Days 51-60
- Day 51: President Obama’s Agenda Today Includes Calling for an End to Earmarks and a New Initiative for Women’s Issues
- Day 52: President Obama Tells White House Conference that Stimulus Funds Must Be Spent Wisely
- Day 53: President Obama Sends Message of Optimism on U.S. Economy as Wall Street Rallies
- Day 54: President Obama Nominates Dr. Margaret Hamburg for Head of Food and Drug Administration
- Day 55: President Obama Pledges Funds for Small Business Owners and Big Boost for Failing Banks
- Day 56: President Obama Announces New Initiatives for Small Business and Slams Corporate Giant AIG
- Day 57: President Obama Urges Congress to Present with Constructive Alternative Solutions on Budget 2010
- Day 58: President Obama Shows Anger over AIG’s Giant Bonuses and says
‘the buck stops with me’ - Day 59: President Obama Pleased by Passage of New Laws in the House of Representatives for Federal Taxation of Wall Street Bonus Payments
- Day 60: President Barack Obama Sets Historical First Appearing on the Tonight Show with Jay Leno
- Obama’s Appearance on 'Tonight Show' with Jay Leno
- Governor Palin Rejects Stimulus Money
Obama’s Appearance on ‘Tonight Show” with Jay Leno
In another historic first, President Obama appeared as a guest with Jay Leno on the Tonight Show Thursday night – the first sitting President to have appeared on a talk show. The interview covered a wide range of issues from the economic crisis, the White House dog and Obama’s ability to bowl; peppered of course by the wit and humor that is Jay Leno. In his reference to his bowling prowess Obama joked that his ability would be suitable Special Olympics.
While some have critised Obama for his reference to the Special Olympics, the joke was intended to poke fun at himself for having bowled a dismal 37 at a bowling alley in one of the stops on his presidential campaign. The President did say his game was up and he recently scored 129 at the White House alley.
President Obama was quick to make genuine apologies for his remark. The Chair of the Special Olympics, Timothy Shriver accepted Obama’s apology and he suggested that the White House consider hiring one of these special Olympians to demonstrate their dignity and value to the world. Not a bad idea.
Palin Rejects Stimulus Money
In a move that has many Alaskan residents shocked, Governor Sarah Palin said on Thursday that she will not accept all of the stimulus money that Alaska could receive under the new legislation. Palin said she will accept only 55% of the estimated $930 million in federal stimulus funds for which her state qualifies.
Today’s reaction to Palin’s comments was a mix of confusion, anger and suspicion of other agendas Palin has for her political future. Included in the pledged funds was an estimated $160 million for Education. Carol Comeau of the Anchorage Superintendent of Schools expressed her shock that the Governor would turn away money intended for Education, one of the core values put forth by President Obama.
State Democratic Party Chair Patti Higgins was incredulous in her comments: "It’s outrageous that Palin wants to turn down Alaskans’ fair share of federal stimulus money for education, public safety, unemployment services and health programs. It’s very clear that Palin is sacrificing the needs of Alaskans for her national political ambitions.”
It seems obvious to many observers that Palin is lining herself up with other GOP states who have also refused some of the funds. Bob Poe, a Democratic candidate for governor of Alaska, suggested Palin has her eye on a future presidential campaign and is currying favour within the GOP.
"She is clearly aligning herself with the other very conservative governors who have also rejected the money," said Bob Poe, a Democratic candidate for Alaska’s 2010 election.
- President Obama’s New Rules for Clawing Back Big Bonuses
- Obama’s Campaign Promise on Medical Marijuana Policy
President Obama’s New Rules for Clawing Back Big Bonuses
In Washington today, the House of Representatives easily passed legislation to recover excessive bonuses paid to Wall Street financial executives that were paid for with tax payer money.
Under the rules a two-thirds majority vote by the House is the determining factor in passage of a bill. This time it was 328-93; Democrats primarily supported the measure but Republicans were clearly decisive on the issue.
The new law provides a method of clawing back the funds through taxation on any bonuses received in 2009 from those financial institutions that benefitted from TARP funds. Individuals with incomes over $250,000 will have their bonuses taxed at a hefty 90%.
House Speaker Nancy Pelosi stated: "Because they could not use sound judgment in the use of taxpayer funds, these AIG executives will pay the Treasury in the form of this tax."
The move say Democrats is to claw back over $165 million that has been paid to AIG executives; a company now infamously known for paying those contractual bonuses through the influx of over $170 billion of tax payers’ money.
Of course, the measure now moves to the Senate for consideration.
Obama’s Campaign Promise on Medical Marijuana Policy
President Barack Obama made good on his campaign pledge to review the federal drug policy in situations of marijuana use for medical reasons. The change would essentially allow states to mandate their own laws in terms of its legalities, marijuana ‘pharmacies’ and quality.
Obama has asked Attorney General Eric Holder to issue a statement saying federal agents will target marijuana distributors if they violate both federal and state laws. But the singular issue in this debate is marijuana for medical reasons only. In the past, the DEA has investigated medical marijuana dispensaries in several states, even those in California where under state law they are legal.
What makes California different from the other twelve states that permit medicinal use of marijuana is the existence of small dispensaries. These businesses legally sell marijuana and even advertise their services. However, these businesses remain illegal under federal law.
AG Holder said: "Given the limited resources that we have, our focus will be on people, organizations that are growing, cultivating substantial amounts of marijuana and doing so in a way that's inconsistent with federal and state law." He further emphasised that law enforcement officers will continue to target those who try to "use medical marijuana laws as a shield" for other illegal activity.
Medical marijuana advocates in California and in many other states are hailing the new policy direction.
- President Obama Dealing with AIG Backlash
- AIG Chief Liddy Asks AIG Executives To Give Some Back
President Obama Deals with AIG/Banking Backlash
President Obama spoke briefly on the White House lawn today on his way to California once again calling the payments of AIG executive bonuses “outrageous”.
Obama reminded reporters that: “Nobody here drafted those contracts; nobody here was responsible for supervising AIG and allowing themselves to put the economy at risk by some of the outrageous behavior that they were engaged in. But we are responsible, though. The buck stops with me."
Obama, clearly infuriated over the issue of the bonuses, referred to the $173 billion in government bailouts for the ‘ailing’ AIG giant over the past six months. He expressed his feelings by agreeing: “...People are right to be angry. I am angry. ... People are rightly outraged about these particular bonuses. But just as outrageous is the culture that these bonuses are a symptom of that have existed for far too long, a situation where excess greed, excess compensation, excess risk-taking have all made us vulnerable and left us holding the bag.”
The President reiterated a statement he has made many times: "As we work toward getting ourselves out of the recession, I hope that Wall Street and the marketplace doesn't think that we can return to business as usual.”
President Obama was candid about his intentions to form a legislative group to look at creating a new regulatory body similar to the Federal Deposit Insurance Corporation to give the government more authority over large financial institutions like AIG.
AIG Chief Liddy Asks Executives to Give Some Back
Today, AIG chief executive Edward Liddy told Congress that he has asked employees who received more than $100,000 in bonuses to return at least half. Apparently the message is getting through because some employees have decided on their own to return their entire bonuses to the company. Liddy said he understood that the nation’s collective patience is “wearing thin”. He himself decided in November that he would accept only $1.00.
But he assured Congress he is desperately trying to sell off many AIG assets to help stabilize the company. Liddy said that AIG is committed to repaying the government's loans and building a strong foundation for the company's core insurance business.
- Obama Hopes for Bi-Partisan Input on Budget 2010
President Obama offered both Democratic and Republican Congress members to come up with "constructive alternative solutions" on measures of his 2010 Budget proposal with which they disagree.
In addressing the dire state of the nation’s economic backbone today, President Obama commented: “We don't need more point scoring; we need more problem-solving. So if there are members in Congress who object to specific policies and proposals in this budget, then I ask them to be ready and willing to propose constructive alternative solutions.”
"There's been a lot of discussion about this budget already, and I hope we engage in a healthy debate going forward. The challenges we face are not partisan. We're going to get some numbers with respect to the budget that may make this even tougher in the next couple of weeks,” advised the President.
Obama has said all along: “This budget doesn't attempt to solve every problem or address every issue.” The 2010 fiscal year begins October 1.
While the banking crises has captured the attention of Americans and the world, the President reminded the assembly that there are other critical issues just as important, such as the high cost of health care and the urgency for reducing dependence on oil energy sources.
Rep. John Tanner, D-Tennessee, a member of the Blue Dog group of 47 fiscally conservative Democrats in the House commented: “Obama at least is being honest about the dire condition of the economy. At least the budget that the Obama administration presented, even though it's huge and it's a huge deficit and that enables the other team to beat up on it, the truth is that it's honest and truthful," he said.
- President Obama Lends a Hand to Embattled Small Business
- Obama Calls to Stop AIG Executive Bonuses
President Obama Lends a hand to Embattled Small Business
President Obama formally announced today that there is a new package of financial aid aimed to stimulate the small business industry that he called "the heart of the American economy". Banks who received federal bailout money are being told to do more lending to the small business sector which has created about 70% of new jobs in roughly the past ten years.
"You deserve a chance. America needs you to have that chance," The President said today to a group of small business owners invited to the White House East Room for the formal announcement.
"As President I will continue to do everything in my power to ensure that you have the opportunity to contribute to your community, to our economy and to the future of the United States of America," Obama said.
The plan includes $730 million in stimulus funds to stop the bleeding in this sector of the economy. The funds are meant to immediately reduce small-business lending fees and to increase the government guarantee on some Small Business Administration loans to 90 percent. Also effective immediately, the 21 largest banks who have received government money must report on a monthly basis how much was loaned to small business.
The measures include an influx of up to $15 billion for banks to ease the restrictions on loans for small businesses. It also includes reducing lending fees, increasing loan guarantees, and tax credits. The changes will be enforced under new rules being crafted by the Internal Revenue Service.
Republicans are making every effort to undermine Obama's budget, especially the measure to raise taxes on individuals earning more than $200,000 and on households earning more than $250,000 which affects some small business owners.
Obama Calls to Stop AIG Executive Bonuses
The President is angry over the $165 million in bonuses to executives at AIG, a company that has received $173 billion in U.S. government money in the last six months. Obama asked rhetorically: "How do they justify this outrage to the taxpayers who are keeping the company afloat?"
President Obama pledged to go as far as preventing the bonuses to executives at AIG. Obama made the remarks during a White House Meeting today announcing the Small Business initiatives: “This is a corporation that finds itself in financial distress due to recklessness and greed."
The President said he has asked Treasury Secretary Geithner to "pursue every single legal avenue to block these bonuses and make the American taxpayers whole."
President Obama said the greed of those getting the bonuses goes beyond economics: "It's about our fundamental values," he said.
- Obama Administration Ready for ‘Economic War’
- Small Businesses Get Help
President Obama’s financial advisers say Republicans have no workable plans and today they were publicly pressing for support for the President's budget proposal. They also intend to repute GOP accusations that Obama is using the hype of the crisis to make sweeping changes they are not comfortable about. The Obama administration and the Republican minority in Congress each claim their camp has the answers for economic recovery. It was Warren Buffett who said last week the country is in an “economic war”.
House Minority Whip Eric Cantor defied the claim that Republicans have no alternatives. He said the GOP will produce a plan that puts the focus on fixing the banking system to free up credit and helping small businesses create jobs. Cantor has been outspoken in his criticism accusing the adminstration of a "lack of focus" on the critical challenges facing the economy.
Larry Summers, head of the National Economic Council says: "The situation the President inherited of nearly $1 trillion deficits, before he did anything, came at a time when it was a Republican President and a Republican Congress that were making the decisions. So I think what the President is proposing is a strategic budget. It is making substantial cuts, but it's also providing support in some important areas that will let us have a sound economic expansion."
When asked about Republican criticisms of the $3.6 trillion budget plan, Summers retorted: “We'd love to see (Senate Minority Leader Mitch) McConnell's concrete alternatives that gets closer to a balanced budget."
Small Businesses Get Help
President Obama’s White House officials said today that the President will announce a package of measures that gives the small business community $730 million from the stimulus plan. Effective immediately, the funds are to be used reduce small-business credit; the measures include an increase to 90% of government guaranteed loans for some businesses.
The Obama government will also announce a contribution of $10 billion to help banks to re-energize the secondary credit market. Small business owners cannot get loans from banks because of the near collapse of the economy.
- President Obama Names His Choice for Food and Drug Head
- Obama Outlines Three Additional Support Services for FDA
President Obama Names His Choice for Food and Drug Head
President Obama today announced his pick to head the Food and Drug Administration, Dr. Margaret Hamburg. Dr. Hamburg is eminently qualified for the position. White House officials reported that Dr. Hamburg was one of handful of youngest people ever elected to the National Academy of Sciences’ Institute of Medicine.
President Obama made the announcement in his Weekly Radio Address saying: "From her research on infectious disease at the National Institutes of Health to her work on public health at the Department of Health and Human Services to her leadership on biodefense at the Nuclear Threat Initiative, Dr. Hamburg brings to this vital position not only a reputation of integrity but a record of achievement in making Americans safer and more secure.” Dr. Hamburg's nomination goes to the U.S. Senate for confirmation.
Obama Outlines Three Additional Support Services for FDA
- Dr. Joshua Sharfstein, Baltimore Commissioner of Health, has been named as the FDA’s principal deputy commissioner.
- A newly created Food Safety Working Group will work with other agencies and serve as advisors to the President on improving inter-departmental coordination, and review and upgrade food safety laws.
- The Agriculture Department will have more food inspectors and upgraded food safety labs. The immediate objective for the department is to write legislation that will prevent diseased cows from entering the food supply.
Obama said: "In the end, food safety is something I take seriously, not just as your President, but as a parent," Obama said. "When I heard peanut products were being contaminated earlier this year, I immediately thought of my 7-year old daughter, Sasha, who has peanut butter sandwiches for lunch probably three times a week. No parent should have to worry that their child is going to get sick from their lunch."
- Obama Reassures the Nation on Economic Recovery
It was a good way for President Obama to end the week today with signs of rallying on Wall Street and a meeting with business leaders in Washington as he seeks their vote of confidence on his recovery plan. Earlier in the day, Obama met with Paul Volker and other key financial advisors in preparation for the meeting.
In his address, President Obama reassured the business community and the public: "We have the most productive workers on earth. We've got some of the most innovative businesses on earth. We've got incredible universities. Right now is very tough but we're providing help along the way."
The President spoke with conviction of the ability of the American people and lawmakers to turn around the crisis with the Stimulus Funds used prudently and a determination that is uniquely American. We're gonna get through this," Obama said.
President Obama’s comments at today’s meeting were meant to assuage the growing fear that is surfacing within the population over the state of the economy. As job losses increase and stimulus money takes time to trickle down, Obama said recently that the financial crisis is a “short term emergency” but that relief is on the way and there is reason to hope now and in the future. Obama said the overall aim of his administration is to ‘weather the storm while building a foundation for long-term economic growth that taps into the country's promise and potential.’
Paul Volker, Obama's chief economic adviser said today the economic crisis has caused an "excess of fear" among Americans that must be recognized and managed to help reverse the downturn.
Yesterday, President Obama addressed lawmakers in Washington saying:"What you do in the coming weeks, the coming months, over the next couple of years is going to make a huge difference in whether or not the trust the American people have placed in us is justified. I have great confidence in you."
- President Obama Sets Regulations on Use of Stimulus Bill Funds
Vice President Joe Biden spoke at a conference today about a set of new regulations placing restrictions on how stimulus money is spent. Biden is President Obama’s right hand in the overall management of the distribution of the stimulus funds. Inspector General Earl Devaney has been chosen to lead a new Recovery Act Transparency and Accountability Board to assist in the President’s mandate.
At the White House conference on best practices for stimulus spending Biden told the group: "Let's get this straight. ... This is a different deal. This is not your usual federal grant going to the states."
The Vice President pointed out that stimulus money spending has three major objectives: (1) to put money directly into the hands of average taxpayers, (2) to create immediate jobs and (3) to invest in "jobs of the future," in green industries.
President Obama told state leaders at the conference later in the day that stimulus money has "got to be spent wisely.” He said that the nation needs the government to go "above and beyond the typical ways of doing business" to help solve the economic crisis.
"A lot of money is coming out quickly [and] it's got to be spent wisely," the President cautioned. President Obama did not mince his words when telling the conference attendees if money is being misspent, "we will call it out and we will publicize it."
The new regulations are expected to be announced tomorrow, March 13.
- President Obama Calls for Reform of Federal Earmarking Process
- Obama Celebrates Women’s History Month with New Council
President Obama Calls for Reform of Federal Earmarking Process
President Barack Obama said that while some earmarks can be directed for useful purposes, it is time for Congress and the White House to embrace a new set of guiding principles. Pet projects of Congress members are called earmarks which are always included in spending bills.
The President’s comments may put into question the 9,000 earmarks that are included in the spending bill freshly passed in the Senate. $8 billion has been put aside for projects that benefit the legislator’s district.
Earmarks have long been a source of heated debate and right now critics are calling it wasteful spending. Others are wondering about Obama’s promise to end this type of spending. White House officials describe the current spending bill legislation as taking care of "last year's business".
Obama supports the bill for the rest of the fiscal year but future earmarks must "have a legitimate and worthy public purpose.” President Obama wants also wants future earmark bills to be displayed on lawmakers’ public websites.
Obama Celebrates Women’s History Month with New Council
President Barack Obama has pleased many of his voters today with the announcement of a new White House Council on issues facing women and girls in today’s socio-environment, headed up by senior adviser Valerie Jarrett.
Obama said today that the U.S. must ensure that its children and the generations that come after are given every chance to succeed. The issue is close to the heart of the President since he grew up with a single mother and a grandmother who he painfully watched being denied promotions she deserved and not paid what she was worth. The President says he wants to help women facing challenges like that.
