As a possible solution to the looming commercial real estate market crisis, James Helsel, Treasurer of the National Association of Realtors said, “it is absolutely essential that the TALF [Term Asset-Backed Securities Loan Facility] program be extended for another year. This move will ensure that important economic recovery efforts continue.” (0:34)
Coffee Brown University of New Mexico, for Talk Radio News Service
During two energy conferences in Washington, DC, Secretary of Energy Dr. Steven Chu said that a new, expanded, robust, and smart electric grid is the big ticket item for his department in the just-signed stimulus bill (American Recovery and Reinvestment Act).
We are moving away, he said from locally produced power in pursuit of alternative energies, such as wind and solar, which are favored by geography in sparsely populated areas. As energy is produced in a fluctuating pattern due to local weather, and then sent farther away, a computerized grid which can direct, even out, monitor and store power will be needed. This coordination will extend even to homes, where fluctuations in use or peak draws can be managed to limit brown- and black-outs. he described circadian pricing, rewarding users who shift usage away from peak hours, and buy-back credits for homes which actually produce power as examples of smart distribution at the home level.
Chu noted that the new grid could be a target, so robust design was a security priority.
While wind power is as high as 20 percent in some areas, it is only three percent of overall production, and will need to mature and expand over a decade or more to compete on a cost-per-kilowatt basis.
Chu has made a priority of streamlining funding of shovel-ready projects, which were facing delays of up to two years for approval.
At the second conference, chaired by Senate Majority Leader Harry Reid, and attended by entrepreneur and hedge fund manager T.Boone Pickens, the question of new regulatory agencies came up, as power distribution became less regional and more interconnected. Reid said that he thought it could be handled administratively.
Pickens said that there are vast reserves of natural gas at several fields in the U.S., far more than would be needed to bridge the gap to non-carbon pumping energy production. Trucks, he said, can never run on batteries but can easily be converted from gasoline to natural gas, which is 30 percent cleaner and would create many American jobs and businesses.
Chu concluded by saying that carbon capture and climate change are important topics that will be addressed in later stages of the program.
Speaker of the House Nancy Pelosi (D-Calif.) touched upon the plan for an economic recovery package and explained how it will be different from Roosevelt’s New Deal.
“This is not a 1930s public works project: this is a broad band modernization of the grid initiative for the future. The only thing it has in common with the thirties is the bold and persistent experimentation of that era, the entrepreneurial spirit,” said Pelosi during her final press conference for the 110th Congress.
While the Speaker did not say for certain the cost of the package, she did allude to a recent meeting between the Democratic Caucus and a series of economists, including McCain economic advisor Mark Zandi, who all agreed that the intensifying economic crisis called for a robust stimulus package.
“Mark talked about 600 billion dollars … 400 billion for investments in infrastructure [and aid to the States] and 200 billion in tax cuts.”
Pelosi said that Democratic leadership in Congress has been communicating with the President elect, and is confident that they will arrive upon a consensus.
The Speaker also discussed the auto bailout and reaffirmed her view that Troubled Assets Relief Program (TARP) funds should be used to help the big 3 auto manufacturers. While the White House has been reluctant to use these funds, Pelosi believes the administration will not allow the companies to go bankrupt following Congress’ failure to pass legislation supporting the big 3.
As for the rest of TARP funds, Pelosi said that she has been working with Rep. Barney Frank (D-Mass.) to create legislation that would only give the Treasury Department the second half of TARP funds when the provisions of the initial legislation, namely the requirement to provide aid to those suffering from the housing crisis, are met.
“It was very clearly spelled out in the initial legislation that funds would be used for mortgage foreclosure forbearance. As you recall, there were no votes to pass this legislation … and it was only until we intensified the provisions that related to keeping people in their homes that this legislation even passed the House of Representatives,” said Pelosi.
“It has been totally ignored by the administration. Absolutely nothing has been done to respect that part of the legislation, which is the only part of the legislation that had support in the Congress and enabled it to pass.”
Speaker of the House Nancy Pelosi (D-Calif.) described the upcoming economic recovery package, saying that it will not resemble a 1930’s public works project and will instead be a much more modern and innovative attempt to rebuild the American economy (0:18).
The Campaign for America’s Future hosted a conference call to discuss an economic recovery package to help America get out of its recession.
“It will take at least two years of expanded spending to get this economy going,” said Robert Borosage, Co-Director for the Campaign for America’s Future. “We can’t go back to the high-consumption, stagnant income, high-debt model of the past.”
The plan called for $900 billion to go towards to expanding public investment. Borosage also called for better health care policies, an increase in regulation of the financial sector, and more investments in a greener infrastructure.
Elizabeth McNichol, senior fellow at the Center on Budget and Policy Priorities, says during a conference call on income inequality that the growing income gap is highlighted by the nation’s current economic problems. She says that “before the recent downturn hit” the economy showed income gains, but “the economic recovery was not experienced by much of America.” (0:23)
