BlogHer - Bill Clinton: Economic revival depends on mortgage moratorium, push for green economy - Comments

Thanks -- Clinton is a fascinating person to talk to

Kim Pearson — Fri, 26 Sep 2008 17:34:49 -0500

Regardless of what one thinks of Bill Clinton personally or politically, there is no denying that he has an impressive ability to absorb, synthesize, analyze and act upon a blizzard of data. During the time we spent with him, he not only talked about the economy, but distance learning in Bolivia, modernizing the electrical grid, and relations between Paraguay, Bolivia and Argentina. Later, we had a brief chat about efforts to diversify the ranks of computing professionals -- a key focus of my own research.

I have previously written that I think Hillary Clinton is incredibly sharp at policy analysis and argument. Bill is definitely a match, but in a different way. She's more linear while he can take the scenic route to get to his point, but they arrive at the same destination. I also understand why people find him charismatic: the firm handshake, the way of conveying that he is absolutely riveted to what you are saying. Definitely a skilled politician. But at the same time, he knows what he wants to accomplish in a given conversation -- and he will find multiple ways to get his message across.

Kim
BlogHer Contributing Editor|Professor Kim|

Great and important post

Candelaria Silva — Thu, 25 Sep 2008 23:10:47 -0500

blog.candelariasilva.com

Good and plenty!

Looking forward to your participation during the live-blog!

Kim Pearson — Tue, 23 Sep 2008 20:12:34 -0500

I plan to start with the Open Plenary at 10 am EST on Sept. 24. Here is the description and lineup:

Wednesday 9/24/08, 10:00 A.M. – 11:30 A.M.

The
opening plenary session will engage a diverse group of world leaders in
an action-oriented discussion of the major challenges that CGI is
focusing on this year: education, energy & climate change, global
health, and poverty alleviation. This session will explore the
transformative capacity of business, government, and NGOs to
collaboratively develop and implement sustainable solutions.

Special Remarks:

Lance Armstrong, Founder and Chairman of the Board, Lance Armstrong Foundation

Program Participants:

William J. Clinton, 42nd President of the United States; Founder, William J. Clinton Foundation
Her Majesty Queen Rania Al-Abdullah, The Hashemite Kingdom of Jordan
Bono, Lead Singer, U2; Co-Founder, Anti-Poverty Campaign, ONE
Al Gore, Chairman, The Alliance for Climate Protection
E. Neville Isdell, Chairman of the Board of Directors, The Coca-Cola Company
Her Excellency Ellen Johnson-Sirleaf, President, Republic of Liberia

Kim
BlogHer Contributing Editor|Professor Kim|

Wist I could be there...

Mary Clare Hunt — Tue, 23 Sep 2008 17:47:17 -0500

... but VERY glad that you're taking notes and letting read over your shoulder. Thanks!

Wist I could be there...

Mary Clare Hunt — Tue, 23 Sep 2008 17:47:13 -0500

... but VERY glad that you're taking notes and letting read over your shoulder. Thanks!

political eye opener

stephieB — Tue, 23 Sep 2008 12:53:51 -0500

I want to thank you for posting this. I have never been real involved in politics but lately have been feeling guilty about my lack in political knowledge. In fear of embarrassing myself any further, I just wanted to say great post.

Stephie B. ; )

Bill Clinton: Economic revival depends on mortgage moratorium, push for green economy

Kim Pearson — Tue, 23 Sep 2008 01:47:22 -0500

Former President Bill Clinton said Monday night that the proposed $700 billion rescue plan for troubled commercial banks will fail without a companion proposal that stems the rising tide of foreclosures. He also offered his own analysis of the causes of the current financial crisis as well as proposals for achieving energy independence and kickstarting a green economic recovery. Clinton made the remarks at a private meeting with bloggers on the eve of this week's annual meeting of the Clinton Global Initiative in New York City. Here is my eyewitness report.

According to its website, the Clinton Global Initiative is a "non-partisan catalyst for action" on a variety of social, environmentals and economic problems. CGI brings together government leaders, philantrhopists, students and activists to brainstorm and undertake initiatives that address problems of their own choosing.

Although the meeting with bloggers was billed as an opportunity to discuss the upcoming CGI meeting, Clinton focused most of his comments on the current economic crisis. He said that the response to the crisis will determine how much leeway the next US president has to address critical needs in this country and internationally -- "whether thare's a 'Main Street component as well as a Wall Street component" to the recovery plan.

An appropriate US response will not only stimulate the US economy, Clinton argued -- it will also determine the ability to meet other critical global needs, such as stopping the destruction of the Amazon rainforest and sustaining the US commitment to the fight against AIDS and malaria.

According to the former president, one cause of the crisis that isn't widely recognized is that the Bush administration pushed free trade without doing enough to stimulate new job-creation in this country. "If you have an open economy, the good news is inflation will be kept in check," because the supply of imports will keep prices low, Clinton said. "The bad news is jobs will leak out the back door."

Clinton argued, however that jobs that went overseas could have been replaced if the Bush administation had supported the Kyoto Treaty. That treaty, which Pres. Bush rejected in 2001, called for nations to reduce emissions of greenhouse gases. Clinton said it also created an opportunity for the US government to take enact laws and policies to encourage investment in alternative energy sources and environmentally-friendly industry.

Because that didn't happen, Clinton said residential real estate became the investment of choice for too many Wall Street traders. The more transactions they executed, the more traders got paid. Mortgage backed derivatives and other risky, inadequately regulated financial products were created in this heated atmosphere.

On top of all of his, the Bush administration decided to simultaneously go to war and "give rich people tax credits." The current crisis, Clinton said is the result of "the absence of a sensible economic strategy" that stimulated growth while promoting energy independence and combatting climate change.

Along the way, Clinton said there had been "bipartisan coddling of misconduct for too long." He said that his administration had tried to sound the alarm about the dangers of allowing Fannie Mae and Freddie Mac to dabble in the unregulated derivatives market, but their proposals raised howls of protest from small-town mayors across the country who cheered the expansion of homeownership made possible by cheap credit. "Maybe we should have been louder publicly," he said.

Clinton rejected the criticism that his administration's repeal of a law that kept banks from dabbling in financial markets. He argued that the law he signed merely allowed US banks to do what European banks had been doing for years. In fact, Clinton said, "I believe that the bill I signed made it easier for the Bank of America to take over Merrill Lynch."

Clinton said the rescue plan put forward by Treasury Secretary Henry Paulson and Federal Reserve chair Ben Bernanke was necessary, but not sufficient to get the US out of its current economic woes. Clinton said that Congress should:

Enact the moratorium on mortgage foreclosures proposed by his wife, Sen. Hillary Clinton, during her failed presidential bid,
Create an agency like the Depression-era Home Owner's Loan Corporation to refinance home loans at affordable rates
Ensure that corporations such as AIG pay taxpayers back as quickly as is practical.

Also, Clinton endorsed parts of a plan advanced by energy magnate T Boone Pickens to step up investments in wind and solar power. Clinton also said his foundation is helping cities in Latin America convert their busses to compressed natural gas. He called for tax credits for renewables to be extended for a 7-10 year term, instead of the current three. Finally, he urged passage of a tax credit for motorists who buy electric hybrid cars.

Other points that Clinton touched on included a suggestion that the next President make a "serious effort" to work with Latin America and Caribbean leaders on energy and infrastructure needs. With that assistance, he said, parts of the region -- including Puerto Rico -- could become energy independent in just a few years.

I plan to live-blog sessions from the CGI conference Wednesday. I hope you will join me.

Posts from other bloggers at the meeting:

Emily Douglas: "President Clinton calls economic assistance 'good for Wall Street and Main Street'"
Dana Goldstein: "Bill Clinton revisits his economic legacy"