppose, not what they are for. I like fiscal conservatism, but cannot vote Repub because of the ties to religious nutjobs and related social issues. I like social liberalism (i.e. I and only I own my body and what I can do with it), but throwing money at every problem just sustains the problem rather than solving it. All I want is a rational party defined by science and factfinding – a party that can accurately identify and solve problems -
____
Centrism, nice post. I agree with much of it– and parts of Dan’s and Gandar’s posts too– though I’m not a huge fan of “centrism” myself. I’m not a fan of extremism either– but the current health care plan is centrist and that just leaves us in gridlock. Centrism seems very related to status quo in some ways– or a halfway point between two rigid ideologies. On occasion we need bold, fresh ideas and moderation or centrism doesn’t necessarily get us there. The platforms of both parties have gotten stale, the alliances with special interests run deep, and there are limited choices really for free thinkers who are solution-oriented. I’m sick of idealogues, myself. We need innovation, and a focus on the actual circumstances on hand and ideas that aren’t the same ole retreads, but that are in keeping with the Constitution and the principles our nation was founded on.

Posted by: progressive mama | March 11, 2010, 11:00 am 11:00 am

“n occasion we need bold, fresh ideas…”
And your money. Lots more. Why look at the success of the USPS! Fannie and Freddie!

Posted by: Tim G. | March 11, 2010, 11:27 am 11:27 am

WASHINGTON AP) — Unable to muster bipartisan agreement on key banking provisions, Senate Banking Committee Chairman Christopher Dodd said Thursday he will offer his own version of a sweeping overhaul of financial regulations without Republican support.
—-
Awesome!

Posted by: GS Rulz | March 11, 2010, 11:37 am 11:37 am

I suggest everybody read Ted Kaufman’s speech on the Senate floor today. It’s available at his website but you can also read a summary at HuffPo: “Senator Calls For Aggressive Financial Reform, Deplores Current ‘Incremental’ Steps”. Kaufman made several excellent points.

Posted by: progressive mama | March 11, 2010, 11:54 am 11:54 am

Guess what fools hes right.. if the government sat back we would have entered a severe depression and it wouldve been far more costly. Repubs have the attention span of an infant.

Posted by: brian | March 11, 2010, 12:01 pm 12:01 pm

“Senate Banking Committee Chairman Christopher Dodd said Thursday he will offer his own version of a sweeping overhaul of financial regulations without Republican support.”
Posted by: GS Rulz | Mar 11, 2010 11:37:19 AM
When Republicans wanted to end filibusters of judicial nominees, the Libs called it the “Nuclear Option” and darn near promised blood in the streets. Now the Libs want to use it to push all of their Socialist agenda through the Senate–and Obama tells McCain that Americans do not care about Senate procedures.

Posted by: The Chicago Way | March 11, 2010, 12:59 pm 12:59 pm

The Dems are doing everything in their power to lose in November, and in 2012.
Nothing like self-destruction.

Posted by: Rick McDaniel | March 11, 2010, 1:58 pm 1:58 pm

Nothing like self-destruction.
Posted by: Rick McDaniel | Mar 11, 2010 1:58:16 PM
And you’re worried about that, why again?
LOL.
I find your concern disingenuous at best.

Posted by: progressive mama | March 11, 2010, 2:46 pm 2:46 pm

When Republicans wanted to end filibusters of judicial nominees, the Libs called it the “Nuclear Option”
_________
Hmmm… the disinformation persists. The nuclear option (changing senate filibuster rules) and reconciliation (an accepted senate rule) are two different things– though there may be a need for some sort of filibuster reform. I was initially against it, but at some point, we are going to need a Congress that can get things done.
Meanwhile, have you seen Harry Reid’s letter to McConnell? I LOVE it. Harry stepped up and basically said, “Reconcile this, obstructionist hypocrite!” LOL.
Here’s a classic line from the letter (h/t Paul Krugman and Ezra Klein):
“As you know, the vast majority of bills developed through reconciliation were passed by Republican Congresses and signed into law by Republican Presidents – including President Bush’s massive, budget-busting tax breaks for multi-millionaires. Given this history, one might conclude that Republicans believe a majority vote is sufficient to increase the deficit and benefit the super-rich, but not to reduce the deficit and benefit the middle class.”
Good on ya, Senator Reid. It may not help you in the fall, but go out swinging for the middle class and ordinary Americans and a sustainable future!

Posted by: progressive mama | March 11, 2010, 3:10 pm 3:10 pm

I think dems are more afraid of the nuclear option than the GOP.

Posted by: DontGet818OnMeNow | March 11, 2010, 4:13 pm 4:13 pm

Tiny Tim G. will own a teakwood yacht by the time the deficit is choking the U.S.

Posted by: DontGet818OnMeNow | March 11, 2010, 4:38 pm 4:38 pm

progressive mama,
You said in response to making the nuclear option now acceptable, “…but at some point, we are going to need a Congress that can get things done.”
I find it Hilarious how you left wingnuts want to change the rules when the current rules don’t benefit YOU.
Guess what… be careful what you ask for, because in just 235 more days, you’ll be wanting to change those rules back to the way they were.
Yeah, a TSUNAMI is forming off the shores of Washington DC as we speak, but it’ll take 235 more days to reach the incumbent members of Congress. But hit them it WILL!
The day after, Obama instantly becomes a LAME DUCK as he starts packing up his belongings in the White House and preparing to re-enter life as a discredited community organizer.

Posted by: Laughing_All_the_____Way | March 11, 2010, 5:36 pm 5:36 pm

progressive mama,
Imagine… the Dems use the “nuclear option” to pass their CRAP, and in January 2013 (before ANY of it takes effect), the NEW government uses the SAME procedure to send it back to the trash can from which it emerged.
It could happen even FASTER – it depends on just how many Demo_rats are sent packing in November. It’s recension could even be veto-proof in 2011!!

Posted by: Laughing_All_the_____Way | March 11, 2010, 5:39 pm 5:39 pm

Hmmmm Doesnt anyone remember wildro woodrow wilson’s comments regarding the signing of the Federal Reserve act back in the early 1900′s? He was liberal and his comments were;
“From now on, all recessions and depressions will be scientifically created”
For those of you how think that the libs are doing everything they can to benefit the middle class then your sadly and mistakenly putting your hopes in a leaky basket. The liberals are letting the bush taxcuts expire… and those of you who think these taxcuts only benefit the rich need to go and read the code. Actually i find it rather interesting that liberals and those who typically back liberals only see through tunnel vision. The bush tax cuts actually benefited EVERYONE to include the lower class. And from the actual reports issues out by the IRS, the US government received somewhere around $5 Billion dollars in MORE revenue under the tax cuts then without them. Its now been about 2 years since the current administration has taken over and yet they still blame bush for its failure to do anything. If you believe that the stimulus has prevented us from going into a deeper recession then again your wrong. Within ALL business models you have to account for these things. and with only a marginal portion of the stimulus being spent on projects, and delaying the layoff of others, its quite apparent that the recession recovery that everyone is claiming has happened based on the business practices already established in the private sector. Its sad to point out history to those who probably should know more history then me, but here it is…. does anyone know why we pulled out of the great depression? FDR? No he was a european raised socialist who received personally letters from hitler. The New Deal? UMMM well sorta. As we all know we had a war going on…. and the US was actually using its broad industrial base to manufacture items needed in this war. But the new deal didnt stimulate government projects it put the money directly into the private sector and allowed the private sector to produce. The Stimulus is a fraud. I bet that alot of the money will be spent in the upcoming months in order to win over the voter base. We didnt need a stimulus, nor did we need it! More to come

Posted by: PHDLevelEDU | March 12, 2010, 5:23 am 5:23 am

Yes its right…I think dems are more afraid of the nuclear option than the GOP.

Posted by: Ilan Ben Menachem | March 18, 2010, 6:06 am 6:06 am

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