Gov. Kaine on 'FNS'

" for -- president Obama's standing in the polls is still strong but his agenda is coming under increasing fire. Joining us now from the state capitol in Richmond the new chairman of the Democratic National Committee Virginia governor Tim McCain and governor welcome back to Fox News Sunday. Great to be back with you Chris governor let's put some numbers up on the screen the Dow Jones closed before the inauguration. At eighty to 81 now what's at 6626. Cents at 20% drop. Which is the definition of a bear market governor how much responsibility does the president bear for the tumbled in the stock market since he's tech took office."

" Well Chris I think you have to look at where it was before that's 8200 -- mean -- slid dramatically. In the months before the inauguration and that and that decline is continuing but. The president and his team are working very hard to put steps in place so that we can start to grow the economy again. Not going to happen overnight but I think the the right elements are being put in place that we can start to stabilize and grow the economy."

" Well let's talk about the right elements because the markets clearly have not been reassured by what messages the president has -- so far. And I think it's fair to say they're looking particularly. To the issue of my financial rescue plan why why is that that almost seven weeks. After. The president took the oath of office he still has not come forward with a plan. To deal with the banks and their toxic assets."

" We'll crest there are there are a couple of elements of the plan that have been put out. Sort of three elements in the there's a fourth that's coming in this week first you had to create a capital cushion for some of these banks to make sure that they have adequate capital. I'm second very important the presence laid out a plan Senator McCain was speaking about it to try to mitigate. Before closures that's very important. We have to get securitization. Going again the ability of banks -- Have big chunks of assets securitized that's been frozen up since October and secretary Geithner is laid out a plan on that and then the fourth element in this is very important is one that. He'll be talking about soon. A plan that would use private investment. The start to purchase bad assets clear them off bank balance sheets so that they can then go forward in a more healthy way. This is complex stuff and it's it's unlike say the stimulus plan where we control -- just on our own shores. This financial crisis is a worldwide financial crisis that we have to try to. Coordinate our actions in some degree. With what's happening with financial regulation elsewhere prime minister brown came from England this week to talk about that so you just have to try to coordinate it with. With you know the effort to get this system going back on a worldwide basis."

" But I think you had a great governor that the key part of that and the part that that we've been talking about ever since September in the original financial rescue plan. By the Bush Administration was away. To get these banks not to be zombie banks as Senator McCain said right to get these bad assets off the books that figure some way to deal whether the billions and trillions of dollars a toxic assets to put some some numbers up on the screen but the when it comes to. Appointments. There are 800 jobs in that the president has the needs senate confirmation so far this president has nominated. 44. And of those only 2828. Of 800 have been confirmed. Now in the case of treasury. Treasury Secretary Geithner is the only Obama nominate to win the Senate confirmation there's not a deputy secretary don't know undersecretary as they're now assistant secretaries. Isn't that a serious failure in the middle of a finance."

" Well it it certainly tough but let's just look at past history is an indication if you look at history of earlier administrations when folks were confirmed. It often takes a little bit of time and their whole series of appointments that are not send it. Confirmable. There's about fifty political appointees that have been appointed that our work with secretary Geithner in the treasury. But again this this is acknowledge a very very difficult situation. We're dealing with a financial problem on our own shores and the decline in the stock market that started. Long ago. And we are trying to coordinate it with what's happening in the worldwide financial community there's going to be G twenty summit as you know on April. Where that in November President Bush had once and we've got to come back. And an international way to set up the framework and what we're trying to do is get our pieces in order so that we can watch and that summit with the leadership position and help other nations do the same."

" Governor. If you you're exactly right it is a very serious situation but with the markets tumbling. With the unemployment rising the president is proposing this huge agenda would health care reform and carbon cap and trade and increase in taxes on the wealthy. Why not shouldn't he keep the focus almost exclusively to the degree possible to this point on what a lot of people think is job one. The economic crisis in the finance."

" The situation. I'm Chris I think that the reason the president is doing this is these problems are connected to our economic crisis or just use one example. Senator McCain talked for example that we need to focus on controlling health care costs. GM we were to we've been talking about GM what is probably the most cited reason. For GM's difficulties are one of the most sided as the legacy costs on health care. And retiree health care that GM has to carry that that other automobile companies particularly those in foreign companies don't. You hear people talk about federal spending going up dramatically in Medicaid and Medicare. These entitlement programs that are health care related. Are part of our economic challenge so the president was elected to try to deal with this health -- challenge which is can be a choker on the economy. And the ability to bring legislators together of both parties and -- summit and discussions they have this week I think we're kind of refreshingly. Bipartisan and included representatives from a lot of stakeholders if we can start to get that right that can be part of growing out of these economic doldrums and you can say the same thing about. Looking at our energy future going forward there's not kind of the economy on one track and then it was getting energy right on a different track they really are related."

" Governor part of the Obama budget that he has put forward is to reduce the tax deductions in the top. A tax brackets and even some Democrats are saying this is not. The right time to create new disincentives. For people trying to buy homes sorted donate to charities and it is that reduction. -- in it that -- that that the reduction in the deduction. For top income owners -- you're gonna gonna stand on that one."

" Well Chris the president has laid out a basic budget in the goal is. You know -- trying to accomplish something very challenging right now which is. And he's very serious about it we want to get on a path to reduce the deficit. And reduce it in half by the end of the administration. And so there are a number of aspects of the budget. That are basically geared to try to do that and that includes what he campaigned on and promised to do which is like. Certain tax cuts from the Bush Administration expire. But also this adjustment of the deduction. Which is not an elimination of the job deduction is just an adjustment slightly downwards and that is probability I'd been hesitant saying. They that the tax break to people get for buying a home where in the middle of -- housing collapse. Look look look I mean I think you can you can argue about pieces of it but the big -- is if we're going to reduce the deficit in half we're going to have feats in Spanish to do so. And and so he has laid out a plan that will will get us there which is what Americans you know I've you know Senator McCain is a big proponent of proponent of deficit reduction. And in order to get there there's going to have to be some painful choices. Choices that you know if if we weren't -- about deficits you know we wouldn't worry about but we're going to have to do a number thanks to get to that."

" Get at W talk about eating spinach -- let's talk about how much miniature reading in this at 410 billion dollar spending bill. Before the Senate which has AD 500. Earmarks and an increase of 8%. Of spending. Even one of the top democratic senators Evan Bayh. Opposes that any wrote this in The Wall Street Journal the economic downturn. Requires new policies not more of the same. Why in this case is a reform president supporting. Business as usual."

" Well I'll I would say it's not exactly business as usual and I agree that the earmark reform has to happen let's just put it in context again. Earmarks worth their high in 2005. The number of earmarks the amount of dollars in earmarks in this budget. Our 25%. Of what they were in the O five budget. So congress has gotten a message and I applaud Senator McCain and also the president when he was a senator say we got to reform this process. The amount of earmarks -- has been dramatically dropping since 5. The president has made plain that he's going to continue. To push it push it down -- The recovery bill that was passed without haven't got a one question one I don't you tell us know that. I mean it he does know there's no time like the president. -- vetoing an entire budget bill on appropriations bill like this you know has consequences with respect other programs Chris as you know. And so the president's going to have have to -- that. The cost of the V telling an entire appropriations bill to run government. You know wet day a set of earmarks that are being dramatically reduced from past years with and he has made very plain that he is going to push. A free earmark reform justice he he pledged during the campaign."

" finally that Democrats have had a lot of fun this week poking. At Rush Limbaugh and in fact the Democratic National Committee the organization that you. Ron is planning to put up a billboard in Russia's hometown of West Palm Beach, Florida. And you're having a contest and come up with a slogan. As some NB a so what's knocking slogan governor -- to put on this the billboard. In the campaign Barack Obama talked about change in the way business is done in Washington and the other day he said that."

" Let's watch. We know the only way to solve the great challenges of our time is to put aside stale ideology and petty partisanship and embrace what works."

" Governor isn't going after Rush Limbaugh a perfect example of the stale ideology and petty partisanship. That the president was talking about."

" Well it's not it's not like -- a member of congress or -- you know or or anyone of that kind he's. A radio. Personality who has been saying that he wants the president to fail. We would even be talking about Rush Limbaugh at all had he not said he wanted the president to fail and then he's found others in the party and party leaders. Who have either echoed that -- war in the case of -- chairman steel. Denounced the claim which I thought was courageous but then apologize to Rush Limbaugh so I think there's an important point here. The billboard is a little bit of fun admittedly but there is an important point at a time of crisis in this nation. Nobody should be written for the president to fail both this country in the world needs him to succeed. Now that doesn't mean that everybody has to agree with everything about Senator McCain kind of said look we should be a loyal opposition working together. Disagreeing when we need to but always finding areas of agreement if that is the spirit then we're going to do fine. If we have people out there praying for the president to fail and trying to rally folks around that we need to push back on that are just -- the right message for for the time."

" Governor we we we have to leave it there I do want to point out -- justice as a point of information that Rush Limbaugh's as and I think if you read what he says. He wasn't saying I want the president and -- was and I want his policies is agenda to fail and that he disagree with him and thought they were bad for America but fair enough. Thank you so much governor for -- that's always a pleasure please come Baxter. -- portrait Chris thanks -- coming up."