Appeasing the Critics?

" President Obama about to -- in his first formal cabinet meeting on his 91 day in office topping the agenda budget cuts the president wants to slash. A hundred million dollars from the budget. Tad Devine -- senior adviser to the Kerry presidential campaign. Jennifer Miller wise -- was deputy communications director for the 2004 bush Cheney campaign. And I'm glad to see both of -- thanks very much -- let me start with you a hundred million dollars I was reading that the Department of Homeland Security says we can get half. The way there just by changing the way we order our office supplies I mean why should this be seen as anything other than a political stunt."

" Well I think it's a strong signal of the president. Of his determination to cut spending. And also to change the way we do business Washington to reform government I mean secretary gates just a few weeks -- came out. With a revolutionary proposal to cut spending in the Department of Defense so. I think the president signaling where he wants to go in the short term he has to stimulate the economy and one of the ways to do that is to spend money but in the long term I think he wants to return. To the fiscal responsibility we saw in the ninety's."

" Jennifer to that point and to be fair most of the spending that the government has done this year has been to try to prop up the economy. So maybe a symbolic gesture like this even though it's not a whole lot of money in the grand scheme of things. Maybe it's not such a bad thing what do you think."

" Well and certainly not going to criticize the Obama administration from looking for places where there's some government waste for they can actually cut spending unfortunately I do think that this is nothing but window dressing. If he were seriously committed to cutting spending he wouldn't have these monsters government expansion program say he's proposing that -- out there whether it's education. Health care. Or other issues he's you know that's also a time when were really -- catastrophic economic downturn that we still don't fully understand sent. A hundred million dollars or so is really minute skill when you look at the kind of spending he's proposing the same time. I am afraid that this is nothing but trying to -- some of the critics said he has out there but as far as actually being a significant capital have been patent for it mom."

" Tad window dressing and -- what do you think about I mean we we just all those protesters all over the country last week. Having tea parties are complaining about what the government's taxing and spending and borrowing. I may be some people at the White House we're actually paying attention and this is the result of that even though it's not a whole lot of money may -- this as a result of all those protests."

" I I don't think it's window dressing I think it's the first of many steps that's going to come from the president and his administration I mean let's face it. He inherited this economic downturn he inherited a trillion dollar deficit he's like a guy jumped out of -- of the plane. You know going down -- at least now President Obama has pulled the rip -- in the parachute seems to have deployed so. Hopefully -- slow things down but I think the president is going to continue to take these steps to cut spending and to and to reduce waste and and in Washington because he's committed to reforming our government."

" Jennifer I want to ask you about a story printed and a couple of newspapers today I think the New York Times had it on their front page that the government is going to convert. Some of the loans to the nation's banks turn them into stock. And a lot of people out there are concerned that this is a slippery slope here. And the beginning of the nationalization. Or sort of a back door way and to nationalizing. Our country's banking systems and and financial institutions around the country what do you think about that should we be concerned."

" unfortunate I think there's going to have to be continued government intervention at some level with the banking industry we have can -- afford as a nation for collapse of that system. It would have you know consequences that we can even have them -- Unfortunately I do you think it had to be continuing an invention. There have been programs apple like that's -- very small scale certainly nothing on this -- hit but it makes me nervous when I hear about big government. Further getting its tentacles into the banking industry in the late at its managed and if this doesn't become any sort of -- back -- approach to nationalization I think that's something that people should be very worried about because frankly the government isn't that great at running a lot of things."

" And -- what about the risks that taxpayers take gone. When the government gets involved in these kinds of things -- you talking about stocks and equities -- always. Risk involved if we become sort of the owners or the majority owners of all of these banks are we are we have really the position got to take -- back kind of -- risk."

" Well unfortunately politics is a -- business and and the president inherited this crisis when he came to office I think he needs to do something about it. I don't think people should be overly concerned about the prospect of nationalizing the banks the administration's made it clear that is not their goal that is not -- policy but they have to deal with these extraordinary events in -- to do that they may have to take extraordinary steps but. I know vote the last thing in the world this administration wants I'm sure the treasury in the White House is to take over some banks the sooner they can get out of -- the better not just for the country but the better for them as well politically."

" Jennifer when you hear people like tad continue to say that the president inherited this you know I mean here we are now we're almost at the 100 day mark. I'm just wondering Republicans -- they. Sort of ready to talk about -- ready to hear the president say that this is this is his economy now he's sort of owns this doesn't --"

" I think he's going to have a longer honeymoon period than a lot of presidents that -- but I do you think it is coming so close that hundred day mark has become kind of -- symbolic point. And government or people start talking about once this is not your problem this is something you have to deal it and frank I think an American people are gonna get tired of Democrats saying. -- this is something that he inherited this is something inherent in the -- realize it's a very complex issue that you can't claim point just one particular -- And I think it's clear that he start taking China that's neat that's owning any -- saying here -- the things that I'm going to do to fix this problem that is occurring now on my watch. Then I think he's actually going to look like much model later than he will if he continues to point back courts Jennifer Miller was -- tad Devine thank you both nice to see you on Monday."