OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

With Richard Armey Talking About Economic Fix On CNBC
January 22, 2009

... LITTLE BIT IN THEIR PORT FOLIO. I THINK THERE'S A PLACE FOR THEM FOR EVERYBODY. >> WE'LL LOOK FOR YOU AGAIN IT THIS FRIDAY. THANK. RICK WILL COME BACK LATER AS WELL. MEANTIME, THE ECONOMIC STIMULUS PLAN ON THE HILL, THE PROPOSAL BEING PUT THROUGH THEIR PACES IN CONGRESS THIS WEEK, AND POTENTIALLY NEXT. JOINING US FROM CAPITOL HILL, MAJORITY LEADER DEMOCRATIC CONGRESSMAN FROM MARYLAND, STENY HOYER JOINS US ALONG WITH LEADER ARMY HERE ON SET. YOU GUYS KNOW EACH OTHER, RIGHT? RIGHT, LEADER HOYER? >> WE DPO. WE DO. >> GU WAY BACK. >> I HAVE TO POINT OUT THAT STENY HIGHWAY SER MY WIFE'S FAVORITE DEMOCRAT, SO I'LL BE IN TROUBLE WHEN I GO HOME. >> THAT'S GOOD STUFF. LEADER HOYER, LET ME START WITH YOU IN THE STIMULUS. OBVIOUSLY, IN APPROPRIATIONS, IT WENT ALONG PARTY LINES. EVEN DESPITE THESE ATTEMPTS BY REPUBLICANS TO MASSAGE IT SOMEHOW, PUT PAY GO IN ONE WAY OR MAKE SURE THAT THE CBO REPORT ABOUT HOW THE MONEY WOULD COME TOO LATE, THAT'S THE FACT THAT THAT DOESN'T HAPPEN. ARE THOSE VOICES GOING UNHEARD AT ALL IN YOUR PARTY? >> WE'RE GOING TO HAVE CONTINUING DISCUSSIONS ON WHAT'S GOING TO BE, AND I HAD SOME DISCUSSIONS YESTERDAY WITH SOME REPUBLICANS ABOUT AMENDMENTS THAT THEY WOULD LIKE TO OFFER. WE'RE GOING TO CONTINUE TO DISCUSS THESE. PRESIDENT OBAMA HAS SAID HE WANTS TO REACH OUT. WE'RE HAVING A BIPARTISAN MEETING AT THE WHITE HOUSE ON FRIDAY, SO THERE ARE GOING TO BE A LOT OF DISCUSSIONS BEFORE THIS PACKAGE IS FINISHED, BUT WE NEED TO ACT QUICKLY. WE NEED TO INFUSE THE ECONOMY WITH DOLLARS TO GROW THE ECONOMY, AND TO GROW CONFIDENCE AND ALSO WE HAVE TO DEAL AS WE DEALT LAST NIGHT IN THE HOUSE OF REPRESENTATIVES WITH A PACKAGE WHICH WILL BRING GREATER ACCOUNTABILITY TRANSPARENCY AND HELP FOR MORTGAGE HOLDERS TO THE TARP PROGRAM. >> HOW FIRM ARE YOU IN KEEPING WITH, A, THE SIZE OF THE PACKAGE, AND, B, THE MIX OF THE SPENDING AND TAX CUTS. ARE THOSE NONNEGOTIABLE? >> NO, BUT THEY HAVE BEEN THE RESULT OF AN AWFUL LOT OF DISCUSSIONS BE ONLY WITH THE OBAMA ADMINISTRATION THAT'S NOW IN OFFICE AND THE DEMOCRATS IN THE CONGRESS, BUT ALSO WITH REPUBLICANS AND REPUBLICANS IN THE ADMINISTRATION. I HAD TALKS WITH SECRETARY PAULSON AS RECENTLY AS LAST WEEK, BUT THE FACT IS THAT WE THINK ALMOST EVERY ECONOMIST SAYS WE NEED TO ACT, WE NEED TO ACT BOLDLY, WE NEED TO ACT WITH SIGNIFICANT RESOURCES, AND WE NEED TO ACT RELATIVELY QUICKLY. >> LEADER ARMEY. >> FIRST OF ALL, MY HATS OFF TO SENATOR HOYER. HE HAS AN EXTREMELY COMPLEX JOB, AND HE MANAGES IT WELL. THERE ARE SO MANY FACTIONS EVEN WITHIN HIS PARTY, DIFFERENCES OF OPINION BETWEEN THE NEW PRESIDENT AND THE SPEAKER OF THE HOUSE AS WELL AS DIFFERENCES BETWEEN THE HOUSE AND THE SENATE. STENY NEGOTIATES THESE, I THINK, WITH A GREAT DEAL OF ABLGT, AND I ADMIRE WHAT HE DOES. I, FRANKLY, AM IN THAT GROUP -- >> I FEEL THE BAD NEWS COMING. >> HERE IT COMES. >> NOW COMES THE KNIFE IN THE BACK. >> WELL, NO. I AM IN THAT GROUP OF ECONOMISTS THAT SAYS THE FACT OF THE MATTER IS THEY ACTED WITH ENOORMS BIG PANIC LAST FALL WITH THIS BIG BAIL-OUT PACKAGE THAT, FRANKLY, THEY'VE DONE NOTHING BUT PROBABLY EXACERBATE THE PROBLEM. I DON'T THINK THEY'RE GOING TO DO A WHOLE LOT OF GOOD WITH THIS WHOLE STIMULUS PACKAGE. IT'S MORE OF A POLITICAL EXERCISE THAN IT IS AN EXERCISE IN SOLID ECONOMIC POLICY. >> THAT'S A LOT OF -- >> LET ME SAY THAT DICK AND I, AS YOU CAN TELL, ARE FRIENDS. WE WORK TOGETHER. BUT WE HAVE VERY SIGNIFICANT DIFFERENCES. VERY FRANKLY, DICK HAS VERY SIGNIFICANT DIFFERENCES WITH THE BUSH ADMINISTRATION AND THE ECONOMIC LEADERS IN THE BUSH ADMINISTRATION. THERE IS A SIGNIFICANT DIFFERENCE OF OPINION AS TO WHETHER OR NOT WE NEED TO ACT AND HOW LARGE THE ACTION NEEDS TO BE. MARTY FELDSTEIN SAYS WE NEED TO ACT WITH SPEND AND TAX CUTS, WHICH IS WHAT WE'RE DOING. >> CONGRESSMAN -- LEADER HOYER, ONE THING THAT PEOPLE KEEP TALKING ABOUT, THE WAY TO GET THIS ANCHOR OFF THE BANKS WOULD BE TO SOMEHOW CHANGE MARK TO MARKET ACCOUNTING, CHANGE THE ACCOUNTING RULES. SOME WHO ARE CLOSER TO THE OBAMA ADMINISTRATION SAY THAT THAT'S NOT ENTIRELY -- THAT'S NOT IMPOSSIBLE. DO YOU -- IS THAT BALL BEGINNING TO ROLL ON THE HILL? >> I THINK THERE'S CERTAINLY DISCUSSIONS ABOUT THAT. THERE ARE DIFFERENCES MUCH OPINION AS TO HOW MUCH OF A ROLE THAT PLAYED IN THE CRISIS THAT CONFRONTS US, BUT, NEVERTHELESS, WE NEED TO DISCUSS ALL THE OPTIONS AVAILABLE TO US TO STABILIZE THE FINANCIAL MARKETS, TO GIVE VALUE BACK TO HOMEOWNERS SO THAT THEY CAN FEEL CONFIDENCE IN GOING OUT AND PURCHASING GOODS AND NOT BE WORRIED ABOUT THE VALUE OF THEIR HOME. THERE ARE A LOT OF THINGS THAT WE NEED TO DO, AND WE NEED TO CONSIDER EVERY OPTION. LYNDON JOHNSON ONCE SAID IT'S NOT DIFFICULT TO DO THE RIGHT THING. IT'S DIFFICULT TO KNOW WHAT THE RIGHT THING IS, AND I THINK THAT'S REALLY THE PROBLEM THAT WE'RE CONFRONTING IN THE CONGRESS AND IN THE COUNTRY. HOW DO WE STABILIZE THE ECONOMY? EVERYBODY WANTS TO DO THAT. WE WANT TO GET US BACK ON TRACK, BUT HOW EXACTLY YOU DO THAT, FRANKLY, IS A SUBJECT OF REAL DEBATE, BUT WE HAVE MADE PROGRESS, I THINK. MANY COMPETENTIST WOOZ SAY IF WE ...