Congresswoman Blames Bush for Economy

This is a rush transcript from "Your World With Neil Cavuto," October 9, 2008. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: To Carolyn Maloney right now, Democratic congresswoman from New York.

The prior Republican congresswoman blamed all of this on her evil party, and we want her to respond to say that it's the other evil party that's doing all this. I think it's maybe probably both your parties, right?

REP. CAROLYN MALONEY (D), NEW YORK: Well, I think there's enough blame to go around. And one thing's for sure. We're facing the most grave financial crisis in my lifetime, and I think it's a time we need to pull together and work together. Democrats...

Video: Watch Neil's interview with Carolyn Maloney

CAVUTO: But do you regret -- do you regret the rescues and the government money? Because the more we pour at it, the more we get shellacked for it.

MALONEY: Well, I think it's important to point out that we're responding to President Bush's plan and Secretary Paulson, Republican leadership. And Democrats have been supporting...

CAVUTO: Understood. But do you regret that now?

MALONEY: We're in a crisis, and I feel that one of the problems is that Secretary Paulson keeps changing the plan. First they said that we had to react immediately. We reviewed the plan, put in taxpayer protections over 10 days. We gave him the plan. And now it's been roughly another 10 days and they haven't come forward with a plan.

CAVUTO: But, ma'am, what do you think if the markets are saying, a pox on both your plans and houses? in other words, we don't need to stinking government help. The government's only going to make it worse. What do you make of that?

MALONEY: Well, Neil, I think they're reacting to the fact that it's unclear what the plan is. First it was...

CAVUTO: You signed off on it.

MALONEY: Well, first, we're following Secretary Paulson's lead. He said we need to buy mortgage-backed securities. Now he's saying we need...

CAVUTO: Was part of that...

MALONEY: ... now we need stock in banks. And, so, it...

CAVUTO: Are you for or against that part, by the way?

MALONEY: Oh, I think if you buy preferred stock, then the taxpayer has an equity...


CAVUTO: I got you. So an equity stake...

MALONEY: So, I think that's very important, to have an equity stake.

What I think the problem is...

CAVUTO: I'm sorry, before -- I just want to stick on this subject, because another issue that's been raised is John McCain's idea, a $300 billion rescue of sick mortgage holders. What do you make of that? Is that inclusive in the plan? He said it could be?

MALONEY: It was in the plan giving authority to the secretary of treasury to work to stabilize the housing market. It didn't expressly state how.

CAVUTO: Well, if you guys hated the treasury secretary so much, why did you give him all this authority?

MALONEY: Because we're in a crisis. The alternative could be a deep depression. And we need to work together.

One of the problems that we confront is that the Bush administration has literally doubled the amount of debt this country is carrying. We have added $5 trillion. You owe over $33,000 in debt, as does every American.

CAVUTO: He did that alone?

MALONEY: His government, under his leadership.

CAVUTO: We had an Internet implosion. And we had this thing called 9/11. He's not alone, right?

MALONEY: We had Iraq and we had increased spending.

CAVUTO: But I'm just saying, it's not all his fault. It's not all the Republicans' fault, right?

MALONEY: Well, I think there's enough fault to go around. And I think we don't need to be pointing fingers. We need to be working together and trying to find solutions.

And I think that everyone is challenged. I think certainly we've seen such -- Secretary Bernanke is certainly not boring. Every day there's a new plan, a new authority, and they keep...

CAVUTO: Well, they keep coming up with more magic in that hat of tricks. Are they running out of options or should they explore any more options?

MALONEY: I think they are doing the best they can. And I certainly want to be a positive role in asking appropriate questions and questioning and supporting when I can.

CAVUTO: All right.

MALONEY: I think we need to stabilize our markets and get our liquidity out there. And my constituents are telling me they can't meet payroll, they can't get basic money into their businesses.

So we need to stabilize our markets. And if new creative ideas are being used, then let's -- let's try them.

CAVUTO: Congresswoman, always a pleasure having you on.

MALONEY: A pleasure listening to your show.

CAVUTO: Thank you very much. You've been busy. You've been busy.

MALONEY: We've been very busy.

CAVUTO: All right. Thank you, Congresswoman.

MALONEY: We had hearings all last week and next week.

CAVUTO: You're going to keep going, keep going.

Thank you very much.


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