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House Republican leader "We can't borrow and spend our way back to prosperity."

WASHINGTON – The White House warned Sunday that the country could face a long and painful financial recovery, even with major government intervention to stimulate the economy and save financial institutions.

"We're off and running, but it's going to get worse before it gets better," said Vice President Joe Biden, taking the lead on a theme echoed by other Democratic officials on the Sunday talk shows.

At the end of the Obama administration's first week, the party in power at both ends of Pennsylvania Avenue sought to lower expectations for a quick fix despite legislation expected to pass by next month that would pump billions of dollars into the economy. Democrats also opened the door for even more government aid to struggling banks beyond the $700 billion bailout already in the pipeline.

Congress has given President Barack Obama permission to spend the second $350 billion of a Wall Street bailout package even though lawmakers have criticized the Bush administration for the way it spent the first half. House Speaker Nancy Pelosi, D-Calif., said she is open to additional government rescue money for banks and financial institutions. But she said taxpayers must get an ownership stake in return.

Biden said Obama's choice for Treasury secretary, Timothy Geithner, will recommend whether more money is needed for the banks. Geithner could be confirmed by the Senate as early as Monday.

Congress is working on an $825 billion economic recovery package that dedicates about two-thirds to new government spending and the rest to tax cuts. Separate proposals making their way through the House and Senate would combine tax cuts for individuals and businesses, help for cash-strapped state governments, aid for the poor and unemployed, and direct spending by the federal government.

The goal is to infuse money directly into the economy in the hope of bringing the nation out of recession, while creating 3 million to 4 million jobs. It would be largest economic recovery package ever enacted; the White House says the scope rivals the construction of the interstate highway system after World War II.

Its success or failure could define the first years of Obama's term. On Sunday, Democrats sought to temper expectations, at least in the short term.

"These problems weren't made in a day or a week or a month or even a year, and they're not going to get solved that fast," said Lawrence Summers, a top economic adviser to Obama. "So even as we move to be as rapid as we can in jolting the economy and giving it the push forward it needs, we also have to be mindful of having the right kind of plan that will carry us forward over time."

Republicans want the recovery package tilted more toward tax cuts and have questioned whether government spending programs will revive the economy in the short-term.

"I just think there's a lot of slow-moving government spending in this program that won't work," House Republican leader John Boehner of Ohio said. "We can't borrow and spend our way back to prosperity."

The administration has pledged to spend three-quarters of the proposed money in the first 18 months after it is approved.

Read more:
http://news.yahoo.com/s/ap/20090126/ap_on_bi_ge/obama_economy




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Big dog and pony show

What ever party is in power the opposite party talk the talk. When they are in power no action.

Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.

Is this the same John Boehner of Ohio ("leader") who voted

for the TARP in September and then discovered, in October, that he didn't like it?

"We can't borrow and spend our way back to prosperity." ??? Too bad he didn't come to that earthshaking conclusion back in September. How many faces does he have. I count two so far.

_________________________________________
"An economy built on fiat money is a society on its way to ashes."

_________________________________________
"An economy built on fiat money is a society on its way to ashes."

Fickle, Fickle, Fickle

Does this make it glaringly glear or what (as it has been already) that our political parties are out for the good of the party, and NOT the country.

That would a great argument but

The GOP never said shit when they, the dems and Bush more than doubled the national debt.

"Reality is the leading cause of stress amongst those in touch with it."
--Jane Wagner

"House Speaker Nancy Pelosi,

"House Speaker Nancy Pelosi, D-Calif., said she is open to additional government rescue money for banks and financial institutions. But she said taxpayers must get an ownership stake in return."

I, as a taxpayer, will NEVER get an ownership stake in these bailed-out institutions. this is just a ploy to get taxpayers behind this scam by makin ghtem think that they will actually see some money from future dividends. This is BOGUS!. what, does anyone here actually believe that I am going to receive a check in the mail in 10 years when CitiBank finally makes a profit again? HELL NO, I won't, and neither will anyone else. The government's investment accounts will, however. I bet we wont even see a tax credit to offset these investment gains... This gives a lot of merit to Walter Burien's Comprehensive Annual Financial Report theory... This is the governments way to purchase stock in these major firms, using taxpayer money to prevent further losses from their prior holdings...

www.cafr1.com

Edited comment due to gramatical errors

"House Speaker Nancy Pelosi, D-Calif., said she is open to additional government rescue money for banks and financial institutions. But she said taxpayers must get an ownership stake in return."

I, as a taxpayer, will NEVER get an ownership stake in these bailed-out institutions. This is a ploy to get taxpayers behind this scam by making them think that they will actually see some money from future dividends. This is BOGUS!. What, does anyone here actually believe that they will receive a check in the mail when CitiBank finally makes a profit again? HELL NO, I won't, and neither will anyone else. The government's investment accounts will, however. I bet the taxpayers won't even see a tax credit to offset federal surplus due to the investment gains... This gives a lot of merit to Walter Burien's Comprehensive Annual Financial Report theory... This is the governments way to purchase stock in these major firms using the taxpayer's money.

www.cafr1.com

Right

I do not want Pelosi making investment decisions for me or any of my fellow citizens. In fact, I don't want anyone in Washington making a decision that has even the slightest of importance, given their track record. Does she bother asking US if we WANT an ownership stake in these miserable companies?

http://federalfallacy.com

Michael Nystrom's picture

Why didn't he say it before,

Why didn't he say it before, when R's were in charge of Congress and the White House?

His claim rings hollow.

All art is only done by the individual. The individual is all you ever have, and all schools only serve to classify their members as failures. E.H.

Does anyone else notice the

Does anyone else notice the republicans start to stand up for principle and freedom when they are NOT in power? It's almost as if I want them to not be in power.....weird.

It's all just political theater

They are in agreement that trillions need to be spent to "revive the economy", they just squabble about how the unconstitutional act will be done. It's here theater so that the masses believe that they are bitter enemies, when in reality they are one and the same.

http://federalfallacy.com

Nailed it.

It's like watching a 'pro' wrestling match—

Boom!

Oh!

Boom!

Oh!

Into the turnbuckle!

Boom!

Oh!

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"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

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"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

here's how it will work

1. Dems create bill, Republicans blast it in a fit of political theater
2. The bill gets voted down
3. The dems make the bill worse
4. The Republicans continue to whine, but vote for it anyway

http://federalfallacy.com