by Glenn Thrush
Hillary Clinton called on President Bush and congressional leaders to skip the Easter recess to deal with the credit crisis and mortgage meltdown -- saying the Fed's rescue of Bear Stearns is proof the country’s economy is "in the soup.”
Clinton, speaking to reporters after an Iraq policy speech at George Washington University, offered her support for the Federal Reserve’s decision to provide a $30 billion backstop for the firm’s panicked investors and called on Bush to do more to help deal with a record wave of foreclosures.
“Now we’re in the soup and we’ve got to get out,” said a stern-faced Clinton, who has repeatedly criticized the White House for whats she claims is its slow response to the crisis. “I cannot stress to you strongly enough that we’re are in a very dangerous period in the economy We need vigilance and we need leadership… This is not over.”
Clinton spoke by telephone this morning with Treasury Secretary Henry Paulson and huddled with her economic team to discuss possible strategies. She also applauded Fed Chairman Ben Bernanke’s decision to cut the Fed’s discount rate by 25 basis points this weekend, saying the crisis has prompted Washington to “use tools… we haven’t used since the Great Depression.”
Earlier, Sen. Charles Schumer (D-N.Y.), chairman of the Joint Economic Committee, expressed support for the Bear Stearns actions, saying he hoped it would snap the Bush administration out of its “torpor” by focusing its efforts on stemming the drop in housing values.
“This was a totally necessary move to prevent these serious problems from spreading, and to avert a possible meltdown of the financial system,” said Schumer, who spent the morning conferring with Paulson and JP Morgan Chairman Jamie Dimon, whose firm purchased Bear Stearns for a steeply discounted $2 per share.
“Clearly the consequences of inaction were deemed to be much more difficult for the economy than having the Fed step in,” Clinton said. “From what I’ve been told the worry was that there would have been a chain reaction.”
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Comments
Our economy is going down the tubes because the cost of gasoline is creating intollerable "hyperinflation". That is what is causing foreclosures, credit crisis and our "mortgage meltdown".
The media is not telling you that due to rising gasoline prices you have experienced an approximate 33% cost of living increase. The "economic indicators" like GDP, unemployment, etc, have been fudged for years.
The only way to fight it is to drastically decrease your use of gasoline, for although the relentless increase in the cost of oil is effecting just about everything, gasoline is the hardest hitter to your budget.
Posted by: Bob | March 17, 2008 12:03 PM
Clinton backs Fed, says economy's 'in the soup' Well DUH!!!!!
It's time to focus on our economy. These trips to foreign lands, looking at their economy(s) does nothing for us here except drain our pocket more with these outrageous monthly bills in the billions.
McCain doesn't have a clue. What in hot lava hell is he doing all the way over there when our economy is fastly running down a sewer?
People better wake up. Realize the media, the rich and well connected will say and do ANYTHING to keep control of their tax breaks and incentives that have so lavishly padded their bank accounts in the last 7 years.
Posted by: Oh Please | March 17, 2008 12:57 PM
TRUST IN HILLARY’S GOVERNMENTAL EXPERIENCE ADVANTAGE
Whitewater, Cattle Futuregate, Travelgate, Gennifer Flowersgate, Filegate, Vince Fostergate, Whitewater Billing Recordsgate, Paula Jonesgate, Federal Building Campaign Phone Callgate, Lincoln Bedroomgate, Donations from Convicted Drug and Weapons Dealersgate, Buddhist Templegate, Lippogate, Chinagate, Lewinsky Affair, Perjury and Jobs for Lewinskygate, Willeygate, Web Hubbel Prison Phone Callgate, Selling Military Technology to the Chinesegate, Wag the Doggate, Juanita Broaddrickgate, Vandalgate, Lootergate, Pardongate; and the many deaths, including suicide, murder, and mysterious gun shots to the head, all allegedly linked to Clinton.
Israel for protection, China for technological secrets and outsourced jobs, and Mexico for amnesty desperately need Neo-Lib Princess Hillary for president. Kennedy Liberals need her burnt at the stake for treason against Christianity and the Constitution.
Google: “boycott liberalism Clinton Legacy”; “Danneymeyer deaths linked to President Clinton”; “Hsu Hillary”; “Mearsheimer Israel Lobby and US Foreign Policy”; Stricherz “Why the Democrats are Blue”; “Who Would the World Elect”.
Posted by: Jeugenen | March 17, 2008 2:02 PM
My wife and I spend $800 per month on gas and $800 per month on groceries...i anticipate we will spend more in gas than groceries by mid summer.
Posted by: Fred Psimas | March 17, 2008 2:35 PM
Tax cuts in the middle of a war and occupation. Yeah, that's sure sound fiscal policy. These next few years are going to be awful dealing with the Republic party's disasterous misrule. Let's make sure the blame goes where it deserves...The Republic party and the Chimp in Chief.
Oh yeah. Hillary for Senate Majority Leader!
Posted by: weinerdog43 | March 17, 2008 3:33 PM
Fred,
How much a month do you and your wife spend on taxes? Add up what you pay in taxes in a month - income, FICA, real estate, sales, etc....
Also, have you and your wife reduced the size of your cars? Assuming you purchase gas at $3.50/gallon and get 20 miles to the gallon, you and your wife drive over 4500 miles per month? Have you looked at ways of reducing the amount of miles you drive.
As far as your grociery bills - $800 for you and your wife or do you have kids?
Posted by: Terry | March 17, 2008 5:15 PM
Read it and weep. The 'Krugerman' has been calling it correctly for some time now.
http://www.nytimes.com/2008/03/17/opinion/17krugman.html?ref=opinion
Posted by: C.Hussein.Morris | March 17, 2008 9:00 PM
1996 - Bill Clinton signs into law the telecom act that spurs the tech-bubble and 2000 market crash, which leads to the 2001 recession.
Late 90s - Bill Clinton had the banking industry and fed relax lending requirements so "everyone could have a house". Root cause of the current market downturn due to the mortgage crisis.
Yes, lets all take economic advise from this guy.
Posted by: Trey | March 17, 2008 9:04 PM
Trey,
That was the Republican Congress's actions, and Clinton signed both.
Both are to blame for the bad, and credit for the good.
One of the big lies about Clinton, told by Republicans, was that he was a liberal.
Posted by: C.Hussein.Morris | March 17, 2008 9:44 PM
The last refuge of a moron: Blame Clinton. Yes, Trey, you are a moron.
Posted by: weinerdog43 | March 17, 2008 9:47 PM
I never said Clinton was a liberal. He was very pro-business. NAFTA (which was pushed through by Bill Daley - Emperor Daley's brother). As for the Telecom Act of '96, it was the brain-child of Reed Hunt (Chairman of the FCC and a Dem) and another Dem venture capitalist who were friends of Clinton. Working for the venture capitalist, I can say I had more than a few nice Christmas thanks to the nice bonuses we made on all the telecom deals we did (and sold out before the crash).
Wiener, you are the only moron. I merely stated facts. Which are true. But, I do love how when libs can't argue their point, they start calling names. If you can beat them, deflect!!!
Another point. When Bush's tax cuts expire, the average US household with $100,000 in income (not per person, I'm talking combined) will pay $3,000 to $5,000 more in taxes. The 25% tax bracket will go to 28% - 3%. Plus, they will loose the $1,000 child tax credit. You know, that tax break for the rich. Sure, the rich will be tens of thousands more. But the average Joe will be on the hook for $3,000 to $6,000 more. Can't wait for whining on that.
Posted by: Trey | March 17, 2008 10:55 PM
Our eceonomy is going down the tubes because we have been importing more than we have been exporting for 20 years. US companies are now global entities that look for the cheapest place on earth to manufacture their products. In doing so, the technical know-how to produce such products and the future value of new products that will be made and exported will benefit those countries economies and not the US economy. Pick up any product today and 9 out of ten times ..its made in China. Take note that China is now the largest market for Cadilac! If you want to build a wealthy nation and a healthy economy in the US you cannot continue to import more than you export. Also take not that the wealthy place their money in offshore markets in order to shelter their wealth from US taxes. Changing from an income tax base to a sales tax base would bring the wealth back to the US and tax the wealthy for their purchases here thereby benefiting our tax base and eceonomy. We should eliminate income tax and move to a sales tax system.
Posted by: fred psimas | May 4, 2008 7:45 AM