Sen. Cornyn: Stimulus Won't Work

" well the house just passed the stimulus bill so now it moves to the Senate but the stimulus package won't get a warm reception. From our next guest at least minutes ago our next guest said on the Senate floor. We cannot spend our way to prosperity joining us now live from Capitol Hill for first on Fox Business interview. Senator John Warner and Republican of Texas and a member of the Senate Finance Committee welcomes senator to count down -- the closing bell. Thank you very much we can assume you will not -- voting yes on this bill what is the number one problem with that especially when you have set on the record that in principle. You -- with President Obama on believing that something must be done."

" Well this bill won't work. Because it doesn't follow President Obama is. I think very good formula timely temporary and targeted matter fact Nancy Pelosi said those should be the guiding principles. First stimulus package this is none of that. And very little of this bill I believe will be spent and this fiscal year and a lot of it is for our government spending rather than leaving. Money in people's pockets and letting them more efficiently. Stimulate the economy. And it completely neglects. Almost completely neglected housing which I think we ought to be attending his first. Because that's what got us into this mess in the first place and I think if we're able to fix housing it will help lead us out of."

" What kind of ideas do you think would actually do that that would fix housing right now."

" Well the 15000 dollar tax credit that senator Johnny Isaacson advocated which has now been virtually up. Pared it down out of existence in this bill I think -- last through the end of this year. And so eliminate some of the inventories that are there to get people get in the homes and two. Would would I think help a lot together with some and lower interest rate loans and government guarantees which would then. Allow -- mortgaged it to be liquidated and hopeful that money be used us. -- all -- other people or to look increased capital reserve since the lending institutions I think those are some. -- ideas that have been. Are reflected because this basically was a bill written by. Nancy Pelosi and Democrats in the house and virtually every Republican. -- just -- constructive suggestion like that have been rejected really long partisan."

" senator you just said so we can quickly get people when the houses we quickly got people into houses from 2001 to 2006. People who had absolutely no business getting in the house's. And now you have people out there who pay their mortgages on time never signed sub prime disastrous loans. Well we'll have to shoulder the burden for people who got it. Can you ensure at least in the future that you will push for something like. Regulation when it comes to the mortgage companies in the lenders about how they must not be writing loans for people who can't afford them."

" Well I agree with you that's how we got into this mess under the sort of goodwill notion that we need to increase. Homeownership in this country but. Unfortunately did so by. People being able to buy homes or lose credit that they couldn't afford. But the other -- are really want to make about this bill is -- the false bargain. You know that many of our cities and state governments have been told the fuel support this bill you're gonna get some money. Promise of money you won't have to raise from your state local taxpayers in my state Texas. Will receive roughly ten billion dollars -- in additional -- Federal money what people have not explain -- it will also. Increase the indebtedness of the 24 million people in Texas by some ninety. Billion dollars ten billion for ninety billion dollars an increase the debt. It doesn't strike me as a great deal."

" Well I think of people are looking at this from both sides of the -- not necessarily within the beltway and saying. This looks and smells like a missed opportunity. And this stimulus with in it. Is not as much as some people would have liked to have seen and I'm talking about infrastructure spending these so called shovel ready projects that everybody keeps talking about. Much about what comes to fruition until 2011. Have you -- the present president's ear at all is it worth fighting to get a conference or discussion with him about that so called timely part. Of what he had hoped to have."

" Live really appreciate present Obama -- gestures. To reaching out to Republicans. But apparently a speaker Pelosi and and the majority leader in the in the Senate did not get the memo. And indeed. I think that president and his administration have not been a part of drawing up these packages in the house of the Senate. And only came in you know once the bills were passed in the body to try to work our way through conference. Report by the way a bill about 1100 pages long that we got at midnight last night. And obviously there's not going to be adequate time to review the bill before senators are going to be required to vote on it as house members were required to vote on it earlier today."

" Public got about 42 series set on the floor I believe it was we can't spend our way to prosperity yet many Republicans voted for President Bush's stimulus plan of more than a 150 billion. And economists show that didn't do very much and also stimulate balances is as saying no matter viewers know are Republicans saying no. Just to say no Stephen cold beer of the cold their report is calling it the audacity of -- instead of the audacity of hope from the Republicans."

" Well what hopefully will learn from experience and I agree that that. 150 dollars billion dollar stimulus package we passed a year ago was a failed experiment. So why are we going to repeat that same mistake over again."

" I agree with you will be watching -- senator thank you because we love to have you guys -- everybody from both sides of the aisle. To talk to our viewers especially this last hour of the markets it gives people some real guidance senator John Cornyn Republican of Texas will be talking with him again I know."