Reid Splits With Obama: No Bailout Funds In Budget

Senate Majority Leader Harry Reid (D-Nev.) said Tuesday that he doesn't object to the removal of $250 billion in bailout funds that Obama had requested in the budget in case of a financial emergency.

Obama prides the budget he presented to Congress as an honest accounting. Past budgets have not included costs of the wars in Iraq and Afghanistan and didn't budget for natural disasters. Obama, critical of such fingers-crossed, bury-the-cost accounting, hoped to change that this fiscal year, accounting for the wars, emergencies and the possibility of a further collapse of the financial system.

But honest accounting makes for a high deficit. Budget Committee Chairman Kent Conrad (D-N.D.) said earlier he planned to reduce that deficit by removing the $250 billion bailout contingency fund.

"I talked to him last week about whether that second phase of TARP" - the bank bailout - "should be in it. I said, 'I don't really feel strongly that it should be.' And it's not in yet and I have no problem with that," Reid told reporters.

Asked earlier by the Huffington Post if he agreed with Conrad's decision, Finance Committee Chairman Max Baucus (D-Mont.) said that he would leave it to Conrad.

Reid said that if more bailout funds are needed, Congress can deal with them separately. "If something comes up, we can always bring it up. If it's an emergency we can do it straight legislation. So I'm not concerned," he said.

Comments

[veracity]

Good for Reid !! (And up 'till now, I've been much more of an Obama fan than a "Hapless Harry" fan.)

Obama is acting like Saint Barack, as if there were not a DIME's worth of FRAUD in the HUNDREDS of BILLIONS of dollars of Bailout loot HE is HELPING first Paulson, and now Geithner, HAND OVER to the Banksters - NO strings, NO audits, NO oversight attached!

By comparison, Maxine Waters has to defend insisting that a lousy $12 million of those HUNDREDS of BILLIONS of bailout dollars goes to a local, community bank in her district!
http://www.latimes.com/news/nationworld/nation/la-na-waters14-2009mar14,0,6618143.story

ONE standard for Obama, Emanuel, Rubins, Summers, Geithner, Bernanke, (and before, Hank Paulson) and their friends at JPMorganChase, Citi, & GoldmanSachs....

a WHOLE "NOTHER STANDARD - 1,000 times more stringent - for community banks serving local neighborhoods.

IF the Banksters really WERE "Masters of the Universe", THEY WOULDN'T NEED taxpayer BAILOUT BILLIONS - and MILLIONS of Americans would still have their savings, pensions, and home equity values.

[JennLV]

The money that Sen. Reed wants out of the bill, is not more money to banks, it is for "emergencies". Just as RESPONSIBLE people have a raining day fund themselves. Attempting to get a Truthful and Accurate accounting, these types of expenditures must be included. Harry Reed, as usual, is the OLD Washington. Believe me, I live in his state, I am a Democrat, and Harry Reed is the quintessential Politician....he goes whichever way the TV polls blow.

Shanti~

[grazzt]

Wrong, the $250 billion is for bailout funds. Who else is going to get it besides banks? And the budget is a SPENDING bill, not some forcast of what MAY need to be spent. If Congress puts in $100 billion for Natural Disaster Spending, well, $100 billion is going to be spent regardless of the actual amount needed.

If your child comes up and asks for an additional $100 in this week's allowance 'cause he might lose his cell phone and need to replace it, are you going to give him the $100 now or wait until he really does lose it and needs to replace it?

[ReealOne]

Listen Mrs. Reid. The citizens of this country DID NOT OVERWHELMINGLY vote Dems in so that they can let YOU ruin the power majority with your mealy mouth, and weak decisions.

If you are too old, or don't have the guts to do what we OVERWHELMINGLY sent you to Washington to do..... and in case you don't remember....TO GET THINGS DONE, then please step aside and let the big dogs take charge. This is no time for "wink links".

[ReealOne]

That should be "weak links".....

[billionaireby16]

I agree with Reid... ALL BAILOUT TARP FUNDS SHOULD BE ELIMINATED AND THE FORMER SHOULD BE REPEALED..... Let these banks falls to the floor...

Period.

[darthmaul]

There is Reid, at it again "If it's an emergency we can do it straight legislation." I have little confidence in Reid's leadership and his ability to get this through straight legislation. At the first sign of any republican resistance, Reid would hem and haw and then give in. It would take a master of the senate to get more bailout legislation passed, and Reid certainly doesn't have what it takes to do this. He should do what he's told and listen to the president.

[chronic]

Exactly!!!!

[JennLV]

Here! Here!

[theone718]

I meant this politically though, not substantially.

[theone718]

I agree with Reid I think that will do two things

it will make the budget that much smaller

it can be taken if need be through legislation. Even though that would be kind of tough.

[kevinw]

Congress will not be able to with such a weak Majority "Leader".

[Ozy]

Reid please step down! You are part of the problem!

[chronic]

Thank You!!

[hopein]

We are the Dems. Just get together circle the wagons and fire inward.

[chronic]

You ain't kiddin!!

[ReealOne]

And herein has been, and looks like ALWAYS will be the problem with the Dems. Looks like the more things change.... the more they will always be the same.

[cjt1957]

Change you can believe in...

[traveler501]

Now that the Dems are in control again (if barely), time to get a real Majority Leader.

[chronic]

NOW!!!

[Lovepolitics2008]

I can understand the rationale. In the actual climate, this provision for hypothetical bail-outs could sink the budget.

Let's hope that if the administration really needs this 250 billion dollars, they'll be able to obtain it. This will be an epic battle.

[jazzman]

What's wrong with this doofus anyway? Obama tells the truth about budgeting and the Democrats, like Reid, turn on him. The problem with this guy is that he doesn't have a clue how to be the leader of the majority Party and actually have the opportunity to change things. He's more comfortable being in the minority and being a doormat for the Republican Party. Can't the Democrats get a proud Democrat to lead their caucus?

[kevinw]

Don't kid yourself, he wasn't that good at Minority leader either. Compare the fact that the current minority uses the filibuster as sop. Reid never used it on an important issue. They would threaten to use the zero option and he would back down and then apologize.

[WeMustSpeakOut]

Reid: what a powerhouse.
zzzzzzzzzzzzzzzzzz

[chronic]

LOL!

[dontvote4him]

We will post true government budget numbers.
Oh never mind.
RLMAO again.

[Ghostzapper]

Reid misfires on all cylinders.....geez