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Clinton on Economy: 'We Are In The Soup'

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March 17, 2008 11:37 AM

ABC News' Eloise Harper and Kate Snow report: Speaking to reporters in Washington, D.C., Monday, Sen. Hillary Clinton, D-N.Y., expressed her frustration with the economy and the Bush administration.

“I would do anything to start getting this under control as I have been calling now for a year because we are seeing the consequences. You know, when I first called for a lot of these steps, I was ridiculed by the Bush administration and, frankly, my Democratic opponent. Now we are in the soup and we better get ourselves out of it before the consequences are drastic.”

Watch the VIDEO HERE.

Clinton warned, “We are in a very dangerous period in the economy, we need vigilance and we need leadership and we’ve got to get it from this administration.”

But she and her campaign advisors offered few specific prescriptions for the economy, other than a plan to stem the subprime mortgage crisis, which she offered months ago.

Clinton spoke to the Secretary of the Treasury this morning.  On a conference call later, Clinton campaign advisors said she made that call as a senator representing New York, with many constituents who work on Wall Street.

In her remarks, Clinton said she would not “second guess the Fed” and suggested that she did not disagree with the actions taken on Sunday.  But when pressed on whether the senator favored further action by the Federal Reserve, her aides were not specific.

“She’s not going to second guess the actions of the Fed,” said policy director Neera Tanden.  “These are serious issues that could have serious impact.”

“We're not here criticizing President Bush's actions today or, really, the Fed’s actions, because obviously, the Fed led the way -- as we read the news reports -- led the way in addressing the crisis,” said Tanden.

“Obviously, Sen. Clinton is relieved that the crisis did not -- there does not appear to be a crisis on the market today.  But what she is saying is that we would not be here today if President Bush had listened to her a year ago and had taken decisive action.”

They, instead, pointed repeatedly to Clinton’s proposals on the subprime mortgage crisis, proposals that date back one year.

“For some time Sen. Clinton has been expressing serious concerns about the mortgage crisis,” said communications director Howard Wolfson.

“It was almost exactly a year ago Hillary outlined her proposals on the subprime problem.  She would’ve addressed it in real time.  She saw it before it became a crisis,” said Tanden.

Asked if it was “time to start thinking bigger” and if there were other specific proposals Clinton would put forward now, given the extent of the problems facing financial markets, campaign aides repeatedly returned to the subprime plan.

“We believe that adoptment -- enactment of her plan now would help alleviate the burden and anxiety for homeowners and bring some stability to the housing market. I don't foreclose the possibility that we may be announcing additional measures and steps, and when we have something to announce, we'll definitely let folks know,” said Wolfson.

Clinton’s aides also argued against the notion that there would be a “moral hazard” to helping homeowners who’ve defaulted on subprime mortgages.

“I don’t know what John McCain’s position is,” said Wolfson.  “If he wants to argue that it’s a bailout to help homeowners at risk, he’s welcome to ... We believe there is a responsibility to act.”

Clinton said earlier Monday that if she were president, she would convene Congress to find a solution.

“I would call the leadership of Congress and say, 'you may be on a two-week vacation –- I want everybody here, we are going to sit here and figure out what we are going to get out of this Congress, ready to be passed as soon as you come back –- this cannot wait.' So, I feel so strongly, as you might guess, this is a perfect opportunity for the kind of presidential leadership that we desperately need that we are not getting.”

Reading from a statement, Clinton said she would “continue to monitor the situation closely throughout the day and will seek advice and council from a broad range of economic advisors.

"As a senator from New York, I am keenly focused on the impact of these market developments on the lives and livelihoods of thousands of New Yorkers and on the New York city economy as a whole.

"I am also reminded every day as I meet the families and listen to their stories, that the effect of functioning of our financial markets isn’t just about Wall Street -- it is about Main Street. It’s about the families I meet who are struggling to fend off foreclosures and stay in their home. It's about construction workers who used to build houses and are now out of work. It’s about the college student who has good credit but is struggling to get a loan.

"What is happening on Wall Street may well affect the lives and fortunes of tens and millions of Americans who work hard every day. They have done nothing wrong but they will be impacted at these times of stress and uncertainty.

"We need to be vigilant to do everything in our power to maintain confidence in our financial system. I feel very strongly that every way we’ve got to have more urgency to continue the action that was stated yesterday.

"In my conversations earlier this morning, I raised my concern about the continuing numbers of foreclosures and my very strong belief that in the absences of addressing that aspect of the subprime mortgage credit crisis, we will not be able to make the progress we have to make, so I will follow this closely, and as I said, I am particularly concerned about the many employees of Bear Sterns and their families and the affect on the economy.”

March 17, 2008 in Bush, George W., Tancredo, Tom | Permalink | User Comments (62)

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Sure Hillary, anything you say. Oh, by the way, when are we going to see your and Bill's tax returns??

Posted by: petee | Mar 17, 2008 11:59:28 AM

Say anything. do anything. That's the Clinton's way. Too bad it can't be the right things.

Posted by: Tiffany | Mar 17, 2008 12:01:07 PM

So when Hilliary's in office, the do-nothing congress will actually be forced to get off their butts and do something like, their jobs. Yeah right, forgive me while I don't hold my breathe. PLEASE! Tell me another lie Hilliary...

Posted by: cba | Mar 17, 2008 12:05:16 PM

To Tiffany and Petee: Your comments are the reason many of us, who would otherwise find Sen. Obama acceptable, can never vote for him. Instead of an objective critique of the substance of Sen. Clinton's comments, you just regurgitated Sen. Obama campaign's attack points.

Posted by: Bob H. | Mar 17, 2008 12:08:18 PM

Lowering interest rates is not going to do it. Spending money on new Federal projects in the construction industry will.

Create jobs at the base that depend on other areas of business and the rest follows.

Posted by: LiquidBlue2 | Mar 17, 2008 12:08:46 PM

Does anyone crave the kind of leadership on the urgent issues of our time that will solve problems? The candidate who studies and works on the issues knows the issues and what needs to be done. Hillary is always prepared and knows how to lead, because she has always been a real leader. While others wait, she acts!

Posted by: georgia | Mar 17, 2008 12:13:01 PM

What about Clinton's 2.2 BILLION DOLLARS in earmarks? Are in the soup as well, or where are they?

Why would she keep her books closed on that HUGE amount of money?

BTW, that illegal WAR for which she prepared in her Senate speeches over many years, and was ready vote for at her single Day 1 Red Phone moment, what impact did it have on our economy?

Let the Mrs. cut the crap and bow out, even though 'bowing out gracefully' is no longer an option.

Posted by: Greg | Mar 17, 2008 12:13:02 PM

This country is falling apart

Posted by: Vince Ferri | Mar 17, 2008 12:13:28 PM

Bunch of sour Obamabot trolls out in full force this morning. I just saw Mr. Obama unenthusiastic town hall meeting. Crowds are getting smaller and the excitement is wearing off. After Wright & Rezko it looks like people are coming out of their coma and stepping away from the Obama Kool-Aid.
Won't you join us at hillaryclinton.com?

Oh yeah, Mrs. Clinton's economic plans are forthright and well thought out. She will make a wonderful President and the only one who can turn this economy and country around.

Posted by: Jay | Mar 17, 2008 12:27:53 PM

Hillary Clinton will be our next President. Do you see any other candidates coming out with plans and leadership that will affect us on a daily basis. She is brilliant and understands these issues, has forward thinking, new ideas, and knows how to get things done across party lines. This is what we want in a President someone who wakes up everyday and thinks about real solutions for our lives. Who cares about hers or Obamas' tax returns,Rexko, Wright, Ferraro what does that have to do with fixing the economy, ending the war in Iraq, ending the foreclosure crisis, repairing our image around the world, ending global warming, creating better jobs, and providing health care to every american. She has plans to do these things and if the media stuck to the issues instead of this high school he said, she said, then we would have a real debate about who would be the best to lead out country. I think this is without a doubt Senator Clinton. She is the leader. Obama has policy positions, but I never hear him come out and say ok we need to do this to create more jobs, or we should contact and convene these people and work on these issues. Its the same rethoric of hope, but Americans need change. REAL CHANGE in their lives and someone who has a proven record of getting results for real people.

Posted by: Mike | Mar 17, 2008 12:29:02 PM

The anti-clinton and anti-obama comments are building on themselves. Nobody is "regurgitating" Obama or Clinton attacks. Last I checked, Sen. Obama's campaign didn't have a list of "attack lines" or anything like that on his page. Sen. Clinton? Well, unless you count the daily "jab" in their memo (today it was 'In Case You Missed It: "Obama says he still considers Rezko a friend."', yesterday "In Case You Missed It: Sen. Obama again changed his story about his relationship with Tony Rezko. Read more." and 'Full Assault: “Sen. Barack Obama is trying to air his dirty laundry… as he prepares a full assault on Hillary.”'), aside from that, she hasn't sanctioned personal attacks on Obama either.

People commenting on these blogs should take responsibility for the comments themselves. People are worried about the credibility of Sen. Clinton, or scared of the unknowns of Sen. Obama.

Two things could help: Sen. Clinton could come up in the open about all the outstanding issues, and nobody would be able to suspect her of lying any more.

On the other side, if you don't know about Sen. Obama's history, stance on issues, or record, you might want to check his website, read his books, and listen to more than FOX for your news. I find people are parroting FOX line of attacks more than anything else.

But either way, the war going on back and forth is most our your - our - faults, at least here on the internet.

Posted by: memoryaid | Mar 17, 2008 12:29:11 PM

How many of you here are voting for Obama simply because you don't like Hillary? Obama is say anything politician too. He is for troop withdrawal but was against when Senator Kerry proposed a bill. He changed views on which health care system will work best. He proposes to fix NAFTA and then tells the Canadians that it is just campaign rhetoric. He says he doesn't take money from lobbyist but he takes if from all not federal registered lobbyists. He says he will begin pulling troops out in 60 days but his advisors say that may not be so. I can go on and on.

Posted by: Jim | Mar 17, 2008 12:32:13 PM

Hillary, you'd have a lot more credibility if you'd just let the voting public in how the Clinton family fortune has been amassed. Obviously you're hiding something.

Posted by: petee | Mar 17, 2008 12:37:33 PM

Hillary was first to present the Stimulus package and is still making voters aware of the next challenge voters will face is a economy. Investors are really feeling pain because of giants like Bear Stearns, Countrywide etc., are sinking. Job loss report is not good and if the similar trend continues it will be difficult to get jobs. This is a reality that voters can choose to overlook.

Posted by: Humm | Mar 17, 2008 12:39:28 PM

Jim: I started out liking Hillary. Then I learned more and liked Obama more. You're misrepresenting ALL of his views on your post. Really. It's all false. I know you want to believe it, but you're basing your whole opinion on criticisms coming from Sen. Clinton's campaign. How can that be fair? There have been numerous stories debunking all of those facts.

Even tho I like Obama more, I'd vote for Clinton over McCain. But at the same time, I've been hurt and disgusted to see her mis-represent his record at every turn, and even more hurt to see so many people buy into it without checking. That's why, at this point, I can no longer respect Sen. Clinton. Will she be a better president than McCain? Very likely. But she will be a president like many in recent history - a "lesser of two evils", instead of a positive figure. Much of the enthusiasm surrounding politics will die as a result. We'll all look away for another 4 years, as we did under Bush for 8 years.

Posted by: memoryaid | Mar 17, 2008 12:42:32 PM

Hillary Clinton is now and has always been the best candidate running for President in 2008.

Posted by: mhhunt | Mar 17, 2008 12:44:33 PM

Memoryaid, please state how my points are false about Senator Obama.

Posted by: Jim | Mar 17, 2008 12:44:49 PM

She is not the one everyone want's to know about Just how clean is Obama does he love this country like his pastor does? If he sits in church for twenty years and does not know what his pastor stands for than how does he know what America stands for,

Posted by: Bishop | Mar 17, 2008 12:45:39 PM

One thing is crystal clear. If we don't want to repeat the last 7.5 years we need to vote for either Clinton or Obama because it's plain to see that McMore-war will just be a continuation of the bush years.

Posted by: pt | Mar 17, 2008 12:55:46 PM

Jim, your point about NAFTA is wrong. That memo was the internal interpretation of what was said. The fact is the USA gets the better of NAFTA with Canada. But Mexico is stealing jobs & if anything, that's the part that will need to be changed.

Either would be a good president, my only issue with Clinton is that she never answer a question directly. Everything is slick double talk. It reminds me of GW Bush too much.

Posted by: Right on Day1 | Mar 17, 2008 12:59:21 PM

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