Research

Yesterday, Obama Praised Boeing For Creating Jobs

President Obama’s Statement On Deal Between Boeing And Lion Air: "Well, I just want to make a brief statement. This is a remarkable example of the trade investment and commercial opportunities that exist in the Asia Pacific region.” (“Obama’s Statement On Boeing Deal,” Politico, 11/18/11)

• Obama Said The Multibillion-Dollar Deal “Can Result Directly In Jobs At Home.” “‘For the last several days I’ve been talking about how we have to make sure that we’ve got a presence in this region, that it can result directly in jobs at home. And what we see here -- a multibillion-dollar deal between Lion Air -- one of the fastest-growing airlines not just in the region, but in the world -- and Boeing is going to result in over 100,000 jobs back in the United States of America, over a long period of time.’ ‘This represents the largest deal, if I’m not mistaken, that Boeing has ever done. We are looking at over 200 planes that are going to be ... more
  
  

Rep. Marsha Blackburn (R-TN):  “Thank you, Mr. Chairman. and I have to tell you, Mr. Secretary, it's really troublesome to me, the number of times I've heard you say today that this is the first time you've been made aware of something, or that you know something now, you didn't know it then. So it leads me to believe that maybe you had some staff that was kind of keeping you out of the loop on some decisions. Let me ask you this. Did anyone from DOE talk to anyone from the White House about restructuring or subordination? Was there any communication between DOE and the White House about the restructuring and the subordination of that loan?”

Sec. Chu:  “Certainly at the time that we were discussing this, I was aware of no communication whatsoever with the White House.”

Rep. Blackburn:  “Are you aware of any communication now?”

Sec. Chu:  “I was made aware of it as of yesterday.”

(House Energy and Commerce Subcommittee, U.S. House Of Representatives, Hearing, 11/17/11)

AP: “Chu Said He Was Unaware Of His Staff Predictions In 2009 That Solyndra Was Likely To Face Severe Cash-Flow Problems.”

http://www.miamiherald.com/2011/11/17/2506556/chu-takes-responsibility-for-solyndra.html#ixzz1dzAiJeRp

Energy Secretary Steven Chu said Thursday that no one from the White House ever contacted him to make a political decision on a half-billion-dollar loan to a California solar company that later went bankrupt. Testifying under oath on a widening controversy, Chu said he was unaware of his staff predictions in 2009 that Solyndra was likely to face severe cash-flow problems. He said that market changes which led to a steep decline in the price of solar panels were "totally unexpected."

National Journal: “Told Lawmakers On Thursday That He Was Unaware That Officials At His Department Urged Solyndra To Hold Off On Announcing Planned Layoffs…”

http://www.nationaljournal.com/chu-politics-had-no-influence-on-solyndra-20111117

Chu also told lawmakers on Thursday that ... more

Here’s a quick review of the more notable and troubling moments from Energy Secretary Steven Chu’s testimony today before the House Energy & Commerce committee.

When asked if taxpayers will recover any of the $535 million taxpayers loaned to Solyndra, Secretary Chu responded that Americans won’t recovery “very much” at all.

Unfortunately, Secretary Chu (and presumably, the rest of the Obama administration including President Obama) refused to apologize for Solyndra’s failure. In other words, half a billion dollars lost isn’t exactly a big deal.

What is probably most troubling of all is that Secretary Chu testified today that he was NOT AWARE of Solyndra’s red flags, despite all of the warnings from various staff.

Secretary Of Energy Steven Chu said knowing what he knows now, he wouldn’t approve the Solyndra loan. But he did try to spin that it was impossible for him to know… guess he must have missed all the warning signs.

In a more troubling development, Secretary Chu said he ... more

Today Biden Has A Secret Transparency Meeting

“Spot The Irony”: Vice President Biden Is Holding A Closed-Door Meeting With The Government Accountability And Transparency Board. (Matt Negrin, “VP’s Closed-Door Transparency Chat,” Politico, 11/17/11)

Sound Familiar?

“President Obama Finally And Quietly Accepted His ‘Transparency’ Award From The Open Government Community This Week — In A Closed, Undisclosed Meeting At The White House On Monday.” (Abby Phillip, “Shh! Obama Wins Anti-Secrecy Award,” Politico, 3/30/11)

• Obama Was Supposed To Accept The Award In Front Of The Press Pool 2 Weeks Earlier, But The Actual Acceptance Ceremony Wasn’t Disclosed On The Public Schedule And No Reporters Were Present. “The secret presentation happened almost two weeks after the White House inexplicably postponed the ceremony, which was expected to be open to the press pool. This time, Obama met quietly in the Oval Office with Gary Bass of OMB Watch, Tom Blanton of the National Security Archive, ... more
  
  

Fannie And Freddie Executives Continue To Receive Millions in Bonuses

Susan McFarland, New CFO Of Fannie Mae, Received A $1.7 Million Signing Bonus. “House Republicans are pointing out that Fannie Mae’s new chief financial officer shares something in common with a newly drafted pro football player — both landed signing bonuses. Susan McFarland received $1.7 million for joining the mortgage giant that continues to lose billions of dollars after three years in government conservatorship, according to a draft report from the House Oversight and Government Reform Committee, which is holding a hearing into compensation practices at Fannie Mae and Freddie Mac Wednesday.” (Josh Boak, “Fannie CFO’s signing bonus: $1.7 Million,” Politico, 11/16/11)

• A Fannie Spokeswoman Calls This A “Standard Approach.” “‘This is a standard approach to these situations in the financial services industry, where many executives receive equity grants as part of their compensation,’ said Fannie spokeswoman Amy ... more
  
  

In A New Report, The Treasury Department Reveals It Will Lose Billions More In The Auto Bailouts Than Originally Projected

The Government Now Expects To Lose $23.6 Billion In The Auto Bailouts, $9 Billion More Than Its Previous Estimate, An Increase Of Over 50 Percent. “The Treasury Department dramatically boosted its estimate of losses from its $85 billion auto industry bailout by more than $9 billion in the face of General Motors Co.'s steep stock decline. In its monthly report to Congress, the Treasury Department now says it expects to lose $23.6 billion, up from its previous estimate of $14.33 billion.” (David Shepardson, “U.S. Boosts Estimate Of Auto Bailout Losses To $23.6B,” The Detroit News, 11/14/11)

• The Total Cost Of The Auto Bailouts Now Totals $79.6 Billion. “The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in ... more
  
  

When The Obama Administration Wanted Advice On The Economy, They Called Jon Corzine

  In The Early Days Of The Obama Administration, Biden “Literally” Called Jon Corzine For Advice On The Economy Because “He Knew About The Economy … And We Trusted His Judgment. “‘I literally picked up the phone and called Jon Corzine and said Jon, what do you think we should do,’ Biden said. ‘The reason we called Jon is that we knew that he knew about the economy, about world markets, how we had to respond, unlike almost anyone we knew. It was because he had been in the pit -- because he had been in the furnace. And we trusted his judgment.’ (Conor Friedersdorf, “Obama’s Team Relied On Jon Corzine For Economic Advice,” The Atlantic, 11/14/11)

• Watch Biden Say The Obama Team Relied On Corzine For Economic Advice

Corzine Was A Top Obama Economic Advisor Who “Helped Craft” The Failed Obama Stimulus

Watch Biden Say That Corzine “Helped Craft” The Stimulus

Biden: “It’s not coincidental that that’s ... more

Watch Morning Joe Talk About Solyndra

Mika Brzezinski:   “We'll just get this quick story in here and I want to get your take on it, Chris. New details are surfacing in how the Obama administration dealt with the bankruptcy of Solyndra, that's the California-based solar company that received a half-billion dollar loan from the Energy Department. Newly revealed e-mails show the administration pushed the company ‘very hard’ to delay announcing layoffs until after the midterm elections. The e-mails were made public as part of a House committee investigation. The White House denies politics were at play. Your take, Chris Matthews?”

Chris Matthews:  “Well, it looks to me –“

Brzezinski:  “By the way, how could politics not be at play?”

Matthews:  “Of course.  It looks like they got the money and it looks like they got a lot of help from the guy who said he was going to keep out of it and he wasn’t going to get involved in it and recuse himself. It looks like to me like there’s a lot of ... more

Congressional Budget Office Director Douglas Elmendorf: “We expect that under current law, growth in output will remain slow and as a result, jobs gains will be limited, leaving the unemployment rate close to nine percent through the end of 2012.” (Committee On Budget, U.S. Senate, Hearing, 11/15/11)