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Original rationale and how the government sold the bailout plan which congress ultimately bought into.
Let's get reaction from someone who voted for the Dow up congresswoman Jane Harman is a Democrat from California and she joins us this evening thank you so much congressman for joining us this evening.
Thank you Alexis.
You -- are you concerned given what you saw today from Treasury Secretary Paulson that perhaps you voted for something now that isn't quite what it was it's supposed to be.
Mean what we sold -- -- good.
I don't with the bill of goods but it is not what it looked like it was what was advertised I mean I.
I see in this and I just learned about it this morning when Paulson held his press conference there's been no communication.
With my office on the hill from him but this is Hank to homeowners drop dead.
I I don't know how else to receive this I just spent two weeks in my district obviously with the election and I was working hard -- Talking to lots of voters and all I heard about was win is this money going to reach us when is somebody gonna try to work out our problems.
And as of today -- answer is never.
And what sense is that.
Yeah I mean congressman I would imagine -- the banter going on between the FDIC chair Sheila Bair.
Was been doing a very good job refinancing mortgages and in dealing with distressed home buyers for indymac.
He mentioned on several occasions he'll what she's doing great job but the bottom line is should the TARP be used for investments we're we're not gonna get a return on equity yet on the other hand.
He's also the person -- at the root of the problem is housing so.
Which way is it where do we go from here with it close or the will of the real problem.
Well it's clear to me that.
What Americans want is to stay in their homes if we're about to have a million foreclosures with four to eight million.
Following on that that needs to be our highest priority at least speaking as a member of congress I don't know what president elect Obama will.
Decide to do but in terms of the immediate requirement and what we might do in congress next week.
We have people key people in their homes that is why I voted twice.
For this economic recovery package because I was persuaded that in some very complicated way we're gonna buy this toxic mortgage.
Material from banks which would then generate liquidity and our problem would be fixed well number one today you -- send your broadcast that I heard this morning.
What I'm gonna require these banks.
To lend out this money what are they gonna do with -- are we funding.
Some kind of bank merger policy in this country I'm not for that the credit unions in my district in the small banks in my district.
-- a piece of this action and the -- car dealers.
Are terrified right -- and lots of people are coming -- my my seminars on mortgage foreclosure.
Listen you worry angering your frustration is something that is being felt on both Republican and the democratic side it doesn't matter who you warned his country a lot of people are very angry about how big this is get got to get how much money this is gonna cost and it feels as though everything we're doing.
As opposed to pro active.
But you and I both know part of the controversy here is that -- play any of homeowners in this country who have rightly paid for their mortgage even in difficult times.
While the parent friends and neighbors of being foreclosed upon and they say hey wait a second (%expletive) I don't tax Payer foot the bill.
So should we look at the Citigroup the Bank of America's in the JPMorgan's we're trying to help homeowners.
On a one off basis -- we look to the private sector to solve the problem.
Well I think.
Private sector is part of the solution no question and I salute those banks like Citi.
They're trying to help hundreds of thousands of homeowners but we're talking millions here this problem is much bigger than they are.
And yes I respect the homeowner who is paid his mortgage.
But if the guy next door to win.
Four closes his home value is going down and his police services are going down -- the tax base for his community is going down so.
We have to think about this is more than -- one off and in addition to that there have to be requirements.
That people live in these homes and that they pay eight.
Percentage of their.
Of their income for their mortgage is I'm not talking about freebies -- to make a different point move this weekend as we've heard.
Is the G-20 this meeting of twenty countries.
In Washington DC have -- Hank Paulson talked to these countries is whatever we're doing here.
-- coordinated with -- my understanding is that.
Britain which has been pretty adroit here Gordon Brown has done a good job is requiring any banks to get loans to let addicted kids that help from the government.
Two to make loans they can't support the money -- going to executive pay packages and it sure as heck can't just Fonda consolidation probably -- him.
I am baffled by this and nobody is talking to congress as far.
We know each night at incredibly.
Interesting because if you listen to the end of his speech or if you've if you read the end of his speech.
He does make it crystal clear that yes the US has had a lot of problems but this is -- only on our soil he talks about what's happened.
In Europe and Asia -- setting the tone that.
Listen you think regulatory reform is the answer to the global economy.
We've got to give it time the we've got to address each individual economy on its own so this'll be.
Certainly a debate for this weekend but congressman I have to ask you that one of the most pressing questions and I know what's on related to this conversation today.
Look you're the chairwoman of the homeland as security intelligence committee you had been discussed at that blank as I think you probably know.
About whether or not you be willing to consider the position of as secretary of Homeland Security are you up for that would you be interest in America.
I'm not going to speculate I just applaud president elect Obama for putting together an excellent.
And working hard to get ahead of some of these incredibly taxing problem she's gonna have its hands full.
And I agree with his philosophy that we have one present time so.
This weekend this is President -- conference.
But I don't see any indication that whatever was announced today was in consultation with the other nineteen countries attending.
Nor -- -- think it meets the promises that were made to congress only voted for this recovery package twice which war.
That it was to be focused on toxic mortgage secured all right congressman Harman equal weight pleasure -- indeed this evening thank you so much for joining me love the passion.
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