Obama aide won't rule out more money for bailouts(Summers)

[cal04]

http://www.reuters.com/article/topNews/idUSTRE50O13C20090125?feedType=RSS&feedName=topNews

President Barack Obama's top economic adviser would not rule out on Sunday that more money may be needed to stabilize the financial system as a deep recession increases banks' losses.

Lawrence Summers, head of the National Economic Council, also said there was no question that tax cuts passed under former President George W. Bush needed to be repealed, though he would not be pinned down on exactly when.

"We can make important progress and get started with the support that has been provided," Summers said on NBC's "Meet the Press" when asked whether taxpayers should expect another request for funding to shore up the financial system.

"What ultimately will be necessary is something that will play out over time."

(snip)
While Obama has pledged tax reductions for 95 percent of households, Summers said Bush's tax cuts must be repealed because the country is facing a severe budget gap and a massive longer-term entitlement spending burden.

"I don't think there's any question they have to be repealed," Summers said. "The country can't afford them for the long run. They have to be allowed to expire. What the timing will be, that's something that's got to get worked out through the legislative process."

[shoopnyc]

1. Anybody that dates Laura Ingraham...

...I'm suspicious of...

[DCBob]

2. Summers first statements were disturbing...

He said this is the worst set of economic conditions since WW2. He then rattled off a whole litany of critical problems. The solutions will not be easy and will not be quick. He did not paint a pretty picture. But he did end on a high note -- "our best days are ahead". Hope so.