Text Timeline

Text Timeline
Graphical Timeline

00:00:08	Unidentified Speaker, - HOURS. [INAUDIBLE] >> IN THE INTERESTS OF TIME I'LL PROLED BY OPENING THE HERE. WELCOMING OUR WITNESS AND MAKING MY OPENING STATEMENT. LAST THURSDAY,...
00:00:54	Spratt, John M Jr. - U.S. Representative, [D] South Carolina ROBUST RESPONSE BY CONGRESS. ON SATURDAY, THEY FOLLOWED UP THAT MEETING WITH A LEGISLATIVE PROPOSAL OR AT LOWES A SKELETAL OUTLINE, THE BOOK ENDS OF...
00:07:00	Orszag, Peter R. - Director HOLDING SUCH SECURITIES. THESE PROBLEMS CONTRIBUTED TO A BROADER COLLAPSE OF CONFIDENCE WITH THE RESULT OF FINANCIAL INSTITUTIONS BECOMING INCREASINGLY...
00:16:49	Ryan, Paul - U.S. Representative, [R] Wisconsin ARE VERY CONCERNED ABOUT THIS SITUATION WE FIND OURSELVES IN. WE KNOW THAT OUR MARKETS ARE IN SERIOUS TROUBLE AND WE ALSO NEED TO UNDERSTAND THAT THIS...
00:19:10	Spratt, John M Jr. - U.S. Representative, [D] South Carolina SPEAKING THERE ARE TWO CONVENTIONS FOR BOOKING ASSETS LIKE THIS. ONE IS TO TREAT IT AS THE PURCHASE OF AN ASSET, BUT ODDLY ENOUGH WHEN YOU DO THAT,...
00:19:28	Unidentified Speaker, - VALUE OF THE ASSET IS NOT ENTERED ANYWHERE ON THE FEDERAL BOOKS UNTIL THE ASSET IS SOLD. AT THAT TIME THE PROCEEDS OF THE SALE ARE TREATED AS AN OFFSET...
00:20:22	Orszag, Peter R. - Director THERE'S ZERO NET GAIN OR NET LOSS AT THAT POINT BECAUSE YOU'VE PURCHASED SOMETHING FOR A DOLLAR THAT'S WORTH A DOLLAR. AND THAT WHAT HAS HAPPENED IS...
00:21:50	Spratt, John M Jr. - U.S. Representative, [D] South Carolina NET COST,EY. >> ON PAGE THREE OF YOUR TESTIMONY YOU SAY
00:21:53	Orszag, Peter R. - Director AT THIS TIME, GIVEN THE LACK OF SPECIFICITY REGARDING HOW THE PROGRAM WILL BEEM IMMIGRANT METED AND WHAT ASSET CLASSES WOULD BE
00:22:01	Spratt, John M Jr. - U.S. Representative, [D] South Carolina PURCHASED, CBO, NOT PROVIDE A MEANINGFUL ESTIMATE
00:22:05	Orszag, Peter R. - Director OF THE ULTIMATE NET COST OF THE ADMINISTRATION'S PROPOSAL THEN SECRETARY WOULD HAVE THE AUTHORITY TO PURCHASE VIRTUALLY ANY ASSET
00:22:12	Spratt, John M Jr. - U.S. Representative, [D] South Carolina AT ANY PRICE AND SELL AT ANY FUTURE DAY. LACK 0 OF SPEAKS FIESTY MAKES IT DIFFICULT TO DO ANYTHING. HOWEVER, ON THE NEXT PAGE YOU SAY, CBO EXPECTS THE...
00:22:53	Orszag, Peter R. - Director PURCHASING WHOLE LOANS OR TRENCH BY TRENCH REVERSE AUCTIONS ON MORTGAGE BACKED SECURITIES OR MORE ESOTERIC PRODUCTS BUT IT WOULD SEEM IMPLAUSIBLE THEY'D...
00:23:32	Spratt, John M Jr. - U.S. Representative, [D] South Carolina MAY DIFFER THE RESULT IS THE SAME THEM COST THAT IS SHOWN OWN THE FEDERAL BUDGET WILL BE THE DEGREE TO WHICH THE FEDERAL GOVERNMENT SUBSIDIZES THE PURCHASE...
00:23:40	Orszag, Peter R. - Director PARTICULAR ASSETS. >> WOULD THE ESTIMATE OF CREDIT COST VARY FROM TRANSACTION TO TRANSACTION? DEPENDING ON THE TERMS OF THE TRANSACTION? >> I THINK,...
00:24:05	Spratt, John M Jr. - U.S. Representative, [D] South Carolina GOVERNMENT WILL SUFFER SOME LOSSES ON THOSE TRANSACTIONS NOT ONLY BECAUSE YOU'RE LIKELY TO WIND UP WITH ANY GIVEN SCORE OR RISK CLASSIFICATION
00:24:14	Orszag, Peter R. - Director THE SORT OF WORST PART OF THE DISTRIBUTION OF THE ASSET CLASSES AS FINANCIAL INSTITUTIONS ARE SELLING YOU THE STUFF THAT THEY MOST WANT TO UNLOAD. ...
00:25:00	Spratt, John M Jr. - U.S. Representative, [D] South Carolina FIRMS. OUR ENTIRE ECONOMY FUNCTIONS BECAUSE PEOPLE ARE ABLE TO OBTAIN FINANCING FOR WHAT THEY WANT TO PURCHASE AND FOR FIRMS WHAT THEY -- NEW PLANT...
00:25:13	Orszag, Peter R. - Director IF THAT SYSTEM COLLAPSES, WE WILL HAVE SEVERE TURMOIL IN THE REAL ECONOMY, WHICH IS IN OUR REAL LIVES IN TERMS OF JOBS, OUTPUT AND WHAT HAVE YOU. SO...
00:26:20	Spratt, John M Jr. - U.S. Representative, [D] South Carolina DISCOVERY MECHANISM RIGHT NOW BECAUSE WE DON'T HAVE A MARKET FOR THESE
00:26:23	Ryan, Paul - U.S. Representative, [R] Wisconsin SECURITIES, GIVEN THAT THESE MORTGAGE BACKED SECURITIES -- NO ONE IS LIKE THE OTHER, YOU'RE GOING TO HAVE TO GIVE US A REARVIEW MIRROR SCORE ON THIS....
00:27:27	Orszag, Peter R. - Director AGAIN, TRANSBY TRESPASS -- >> DRILL TRIPLE-A. >> THEY'RE TALKING ABOUT HUNDREDS OF THOUSANDS IF NOT MILLIONS OF MINIAUCTIONS. IT'S NOT WE'RE GOING OUT...
00:27:42	Unidentified Speaker, - AND WE'LL DETERMINE A PRICE. ON MORTGAGE BACK-UNDER SECURE NUMBER 12353, WHICH IS THEN A TRANSFER OWNED BY 50 OR 100 DIFFERENT INSTANCE
00:27:53	Ryan, Paul - U.S. Representative, [R] Wisconsin CONSTITUTION. WE'RE
00:27:54	Orszag, Peter R. - Director GOING OUT TO AND BID JUST ON THAT TRENCH AND YOU BID FOR US, WE'RE GOING BUY 20 PERCENT OF THE TOTAL THAT'S LIKELY TO OBTAIN A FAIR PRICE. SO IF THAT'S...
00:29:28	Ryan, Paul - U.S. Representative, [R] Wisconsin TO BE A NOTE, ZERO COSTER. WE'RE KIND OF AT
00:29:33	Orszag, Peter R. - Director ODDS
00:29:34	Ryan, Paul - U.S. Representative, [R] Wisconsin HERE. IF THE GOAL IS TO PUMP LIQUIDITY INTO THESE INSTITUTIONS THAT MEANS THEY'RE NOT INTENDING TO PAY FIRE SALE PRICES FOR THESE SECURITIES. THEY'RE...
00:30:12	Orszag, Peter R. - Director ON MY GRAPH, ARE NOT FUNCTIONING EFFECTIVELY. SOLVING THAT SECOND PROBLEM NEED NOT INVOLVE ANY SIGNIFICANT SUBSIDY FROM THE FEDERAL GOVERNMENT. SOLVING...
00:31:37	Unidentified Speaker, - THEY WOULD THEN HAVE TO MARK TO MARKET,
00:31:40	Ryan, Paul - U.S. Representative, [R] Wisconsin GIVEN
00:31:41	Orszag, Peter R. - Director THE RULES, WHICH MAY LOOK LIKE A BAD THING BECAUSE THE NUMBER OF INCOOL VEINS SIS WOULD GO UP. TO THE EXTENT YOU HAVE THESE HIDDEN INCOOL VEINS SIS...
00:32:36	Ryan, Paul - U.S. Representative, [R] Wisconsin THAT MAY BE HAP A HAZARD. >> SO IF THE GOAL GOAL HIRES SOLVENCY IS CAPITAL INJECTIONS IT'S
00:32:45	Orszag, Peter R. - Director A PRETTY CRUDE TO ALL AND WE MAY NOT BE GIVING THEM TO THE INSTITUTIONS OUGHT TO GET THE INJECTIONS AND THAT'S BASICALLY WHAT YOU'RE SAYING. IF THE...
00:33:01	Ryan, Paul - U.S. Representative, [R] Wisconsin TO IT. >> IF IT'S A LIQUIDITY ISSUE THEN ONE SHOULD FOCUS ON TRYING TO GET THE BEST PRICE POSSIBLE FOR THE FEDERAL GOVERNMENT AND AVOID OVERPAYING....
00:33:24	Orszag, Peter R. - Director THEM, TOO. >> YEAH, WE WILL SIMPLY DEPLAY INEVIDENTABLE BANKRUPTCIES. I'LL JUST FINISH WITH THE. YOUR PROFESSIONAL JUDGMENT. YOU'RE A TRAINED ECONOMIEST....
00:33:48	Ryan, Paul - U.S. Representative, [R] Wisconsin RECAPPALLIZED? WHAT DO YOU THINK IS IN ESSENCE THE PRIMARY PROBLEM HERE? >> I THINK BOTH PROBLEM. >> THEY'RE TWIN. >> I THINK BOTH PROBLEMS ARE AFFECTING...
00:34:13	Orszag, Peter R. - Director CHAIRMAN,
00:34:14	Ryan, Paul - U.S. Representative, [R] Wisconsin THANK YOU, DOCTOR. I KNOW THIS
00:34:16	Orszag, Peter R. - Director IS THE BUDGET COMMITTEE
00:34:17	Ryan, Paul - U.S. Representative, [R] Wisconsin AND THE QUESTIONS ARE TECHNICAL WITH REGARD TO THE BUDGET. I AM TRYING TO PUT MYSELF IN THE SHOES OF MIDDLE CHAZ -- CLASS AMERICANS WHO ARE TRYING TO...
00:34:33	DeLauro, Rosa - U.S. Representative, [D] Connecticut AMERICANS ABOUT WHAT IS HAPPENING TO THIS NATION. AND REVERSE AUCTIONS AND LIQUIDITY AND INSOLVENCY AND SHORT SELLING AND NAKED SHORTS, THEY HAVE NO...
00:36:19	Orszag, Peter R. - Director HOUSEHOLD. THEY WORK FOR A COMPANY. COMPANY XYZ. THEY OWN A HOUSE. THEY OWN
00:36:24	DeLauro, Rosa - U.S. Representative, [D] Connecticut SOME CARS.
00:36:26	Orszag, Peter R. - Director OKAY? THE COMPANY THAT THEY WORK FOR FINANCES ITS OPERATIONS, SO WHAT IT MAKES -- MAKES WHATEVER, WIDGETS. AND IT RELIES ON BOREOWING FROM FINANCIAL...
00:38:58	DeLauro, Rosa - U.S. Representative, [D] Connecticut TRYING TO BRING TO THE MARKS HERE, IN ANYTHING THAT YOU SEE, ANY OF THE CURRENT PLANS ON THE TABLE, THE CONDITIONALLALLITIES, ET CETERA, THERE IS ANYTHING...
00:39:52	Orszag, Peter R. - Director BUT IN TERMS OF THE OVERALL REGULATION OF THE FINANCIAL SECTOR THAT ARE UNDER DISCUSSION AND THAT ARE WORTHY OF SERIOUS CONSIDERATION. I DON'T SEE THEM...
00:40:28	DeLauro, Rosa - U.S. Representative, [D] Connecticut THE NEXT PROBLEM BY MAKING CHANGES THAT SEEM ATTRACTIVE AT THE TIME BUT
00:40:33	Orszag, Peter R. - Director THEN CREATE
00:40:35	Unidentified Speaker, - PROBLEMATIC INCENTIVES LATER
00:40:37	Unidentified Speaker, - ON. SO AS WE MOVE FORWARD IN RESTRUCTURE TOURING FINANCIAL REGULATION, INCLUDING MORTGAGE ORIGINATORS AND THE WHOLE MORTGAGE PROCESS, ONE NEEDS TO...
00:41:15	DeLauro, Rosa - U.S. Representative, [D] Connecticut BUT BOB SHILLER AND OTHERS ARE EMPHASIZING SOMETHING THAT IS CRUCIAL, IN MARKETS AND THE REST OF PUBLIC POLICY WE NEED TO BE PAYING MORE ATTENTION TO...
00:41:30	Orszag, Peter R. - Director WORLD WHERE EVERYTHING IS FRICTION LESS AND EVERYTHING WORKS PARTICULARLY. THAT CONTINUES BE IMPORTANT. >> TALKS ABOUT CONTINUOUS WORKOUT MORTGAGES AND...
00:42:04	DeLauro, Rosa - U.S. Representative, [D] Connecticut FACED WITH A FINANCIAL PANIC AND CRISIS ON THE ONE HAND, AND POTENTIAL TAXPAYER BANKRUPTCY IN
00:42:12	Hensarling, Jeb - U.S. Representative, [R] Texas A FUNDAMENTAL CHANGE OF THE ROLE OF GOVERNMENT IN A FREE ENTERPRISE ECONOMY ON THE OTHER. FOR THOSE WHO MAY THINK THAT CONGRESS WILL CHOOSE BETWEEN THOSE...
00:43:35	Orszag, Peter R. - Director AT ROUGHLY $57 TRILLION AND THE LONG TERM PROSPECTS IS NOT GOOD TODAY. SO, ON TOP OF THAT WE'RE LOOKING AT
00:43:45	Hensarling, Jeb - U.S. Representative, [R] Texas PERHAPS A $700 BILLION PROGRAM. SOME DAY, AND I BELIEVE YOU OPINE, THAT MAYBE THERE'S A POSSIBILITY THE TAXPAYER ACTUALLY MADE MONEY OUT OF THIS. BUT...
00:44:37	Orszag, Peter R. - Director RESOLUTION TRUST CORPORATION. IT'S A MUCH DIFFERENT SITUATION. THAT LOSS WAS -- OCCURRED MOSTLY BECAUSE THE
00:44:44	Hensarling, Jeb - U.S. Representative, [R] Texas FEDERAL GOVERNMENT HAD INSURED TEAMS AT INSTITUTIONS THAT FAILED. AND THE RESOLUTION TRUST CORPORATION, THE ASSET PART OF THAT WAS WHEN THE INSTITUTION...
00:44:54	Orszag, Peter R. - Director OVER THEIR -- THE ASSET OF THEIR BALANCE SHEET IN ADDITION TO THE LIABLES AND SOLD OFF THE ASSETS. IT'S A MUCH DIFFERENT THING THAN GOING OUT AND BUYING...
00:45:28	Hensarling, Jeb - U.S. Representative, [R] Texas INSTITUTIONS HOPING THAT PERHAPS SHOULD BE -- OPEN THAT SHOULD BE FORCED TO REALIZE THEIR LOSSES? IS THERE A PARALLEL TO THE LOSS DECADE IN JAPAN WHERE...
00:46:13	Orszag, Peter R. - Director TO
00:46:14	Unidentified Speaker, - DO THAT. >> IN LOOKING AT A NUMBER OF MEMBERS -- AS YOU PROBABLY KNOW IN LOOKING AT A LOT OF OPTIONS, CLEAR THROUGH THERE ARE MANY LOUSY OPTIONS ON THE...
00:46:38	Hensarling, Jeb - U.S. Representative, [R] Texas U.LE -- UNCLE SAM TRYING TO BUY ASSETS FROM INSTITUTIONS THEY MAT KNOW DESERVE IT AND PROPOSE LONGER TERM RISK BY STAYING OPEN. HOW WOULD UNDER CBO SCORING...
00:47:25	Orszag, Peter R. - Director EXPECTED VALUE IS ZERO. >> THANK YOU. >> DOCTOR, I'LL LEAVE THE DEBATE FOR ANOTHER DAY HOW WE GOT INTO THIS MESS AND TO WHAT EXTENT UNPAID FOR TAX CUTS...
00:47:52	Hensarling, Jeb - U.S. Representative, [R] Texas YOU IS,
00:47:53	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas IS THIS POTENTIAL CRISIS SO SEVERE AND IMMINENT THAT THE DIFFERENCE BETWEEN CONGRESS ACTING BY FRIDAY OF THIS WEEK OR FRIDAY A WEEK LATER COULD MAKE...
00:48:31	Orszag, Peter R. - Director IMPOSSIBLE FOR ME TO SAY. COMES BACK TO THE ROLE OF CONFIDENCE AND PSYCHOLOGY. THAT'S WHAT WEAR DEALING WITH, THE CONFIDENCE FINANCE MARXS. >> BE YOUR...
00:49:07	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas THAT FINANCIAL MARKETS ARE LOOKING FOR ENOUGH IS THE EXISTENCE OF A SIGNIFICANT PACKAGE, AND I SUPPOSE THAT COMING OUT WITH A STATEMENT OF PRINCIPLES...
00:49:25	Orszag, Peter R. - Director FULFILL THAT PURPOSE. >> MY NEXT QUESTION, WHAT WOULD BE YOUR EXPECTED PROJECTION ON THE IMPACTS OF SHORT TERM OR LONG TERM INTEREST RATES WHEN THE UNITED...
00:49:46	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas AND THE DEGREE TO WHICH PSYCHOLOGY MATTER. IN A PURELY RATIONAL, EVERYTHING WORKS LIKE A TEXTBOOK, ANY EFFECT ON INTEREST
00:49:57	Orszag, Peter R. - Director RATES AND THE EXCHANGE RATE SHOULD ONLY REFLECT THE DEGREE TO WHICH THE NATION'S UNDERLYING FISCAL CONDITION DETEROW RATES AS A RESIDENT OF THE INTERVENTIONS....
00:50:44	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas GIVE ME THE BEST CASE
00:50:48	Orszag, Peter R. - Director SEE SCENARIO AND WORST-CASE SCENARIO AND MOST LIKELY SCENARIO OF CONGRESS TAKE NOTHING ACTION. WHEN I SAY BEST CASE AND WORST CASE, I MEAN IN TERMS OF...
00:51:03	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas IN LENGTH OF A RECESSION OR POTENTIAL DEPRESSION IF YOU'RE TALKING ABOUT THE WORST-CASE SCENARIO. >> YOU'RE ASKING ME IF CONGRESS DOES NOT ACT, WHAT...
00:51:30	Orszag, Peter R. - Director OF RECEPTION OR DEPRESSION, AND IF YOU STILL HAVE TIME WHAT YOU THINK THE MOST LIKELY SCENARIO WOULD
00:51:35	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas BE. >> I WILL JUST COME BACK TO SAYING THAT IF HAVING CREATED THE EXPECTATION IN THE FINANCIAL MARKETS THERE WILL BE A PACKAGE AND GIVEN THE STRESSES...
00:51:57	Orszag, Peter R. - Director WAY I THINK ISN'T PARTICULARLY HELPFUL FOR ME TO LAY OUT IN ITS FULL GORY DETAILS BUT IT WOULD BE A VERY BAD SITUATION. >> LET ME FOCUS ON THAT BECAUSE...
00:52:25	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas MARKET CRASH OF 1929? >> AGAIN I DON'T WANT TO START SPECULATING ON THE PRECISE MAGNITUDES OTHER THAN TO SAY, THERE WOULD -- IN THAT CASE I THINK YOU...
00:52:49	Orszag, Peter R. - Director THE THINGS ABOUT CRISIS IS THEY CAN PLAY OUT IN SUCH A TERRIBLY DIVERSE ARRAY OF WAYS THAT SPECULATING ON EXACTLY THE SPECIFIC WAY THAT A CRISIS PLAYS...
00:53:30	Edwards, Thomas "Chet" Chester - U.S. Representative, [D] Texas CUT OFF YOUR ANALYSIS OF THE
00:53:32	Conaway, K. "Mike" Michael - U.S. Representative, [R] Texas FAMILY IMPACTS. TALK TO US A LITTLE BIT ABOUT THE IMPACT THAT THAT REDUCTION IN BUSINESS, SLOWDOWN FOR THAT PARTICULAR BUSINESS WOULD HAVE ON THE FAMILY'S...
00:54:34	Orszag, Peter R. - Director OR REDUCING THEIR HOUSE PRICE PERHAPS EVEN FURTHER, RAISING DIFFICULT ADVERTISE FOR THEM TO FINANCE ANY NEW PURCHASES EVEN IF THEY WANT TO GIVEN THE THREAT...
00:56:00	Unidentified Speaker, - ON AN OVERNIGHT WORSE SHORT-TERM BASIS. INSTEAD IT'S BEEN INTERMEDIATED FOR THE TREASURY AND FED SINCE THE FINANCIAL INSTITUTION THAT HAS EXTRA MONEY...
00:59:15	Conaway, K. "Mike" Michael - U.S. Representative, [R] Texas OF LITTLE FIRES. NUMBER TWO FIRE CONTROL POLICY SYSTEM SOLUTIONS. AND NUMBER THREE, TALKING ABOUT THE FIRE DEPARTMENT. FIRST, TALK ABOUT FIGHTING
00:59:26	Cooper, James "Jim" Hayes Shofner - U.S. Representative, [D] Tennessee INDIVIDUAL FIRES, FINANCIAL FIRES. HOW MUCH CAPACITY IS THE TREASURY DEPARTMENT OR THE FED HAVE TO TAKE ON AN INDIVIDUAL CASE TODAY LIKE AN AIG OR LEHMAN...
00:59:59	Orszag, Peter R. - Director TO STEP IN THERE AND THEN IT'S LIKE THE WHACK-A-MOLE GAME WHERE SOMETHING KEEPS POPPING UP AND IT'S VERY DIFFICULT TO KEEP UP. >> I SHARE THOSE CONCERNS...
01:00:29	Cooper, James "Jim" Hayes Shofner - U.S. Representative, [D] Tennessee TO GET WHACKED. >> AS SOME COST TO THE AMERICAN TAXPAYER AND SOME COST ULTIMATELY TO OUR OUTSTANDING REPUTATION WITH REGARD TO OUR DEBT AND RISK CHARACTERISTICS....
01:00:53	Orszag, Peter R. - Director IS VERY HELPFUL AND I WISH MORE DISCUSSION COULD TAKE PLACE ON THAT. AS I BREAK THAT DOWN IN SEEMS LIKE IF THE TAXPAYER INVESTS SOLVING THE LIQUIDITY...
01:01:09	Cooper, James "Jim" Hayes Shofner - U.S. Representative, [D] Tennessee PRICES TO POSSIBLY EVEN MAKE MONEY. SOME BAILOUTS IN THE PAST HAVE IN FACT PRODUCE REVENUE FOR THE TAXPAYER FOR EXAMPLE THE CHRYSLER BAILOUT WHEN WE...
01:03:22	Orszag, Peter R. - Director FEDERAL SPENDING. AND SECONDLY, THAT IF WE WERE ON THAT PATH IN THE FUTURE AND SOMETHING LIKE WHAT WE ARE EXPERIENCING TODAY OCCURRED WE WOULD HAVE...
01:04:10	Spratt, John M Jr. - U.S. Representative, [D] South Carolina ON THE BOOKS, AND I THOUGHT I HEARD YOU
01:04:12	Garrett, Scott - U.S. Representative, [R] New Jersey SAY SOME EFFECT AS FAR AS THE DOLLAR FOR DOLLAR EXAMPLE. AND I THOUGHT HE MADE SOME SORT OF COMMENT AS FAR AS THE ELEMENT OF THE FACT THE TREASURY...
01:05:04	Orszag, Peter R. - Director BECAUSE THERE AREN'T ANY DETAILS ON WHICH THE BASS A QUANTITATIVE ESTIMATE. >> I GUESS THE QUESTION IS IF YOU HAD A MOSTLY INFORMATION, WHETHER THEY...
01:05:29	Garrett, Scott - U.S. Representative, [R] New Jersey SUBSIDY. >> THANK YOU. ON A BROADER ISSUE BUT ON THE SAME ASPECT, WE HAVE HEARD VARIOUS THINGS AS TO WHAT THE PLAN WOULD BE. I THOUGHT I HEARD CHAIRMAN...
01:05:45	Orszag, Peter R. - Director BE 30 YEARS NOTES OR WHAT HAVE YOU AND THE REALITY OF THE HOME MORTGAGES
01:05:49	Garrett, Scott - U.S. Representative, [R] New Jersey PEOPLE MOVE IN SEVEN YEARS SO THEY'RE GOING TO HOLD THEM FOR SEVEN YEARS, ASSUMING THAT'S THE CASE THEY HOLD THEM OUT AS OPPOSED TO THE RTC ARRANGEMENT...
01:06:43	Orszag, Peter R. - Director BEEN A LOT OF AMBIGUITY ABOUT PRECISELY WHAT THOSE COMMENTS DID OR DID NOT MEAN. >> COULD YOU GIVE A HYPOTHETICAL? DID THE FED'S DECIDE THIS IS OUR POLICY...
01:07:11	Garrett, Scott - U.S. Representative, [R] New Jersey TWO YEARS LATER. PRIMARILY I THINK A MORE IMPORTANT ASPECT OF THIS IS ARE YOU TRYING TO REVEAL WHAT MARKET PRICING IS TODAY OR ARE
01:07:20	Orszag, Peter R. - Director YOU TRYING TO COME UP WITH THE CONCEPT OF WHAT YOU THINK THAT UNDERLYING VALUE ON HOLD TO MATURITY BASIS IS, WHICH IS IF YOU'RE NOT DOING IT ERIE COMPETITIVE...
01:07:59	Garrett, Scott - U.S. Representative, [R] New Jersey BUDGETED CAPEX >> CEO HAS ADJUSTED GIVEN THESE ENTITIES ARE NO LONGER PLAUSIBLY ARM'S LENGTH FROM THE FEDERAL GOVERNMENT IN OUR VIEW, THEIR OPERATION...
01:08:21	Orszag, Peter R. - Director YEAR THAT APPROACH WHICH I BELIEVE WAS LAST WEEK THE SECRETARY OF THE TREASURY SAID WE THE TREASURY OUR PLAN TO PURCHASE ADDITIONAL MORTGAGE-BACKED...
01:09:09	Garrett, Scott - U.S. Representative, [R] New Jersey FOR YOUR TESTIMONY. LET ME MOVE BACK FOR
01:09:13	Orszag, Peter R. - Director A MOMENT. FOR MANY YEARS, WE'VE BEEN CONCERNED ABOUT THE SIZE OF BUDGET DEFICITS THE BUSH
01:09:19	Garrett, Scott - U.S. Representative, [R] New Jersey ADMINISTRATION HAS BEEN RUNNING. THE BUSH ADMINISTRATION CAME IN 2001. WE WERE TOLD THAT THERE WOULD BE BUDGET SURPLUSES TOTALING SOMETHING CLOSE
01:09:28	Becerra, Xavier - U.S. Representative, [D] California TO $6 TRILLION, ABOUT $5.6 TRILLION OVER THE NEXT TEN YEARS. AND INSTEAD WE'VE SEEN NOTHING BUT DEFICITS, RECORD DEFICITS OVER THE LAST SEVERAL YEARS...
01:10:13	Orszag, Peter R. - Director OF DOLLARS EACH YEAR OVER WHAT WE HAVE OVER
01:10:17	Becerra, Xavier - U.S. Representative, [D] California THE LAST SEVEN YEARS THE BUSH PRESIDENCY, WOULD WE BE IN BETTER SHAPE AS
01:10:22	Orszag, Peter R. - Director A NATION TO TRY TO HELP ADDRESS THIS
01:10:26	Becerra, Xavier - U.S. Representative, [D] California FINANCIAL MESS WE ARE CONFRONTING TODAY? >> I WOULD SAY THE PUBLIC DEBT IS RELATIVE TO THE SIZE OF THE ECONOMY AND SMALLER THAN BUDGET DEFICIT IS AS...
01:10:54	Orszag, Peter R. - Director THE LAST SEVEN YEARS, IT WENT TO HELP PAY FOR THE PRESIDENT'S TAX CUTS, THE BUSH TAX CUTS OF 2001 AND 2003.
01:11:07	Becerra, Xavier - U.S. Representative, [D] California WE WERE TOLD THESE TAX CUTS
01:11:10	Orszag, Peter R. - Director WOULD HELP PROVIDE ECONOMIC
01:11:12	Becerra, Xavier - U.S. Representative, [D] California GROWTH AND INCREASED PROSPERITY FOR AMERICANS. AND TODAY WHAT WE KNOW IS DEFICIT SPENDING TO COVER THE COST OF THOSE TAX CUTS HAS LEFT THIS COUNTRY...
01:12:11	Orszag, Peter R. - Director MARKET TURMOIL SHALL MAKE THAT OUTLOOK SOMEWHAT MORE DIRE. >> SO EVEN NOW CLOSE TO THE END OF THE TEN YEAR PUSH TAX CUTS WE STILL HAVEN'T SEEN THAT...
01:12:37	Becerra, Xavier - U.S. Representative, [D] California DID YESTERDAY, BUT THEY DID THREE YEARS SUPPORT AND THEY'RE PROBABLY TO CONTINUE DOING THE SAME THING IN A YEAR OR TWO YEARS OR MORE FROM NOW AND THAT...
01:14:18	Orszag, Peter R. - Director BACK TO SAY EVEN
01:14:20	Becerra, Xavier - U.S. Representative, [D] California IF IT'S NOT ANY OF THEIR DOING, THAT FAMILY ULTIMATELY IF WE PERPETUATED THIS KIND OF FINANCIAL MARKET TURMOIL WILL BE HIT IN SOME UNFORTUNATE WAY...
01:14:33	Orszag, Peter R. - Director THEIR FAULT OR HAS NO DIRECT CONNECTION BETWEEN WHAT THEY WERE DOING AND THE CURRENT TURMOIL. THAT'S UNFORTUNATELY THE CASE. >> SALADDIN LIKE THE BUSH...
01:15:03	Becerra, Xavier - U.S. Representative, [D] California THAT THEY DON'T DEAL WITH ON THE DAY-TO-DAY BASIS THAT WE MAKE SURE IT'S AN INVESTMENT FOR THE AMERICAN FAMILY. IF WE'RE GOING TO GET ANY AMOUNT OF...
01:15:53	Porter, Jon - U.S. Representative, [R] Nevada NEVADA WE HAVE ONE OF THE HIGHEST MORTGAGE FORECLOSURE RATES IN THE COUNTRY. MY DISTRICT ONE ELBE 45 HOMES. IT'S A TRAGEDY THAT IS HAPPENING. PLUS...
01:19:13	Orszag, Peter R. - Director AND IT IS FRUSTRATING BECAUSE WE'VE HAD CONVERSATIONS IN THIS HEARING ROOM ABOUT THIS SLOW-MOTION TRAIN WRECK THAT HAS BEEN OCCURRING
01:19:27	Spratt, John M Jr. - U.S. Representative, [D] South Carolina FOR YEARS NOW DEALING WITH A
01:19:32	Blumenauer, Earl - U.S. Representative, [D] Oregon SUBPRIME MORTGAGE MARKET OUT OF CONTROL FAILURE TO EXERCISE OVERSIGHT AND RAIN THINGS IN. THERE AREN'T VERY MANY PEOPLE WHO I SUPPOSE ARE SHOCKED OR...
01:21:06	Orszag, Peter R. - Director IN PLACE, IF YOU HAVE THE OVERSIGHT, IF YOU HAVE A WORKOUT ARE WE TALKING SIX
01:21:11	Blumenauer, Earl - U.S. Representative, [D] Oregon MONTHS? >> I SURE HOPE NOT. AGAIN, THE MORE THAT IT'S FOCUSED YOU USE THE EXAMPLE REVERSE AUCTION FOR THE MORTGAGE-BACKED SECURITIES, THE EASIER IT...
01:21:33	Orszag, Peter R. - Director NOT OVERPAYING FOR THOSE LOANS THE LONGER IT MAY TAKE. I WOULD SAY IN THE BEST CASE SCENARIO YOU'RE TALKING ABOUT WEEKS, NOT MONTHS. YOU HAVE TO GO...
01:22:10	Blumenauer, Earl - U.S. Representative, [D] Oregon DRAFT THE TREASURY DEPARTMENT SUBMITTED, WHERE IT IS VERY OPEN-ENDED, I THINK THEY COULD GO OUT AND CONTRACT WITH ASSET MANAGERS QUICKLY AND WOULD BE...
01:22:23	Orszag, Peter R. - Director TRADE-OFF BETWEEN GETTING OVERSIGHT PROTECTION AND TIMELINESS. >> I GUESS MR. CHAIRMAN I WOULD REQUEST, AND AGAIN BEING ABLE TO HAVE SOME OF THE CERTIFIED...
01:22:49	Blumenauer, Earl - U.S. Representative, [D] Oregon THE TIMING IS FOR THINGS THAT HAVEN'T BEEN BUILT IN. THAT WOULD BE HELPFUL AND I HAVE A SUSPICION SOMETHING WE COULD GET IN A DAY OR TWO OR THREE WOULD...
01:23:04	Orszag, Peter R. - Director PLOTS POTENTIALLY NEXT. NOT THAT IT WILL HAPPEN, BUT
01:23:10	Blumenauer, Earl - U.S. Representative, [D] Oregon RECALL A FEW MONTHS AGO THE FURY OVER THE GSE AND FRI AND FANNY AND ALL OF A SUDDEN WE ARE MOVING IN AND THEN WE HAVE A ING. AND PUTTING HUNDREDS OF ...
01:24:27	Orszag, Peter R. - Director I CAN'T PINPOINT AND I DON'T THINK ANYONE CAN WITH TWO OR THREE WEEKS OR FOUR OR FIVE FOR THE PROBLEMS MAY ARISE WITHOUT THE KIND OF DETAILED KNOWLEDGE...
01:25:26	Blumenauer, Earl - U.S. Representative, [D] Oregon DOWN DR. ORSZAG NECESSARILY, BUT IT WOULD BE HELPFUL TO IDENTIFY THIS SORTS OF THINGS
01:25:32	Porter, Jon - U.S. Representative, [R] Nevada THAT
01:25:34	Blumenauer, Earl - U.S. Representative, [D] Oregon COULD CAPTURE OUR ATTENTION NEXT MONTH OR TWO MONTHS FROM
01:25:38	Orszag, Peter R. - Director NOW AFTER WE NAVIGATE THIS, AND I WOULD RESPECTFULLY REQUEST -- >>
01:25:43	Blumenauer, Earl - U.S. Representative, [D] Oregon WE HAVE THEM BUILT INTO THE BILL WHICH THIS COMMITTEE STAFF BIPARTISAN WAS SECURING IN THE BILL AND GIVES US THE ASSETS BEING ACQUIRED AND IF I'M NOT...
01:26:04	Spratt, John M Jr. - U.S. Representative, [D] South Carolina OF. >> MR. TIBERI? >> THANK YOU, MR. CHAIRMAN. SORRY I'M LATE, I HAD ANOTHER HEARING I WAS ATTENDING AND I APOLOGIZE IF I ASK A QUESTION THAT'S ALREADY...
01:26:28	Unidentified Speaker, - NUMBER? >> FRANKLY,
01:26:30	Tiberi, Patrick - U.S. Representative, [R] Ohio WE DON'T. THE BOTTOM LINE IS THERE IS A COLLAPSE OF CONFIDENCE IN FINANCIAL MARKETS AND THE QUESTION IS WHAT WILL RESTORE THAT IN THE JUDGMENT OF THE...
01:26:50	Orszag, Peter R. - Director COLLAPSE OF CONFIDENCE IS YOU NEVER EXACTLY KNOW WHAT RESTORES IT AND IT'S NOT JUST THE NUMBER ITSELF, BUT LOTS OF OTHER THINGS INCLUDING HOW ITS COMMUNICATED...
01:27:29	Tiberi, Patrick - U.S. Representative, [R] Ohio THERE WERE AGAIN SERIOUS JUSTIFICATION FOR ALTERING THE NUMBER GIVEN THAT NUMBER IS OUT THERE, YOU PROBABLY ARE RUNNING A BIGGER RISK BY DIALING IT...
01:27:38	Orszag, Peter R. - Director DIRECTION THAN BY RESTRUCTURING THE WAY IN WHICH ITS IMPLEMENTED. >> WHAT IS THE RISK FROM YOUR PERSPECTIVE OF ADDING TO OUR DEBT THAT MUCH MORE MONEY?...
01:28:06	Tiberi, Patrick - U.S. Representative, [R] Ohio GETTING A ROUGHLY $700 BILLION WORTH OF ASSETS IN EXCHANGE AND ON A FAIR VALUE BASIS, THEN
01:28:14	Orszag, Peter R. - Director I'M MUCH LESS CONCERNED ABOUT THE INCREASE IN DEBT, TREASURY DEBT REQUIRED TO FINANCE THOSE PURCHASES BECAUSE IT'S BASICALLY A SWAP. HOWEVER IF WE GO...
01:29:03	Tiberi, Patrick - U.S. Representative, [R] Ohio EXAMPLE RESTRICTING THE PROGRAM TO REVERSE AUCTIONS ON A SECURITY, ON A TRANCHE BY TRANCHE BASIS FOR MORTGAGE-BACKED SECURITIES AND OTHER THINGS WE...
01:29:18	Orszag, Peter R. - Director AND WAYS OF CONDUCTING THESE TRANSACTIONS THAT ARE MORE LIKELY TO MAKE YOU OVERPAY FOR EXAMPLE BY AN INDIVIDUAL LOANS FROM BANKS IS LIKELY TO RESULT...
01:30:05	Tiberi, Patrick - U.S. Representative, [R] Ohio THANK YOU, DR. ORSZAG. YOU'VE INDICATED IN YOUR TESTIMONY THAT CBO CANNOT PROVIDE A
01:30:11	Orszag, Peter R. - Director MEANINGFUL ESTIMATE OF THE ULTIMATE COST, ULTIMATE NET COST OF THE ADMINISTRATION'S PROPOSAL AND IN RESPONSE TO THE LATEST QUESTIONS WITHIN A COUPLE...
01:30:22	Spratt, John M Jr. - U.S. Representative, [D] South Carolina IT SEEMS NOW WE'VE BEEN TOLD THE PUBLIC OUGHT
01:30:24	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia TO BE SCARED IF WE DO NOTHING IT SEEMS TO ME WE OUGHT TO ASCERTAIN IF WE SPENT $700 BILLION WITHOUT A MEANINGFUL ESTIMATE OF THE ULTIMATE NET COST. ...
01:31:45	Orszag, Peter R. - Director THEY HAVE THE SAME INCENTIVE IF THEY WERE PURCHASING IT FOR THEIR OWN BOOKS AND WHETHER THE SAME STANDARD WILL BE APPLIED AND FURTHER OR IF YOU DO IT...
01:32:18	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia WORTH WITHOUT THE FUND THREE INFORMATION. IT DOESN'T ADD INSULT YOUR INTELLIGENCE TO BE ASKED A PLAN WHERE YOU DON'T KNOW WHAT YOU'RE GETTING OR HOW...
01:32:50	Orszag, Peter R. - Director ANY REASON TO THE PAST MORTGAGE-BACKED
01:32:53	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia SECURITIES? >> THE FIRST PLANT IN PLATITUDE MORTGAGE
01:32:56	Orszag, Peter R. - Director BACKED SECURITIES, IT WAS MORTGAGE ASSETS WHICH CAN BE AN
01:32:59	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia ARRAY OF DIFFERENT THINGS. >> IS THERE A REASON TO GO PAST? >> IT WOULD COME BACK TO THE QUESTION MR. BLUMENAUER ASKED WHICH IS WE DON'T KNOW WHAT WILL...
01:33:15	Orszag, Peter R. - Director WHEREVER THEY MAY OCCUR THE FIRES MAY OCCUR OUTSIDE OF MORTGAGE RELATED
01:33:22	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia
01:33:23	Orszag, Peter R. - Director ASSETS. >> ON BOOK VALUE BUT SHOULD THE BOOK VALUE ON A CORPORATE BOOK HAVE GOOD FAITH VALUE, PURCHASE PRICE OR WHAT? >> I THINK IN GENERAL AND THERE...
01:33:45	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia MARKET TO MARKET DURING PARTICULARLY FALL TILE FINANCIAL MARKET TIMES LIKE WE ARE EXPERIENCING
01:33:52	Orszag, Peter R. - Director TODAY. >> OKAY. SO IT'S NOT ALWAYS -- IT'S KIND OF ARTISTIC IS WHAT YOU'RE SAYING. >> YOU INDICATED THAT IF LIQUIDITY ALONE IS THE PROBLEM THOSE COMPANIES...
01:34:15	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia GOVERNMENT IN SOLVING PEOPLE'S INSOLVENCY PROBLEM WHERE THEY ARE BANKRUPT OUGHT TO BE A SEPARATE QUESTION. >> THAT'S
01:34:23	Unidentified Speaker, - CORRECT. >> OKAY. ON THIS REVERSE AUCTION IT SEEMS TO ME IF NOBODY KNOWS DOWN DEEP WHAT'S BEHIND THESE THINGS IF THE SELLER DID A LITTLE DUE DILIGENCE...
01:34:44	Unidentified Speaker, - IF THE SELLERS ARE OFFERING ARE DIFFERENT THINGS, IF INSTEAD, AND THIS IS WHAT PART OF THE TREASURY PROGRAM IS LIKELY TO ENTAIL, IF INSTEAD YOU HAVE...
01:35:03	Orszag, Peter R. - Director THAT PROBLEM. >> YOU ONLY HAVE THE PROBLEM TO THE EXTENT THEY KNOW WHAT THEY'VE GOT IN YOUR TRUSTING THEM TO TRY TO BID AGAINST EACH OTHER TO TRY TO...
01:35:26	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia TO KNOW WHAT YOUR BODY IN? >> AGANA DEPENDS ON THE CONTEXT. MORE CONFIDENCE IN THE SCENARIO WE JUST DISCUSSED THE COMPETITIVE BIDDING PROCESS WOULD GIVE...
01:35:49	Orszag, Peter R. - Director SO YOU KNOW WHAT YOU'RE BUYING. >> SO YOU KNOW WHAT YOUR BODY. >> IS THAT A GOOD IDEA TO KNOW YOU'RE BUYING. >> GENERALLY IT'S A GOOD IDEA IF YOU WANT...
01:36:10	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia PROFIT. IF YOU OVERPAY YOU COULD BE GETTING RIPPED OFF AND WE ARE
01:36:13	Orszag, Peter R. - Director GOING TO SPEND $700
01:36:15	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia BILLION WITHOUT KNOWING WHAT WE ARE
01:36:17	Orszag, Peter R. - Director DOING. >> ONE CONCERN IS IT IS NOT WHAT WE ARE TRYING TO ADDRESS, YOU KNOW, WE ARE
01:36:22	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia TRYING TO OVERPAY AND SOME OF THE COMMENTS MADE YESTERDAY SUGGEST PERHAPS WE WANT TO OVERPAY TO PROVIDE SUPPORT TO FINANCIAL INSTITUTIONS VERSUS SIMPLY...
01:36:38	Orszag, Peter R. - Director TO FIGURE OUT WHICH ONE WE ARE TRYING TO DO. >> IT WOULD BE NICE IF WE KNEW WE WERE DOING BEFORE WE SPENT $700 BILLION DOING IT. >> [INAUDIBLE] >> THANK...
01:37:01	Scott, Robert "Bobby" - U.S. Representative, [D] Virginia BACK TO A MORE PERSONAL MAIN STREET ON THIS WITH THE BUDGET IMPLICATIONS. FREDDY NIGHT I WAS IN THE BOOSTERS CLUB
01:37:11	Spratt, John M Jr. - U.S. Representative, [D] South Carolina BANQUET TO TALKING TO A BUILDER COMEGYS DOWN TO
01:37:16	Etheridge, Bob - U.S. Representative, [D] North Carolina TWO PEOPLE FROM 30. TALKED TO BANKERS OVER THE LAST SEVERAL DAYS FROM REGIONAL BANKS THEY ARE NO LONGER MAKING LOANS. BECAUSE THEY ARE CONCERNED THEY...
01:39:21	Orszag, Peter R. - Director IN PART BECAUSE THEY ARE COMING OFF MANY YEARS OF RELATIVELY HIGH PROFITS AND IN PART BECAUSE THERE WERE INDICATIONS THE CREDIT MARKETS MAY START EXPERIENCING...
01:40:14	Etheridge, Bob - U.S. Representative, [D] North Carolina MAIN STREET BIG-TIME. WHEN THAT GETS TIED UP, THEN THE WHOLE PROCESS AFFECTS THE BIG CORPORATIONS THAT MAY BE SITTING ON CASH BUT THEY DON'T
01:40:25	Orszag, Peter R. - Director BUY THEIR PRODUCT AND IT DOESN'T MOVE AND NOW WE HAVE GOT
01:40:29	Etheridge, Bob - U.S. Representative, [D] North Carolina COUNTIES AND CITIES GOING THROUGH TAX REVALUATIONS WITH THE HOUSING MARKET GOING DOWN IT'S GOING TO HAVE A SIGNIFICANT IMPACT ON THE ABILITY OF THE LOCAL...
01:41:12	Orszag, Peter R. - Director WE FACE IS TRYING TO GET SOMETHING RIGHT AND UNDERSTANDING WHERE WE ARE. THANK YOU VERY MUCH AND I YIELD BACK. >> [INAUDIBLE] >>
01:41:31	Etheridge, Bob - U.S. Representative, [D] North Carolina YEAH, THE LEGISLATION REQUIRES THE CBO WOULD REPORT TO THE CONGRESS ON A QUARTERLY BASIS THE NET COST OF THIS PROGRAM TO THE FEDERAL GOVERNMENT. FOR...
01:41:43	Spratt, John M Jr. - U.S. Representative, [D] South Carolina GIVEN THE WIDE ARRAY OF ASSETS TO BE INVOLVED IN THE PROGRAM AND THE KIND OF MODELING THAT WAS DISCUSSED EARLIER, WE NEED MORE PEOPLE
01:41:53	Orszag, Peter R. - Director WHO ARE EXPERT AND WE MAY ALSO BE GIVEN A HUGE ARRAY OF DATA ON ALL INDIVIDUAL ASSETS AND WE NEED SOME CAPACITY TO BE ABLE TO PROCESS THAT DATA BETWEEN...
01:42:41	Spratt, John M Jr. - U.S. Representative, [D] South Carolina IN FORMING. MY FRIEND, MR. BLUMENAUER, FROM OREGON RAISED THE ISSUE MIGHT BE ON THE HORIZON. I'VE BEEN GREATLY CONCERNED ABOUT THE ARMS RACE AT ISSUE....
01:42:56	Baird, Brian - U.S. Representative, [D] Washington THEIR DEBT AND EQUITY RATIO INCREASED AND THE ADS COME ON TO DO THAT. HAS ANYBODY GIVEN FOUGHT WHAT HAPPENS AS MILLIONS OF AMERICANS WHO CURRENTLY...
01:43:44	Orszag, Peter R. - Director LET'S SAY TWO YEARS AGO. SO IT'S STILL THERE BUT I THINK IT DOESN'T LOOM AS LARGE AS A CONCERN AS IT DID A COUPLE OF YEARS AGO AND IN PART BECAUSE...
01:44:20	Baird, Brian - U.S. Representative, [D] Washington LIKE AND MAYBE MORE. SOME OF US FEEL WE OUGHT TO PAY FOR THIS DURING THE LAST EIGHT YEARS THE ADMINISTRATION HAS NOT ONCE COME TO THE CONGRESS AND...
01:45:48	Orszag, Peter R. - Director YOU COULD. HIGH-END INCOME TAXATION IS ONE POSSIBILITY. I DON'T REMEMBER THE EXACT NUMBERS WHICH CAME FROM THE JOINT COMMITTEE ON TAXATION THAT WE...
01:46:18	Baird, Brian - U.S. Representative, [D] Washington THE PRICE WHICH YOU ARE BUYING THE BAD DEBT? IF SOMEONE COMES UP TRIET SAYS I HAVE A BAD LOAN I'M GOING TO GIVE A HUGE DISCOUNT IT MIGHT BE WORTH IT....
01:46:38	Orszag, Peter R. - Director THE ISSUE. >> THE OTHER KEY QUESTIONS ARE PRESENTED BENEFIT FROM THE BUYING IT AND WHY SHOULD I BUY SOMETHING TO HELP SOMEBODY ELSE? THEY ARE GOING TO...
01:47:01	Baird, Brian - U.S. Representative, [D] Washington SAYS WYSS JULY BAIL THEM OUT. I THANK THE GENTLEMAN. >> THANK YOU, MR. CHAIRMAN VERY MUCH. THANK YOU FOR ALLOWING ME TO MEET MY RESPONSIBILITY AS A ...
01:47:28	Kaptur, Marcia "Marcy" - U.S. Representative, [D] Ohio WASHINGTON BACK TO MAIN STREET AND I'M ASKING MYSELF HOW TO DO IT AS WE FACE THIS SITUATION. THE VERY BEST BOOK I HAVE READ THAT PUTS THIS INTO PERSPECTIVE...
01:52:30	Orszag, Peter R. - Director THEY ARE THE KIND THAT YOU FAVOR OR OTHER OF YOUR COLLEAGUES FAVOR BEFORE ADDRESSING THE CONCERNS SURROUNDING THE COLLAPSE OF CONFIDENCE IN THE FINANCIAL...
01:53:03	Kaptur, Marcia "Marcy" - U.S. Representative, [D] Ohio ORSZAG. >> MR. BOYD, PREPARED FOR THE VOTE SO YOU CAN GO AHEAD AND GET YOUR QUESTION IN. I THINK IT'S A PROCEDURAL VOTE. AND IF HE WOULD LIKE WE WILL...
01:53:24	Spratt, John M Jr. - U.S. Representative, [D] South Carolina SOMETHING YOU ALREADY ANSWERED PLEASE INDULGE ME AND FORGIVE ME. AND I WANT TO START BY SAYING THAT I'M IT'S BEEN OFF WHAT MR. CAPTOR SAID I'D
01:53:34	Boyd, Allen - U.S. Representative, [D] Florida EXTREMELY SKEPTICAL ABOUT WHETHER THIS IS THE RIGHT THING TO DO. THAT SKEPTICISM I THINK COMES
01:53:39	Spratt, John M Jr. - U.S. Representative, [D] South Carolina
01:53:40	Boyd, Allen - U.S. Representative, [D] Florida FROM THE FACT I'M CONCERNED WE MAY BE TREATING THE SYMPTOM AND NOT THE UNDERLYING CAUSE FOR THE PROBLEM. BUT I WANT YOUR COUNSEL AND ADVICE ON ONE...
01:54:48	Orszag, Peter R. - Director FOREIGN-EXCHANGE MARKETS HAVE NOT EXPERIENCED THE SAME KIND OF CRISIS THAT SOME OF OUR OVERNIGHT LENDING MARKETS ARE NOW EXPERIENCING. SO, THAT DECLINE...
01:57:28	Boyd, Allen - U.S. Representative, [D] Florida THEIR EXPERIENCE, AND IT IS SOMETHING WE THOUGHT WE HAD PUT TOOLS IN PLACE TO KEEP FROM HAPPENING AGAIN. SO CAN YOU CALL MY EXTREME SKEPTICISM ABOUT...
01:58:02	Orszag, Peter R. - Director IN THE LATE 1920'S AND EARLY 1930'S. FIRSTLY, SECONDLY YOU'RE ASKING WILL THE $700 BILLION WORK AND I DON'T KNOW THE ANSWER BECAUSE AGAIN IT COMES BACK...
01:59:15	Boyd, Allen - U.S. Representative, [D] Florida THE MONEY WITHOUT DOING THE OTHER FIRST? >> AND NOT ALLOWED TO SAY THINGS GOODNESS I'M NOT SITTING IN CONGRESS? [LAUGHTER] LOOK, YOU FACE A DIFFICULT...
01:59:40	Orszag, Peter R. - Director WHETHER YOU HAVE THE TIME TO DO THAT AND THAT IS OBVIOUSLY AN INTERNAL DYNAMIC THAT I CAN'T COMMENT. >> WITH THE GENTLEMAN YIELD? MR. CHAIRMAN, I DON'T...
02:00:07	Kaptur, Marcia "Marcy" - U.S. Representative, [D] Ohio WITH LOCKHEED, CHRYSLER, PENN CENTRAL, ALL OF THOSE CASES. SOME OF SUCCESS STORIES BECAUSE THE LOAN SAID OR GUARANTEES FOR ULTIMATELY PAIN AND WARRANTIES...
02:00:25	Spratt, John M Jr. - U.S. Representative, [D] South Carolina MR. CHAIRMAN. ONE OF THE CHARACTERISTICS OF THE THREE YOU MENTIONED IS THEY HAVE TANGIBLE HARD ASSETS. WITH WHAT WE'RE DOING HERE IS HOW PHONY MONEY....
02:00:45	Kaptur, Marcia "Marcy" - U.S. Representative, [D] Ohio YOU UNDERSTAND YOU SAY YOU'RE ADVOCATING FOR A REVERSE AUCTION PROCESS AND WE GO THROUGH THIS? >> I DON'T ADVOCATE FOR ANYTHING BUT IF YOU WANT TO OBTAIN...
02:01:00	Spratt, John M Jr. - U.S. Representative, [D] South Carolina DISTRIBUTED ACROSS THE MANY POTENTIAL OWNERS ACCOMPLISHES THAT OBJECTIVE. AT OTHER ASSET CLASSES AND OTHER WAYS OF
02:01:06	Boyd, Allen - U.S. Representative, [D] Florida DOING IT DOESN'T. >> DR. ORSZAG, AS ALWAYS THANK YOU PARTICULARLY IN
02:01:11	Orszag, Peter R. - Director THIS CASE, YOUR TESTIMONY WAS EXCELLENT HELP AND WE VERY MUCH
02:01:29	Spratt, John M Jr. - U.S. Representative, [D] South Carolina APPRECIATED. [INAUDIBLE CONVERSATIONS] [INAUDIBLE CONVERSATIONS] [INAUDIBLE CONVERSATIONS]

NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.