“All of us should be angry,” said Treasury Secretary Henry Paulson at a hearing before the House Financial Services Committee. He said that the keys to this “disaster” were housing prices and borrowed money. He said that both corporations and homebuyers are guilty of bad financial maneuvers that allowed for this bailout to be needed.

Federal Reserve Chairman Ben Bernanke said that if we do not bail out these companies quickly, we would see increasing unemployment, higher numbers of foreclosures, and fewer available jobs. Referring to the cost of the bailout, Bernanke said that this bailout would cost “much less than 700 billion dollars,” and he said that the cost to the taxpayers is smaller now than it could be later if the bailout is not done now.

Rep. Chris Ackerman (D-N.Y.) echoed the sentiments of many congressmen saying “I don’t see [in Treasury Secretary Henry Paulson's proposal] any protection to stop us from having this problem again.” Rep. Luis Gutierrez (D-Ill.) said he did not feel comfortable paying for this plan with taxpayer money while high ranking officials of these bankrupt institutions were “lining their pockets” along with their companies.

Sen. Chuck Schumer (D-N.Y.) says that while it isn’t fair for the taxpayers to bare the cost of corportations’ mishaps, it’s the only way out of our hole. (1:12)

 

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Briefer: Dana Perino

President’s Schedule:

President Bush had his normal briefings at 8 am this morning. At 11 am the President will make a statement on the 10th Anniversary of the International Religious Freedom Act, in the Roosevelt Room of the White House. At 1.30 pm, the President will make a statement in the Rose Garden on the energy needs of the country, and the importance of expanding exploration for resources here at home. The President will announce that he has decided to lift the executive ban on oil exploration in America’s outer continental shelf, and he will again call on Congress to lift its legislative ban.
Perino also made remarks about the news of former Press Secretary Tony Snow who passed away on Saturday. She thanks everyone on behalf of the Snow family for the outpour of support, and quoted the President: “Tony Snow was a great friend to everybody at the White House. “ Perino also announced the funeral services for Thursday July 17, 2008 to be held at 10 am at the Basilica at Catholic University. The President will be attending this service. (more…)

Treasury Secretary Paulson says that more regulation is not the answer and cannot prevent market “disruptions,” but he suggests a more flexible approach will allow better protection of consumers and investors, and allow U.S. markets to continue to be competitive. (0:37)

 

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Treasury Secretary Paulson says that the new Blueprint for Regulatory Reform are not reactions to current troubles and should not be implemented hastily, but instead reflect long-term concerns and should be thoughtfully implemented. (0:33)

 

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Secretary of Treasury Henry Paulson offers his opinion that America should not raise taxes during this morning’s Senate Committee on Finance hearing. (0:30)

 

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Senator Max Baucus (D-MT) argues that the Bush Administration’s plan for having the economy achieve surplus by 2012 is unrealistic during today’s Senate Committee on Finance hearing. The hearing questioned President Bush’s budget proposal for the fiscal year 2009. (0:59)

 

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In this morning’s Senate Committee on Finance hearing chaired by Senator Max Baucus (D-MT), Secretary of the Treasury Henry Paulson was questioned about President Bush’s fiscal year 2009 budget proposal. The Committee’s questions were concerned primarily with Paulson and Bush’s stimulus proposal and their plans for avoiding economic recession in both the immediate and long term future.

Baucus emphasized that the President’s hope for a projected surplus by 2012 was “unrealistic.” The Senator went on to caution that the budget’s calls for Medicare and Medicaid spending cuts would be “devastating” to many dependent on the programs, including seniors, people with disabilities, and children. Baucus spoke out against the budget plans to further cut taxes.

Secretary Paulson’s defense was that he believed our economy could not handle anything that would further increase taxes. He reminded the Committee that the Bush Administration was succeeding with programs such as the HOPE NOW alliance. Paulson added he had “great confidence” in the ability of our market to recover from this difficult time.

Paulson and the Bush Administration want to see a plan implemented that is “robust, temporary, and broad-based.” While arguing philosophically about the best way to move our economy in the right direction, all present at the hearing were in agreement that what our government is doing now to help America is not working efficiently enough.