THE WHITE HOUSE

Office of the Press Secretary

_________________________________________________________________

March 11, 2009

REMARKS BY THE PRESIDENT

ON EARMARK REFORM

Room 350

Dwight D. Eisenhower Executive Office Building

11:23 A.M. EDT

THE PRESIDENT: Good morning. I ran for President pledging to change the way business is done in Washington and build a government that works for the people by opening it up to the people. And that means restoring responsibility and transparency and accountability to actions that the government takes. And working with the Congress over my first 50 days in office, we've made important progress toward that end.

Working together, we passed an American Recovery and Reinvestment Act that's already putting people back to work doing the work that America needs done. We did it without the customary Congressional earmarks -- the practice by which individual legislators insert projects of their choosing. We're implementing the Recovery Act with an unprecedented level of aggressive oversight and transparency, including a website -- recovery.gov -- that allows every American to see how their tax dollars are spent and report on cases where the system is breaking down.

I also signed a directive that dramatically reforms our broken system of government contracting, reining in waste and abuse and inefficiency; saving the American taxpayers up to $40 billion each year in the process.

And I've laid out plans for a budget that begins to restore fiscal discipline so we can bring down the $1.3 trillion budget deficit we've inherited and pave the way for our long-term prosperity. For the first time in many years, we've produced an honest budget that makes the hard choices required to cut our deficit in half by the end of my first term in office.

Now, yesterday Congress sent me the final part of last year's budget; a piece of legislation that rolls nine bills required to keep the government running into one, a piece of legislation that addresses the immediate concerns of the American people by making needed investments in line with our urgent national priorities.

That's what nearly 99 percent of this legislation does -- the nearly 99 percent that you probably haven't heard much about.

What you likely have heard about is that this bill does include earmarks. Now, let me be clear: Done right, earmarks have given legislators the opportunity to direct federal money to worthy projects that benefit people in their districts, and that's why I've opposed their outright elimination. And I also find it ironic that some of those who rail most loudly against this bill because of earmarks actually inserted earmarks of their own –- and will tout them in their own states and their own districts.

But the fact is that on occasion, earmarks have been used as a vehicle for waste, and fraud, and abuse. Projects have been inserted at the 11th hour, without review, and sometimes without merit, in order to satisfy the political or personal agendas of a given legislator, rather than the public interest. There are times where earmarks may be good on their own, but in the context of a tight budget might not be our highest priority. So these practices hit their peak in the middle of this decade, when the number of earmarks had ballooned to more than 16,000, and played a part in a series of corruption cases.

In 2007, the new Democratic leadership in Congress began to address these abuses with a series of reforms that I was proud to have helped to write. We eliminated anonymous earmarks and created new measures of transparency in the process, so Americans can better follow how their tax dollars are being spent. These measures were combined with the most sweeping ethics reforms since Watergate. We banned gifts and meals and made sure that lobbyists have to disclose who they're raising campaign money from, and who in Congress they send it to. So we've made progress. But let's face it, we have to do more.

I am signing an imperfect omnibus bill because it's necessary for the ongoing functions of government, and we have a lot more work to do. We can't have Congress bogged down at this critical juncture in our economic recovery. But I also view this as a departure point for more far-reaching change.

In my discussions with Congress, we have talked about the need for further reforms to ensure that the budget process inspires trust and confidence instead of cynicism. So I believe as we move forward, we can come together around principles that prevent the abuse of earmarks.

These principles begin with a simple concept: Earmarks must have a legitimate and worthy public purpose. Earmarks that members do seek must be aired on those members' websites in advance, so the public and the press can examine them and judge their merits for themselves. Each earmark must be open to scrutiny at public hearings, where members will have to justify their expense to the taxpayer.

Next, any earmark for a for-profit private company should be subject to the same competitive bidding requirements as other federal contracts. The awarding of earmarks to private companies is the single most corrupting element of this practice, as witnessed by some of the indictments and convictions that we've already seen. Private companies differ from the public entities that Americans rely on every day –- schools, and police stations, and fire departments.

When somebody is allocating money to those public entities, there's some confidence that there's going to be a public purpose. When they are given to private entities, you've got potential problems. You know, when you give it to public companies -- public entities like fire departments, and if they are seeking taxpayer dollars, then I think all of us can feel some comfort that the state or municipality that's benefitting is doing so because it's going to trickle down and help the people in that community. When they're private entities, then I believe they have to be evaluated with a higher level of scrutiny.

Furthermore, it should go without saying that an earmark must never be traded for political favors.

And finally, if my administration evaluates an earmark and determines that it has no legitimate public purpose, then we will seek to eliminate it, and we'll work with Congress to do so.

Now I know there are members in both Houses with good ideas on this matter. And just this morning, the House released a set of recommendations for reform that I think hold great promise. I congratulate them on that.

Now I'm calling on Congress to enact these reforms as the appropriation process moves forward this year. Neither I nor the American people will accept anything less.

It's important that we get this done to ensure that the budget process works better, that taxpayers are protected, and that we save billions of dollars that we so desperately need to right our economy and address our fiscal crisis. Along with that reform, I expect future spending bills to be debated and voted on in an orderly way, and sent to my desk without delay or obstruction, so that we don't face another massive, last-minute omnibus bill like this one.

I recognize that Congress has the power of the purse. As a former senator, I believe that individual members of Congress understand their districts best. And they should have the ability to respond to the needs of their communities. I don't quarrel with that. But leadership requires setting an example and setting priorities, and the magnitude of the economic crisis we face requires responsibility on all our parts.

The future demands that we operate in a different way than we have in the past. So let there be no doubt: This piece of legislation must mark an end to the old way of doing business, and the beginning of a new era of responsibility and accountability that the American people have every right to expect and demand.

If we're going to solve our economic crisis; if we're going to put Americans back to work; if we're going to make the investments required to build a foundation for our future growth -- then we must restore the American people's faith that their government is working for them, and that it's on their side. That's the government I promised. That's the government I intend to lead.

Thank you very much, everybody.

END 11:33 A.M. EDT

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---

Editorial: Jack Cafferty

"GOP Becoming a CARTOON" !

NEW YORK (CNN) -- The Republican Party is becoming a cartoon.

Where to start?

Bobby Jindal: "I'm certainly not nearly as good of a speaker as Obama." Good OF a speaker? How about not as good at eighth-grade grammar either. It's embarrassing.

Sarah Palin? Billing the taxpayers for her kids to travel to official events the children weren't even invited to? She finally agreed to pay back the state for that money she took.

Her per diem charges to the state in the amount of $17,000 while she was living at home instead of in the governor's mansion? She has now agreed to pay the taxes owed on that money. Another tawdry grab at a few dollars that didn't belong to her.

Michael Steele, the newly elected chairman of the Republican National Committee, down on his knees apologizing to the helium-filled poster boy of the conservative right? Pathetic.

If the Republicans are ever to emerge from the long dark night they have created for themselves it will have to be without pandering to the right wing nuts that comprise Rush Limbaugh's radio audience. Didn't they learn anything in the last election?

All of which is to say the GOP is blowing it big time. They were handed a golden opportunity to redeem themselves with the election of Barack Obama -- a chance to line up and in unison condemn the evil their party put in the White House the previous eight years.

The country had had a bellyful of George Bush, Dick Cheney, and the rest of the messengers of darkness in Washington who had sold out the principles of the Republican Party in favor of huge deficits, a doubling of the national debt, and a growing intrusion of the federal government into people's private lives.

But instead of getting on board the change train and recognizing the incredible amount of damage their people had done to the country, Republicans go blithely along as though nothing has happened. They're busy obstructing Obama's programs and criticizing the Democrats' spending plans that are aimed at trying to bring the country out of a horrible recession.

I hate to break it to them, but a lot has happened. And they're not going to like any of it.

The latest NBC News/Wall Street Journal poll shows the Republican Party's favorability rating at an all-time low. President Obama's is at an all-time high. The same poll shows that Republicans are getting most of the blame for the partisanship that hinders governmental progress. And perhaps most telling, when asked which party is best equipped to lead the country out of recession, the Republicans trail the Democrats by a stunning 30 points.

And while all this is going on, the GOP ran a straw poll on who the party's nominee should be for president in 2012. Ready?

Mitt Romney finished first followed by Bobby Jindal, Ron Paul and Sarah Palin.

The Republican Party is marching double-time down the road to irrelevance and they don't even know it.

The opinions expressed in this commentary are solely those of Jack Cafferty.

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VIDEO: Jim Cramer Explains

Stock Market Manipulation 101

Explains as 'standard procedure'...'so what it's illegal'

Article by Julie Satow (HuffPost) In light of the current economic crisis, and with the hullabaloo ignited recently by Jon Stewart over the accuracy of CNBC's reporting, we thought it might be useful to revisit this shocking 2006 interview Jim Cramer gave to TheStreet.com's Aaron Task.

In it, the host of Mad Money says he regularly manipulated the market when he ran his hedge fund. He calls it "a fun game, and it's a lucrative game." He suggests all hedge fund managers do the same. "No one else in the world would ever admit that, but I could care. I am not going to say it on TV," he quips in the video.

He also calls Wall Street Journal reporters "bozos" and says behaving illegally is okay because the SEC doesn't understand it anyway.

Here are some gems:

-On manipulating the market: "A lot of times when I was short at my hedge fund, and I was positioned short, meaning I needed it down, I would create a level of activity before hand that could drive the futures,"

-On falsely creating the impression a stock is down (what he calls "fomenting"): "You can't foment. That's a violation... But you do it anyway because the SEC doesn't understand it." He adds, "When you have six days and your company may be in doubt because you are down, I think it is really important to foment."

-On the truth: "What's important when you are in that hedge fund mode is to not be doing anything that is remotely truthful, because the truth is so against your view - it is important to create a new truth to develop a fiction," Cramer advises. "You can't take any chances."

Special thanks to our tipster Henry Chukuka! Keep those tips coming team!

WATCH:

If video does not appear click B4B

President Obama Adds To
His List of '50 Day' Accomplishments
Now Taking On Education

While Republicans WHINE That He's
"Doing Too Much"...Huh ?

From WHITE HOUSE

In the opening of his speech today at the Hispanic Chamber of Commerce, the President met critics head on who complain of too much change, too fast:

Every so often, throughout our history, a generation of Americans bears the responsibility of seeing this country through difficult times and protecting the dream of its founding for posterity. This is a responsibility that has fallen to our generation. Meeting it will require steering our nation’s economy through a crisis unlike any we have seen in our time. In the short-term, that means jumpstarting job creation, re-starting lending, and restoring confidence in our markets and our financial system. But it also means taking steps that not only advance our recovery, but lay the foundation for lasting, shared prosperity.

I know there are some who believe we can only handle one challenge at a time. They forget that Lincoln helped lay down the transcontinental railroad, passed the Homestead Act, and created the National Academy of Sciences in the midst of Civil War. Likewise, President Roosevelt didn’t have the luxury of choosing between ending a depression and fighting a war. President Kennedy didn’t have the luxury of choosing between civil rights and sending us to the moon. And we don’t have the luxury of choosing between getting our economy moving now and rebuilding it over the long term.

The President explained why, on education in particular, we cannot afford to wait, noting that even within a few years America will see a different reality: "By 2016, four out of every ten new jobs will require at least some advanced education or training."

The President pledged to end pointless partisan finger-pointing, and to ensure that new investments also came with new reforms. He pointed to deep commitments both in the recovery act and his budget proposal, while also telling the audience that "It is time to start rewarding good teachers and stop making excuses for bad ones."

He proposed four pillars of reform:

1) "Investing in early childhood initiatives" like Head Start;

2) "Encouraging better standards and assessments" by focusing on testing itineraries that better fit our kids and the world they live in;

3) "Recruiting, preparing, and rewarding outstanding teachers" by giving incentives for a new generation of teachers and for new levels of excellence from all of our teachers.

4) "Promoting innovation and excellence in America’s schools" by supporting charter schools, reforming the school calendar and the structure of the school day.

And for students themselves, the President had a message for them as well:

Of course, no matter how innovative our schools or how effective our teachers, America cannot succeed unless our students take responsibility for their own education. That means showing up for school on time, paying attention in class, seeking out extra tutoring if it’s needed, and staying out of trouble. And to any student who’s watching, I say this: don’t even think about dropping out of school. As I said a couple of weeks ago, dropping out is quitting on yourself, it’s quitting on your country, and it is not an option – not anymore. Not when our high school dropout rate has tripled in the past thirty years. Not when high school dropouts earn about half as much as college graduates. And not when Latino students are dropping out faster than just about anyone else. It is time for all of us, no matter what our backgrounds, to come together and solve this epidemic.

B4B Note: Today's message from President Obama regarding education was made at The Hispanic Chamber of Commerce Convention of which ZERO Republicans attended this weekend. PITIFUL !
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Republican Lahood Slams Party's Charges of "Socialism", "Obama Recession"

Says Obama "Inherited" This Economic Mess

By Sam Stein (HuffPost)

Secretary of Transportation Ray Lahood hit back hard on Monday to charges from White House critics that President Barack Obama's economic policies -- focused on leveraging government spending to stimulate demand -- had exacerbated the recession and constituted a form of socialism.

In an interview with the Huffington Post, LaHood, one of the few Republican members of the Obama administration, scoffed at the recent talking points emanating from the congressional leaders of his own party. His voice rising at times with emotion, the transportation czar tackled first the notion that the president was a socialist in disguise.

"I don't agree with it," LaHood said. "If you go out and interview these people working on this road in Maryland... these people are thrilled. They are thrilled that they are working in March on a good paying job building roads, which is what they were trained to do. That's going to be happening all over America. So the idea that this is socialism -- it is not socialism, it is economic development. It is going to provide an economic engine around communities all over American for jobs; good paying jobs; and help people pay their bills. I don't call that socialism.... We are the model for the world when it comes to infrastructure. We are the model for the interstate system. I don't call that socialism. Our $40 billion [for the Department of Transportation]: not socialism. It is good paying jobs that is going to drive the economies in a lot of states and a lot of communities."

LaHood's comments come amidst a growing chorus of GOP critics claiming that Obama is engineering a government takeover of the nation's main economic organs. The theme has found its way into mainstream political dialogue as well. In an interview last week with the New York Times, Obama was asked bluntly whether he is a socialist. The president initially brushed the question off, then called the reporters back after the interview ended to supplement his response. "It was hard for me to believe that you were entirely serious about that socialist question," Obama told the Times' scribes. "I did think it might be useful to point out that it wasn't under me that we started buying a bunch of shares of banks."

Perhaps more importantly, public opinion polls suggest that a large proportion of Americans are open both to additional stimulus spending as well as government intervention to revamp insolvent banks. Faced with these numbers, Republican strategists have deployed a separate strategy: portraying the president, with each passing day, as more and more responsible for the current crisis.

Asked about this line of attack, replete with phrases like the "Obama recession," Secretary LaHood offered a similarly ardent rebuke. If blame is to be cast, he declared, it can only, at this point, lie with the previous White House.

"This is not an Obama recession," he said. "He inherited all of this. He inherited a $1 trillion dollar debt. He inherited the recession. He inherited the lousy stock market. All of this was inherited. The guy has been in office a little over a month and what he has tried to do is listen to every economist he could listen to. And he put in place some opportunities to get people to work quickly through the transportation bill portion of it, to help the banks, and to help the real estate industry. And it is going to take time."

Help Share the Facts !

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President Obama Cracking Down on
Defense Contractors

No-Bid Contracts and Outright Fraud Must Stop !

(WHITE HOUSE) Last week began with the fiscal responsibility summit, where the President and members of Congress came together to generate ideas to get the country on a sustainable long-term track. One of the exchanges that got the most attention was between the President and Senator John McCain, who discussed the idea of procurement overruns, in Defense Department contracts in particular.

Wednesday Sen. McCain joined the President again to develop that idea further, along with Senators Carl Levin and Claire McCaskill and Representatives Edolphus Towns and Peter Welch. The President signed a Presidential Memorandum that will reform government contracting by strengthening oversight and management of taxpayer dollars, ending unnecessary no-bid and cost-plus contracts and maximizing the use of competitive procurement processes, and clarifying rules prescribing when outsourcing is and is not appropriate. The OMB will be tasked with giving guidance to every agency on making sure contracts serve the taxpayers, not the contractors.

In addition, the President endorsed the goals of the bipartisan effort on defense procurement reform led by Senators Carl Levin and McCain, and has asked Defense Secretary Gates to work with the Senators going ahead. In his remarks, President Obama made clear that while there are those who will try to protect contractor excesses behind cries of weakening our national defenses, there will be a bipartisan, firm stand to put those excesses to an end:

The American people's money must be spent to advance their priorities -- not to line the pockets of contractors or to maintain projects that don't work.

Recently that public trust has not always been kept. Over the last eight years, government spending on contracts has doubled to over half a trillion dollars. Far too often, the spending is plagued by massive cost overruns, outright fraud, and the absence of oversight and accountability. In some cases, contracts are awarded without competition. In others, contractors actually oversee other contractors. We are spending money on things that we don't need, and we're paying more than we need to pay. And that's completely unacceptable.

This problem cuts across the government, but I want to focus on one particular example, and that is the situation in defense contracting. Now, I want to be clear, as Commander-in-Chief, I will do whatever it takes to defend the American people, which is why we've increased funding for the best military in the history of the world. We'll make new investments in 21st century capabilities to meet new strategic challenges. And we will always give our men and women the -- in uniform, the equipment and the support that they need to get the job done.

But I reject the false choice between securing this nation and wasting billions of taxpayer dollars. And in this time of great challenges, I recognize the real choice between investments that are designed to keep the American people safe and those that are designed to make a defense contractor rich.

Last year, the Government Accountability Office, GAO, looked into 95 major defense projects and found cost overruns that totaled $295 billion. Let me repeat: That's $295 billion in wasteful spending. And this wasteful spending has many sources. It comes from investments and unproven technologies. It comes from a lack of oversight. It comes from influence peddling and indefensible no-bid contracts that have cost American taxpayers billions of dollars.

It's A New Day !

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CSPAN VIDEO: MUST SEE/Share !

Congressman Kanjorski (Pa.) Tells Facts
That US Economy Was on Verge of
Total Collapse September 15, 2008

Explains TRUTH Behind Bush's Original Bail-Out !

Why Was This NEVER On The 'News' ???
Click B4B if video does not appear

President Obama to Release Fed Funds
for Embryonic Stem Cell Research

By BEN FELLER and LAURAN NEERGAARD, AP

WASHINGTON – Eight years of frustration are close to an end for scientists seeking ways to use embryonic stem cells to combat illness and injury.

On Monday, President Barack Obama plans to reverse limits imposed by President George W. Bush on using federal money for research with embryonic stem cells.

The long-promised move will allow a rush of research aimed at one day better treating, if not curing, ailments from diabetes to paralysis — research that is has drawn broad support, including from notables like Nancy Reagan, widow of the late Republican President Ronald Reagan, and the late Christopher Reeve.

But it stirs intense controversy over whether government crosses a moral line with such research, and opponents promptly denounced the move.

Obama will hold an event at the White House to announce the move, a senior administration official said Friday. The official spoke on condition of anonymity because the policy had not yet been publicly announced.

Embryonic stem cells are master cells that can morph into any cell of the body. Scientists hope to harness them so they can create replacement tissues to treat a variety of diseases — such as new insulin-producing cells for diabetics, cells that could help those with Parkinson's disease or maybe even Alzheimer's, or new nerve connections to restore movement after spinal injury.

"I feel vindicated after eight years of struggle, and I know it's going to energize my research team," said Dr. George Daley of the Harvard Stem Cell Institute and Children's Hospital of Boston, a leading stem cell researcher.

But the research is controversial because days-old embryos must be destroyed to obtain the cells. They typically are culled from fertility-clinic leftovers otherwise destined to be thrown away.

Under Bush, taxpayer money for that research was limited to a small number of stem cell lines that were created before Aug. 9, 2001, lines that in many cases had some drawbacks that limited their potential usability.

But hundreds more of such lines — groups of cells that can continue to propagate in lab dishes — have been created since then, ones that scientists say are healthier, better suited to creating treatments for people rather than doing basic laboratory science.

Work didn't stop. Indeed, it advanced enough that this summer, the private Geron Corp. will begin the world's first study of a treatment using human embryonic stem cells, in people who recently suffered a spinal cord injury.

Nor does Obama's change fund creation of new lines. But it means that scientists who until now have had to rely on private donations to work with these newer stem cell lines can apply for government money for the research, just like they do for studies of gene therapy or other treatment approaches.

The aim of the policy is to restore "scientific integrity" to the process, the administration official said.

"America's biomedical research enterprise experienced steady decline over the past eight years, with shrinking budgets and policies that elevated ideology over science. This slowed the pace of discovery and the search for cures," said Sean Morrison, director of the University of Michigan's Center for Stem Cell Biology.

Critics immediately denounced the move.

"Taxpayers should not have to foot the bill for experiments that require the destruction of human life," said Tony Perkins of the conservative Family Research Council. "President Obama's policy change is especially troubling given the significant adult stem cell advances that are being used to treat patients now without harming or destroying human embryos."

Indeed, there are different types of stem cells: So-called adult stem cells that produce a specific type of tissue; younger stem cells found floating in amniotic fluid or the placenta. Scientists even have learned to reprogram certain cells to behave like stem cells.

But even researchers who work with varying types consider embryonic stem cells the most flexible and thus most promising form — and say that science, not politics, should ultimately judge.

"Science works best and patients are served best by having all the tools at our disposal," Daley said.

Obama made it clear during the campaign he would overturn Bush's directive.

During the campaign, Obama said, "I strongly support expanding research on stem cells. I believe that the restrictions that President Bush has placed on funding of human embryonic stem cell research have handcuffed our scientists and hindered our ability to compete with other nations."

He said he would lift Bush's ban and "ensure that all research on stem cells is conducted ethically and with rigorous oversight."

"Patients and people who've been patient advocates are going to be really happy," said Amy Comstock Rick of the Coalition for the Advancement of Medical Research.

The ruling will bring one immediate change: As of Monday, scientists who've had to meticulously keep separate their federally funded research and their privately funded stem cell work — from buying separate microscopes to even setting up labs in different buildings — won't have that expensive hurdle anymore.

Next, scientists can start applying for research grants from the National Institutes of Health. The NIH already has begun writing guidelines that, among other things, are expected to demand that the cells being used were derived with proper informed consent from the woman or couple who donated the original embryo.

It's A New Day !

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Obama's Surprise Sasha & Malia

with White House Gift

WASHINGTON — First daughters Malia and Sasha Obama got a big surprise after school Wednesday: a brand-new swing set.

They squealed with delight upon seeing it, a spokeswoman for the first lady said.

President Barack Obama and his wife, Michelle, went to work while the girls were at school, having the set installed on the south grounds of the White House within sight of the Oval Office, where their father spends plenty of time.

Late last year as the couple planned the family's move to Washington, they had discussed with the chief usher at the White House ways to make the historic residence feel more like home for their girls, said Katie McCormick Lelyveld, a spokeswoman for Michelle Obama.

Malia and Sasha, ages 10 and 7, had never lived anywhere but Chicago.

"Many first families have made these sorts of changes to make the White House feel like home," McCormick Lelyveld said. "This one is like their little mark."

The 100 percent cedar and North American Redwood structure has four swings, including a tire swing, a slide, a fort, a climbing wall and climbing ropes. There's also a picnic table with brass plates etched with the names of all 44 presidents, she said.

"They ran right for it. They were really, really excited. All four of them," McCormick Lelyveld said.

The girls played on the set for almost an hour in chilly weather, she said. Their mother went for a swing, too.

The Obamas paid for the swing set, which was made and installed by Rainbow Play Systems of Brookings, S.D. The company's Web site says it's the most trusted brand name in wooden swing sets.

Presidents throughout the years have altered the landscape of the White House grounds to suit their recreational needs, or their children's.

James Buchanan added the first greenhouse in 1857, and Theodore Roosevelt followed with a tennis court in 1903.

Historical photos show two of Franklin D. Roosevelt's grandchildren playing on a slide near a jungle gym on the South Lawn, and much later Caroline Kennedy pushing younger brother John F. Kennedy Jr. on a swing set, also on the South Lawn.

Gerald Ford added an outdoor swimming pool, and Jimmy Carter's daughter, Amy, had a treehouse. George H.W. Bush had tree-mounted swings installed for granddaughters Jenna and Barbara, and Bill Clinton, a jogger, installed a running track.

___

White House: http://www.whitehouse.gov

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1 in 8 U.S. Households Late Paying

or In Foreclosure

Prime loan defaults increasing rapidly

NEW YORK (Reuters) – About one in eight U.S. households, a record share, ended 2008 behind on their mortgage payments or in the foreclosure process as job losses intensified a housing crisis spawned by lax lending practices, the Mortgage Bankers Association said on Thursday.

With unemployment at a 16-1/2-year high and expected to continue rising until mid- to late 2010, more borrowers will pay late or fall into foreclosure this year, said the group's chief economist.

"While California, Florida, Nevada, Arizona and Michigan continue to dominate the delinquency numbers, some of the sharpest increases we saw last quarter in loans 90 days or more delinquent were in Louisiana, New York, Georgia, Texas and Mississippi, signs of the spreading impact of the recession," said Jay Brinkmann.

Duress is no longer isolated to borrowers with lower credit quality. As joblessness grew, so did late payments on prime fixed-rate loans that represent two-thirds of mortgages.

U.S. President Barack Obama's $275 billion housing stimulus program will standardize modifications for distressed loans and pave the way for more refinancing.

That should smooth differences caused by various moratoria by states and companies that temporarily curbed the surge in foreclosures in the fourth quarter, Brinkmann said.

"But keep in mind that there are three drivers to the housing problem, and this program of course addresses mostly the first one," he added, referring to loan structure, underwriting quality and fraud.

The two other problems -- an oversupply caused by overbuilding and foreclosures, and unemployment -- still loom large.

Having one in eight households late paying or in foreclosure is "unacceptable in a country like ours," said Nicholas Bratsofolis, senior managing director of structured refinance at mortgage bank LendAmerica in Melville, New York.

"Instead of wringing our hands, I think we should start utilizing the tools that the government has given to us to remedy the ills that are facing many of these homeowners," he said.

A record 11.18 percent of loans on one-to-four unit residences were at least one payment past due or in the foreclosure process in 2008.

The delinquency rate jumped 2.06 percentage points from a year ago to a record 7.88 percent. The share of loans in the foreclosure process leaped 1.26 percentage points in the year to a record 3.30 percent.

MBA started tracking the data in 1972.

Housing has yanked down the U.S. economy after being a key driver of it earlier this decade. In a vicious cycle, a weakening economy is now further siphoning demand for homes.

"In a recession like this, housing is never just about housing," said Jed Kolko, associate research director at the Public Policy Institute of California, in San Francisco. "Unemployment leads to foreclosures, foreclosures contribute to lower tax revenues, less consumer spending -- it's all related."

MORE STATES WITH MORE PROBLEMS

As the economy sours, more states have joined the five that had been primary trouble spots for late payments and foreclosures.

"We see New York being influenced by the layoffs that we've been seeing on Wall Street and some of the rest of the industry associated with that," Brinkmann noted.

"Some of the Southern states that had construction-related unemployment, whether it was forest product or plywood manufacturing. Some of the tourism industry is now being hit, certainly in Mississippi with the casinos, and in Florida."

Subprime adjustable-rate loans and prime ARM loans still drive the late payments, but that is shifting.

"We will continue to see, however, a shift away from delinquencies tied to the structure and underwriting quality of loans to mortgage delinquencies caused by job and income losses," Brinkmann said.

Of particular concern, he said, is rising joblessness for people with college education or technical training. The rate nearly doubled in the last half of 2008 to just under 4 percent.

"We saw some sharp pickups in delinquency rates with prime loans and I think that's now going to continue as long as we see unemployment continue to climb among the people most likely to own homes," Brinkmann said.

How high unemployment in that segment of the population gets and how long it stays there will "determine ultimately how long the prime fixed loan delinquencies continue to climb," he said. "Some of these people do have adequate reserves to last maybe six months or a year without a job. But the longer this thing goes on, the quicker they then run through those reserves and their loans go delinquent."

(Editing by Dan Grebler)

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President Obama To Hear Ideas on

How To Overhaul Health Care

By Ricardo Alonso-Zeldivar (AP)

WASHINGTON – President Barack Obama has invited to the White House more than 120 people who hold a wide range of views on how to fix the world's costliest health care system, one that still leaves millions uninsured.

A broad group of doctors, patients, business owners and insurers were to gather for a forum Thursday in hopes of building support for big changes in health care. Republicans are invited, and they're expected to speak up.

"The president wants to engage with Congress in a transparent and bipartisan fashion," said Melody Barnes, who heads White House domestic policy.

Among the invitees are some who helped kill the Clinton administration's health care overhaul in the 1990s. Everyone is supposed to be on his best behavior, but will that last?

"This is a different day, " said Chip Kahn, a hospital lobbyist who opposed President Bill Clinton's plan and was to attend Thursday's gathering. "I think among most of the stakeholders, everyone wants to see this work. There is a tremendous feeling that it's time."

Now president of the Federation of American Hospitals, Kahn worked for the insurance industry in the Clinton years.

The difference this time, Obama argues, is that health care costs have become unsustainable, particularly in a sinking economy. The U.S. spends $2.4 trillion a year on health care, yet an estimated 48 million Americans lack coverage. Obama's goal is health coverage for everyone.

Barnes said Obama is determined to pass health care legislation this year, and while he wants it to be bipartisan, he will not be deterred by obstruction from interest groups or ideological partisans.

"The president will make clear this has to be a bipartisan effort," Barnes said. "As for people who are there to set up hurdles, from his perspective that isn't tolerable. It's crucial to families, businesses and our nation's budget that we address the issue of exploding costs."

Senate Republican leader Mitch McConnell of Kentucky released a letter to Obama, saying his party is ready to work with the administration on health care, but warning that reforms should not lead to a government-run system, and must balance coverage expansions with curbs on costs.

In support of Obama's efforts, liberal activists have mobilized to keep the pressure on Congress to pass legislation this year.

"It would be a mistake to dismiss this as a gabfest," Drew Altman, president of the Kaiser Family Foundation, said about Obama's meeting. "It's an effort to keep the momentum going. The details are not going to be worked in two or three hours at a White House summit."

There were concerns Wednesday about some of those details.

Senate Finance Committee Chairman Max Baucus, D-Mont., who will play a leading role in writing health care legislation, raised questions about the proposed $634 billion "down payment" for expanded coverage that Obama included in the 2010 budget he released last week.

B4B

(Parody photo added by B4B)

REPUBLICANS Make Case For

PROSECUTING Bush Officials !

By Daphne Eviatar

The Senate Judiciary Committee’s “Getting to the Truth Through a Nonpartisan Commission of Inquiry” convened this morning to consider Sen. Patrick Leahy’s (D-Vt.) proposal for a sort of “truth and reconciliation” commission.

The hearing was full of all the predictable, lofty statements from illustrious supporters about why a commission would further the American people’s understanding of our nation’s past and true values, and also demonstrate to the world our commitment to truth and justice — most of which I agree with. But what was most surprising was that the Senate Republicans and their witnesses, in the process of ripping apart the idea, made the strongest case I’ve heard yet for why the Department of Justice should prosecute former senior officials of the Bush administration.

Sen. Arlen Specter, the ranking committee Republican, after noting his previous support for judicial review of the Bush administration’s terrorist surveillance program, referred to the recent disclosures of Office of Legal Counsel memos as potentially supporting the case for prosecutions.

“You’ve had some rather startling disclosures, with the publicity in recent days about unusual—to put it mildly—legal opinions” to justify broad executive actions, including homicide. “They’re all being exposed now,” he said, and noted that a forthcoming report from the Office of Professional Responsibility in the Justice Department will likely expose even more. They’re “starting to tread on what may disclose criminal conduct,” he said.

Rather than going off “helter-skelter” and conducting a “fishing expedition,” said Specter, “it seems to me that we ought to follow a regular order here … If there’s reason to believe that these justice department officials have given approval for things that they know not to be lawful and sound, go after them.”

The witnesses called to present the Republican opposition to Leahy’s proposal made the same point.

David Rivkin, a former Justice Department official in the Reagan and first Bush administrations and now a partner at the law firm Baker & Hostetler, said a truth commission “is a profoundly bad idea, a dangerous idea, both for policy and for me as a lawyer for legal and constitutional reasons.”

Objecting that Congress would be improperly delegating its oversight power, and that witnesses would be called out for criminal conduct without the right to defend themselves in a trial, he said: “this is to establish a body to engage in what in essence is a criminal investigation of former Bush administration officials,” and that “the subject matter areas, which such a commission would investigate – among them the interrogation and handling of captured enemy combatants and the gathering of electronic intelligence – are heavily regulated by comprehensive criminal statutes, and ensures that the commission’s activities would inevitably invade areas traditionally the responsibility of the Department of Justice.”

Jeremy Rabkin, a law professor at George Mason University who also opposes Leahy’s idea, similarly insisted that in the United States, where we have a fully developed legal system, prosecutions — not truth commissions — are the appropriate course. A truth commission is something that countries like South Africa and Chile have had, not something we should do here, he said. “In those countries they had to have commissions because they couldn’t have prosecutions. Peace was really in doubt in those countries … they had to trade off prosecutions for peace. We’re not in that situation. If people think we need to have prosecutions, we should have prosecutions.”

Proponents of the truth commission idea, meanwhile, while not ruling out the idea of prosecutions, saw a truth commission as serving a different, and broader purpose. But it was surprising that, at a hearing cautiously called to discuss “a nonpartisan commission of inquiry,” we heard the strongest case yet for the prosecution of former Bush administration officials — being made by Republicans.

B4B

President Barack Obama addresses a crowd gathered at the Department of Transportation in Washington, D.C., to discuss infrastructure spending as part of the American Recovery and Investment Act, as Vice President Joe Biden and Transportation Secretary Ray LaHood listen.(White House photo 3/3/09 by Pete Souza) Look for new ARRP logo on infrastructure future projects.

WOW ! "Shovels Hitting Ground" Already !

WHITE HOUSE

"Thanks in large part to Joe Biden....and because of all the governors and mayors, county and city officials who are helping implement this plan, I can say that 14 days after I signed our Recovery Act into law, we are seeing shovels hit the ground," President Obama said in remarks at the Department of Transportation today, announcing the apportionment of $26.6 billion of a total $28 billion in infrastructure spending.

"Two weeks ago, I signed into law the American Recovery and Reinvestment Act, the most sweeping economic recovery plan in history," he said. "And already, its impact is being felt across this nation. Hardworking families can now worry a little less about next month's bills because of the tax cut they'll soon find in the mail. Renewable energy companies that were once downsizing are now finding ways to expand. And transportation projects that were once on hold are now starting up again -- as part of the largest new investment in America's infrastructure since President Eisenhower built the Interstate Highway System."

Just prior to the President's remarks, Secretary LaHood announced the first project will be in Montgomery County, Md., on State Route 650. Learn more about how the funds are going to be spent, including state-by-state and urban-suburban-rural breakdowns, at Recovery.gov.

B4B

THE WHITE HOUSE

Office of the Press Secretary

__________________________________________________________________________________________________________________


March 2, 2009



President Obama Will Nominate Governor Kathleen Sebelius Secretary of HHS, Announces Release of $155 Million of ARRA Funds for Health Clinics Across America

Leading Health Care Expert Nancy-Ann DeParle to serve as Director of White House Office for Health Reform



Today, President Barack Obama officially announced his intent to nominate Kansas Governor Kathleen Sebelius as Secretary of Health and Human Services. In this role, Sebelius will oversee a department with wide-ranging responsibilities essential to the American people, including the implementation of the President's vision for health care. As Secretary of Health and Human Services, Sebelius will work with Democrats and Republicans alike to cut costs, expand access, and improve the quality of health care for all Americans.



Nancy-Ann DeParle, one of the nation’s leading experts on health care and regulatory issues, will serve as Counselor to the President and Director of the White House Office for Health Reform. As commissioner of the Department of Human Services in Tennessee , she saw firsthand the health care system’s impact on workers and families. In the Clinton Administration, DeParle handled budget matters for federal health care programs, and took on the tremendous task of managing Medicare and Medicaid.



“If we are going to help families, save businesses, and improve the long-term economic health of our nation, we must realize that fixing what’s wrong with our health care system is no longer just a moral imperative, but a fiscal imperative. Health care reform that reduces costs while expanding coverage is no longer just a dream we hope to achieve – it’s a necessity we have to achieve, said President Obama. “And today, I am proud to announce key members of my team who will be critical to that effort: Kansas Governor Kathleen Sebelius for my Secretary of Health and Human Services, and Nancy Ann DeParle as Director of the White House Office for Health Reform.”



President Obama today also announced the release of $155 million authorized by the American Recovery and Reinvestment Act that will support 126 new health centers. These health centers will help people in need – many with no health insurance – obtain access to comprehensive primary and preventive health care services.



“We have acted quickly to put Recovery Act dollars to good use in communities across America ,” said President Obama. “The construction and expansion of health centers will create thousands of new jobs, help provide health care to an estimated 750,000 Americans across the country who wouldn’t have access to care without these centers, and take another step toward an affordable, accessible health care system.”



The grants, which are administered by the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA), are expected to create 5,500 jobs at the new health centers.

##
B4B

(Parody photo added by B4B)

Secret Bush Memo Authorizing
Warrantless Seizure of 'Terror Suspects'
Released

By DEVLIN BARRETT and MATT APUZZO

The new administration pledged on Monday to begin turning over documents related to the videos to a federal judge and to make as much information public as possible.

The legal memos written by the Bush administration's Office of Legal Counsel show a government grappling with how to wage war on terrorism in a fast-changing world. The conclusion, reiterated in page after page of documents, was that the president had broad authority to set aside constitutional rights.

Fourth Amendment protections against unwarranted search and seizure, for instance, did not apply in the United States as long as the president was combatting terrorism, the Justice Department said in an Oct. 23, 2001, memo.

"First Amendment speech and press rights may also be subordinated to the overriding need to wage war successfully," Deputy Assistant Attorney General John Yoo wrote, adding later: "The current campaign against terrorism may require even broader exercises of federal power domestically."

On Sept. 25, 2001, Yoo discussed possible changes to the laws governing wiretaps for intelligence gathering. In that memo, he said the government's interest in keeping the nation safe following the terrorist attacks might justify warrantless searches.

That memo did not specifically attempt to justify the government's warrantless wiretapping program, but it provided part of the foundation.

Yoo, now a professor at the University of California at Berkeley School of Law, did not return messages seeking comment.

The memos reflected a belief within the Bush administration that the president had broad powers that could not be checked by Congress or the courts. That stance, in one form or another, became the foundation for many policies: holding detainees at Guantanamo Bay, eavesdropping on U.S. citizens without warrants, using tough new CIA interrogation tactics and locking U.S. citizens in military brigs without charges.

Obama has pledged to close the Guantanamo Bay prison within a year. He halted the CIA's intensive interrogation program. And last week, prosecutors moved the terrorism case against U.S. resident Ali Al-Marri, a suspected al-Qaida sleeper agent held in a military brig, to a civilian courthouse.

A criminal prosecutor is wrapping up an investigation of the destruction of the tapes of interrogations.

Monday's acknowledgment of videotape destruction, however, involved a civil lawsuit filed in New York by the American Civil Liberties Union.

"The CIA can now identify the number of videotapes that were destroyed," said the letter submitted in that case by Acting U.S. Attorney Lev Dassin. "Ninety-two videotapes were destroyed."

It is not clear what exactly was on the recordings. The government's letter cites interrogation videos, but the lawsuit against the Defense Department also seeks records related to treatment of detainees, any deaths of detainees and the CIA's sending of suspects overseas, known as "extraordinary rendition."

At the White House, press secretary Robert Gibbs told reporters he hadn't spoken to the president about the report, but he called the news about the videotapes "sad" and said Obama was committed to ending torture while also protecting American values.

ACLU attorney Amrit Singh said the CIA should be held in contempt of court for holding back the information for so long.

"The large number of videotapes destroyed confirms that the agency engaged in a systematic attempt to hide evidence of its illegal interrogations and to evade the court's order," Singh said.

CIA spokesman George Little said the agency "has certainly cooperated with the Department of Justice investigation. If anyone thinks it's agency policy to impede the enforcement of American law, they simply don't know the facts."

The details of interrogations of terror suspects, and the existence of tapes documenting those sessions, have become the subject of long fights in a number of different court cases. In the trial of Sept. 11 conspirator Zacarias Moussaoui, prosecutors initially claimed no such recordings existed, then acknowledged after the trial was over that two videotapes and one audiotape had been made.

The Dassin letter, dated March 2 to Judge Alvin Hellerstein, says the CIA is now gathering more details for the lawsuit, including a list of the destroyed records, any secondary accounts that describe the destroyed contents and the identities of those who may have viewed or possessed the recordings before they were destroyed.

But the lawyers also note that some of that information may be classified, such as the names of CIA personnel who viewed the tapes.

The separate criminal investigation includes interrogations of al-Qaida lieutenant Abu Zubaydah and another top al-Qaida leader. Tapes of those interrogations were destroyed, in part, the Bush administration said, to protect the identities of the government questioners at a time the Justice Department was debating whether or not the tactics used during the interrogations were legal.

Former CIA director Michael Hayden acknowledged that waterboarding _ simulated drowning _ was used on three suspects, including the two whose interrogations were recorded.

John Durham, a senior career prosecutor in Connecticut, is leading the criminal investigation, out of Virginia, and had asked that he be given until the end of February to wrap up his work before requests for information in the civil lawsuit were dealt with.

___

Associated Press Writers Pamela Hess and Philip Elliott contributed to this report.

B4B Note: Bush/Cheney should be charged with WAR CRIMES !

B4B

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