Did Someone Say "Economy"?

The economy, a proposed $175B stimulus package and NY FED Bank Pres. Timothy Geithner, were the talk of the Sunday shows, with speculation that he will be President-elect Barack Obama's pick for Treas. Sec. Obama campaign strategist David Axelrod appeared on "This Week" and "Fox News Sunday."

Axelrod, on whether Obama let word about Geithner leak to soothe the markets: "Well, the response has been great, and it should be. Tim Geithner is uniquely qualified to do this job. He's someone who is steeped in the economy and in managing crises ... in the '90s, he was the assistant Treasury secretary for international affairs, and he handled a couple of international financial crises. And he's someone who, by both temperament and experience, is well suited for the times we're in. And we were gratified by the reaction to news of his pending appointment.

ABC's Stephanopoulos: "How do you respond, though, to the critics of those measures, especially, for example, the decision to allow Lehman Brothers to fail? Mr. Geithner was in the middle of all these decisions that have not been well received."

Axelrod: "Well, George, we're in unchartered waters. And I'm not going to re-litigate every decision that's been made under these unique circumstances. I know this, that Tim Geithner was an early warning system in terms of the need for greater regulation, and has been ahead of the curve on a lot of these issues. And again, when you look at the history of what he's done over time, he is the sort of person you want when you're facing the kind of economic crisis we have today" ("This Week," ABC, 11/23).

After the jump, more on the economy, as well as the possible auto bailout..

(RACHELLE DOUILLARD-PROULX)

Fox's Wallace: "Late in the campaign, Mr. Obama talked about an economic stimulus package in the neighborhood of $175 billion. Since then, the stock market situation has only gotten worse. All signs are that the recession is going to be even deeper and longer. Is he now thinking about a stimulus package even bigger than that 175 billion?"

Axelrod: "I expect he will ask for what is necessary to begin this process of economic recovery, to put people to work repairing bridges and schools, and working on alternative energy projects, and to do the range of things we need to do not just to get out of our problems in the short term, but to build our economy in the long term."

More Axelrod, on Obama pledging to sign off on a stimulus package soon after he takes office, and whether that means he'll start working with the Dem-led Congress soon to get that done: "Our hope is that the new Congress begins work on this as soon as they take office in early January, because we don't have time to waste here. The projections are that things may get worse before they get better. We're facing the biggest economic challenges we've had really since the Great Depression. And we want to hit the ground running on January 20th" ("Fox News Sunday," Fox, 11/23).

House Maj. Leader Steny Hoyer and Rep. John Boehner (R-OH) appeared together on "Fox News Sunday."

Hoyer, on whether the House will work with Obama and his team to get a stimulus package through Congress early in Jan. '09: "We've been working on it ... with the Obama team, which is not fully in place, but we're working with the Obama team, and we expect to have during the first couple of weeks of January a package for the president's consideration when he takes office."

Boehner, on Obama's proposed infrastructure projects to create jobs: "I don't think we want to empower government here and keep bureaucrats employed. I think what we want to do is to help all Americans. I think infrastructure may have a place in this package, but we're doing a big highway bill this coming year. Why not reserve that infrastructure money for the highway bill and do it in the right way? But if we want to create jobs now, and we want to create certainty now, why wouldn't we lower taxes?"

Hoyer, on whether he thinks Obama should delay a tax increase his first two years in office: "President Obama has said, and we agree, that we're going to lower taxes on 95 percent of Americans who are hurting, who are struggling, who are having a tough time. Very frankly, John's answer to almost every problem has been lower taxes. That was the program in '01, in '03. And frankly, we've had one of the worst economies, worst job production economies, since Herbert Hoover" (Fox, 11/23).

Ex-Clinton Commerce Sec. William Daley and Ex-Reagan Treas. Sec. James Baker went on "Meet the Press" yesterday.

Daley, on what can be expected of the new admin with regards to the economy: "I think what you're going to see is a combination of, yes, there must be infrastructure, we must rebuild our roads, our bridges, as the president-elect said. We must modernize our schools. Those are investments. But at the same time, there'll be a host of other things that the economic team will look at."

More: "The president-elect is intent on this being done over the next number of weeks, ready to be introduced even before he's sworn in so that the Congress can deal with it over those two and a half weeks and then hopefully pass it and have it ready to be signed. But it will be large enough to be meaningful and will hopefully set a predicate for laying a stronger economy, so then he can deal with the longer term issues that have been neglected for so long, starting in hopefully '10 and '11."

Baker, on whether the GOP will go along with the proposed stimulus package: "I think it depends entirely on what's in it. We don't really know that yet. I think the president-elect has pinpointed a very serious problem that we all know we're living through right now. I happen to believe that we are a very resourceful people and a resourceful country, and we're going to come out of this all right, but it is very serious. It's far worse than the downturn that we saw back in the 1987 when we had a stock market collapse when I was Treasury secretary. That one was much less broad and severe, but even that took us two years to come out of.

More: "So some sort of an infrastructure program could be part of, of a recovery program, but I don't know that that would be the centerpiece of it, as far as the Republicans in Congress are concerned. This is also a bad time, Tom, and, and Bill Daley knows this as well as anybody, to be doing any talk about backsliding on trade. Everybody knows that free trade creates economic winners, more winners than losers, so we ought not to be thinking about raising taxes or backsliding on foreign trade."

Daley, on Obama's economic team: "I think he's gone out to get the most competent, qualified, experienced people to put this together. We are ... in the middle of an unprecedented economic crisis. We will come out of it, but these are times that no one's ever seen, and it's a global issue. And of all the people he's put forward in these major jobs are very experienced in a global setting of economics also" (NBC, 11/23).

Sens. Richard Shelby (R-AL) and Chuck Schumer (D-NY) also appeared on "This Week."

Shelby, on Geithner: "I think it's, overall, a good appointment. I've worked with Tim Geithner. He's young. He's innovative. I believe he will be up to the challenge. He knows a lot about the economy and he knows a lot about problems."

Schumer, in response: "Tim Geithner's a great choice. I was glad to read, this morning, that Larry Summers may well become part of the administration as well. These are brilliant people, two of the best. When you have an economic problem or issue, you call them; you get incisive answers. Tim Geithner has been fabulous in this job. They know how to solve problems. They are smart. They're deep. They're practical. ... I think they're going to give a lot of assurance, Tim Geithner is, and if Larry Summers is appointed, as reported today, they're going to give the markets a whole lot of assurance."

Schumer, on whether a stimulus package is a good idea: "Well, I believe we need a pretty big package, here. I think it has to be deep. My view has to be between $500 and $700 billion. And that's because our economy's in serious, serious trouble."

Shelby, in response: "That's a lot of money. I would like to see the details of any stimulus package: what it would do, how it would work, who would benefit from it. One thing we'd better be careful about, not just borrowing a lot of money and throwing it at deals and creating no jobs to speak of" ("This Week," ABC, 11/23).

Ex-MA Gov. Mitt Romney (R): "Timothy Geithner and Larry Summers I know quite well, and, frankly, I'm encouraged by their participation on the new economic team. I don't know Governor Richardson's experience in this venue as well. But I think a good team is being assembled. I think it's a time to give the president-elect an opportunity to put together his program" ("Late Edition," CNN, 11/23).

BUILT FORD TOUGH?

The proposed bailout of the Big Three automakers was also heavily discussed this weekend.

Boehner discussed the bailout on "Fox News Sunday," and Sen. Carl Levin (D-MI) appeared on "Late Edition" to talk about the issues facing Detroit.

Boehner: "I think that the Detroit auto industry is important to the United States. It's important for hundreds of thousands of Americans who have their jobs as a result. But I talked to one of the CEOs over a week ago, when it was clear that they need the money and they need it now, but I asked the CEO, 'Well, what's the plan?' And I didn't get an answer. I said, 'You at least have to come in here with a plan.' And the fact is that I'm not sure that they will have a plan by early December, a real plan. And on behalf of the American taxpayers, they're not interested in investing money [that's] going to be really thrown away."

More: "And I think that Detroit has to come back with a plan, in terms of how they're going to pursue talks with their employees, their creditors, their shareholders, the other stakeholders. And if at some point there's a role for the federal government to play, to help bring about a restructuring of these companies so they are viable, then we might consider on behalf of American taxpayers whether it's a good investment or not. But I think it's important that they go out and have these meetings with their stakeholders, they have these negotiations. And at the end of the day, it's not about convincing me. It's about convincing the American taxpayer that they're making an investment in a viable corporation" ("Fox News Sunday," Fox, 11/23).

Sen. Carl Levin (D-MI), on what he'd like Obama to do with regard to the bailout: "If this auto industry goes under, we're going to lose 3 million jobs. His vision would be swamped by the loss of this auto industry, and ... obviously, it's going to take the big three and the UAW coming together. Everyone's got to put their shoulder to the wheel here literally and figuratively. But we also, I think it would be very helpful if the President-elect would become more involved in resolving the issue over the source of the funds."

More: "I want him to offer his assistance. He is a person who can really bring people together. ... Everyone agrees that there's got to be a plan. Everyone agrees there's got to be limits on executive compensation. There's agreement on that. The disagreement is really the source for the funds. ... I would like him at least offer to become more involved, and I think that offer would be welcomed, not just by the Democrats, the House and the Senate, but also by the White House itself that has a different view on it" ("Late Edition," CNN, 11/23).

MI Gov. Jennifer Granholm (D), on the Big Three CEOs' Congressional testimony: "This was not their best week and they did not make the case in the way that they need do. They're going to have another shot and I think we're all grateful in Michigan to Congress for giving them another shot at showing where they're going. Because we know that they do have this product in the pipeline and they intend to lead the world in the solutions to energy independence. But they weren't able to demonstrate that" ("Late Edition," CNN, 11/23).

Schumer: "I think there's a general view, certainly among Democrats and many Republicans, that we have to do something for this industry. It
is too important to just let go under, 3 million related jobs directly or indirectly related, an economy in really bad shape. But the problem is this. We don't want to give the automakers money and then have them come back three or six months later and say, we need another $50 billion."

Stephanopoulos: "Senator Shelby, you've been reluctant to sign on to any rescue plan for the auto industry. Is there any kind of a plan they can put together that would get your support?"

Shelby: "Not a bailout plan, not taxpayers. The management, in my judgment, and the judgment of a lot of other people, they can't turn these companies around. They've got failed models, failed leadership. They've been paid millions and millions of dollars for running weak companies. This didn't happen overnight. This has been going on for years. I believe the companies could turn themselves around. With the proper management, proper leadership, they could get lean, they could get competitive."

More: "But I believe what they're interested in is getting on the taxpayers' relief fund. And, as Senator Schumer said, I don't believe $25 billion will be enough. I don't believe $50 billion will be. I believe it will take several hundred billion, and still, they might not make it. So I believe they've got an opportunity to go through restructuring in Chapter 11" ("This Week," ABC, 11/23).

Obama sr. economic adviser Austin Goolsbee appeared on "Face the Nation."

CBS' Schieffer: "Will you be part of the new president's economic team?"

Goolsbee: "I don't know about that. When a president makes announcements on personnel, he makes them, like the ones of Geithner and Summers, you know. You don't get any bigger names than that."

Goolsbee, on whether Obama's economic program will cost in the neighborhood of five to seven billion dollars: "Look, the problem is very, very serious. This is as big of an economic crisis as we've faced in 75 years. And we've got to do something that's up to the task of confronting that. I don't know what the exact number is, but it's going to be a big number. It has to be. The point is to, kind of, get people back on track and startle the thing into submission."

More: "The President-Elect, by naming Tim Geithner, Larry Summers, rolling out the senior names of the economic team, is sending a signal he's taking this very seriously. He's ready to go on day one. January 20th, as I say, he's coming in with a bang. We're going to try to get a handle on it."

Goolsbee, on a possible stimulus package: "In the campaign, he was looking at stimulus that was in the $175 billion range, and the economy has gotten substantially worse since then. So, I mean, as I say, it's going to be a number big enough that, when they spell it out, it looks like, you know, with that many zeros on it."

Schieffer: "This period we're in now, this interim period, how would you describe this period? Some economists say we're in a pretty dangerous time here right now."

Goolsbee: "I think it is a dangerous time. It's hard to deny that. I mean, we're looking in the face of a serious crisis. We're coming out of a legacy of this administration that I would characterize as waiting for crises to happen, not taking action to prevent them from happening. And now you're in this awkward constitutional phase, where we obviously have one president at a time. There is the expectation that Obama is going to come in with a different approach than what we've had the last eight years. He's outlining his ideas of what he wants to do."

Schieffer: "And what about tax cuts here? You're going to have some immediate tax cuts for the middle- and lower-income people."

Goolsbee:" Absolutely. Look, this economic recovery package that he's describing is every bit in keeping with exactly the philosophy he outlined throughout the campaign for pretty much two years. And that is, we've got to make investments in the future of this country and we've got to provide relief to ordinary Americans, to 95 percent of workers. And that will be in effect" (CBS, 11/23).

PAGING PELOSI

Speaker Nancy Pelosi appeared on "Face the Nation" to discuss the auto bailout and the economy.

Pelosi: "We had hoped that at the hearings this week, that the heads of the auto companies would come in and tell us what they would use the money for. We believe the American people need that accountability. We need to know what the money is for. And so that we can find out if they're going to be a viable concern. And that's what we've asked them to do, to come back and in 10 days, whatever, to bring us a plan for what they would use the money for. And then we can make a determination of as to how we go forward."

More: "Let's just be very clear. Not helping the auto industry is not an option. It's just a question of how we go forward, and if we're going forward, to be preeminent in the world, and we think that that opportunity is there."

CBS' Schieffer: "Let me talk to you just about the economy in general. So far, the Treasury, I guess, has used $250 billion of the $700 billion financial bailout that passed the Congress. Yet the stock market seems to be in free fall. Nobody seems to know what's going on. Do you have confidence in this plan that Secretary Paulson has put forward?"

Pelosi: "On Monday, the House Democrats, I called in Secretary Paulson and Chairman Bernanke. We were all busy people. And I said to them, I know you're busy and you're under pressure. So are we. We want to know what's going on with this rescue plan. It was supposed to instill confidence. We don't see that in the market. They maintain matters would be much worse if we had not made that infusion of cash."

More: "We thought that this money was going to circulate credit, put credit out there so many more people could function in a business sense. And that doesn't seem to be happening. They tell us it will. We were very concerned about the fact that the legislation called very specifically for them to help with mortgage forbearance, to help people stay in their homes. They've done nothing on that score. ... And I think that Congress is going to demand some real accountability -- I know they will -- before we can proceed with other money."

Schieffer: "But it appears now that nothing can be done until after the new president is sworn in."

Pelosi: "Well, I don't know. I think that market forces will determine the timing of what is done next. And also, the efficacy of what they are proposing. If it's more of the same, well, I think we want to see something different."

Schieffer: "What do you see as the size of the stimulus package? Some people say it may be as big as $300 billion. Is that in the ballpark?"

Pelosi: "The sooner we do one, the smaller it can be. ... I have to and members of Congress have to balance the need for the recovery with our concern about fiscal responsibility. Because if we want to do something to grow the economy, we don't want to weight it down unless it truly stimulates the economy, brings in revenue, creates jobs, injects demand into the economy, so that it has a positive impact on our budget. ... Some are saying that several hundred billion dollars would have to be some investments into the future, but creating jobs immediately, and a tax cut" (CBS, 11/23).

IT'S THE CLINTONS' WORLD, WE'RE JUST LIVING IN IT

Baker: "With respect to Senator Clinton, she's got the qualifications. She's extraordinarily intelligent. Her appointment, should it come, will be well-received by a lot of people around the world. It will certainly do a lot, I would think, speaking now as a politician, perhaps, to solidify the Democratic Party. But the key is going to be whether or not she and her president are seamless in their approach to foreign policy issues. As I think Tom Friedman wrote in a column last week, a foreign leader can see daylight between a president and his secretary of state from a thousand miles away."

More: "So she will be successful depending upon how seamless she is with her president and how they operate together and how he protects her back and vice-versa, how he formulates foreign policy, she picks up on that formulation, and she implements it. That's going to be the key, but I think she is clearly well qualified, provided that seamless approach is undertaken" ("Meet the Press," NBC, 11/23).

Axelrod: "We've not made any announcements related to that yet, and probably won't until after the holidays. But let me say this. People need to understand one thing. There's one person who's going to be in charge of American foreign policy, and there's one person who's going to be in charge of American economic policy. And that's Barack Obama. He's going to set the direction, and he's going to assemble a group of talented and brilliant people to help execute that vision."

More: "Certainly, Senator Clinton, should she be selected, fits that category of brilliance and ability. And he is assembling the best possible team to move this country forward, but he will set the direction."

ABC's Stephanopoulos: "Will Secretary of State Clinton, if, indeed, she is nominated and confirmed, have the full backing of the president? And will she have a direct line to the White House?"

Axelrod: "Look, I think it's fair to say that all of these appointees will have the full backing of the president. That's why he's selecting them. And the one thing I can tell you, from working for six years with Barack Obama, that he is someone who invites strong opinions. He
enjoys that. He thinks it's an important element of leadership. And I think that he'll have a great working relationship with his secretary of state, his secretary of Treasury, and his entire Cabinet."

More: "They are not going to be potted plants in their departments. They are going to be partners with him in governance, and he is going to
encourage that. And I'm sure that that's the message that he's given to everyone he's spoken to about potential positions in the administration" ("This Week," ABC, 11/23).

LET'S GET TOGETHER, YEAH YEAH YEAH

Sen. Joe Lieberman (I-CT) appeared on "Meet the Press" yesterday. Some highlights:

Lieberman, on reports in the Politico that his spot on the Environment and Public Works cmte was taken away from him: "The whole spirit of the caucus was reconciliation, and the fact is that Senator Reid asked me if I would leave the environment committee if he needed space on the committee for some of the new freshman senators coming in. I said yes, I would. People may have voted for it thinking somewhat differently. It's OK. ... The public is sick of partisanship. They really want us to put our country first. And that, I think, is what Barack Obama has been making clear he will do since the night he was elected."

Lieberman, on whether there's anything he regrets saying or doing over the course of the election: "I don't want to go into the details. Let me just say this, I don't regret having supported John McCain because I sincerely believed in his experience and his extraordinary record of working across party lines to get things done. But I do regret, as I said to the caucus and, and afterward publicly, there were some things I said in the heat of a campaign that I wish I had said more clearly. There are other things, frankly, I wish I hadn't said at all."

More: "That happens to all of us in the heat of a campaign. But, nonetheless, I regret it and I want to move forward. And I was very grateful that my caucus, in the resolution they passed, did not disapprove of my support of Senator McCain, because they respected that I did is as an Independent Democrat for somebody I had worked with very closely. They expressed their disapproval of some of the things I said. I accept that. That was the spirit of reconciliation. And now we move on together to get the nation's business done."

NBC's Brokaw: "I hear the word regret, but not the word apology."

Lieberman: "Well, I do, I regret it. ... I'm going forward. You can take from the word regret what you, what you, will. I wish I had not said some of the things I've said. But, again, we all do it. There was a lot of stuff said in this campaign about both candidates that I think a lot of people regret. I'm happy to step forward and say that I regret some of the things I've said. But somebody once said to me, God put our eyes in front of our head so we would always be naturally looking forward. And that's what, at this time of peril for our country, we've all got to be doing" (NBC, 11/23).

ROUNDTABLE ROUNDUP

The "This Week" roundtable discussed a possible stimulus package and Geither as Treas. Sec.

Washington Post's Will: "The only thing the government can do well, and quickly, is mail out checks. The trouble is, they get to the American households, and Americans, in their native perversity, start doing what they've been told to do for the last 20 years, is they start saving them. And that defeats the entire purpose."

The American Prospect's Kuttner: "Geithner has admirers that span the spectrum, from Barney Frank to Pete Peterson, the commerce secretary and budgetary scold. He's not a Wall Street guy, he's a public servant, he's cool, he's professional. I think he's done a pretty good job in the crisis. He's also pro-regulation."

Huffington Post's Huffington: "He is not ideological, and Obama has stressed, again and again, the importance of this being a fact-based administration, where ideology does not rule. And [Obama], in a way ... has laid out the blueprint of massive, public investment. It's not mailing out checks. ... It's really rebuilding our infrastructure, rebuilding our schools. Doing things that are actually both going to improve the economy in the long-term, and help us get out of the crisis faster (ABC, 11/23).

The "Fox News Sunday" roundtable discussed the incoming Obama admin and the economy.

FNC's Hume, on Obama's possible admin appointments: "I would say there are two things that characterize this group, experience and, generally speaking, centrism and moderation. So I would say that, particularly in terms of the economy, these names are pretty reassuring to anybody on Wall Street, for example, who was worried about Obama trying to impose early on a very intense liberal economic agenda. ... You can sense they may be leaning toward allowing the Bush tax cuts to stay in place until they naturally expire at the end of 2011, all of which I think is a sign that Barack Obama is going to be very careful and cautious and listen to wise old heads in this area in particular."

Wallace, on Clinton possibly being appointed to Sec/State: "Are you prepared to say right here and now this is going to be a disaster?"

Weekly Standard's Kristol: "No, no. I approve of that. I like all these choices, you know? I mean, I'm not much of a hope and change guy, so it's no problem. If I were a hope and change guy, I'd be a little bit distressed, perhaps. ... Since there's a certain amount of drama with taking Senator Clinton, he must think she will be a good secretary of state. And I think she might well be a good secretary of state" (Fox, 11/23).

The "Late Edition" roundtable discussed the economy.

CNN's Blitzer: "I assume the hope is, in showing off this new economic team tomorrow it's going to sort of stabilize the Dow Jones Industrials, the stock market a little bit, as Timothy Geithner's name when it was leaked on Friday, that we saw a rally 500 points going up in the hour after word was released."

CNN's Borger: "Yes, they really do want to do that. And also there's a sense that the outgoing Treasury Secretary Paulson now has somebody specific that he can be dealing with in this transition. ... [Paulson and Geithner] know each other and they can deal with each other. And then Obama also has Larry Summers there who will be inside the White House with him, who has experience himself at the Treasury. So I think this is the way to really smooth the transition from one administration to another because we're in the middle of a crisis, and so there isn't really any time."

Blitzer: "Because the stakes really are enormous right now. ... The president-elect yesterday unveiled the broad outlines of a second economic stimulus package to create what he hopes to be 2.5 million new jobs. We've lost in the United States 1.2 million jobs so far this year alone. It's an ambitious plan. It's going to cost hundreds and hundreds of billions of dollars."

CNN's Johns: "It certainly is. You also have the issue of the automotive industry out there we heard so much about last week. It is hard to see how Congress might not deal with that in some form, anyway. But one of the things I've heard from talking to economists and others is that this president-elect will also really have to worry about the issue of getting the credit markets going again, perhaps even before that stimulus package, because from that, everything else flows through. He's got a lot on his plate. It should be a real challenge for him."

Borger: "And, you know, we're probably not going to see the Bush tax cuts end as quickly as Barack Obama might have wanted during the campaign" (CNN, 11/23).

The "Meet the Press" roundtable discussed the economy.

NBC's Brokaw: "What do you think the response will be ... of the markets tomorrow to this announcement that Barack Obama plans a two and a half million job economic stimulus program of some kind?"

CNBC's Burnett: "It's so hard to tell what the market will do nanosecond by nanosecond, but if you take Friday as an indication to Timothy Geithner as head of the Treasury, obviously that did cause a last minute surge, and it broke a couple of bad days for the market. So you could say that might be an indication the market would take it positively. Two and a half million jobs, though, really isn't that many. That would still leave you with a net loss next year, and many people might say OK, that's good, but not overly ambitious, particularly those on Wall Street who are lukewarm on the idea of a massive infrastructure project. So maybe it indicates he's being a little cautious on the infrastructure side, and that would be received warmly."

NBC pol. dir. Chuck Todd, on Baker suggesting Pres. Bush and Obama should appear together before the inauguration to shore up confidence: "What I'll be curious to see is what Republicans will jump on that bandwagon and say let's do something. And maybe the symbolic act is what you asked [Daley about in particular, about getting Timothy Geithner in place now. You know, don't wait until January 20th. What's been interesting about watching Barack Obama during this transition is he wanted to hold off on, on doing this economic team. ... What Baker outlined, I could absolutely see in the next couple weeks influencing Obama and saying, 'You know what? Maybe I will sign on to something.'"

Washington Post's Robinson: "I think it was extraordinary to hear Jim Baker, the Republican eminence grise, essentially call on George Bush to, to share power, Republican president to, to effectively step down early and, and hand over the reins to the president-elect as a way of, of reassuring the market and the economy" (NBC, 11/23).