CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO INTERVIEWS REP.(D-MA)BARNEY FRANK, ON CNBC'S "CLOSING BELL" TODAY
WHEN: Today, Monday, October 20th at 4:20 PM ET
WHERE: CNBC's "Closing Bell"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview Rep.(D-MA) Barney Frank, on CNBC'S "Closing Bell" Today.
All references must be sourced to CNBC.
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MARIA BARTIROMO: CONGRESSMAN NICE TO HAVE YOU ON THE PROGRAM. THANKS SO MUCH FOR JOINING US.
BARNEY FRANK: THANK YOU.
BARTIROMO: LET'S KICK IT OFF WITH THAT HEARING THAT YOU'RE CHAIRING TOMORROW. WHAT KIND OF PROPOSALS OF CHANGE ARE YOU EXPECTING?
FRANK: WELL THERE'S A CONSENSUS GROWING I THINK YOU SAW THIS FROM SECRETARY PAULSON WITH HIS PLAN EARLIER THIS YEAR. CHAIRMAN BERNANKE IN JACKSON HOLE. WE HAVE A SUBSTANTIAL UNDERREGULATION WITH REGARD TO THE RISK-TAKING THAT GOES ON, THE EXCESSIVE LEVERAGING AND THE OPACITY OF THE INSTRUMENTS LIKE CREDIT DEFAULT SWAPS AND IN THE NON-BANK AREA OF FINANCIAL SERVICES, THE BANKS ARE PRETTY WELL REGULATED. THEY HAVE BEEN. WHAT'S HAPPENED IS, THAT IN THE AREA OF INVESTMENT BANKS AND OTHER FINANCIAL ENTITIES, IN THE ERA OF SECURITIZATION AND ALL THE TECHNOLOGICAL POWER BEHIND THAT, WE HAVE A WHOLE NEW SET OF ACTIVITIES. COLLATORALIZED DEBT OBLIGATION DERIVATIVES, CREDIT DEFAULT SWAPS, WHICH WERE UNREGULATED AND THEY CAN BE VERY HELPFUL TO THE ECONOMY. BUT IN THE ABSENCE OF SENSIBLE REGULATION, THIS IS A PATTERN WE'VE SEEN SEVERAL TIMES IN AMERICAN HISTORY. THAT INNOVATION COMES FORWARD, IT HAS A LOT OF VALUE ADDED. BUT IN THE ABSENCE OF REGULATION, IT DOES SOME DAMAGE AS WELL, AND OUR JOB IS TO COME UP WITH THE KIND OF REGULATIONS THAT WILL CONSTRAIN RISK-TAKING WITHOUT DAMAGING THE CONTRIBUTION OF THOSE ACTIVITIES CAN MAKE TO THE ECONOMY.
BARTIROMO: ONE PART OF THAT LESSENING THE RISK-TAKING HAS BEEN TO MAKE INVESTMENT BANKS, BANK HOLDING COMPANIES OR AT A MINIMUM MAKE SURE THAT THE INVESTMENT BANKS HAVE THE ASSET BASE, THE DEPOSIT BASE, LIKE A --
FRANK: ABSOLUTELY.
BARTIROMO: DO YOU WORRY, THOUGH, IN THAT VEIN, THAT THERE'S GOING TO BE TOO MUCH OF A CONCENTRATION OF
CAPITAL BECAUSE NOW YOU'RE SEEING LARGER AND LARGER INSTITUTIONS?
FRANK: WELL NOT ENTIRELY BECAUSE - I SAY NOT SUBSTANTIALLY. IN THE FIRST PLACE WE HAVE A NUMBER OF THESE LARGE INSTITUTIONS COMPETING WITH EACH OTHER, SECONDLY, THE WORLD HAS GLOBALIZED AS WITH ANY TRUST POLICY IN GENERAL, THE RELEVANT ARENA NOW -- IT'S NOT JUST IN THE U.S. IT'S THE WHOLE WORLD. CAPITAL IS ABOUT AS MOBILE AS IT GETS. IT'S ONLY SLIGHTLY LESS MOBILE THAN AIR. AND CAPITAL IS GOING TO JUMP AROUND AND BE AVAILABLE. CAN I JUST SAY, MARIA, I REALLY APPRECIATE THE WAY YOU PUT THAT. WE SEE A FLIGHT TO SAFETY IN INVESTMENTS AT A TIME LIKE THIS WE'VE ALSO SEEN A FLIGHT TO REGULATION. WE'VE SEEN A RECOGNITION THAT TOO LITTLE REGULATION IS A MUCH GREATER DANGER TO THE ECONOMY TODAY, SO THAT'S WHY YOU SEE INVESTMENT BANKS UNREGULATED MOVING TO BE COMMERCIAL BANKS MORE REGULATED. YOU SEE IN THE AIG SITUATION, WHERE THE REGULATED ENTITIES, THE INSURANCE COMPANIES GENERATE AND CONTINUE TO GENERATE PROFITS WHICH WERE THEN MISSPENT BY THE UNREGULATED SPECULATIVE ASPECT.
BARTIROMO: YEAH, A LOT OF THINGS. YOU'RE RIGHT. SO THANK YOU FOR EXPLAINING THAT TO US. A COUPLE OF POINTS I WANT TO GET
TO, REPRESENTATIVE FRANK, NUMBER ONE, SECOND STIMULUS PLAN, A LOT OF TALK THAT WE'RE GOING TO SEE A SECOND STIMULUS PLAN, BERNANKE SAID HE THINKS IT'S A GOOD IDEA. HOW MUCH IS NEEDED AND ARE YOU PROPOSING THAT?
FRANK: SPEAKER PELOSI HAS BEEN OUT FRONT AS SHE WAS IN DECEMBER. AS SHE IS TODAY WITH A GROUP OF CONGRESSMEN THAT WE MET WITH. I WAS VERY PLEASED TO SEE BEN BERNANKE SAY THAT. I REALLY APPRECIATE HIS FEXIBILITY AND HIS PRAGMATISM. I THINK YOU'VE GOT TO BE TALKING UPWARDS OF 1% OF GDP, WHICH IS MORE THAN $150 BILLION. IT'S GOT TO PROVIDE SOME MONEY TO THE STATES. YOU KNOW, THE JOB MARKET WE KNOW IS A DISASTER. THE PRIVATE JOB MARKET IS ON TRACK TO LOSE WELL OVER 1 MILLION JOBS UNFORTUNATELY THIS YEAR. UP UNTIL NOW, STATE AND LOCAL HIRING HAD SOMEWHAT OFFSET THAT. BUT THE STATE AND LOCAL GOVERNMENTS ARE NOW IN A TERRIBLE BIND BECAUSE OF THE SITUATION AND THEY ARE GOING TO START LAYING PEOPLE OFF. SO WE ARE TALKING ABOUT HELPING THEM PAY THEIR MEDICAL BILLS SO THEY DON'T HAVE TO LAY OFF A LOT OF OTHER PEOPLE. WE ARE TALKING ABOUT GETTING THEM INFRASTRUCTURE MONEY. AND YOU KNOW INFRASTRUCTURE MONEY OFTEN PEOPLE WILL SAY WELL, IT'S GOING TO TAKE TOO LONG TO GET IT GOING. WE'VE GOT PROJECTS OUT THERE RIGHT NOW AT THE STATE AND LOCAL LEVEL THAT ARE ABOUT TO SHUT DOWN BECAUSE OF THE LACK OF MONEY AND CREDIT CRUNCH TOGETHER. SO THEY'LL GET SOME MONEY FOR THAT AND WE'VE GOT TO EXTEND UNEMPLOYMENT COMPENSATION. AND FINALLY, I THINK IT'S TIME FOR SOME KIND OF TAX RELIEF FOR MIDDLE INCOME AND WORKING CLASS PEOPLE. THE PEOPLE WHO WILL SPEND THE MONEY AS SOON AS THEY GET IT.
BARTIROMO: A LOT OF THINGS TO PAY FOR HERE. AND THIS SECOND STIMULUS IS BEING TALKED ABOUT AT $300 BILLION. IF IN FACT WE WERE TO SEE SOMETHING LIKE THAT MOVE FORWARD, ARE ARE YOU GOING TO ENCOURAGE SENATOR OBAMA AND SENATOR McCAIN TO CHANGE THEIR TAX AND SPENDING PLANS IN ORDER TO PAY FOR ALL OF THIS?
FRANK: WELL, I DO THINK IN THIS CASE, LET ME TELL YOU, MY ENCOURASGING WILL PROBABLY HAVE MORE IMPACT ON SENATOR OBAMA THAN SENATOR McCAIN.
BARTIROMO: SO DO YOU WANT TO ENCOURAGE HIM TO PULL HIS SPENDING PLAN?
FRANK: I THINK AT THIS POINT, THERE NEEDS TO BE A FOCUS ON AN IMMEDIATE INCREASE IN SPENDING AND I THINK THIS IS A TIME WHEN DEFICIT FEAR HAS TO TAKE A SECOND SEAT. I DO THINK THIS IS A TIME FOR A VERY IMPORTANT KIND OF DOSE OF CHANGE. YES I BELIEVE LATER ON THERE SHOULD BE TAX INCREASES. SPEAKING PERSONALLY, I THINK THERE ARE A LOT OF RICH PEOPLE OUT THERE WHOM WE CAN TAX AT A POINT DOWN THE ROAD AND RECOVER SOME OF THIS MONEY. BUT I DO THINK RIGHT NOW, IF WE DO NOT DO THIS KIND OF STIMULUS, THE DEFICIT WILL GET EVEN WORSE THAN IF WE DO IT. BECAUSE THE RESULTING LACK OF ECONOMIC ACTIVITY WILL CAUSE A LOSS IN TAX REVENUES THAT WILL SERIOUSLY DAMAGE US.
BARTIROMO: THEN OF COURSE THERE'S THE OTHER IDEA TO JUST HELP CONSUMERS DIRECTLY IN ADDITION TO WHAT WE'RE SEEING AS FAR AS THE $700 BILLION, FIND THE BAD ASSETS, AS WELL AS BUYING INTO THE BANKS. YOU ARE CALLING ON PRESIDENT BUSH TO APPOINT
SHEILA BAIR TO SUPERVISE THE FORECLOSURE MITIGATION EFFORTS. TELL ME ABOUT THAT.
FRANK: SHEILA BAIR HAS BEEN A GREAT PLEASANT SURPRISE FOR ME IN THE BUSH ADMINISTRATION. WE'VE PASSED SEVERAL PIECES OF
LEGISLATION THAT WOULD ALLOW US TO REDUCE FORECLOSURE. AND I DISAGREE WITH JOHN MCCAIN HERE, I DON'T THINK THE TAXPAYERS OUGHT TO BE PAYING OFF PEOPLE'S MORTGAGES NOR SHOULD THEY BE REWARDING LENDERS WHO MADE IMPRUDENT LOANS, BUT WE SHOULD BE ENCOURAGING THEM TO WRITE THESE DOWN AND THE FEDERAL GOVERNMENT, WHEN IT TAKES OVER MORTGAGES AS WE WILL UNDER THE $700 BILLION PLAN AND AS THE OWNER OF FANNIE AND FREDDIE, IN EFFECT, CAN WRITE THESE DOWN, YES WE THINK THAT VERY MUCH IT SHOULD HAPPEN. BUT I SHOULD HAVE SAID ONE OTHER THING, MARIA, ABOUT THE MONEY. I HAVE ALWAYS THOUGHT THAT THE IRAQ WAR WAS A TERRIBLE MISTAKE. THE ENORMOUS AMOUNT OF MONEY THAT DRAINED FROM US, NOW OUGHT TO BE THE TIME TO, YOU KNOW, YOU NEED
TO LOOK AT ALL OF THESE THINGS IN PERSPECTIVE. THE ARGUMENT FOR WITHDRAWING FROM IRAQ NOW BECOMES ENORMOUSLY GREATER. LET'S DO A STIMULUS NOW. AND WE COULD PAY FOR IT OVER A COUPLE OF YEARS IF WE SPEED UP THE WITHDRAWAL FROM IRAQ.
BARTIROMO: OK SO THAT'S WHERE SOME OF THE MONEY COMES FROM?
FRANK: A LARGE CHUNK. ABSOLUTELY, THE IRAQIS HAVE GOT THIS HUGE SURPLUS. AND I THINK WE CAN TELL THEM THAT THEY CAN TAKE CARE OF THEMSELVES FOR A WHILE AND WE CAN PUT THE MONEY INTO A DEFICIT REDUCTION - A STIMULUS PACKAGE HERE.
BARTIROMO: CONGRESSMAN FRANK, A LOT OF PEOPLE WANT TO KNOW ABOUT THESE SUBPOENAS GOING ON ABOUT LEHMAN BROTHERS. HOW COME EVERYBODY'S BEEN SO QUICK TO GET THE SUBPOENAS AND THE HEARINGS GOING FOR LEHMAN BROTHERS AND NOT SO QUICKLY ABOUT BEAR STERNS?
FRANK: WELL, I CAN'T TELL YOU THAT BECAUSE I HAVEN'T SUBPOENAED ANYBODY AND I'M SIMPLY NOT IN A POSITION TO ANSWER THAT. I DON'T KNOW WHAT'S MOTIVATED AND WHO'S ISSUED THE SUBPOENAS. I MUST SAY THERE SEEMS TO BE PLENTY OF ROOM FOR INVESTIGATIONS ACROSS THE BOARD AND I DO THINK THE BUSH ADMINISTRATION HAS BEEN A LITTLE SLOW IN LOOKING AT THE QUESTION OF POTENTIAL CRIMINAL ACTIONS HERE, ALTHOUGH I ALSO SAY I DON'T THINK THAT IT'S PRIMARILY A MATTER OF CRIMINALITY, IT'S PRIMARILY A MATTER OF VERY BAD PUBLIC POLICY OF ALLOWING ALL THESE INNOVATIONS TO GROW UP AND HAVE ABSOLUTELY NO APPROPRIATE REGULATION.
BARTIROMO: RIGHT, AND NO OVERSIGHT TO SAY OK HERE'S THE KIND OF RISK YOU GUYS ARE TAKING ON AND EVERYBODY'S DOING IT AT THE SAME TIME.
FRANK: YOU KNOW MARIA, IT'S A VERY SIMPLE THING. I THINK WE SHOULD HAVE PROBABLY ALL LISTENED TO OUR MOTHERS. IF I LEND YOU MONEY AND YOU'VE GOT PAY ME BACK, I'M GOING TO BE MUCH MORE CAREFUL THEN IF I LEND YOU MONEY AND I SELL THE RIGHT TO BE PAID BACK TO A HUNDRED OTHER PEOPLE. AND REALLY THAT'S AT THE ROOT OF IT. PEOPLE HAVE NOT BEEN AS CAREFUL WITH OTHER PEOPLE'S MONEY AS WE WOULD BE WITH OUR OWN AND WE NEED TO FIND NEW CONSTRAINTS ON RISK IN THE ERA OF SECURITIZATION.
BARTIROMO: A VERY NICE AND SIMPLE ANALOGY THERE, CONGRESSMAN. LET ME ASK YOU ABOUT THIS $700 BILLION RESCUE PLAN. HOW IS IT GOING TO WORK? TELL ME WHEN IT ACTUALLY WILL GET - THE BEGINNING OF - TO GET EXECUTED?
FRANK: WELL, IT BEGINS WITH A PART OF IT THAT MANY OF US IN CONGRESS, BI-PARTISAN, MY REPUBLICAN COLLEAGUE SPENCER BACHUS PUSHED THIS AS I DID, UNDER THE SPEAKER'S LEADERSHIP ON OUR SIDE, TO BUY INTO THE BANKS AND BY THE WAY PEOPLE SHOULD BE VERY SURE, AS WE BUY SHARES OF THESE BANKS, PEOPLE SHOULD UNDERSTAND THAT WE'RE GOING TO GET THAT MONEY BACK. THAT'S WHY WE KNOW THAT THE 700 BILLION IS NOT ULTIMATELY GOING TO BE A COST TO THE TAXPAYER. IT SHOULD START WORKING SOON BUT AGAIN WHAT HAPPENED WAS ON THE VERY DAY THAT WE PASSED IN THE HOUSE THE RESCUE PLAN OF $700 BILLION, WE GOT THAT JOB REPORT OF 159,000 JOBS LOST FOR SEPTEMBER AND THAT'S ONE REASON WHY THIS HASN'T WORKED AS QUICKLY AND AS WELL AS WE HAD HOPED. YOU GOT A DOUBLE WHAMMY. THE STOCK MARKET WOULD HAVE BEEN HURT BY A TERRIBLE JOB LOSS NUMBER EVEN IF IT HADN'T BEEN FOR THE CREDIT CRUNCH. I DO THINK IT WILL BEGIN TO WORK NOW, BUT I ALSO WHEN I WELCOME BEN BERNANKE'S VERY IMPORTANT ENDORSEMENT OF THIS, I THINK IT'S ONLY GOING TO WORK WELL IF WE HAVE A STIMULUS PACKAGE AS WELL AND I KNOW I'M SOMEWHAT OPTIMISTIC THAT WE'LL BE GOING WITH BOTH ASPECTS.
BARTIROMO: SO YOU'RE SAYING THAT THIS $700 BILLION FUND IS GOING TO START BUYING THE BAD ASSETS IN A MATTER OF WEEKS?
FRANK: NOT BAD ASSETS. REMEMBER THE FIRST 250 BILLION IS GOING TO BE BUYING GOOD ASSETS.
BARTIROMO: SO THAT'S THE PRIORITY, BUYING INTO THE BANKS?
FRANK: BUYING INTO THE BANKS NOW. I WAS DISAPPOINTED WITH JOHN THAIN WHOM I'VE OFTEN ADMIRED. BUT WHEN HE SAID LAST WEELK THAT THEY WERE GOING TO TAKE THAT MONEY AND NOT LEND IT OUT, HE WAS MAKING A TERRIBLE MISTAKE AND I'VE SPOKEN TO SECRETARY PAULSON AND I WAS GLAD TO HEAR HIM SAY THAT THAT WAS NOT APPROPRIATE. THIS IS MONEY THAT IS TO BE LENT TO HEALTHY BANKING INSTITUTIONS THAT ARE IN KIND OF A CREDIT CRISIS THEMSELVES RIGHT NOW SO THEY WILL IN TURN LEND IT OUT. THE $250 BILLION IS IN EFFECT TO GET RECYCLED VERY QUICKLY INTO THE ECONOMY. WE'VE A PROBLEM WITH PEOPLE NOT BEING ABLE TO BUY CARS, WE'VE GOT HOSPITALS SHUTTING DOWN, CONSTRUCTION PROJECTS, WE'VE GOT COMMUNITIES THAT CAN'T TURN OVER THEIR NOTES. THAT'S WHAT THIS MONEY IS SUPPOSED TO GO FOR.
BARTIROMO: I'M TRYING TO FIGURE OUT WHAT THE PRIORITIES ARE BECAUSE OUR VIEWERS WANT TO KNOW HOW IN FACT THIS IS GOING TO WORK.
FRANK: THE FIRST 250 BILLION WILL GO -- 125 WENT TO BUYING AND DENYING LARGE BANKS. 125 BILLION WILL NOW GO INTO BUYING SMALLER BANKS. AGAIN, THESE ARE NOT FAILING INSTITUTIONS. THESE ARE HEALTHY INSTITUTIONS. IF THEY ARE FAILING, THEN SHEILA BAIR TAKES OVER FOR THE FDIC. BUT THIS GOES INTO HEALTHY INSTITUTIONS SO THAT THEY CAN THEN START MAKING LOANS. NOW, BY THE WAY, UNDER THE LAW AFTER THAT FIRST $150 BILLION IS SPENT, THE PRESIDENT WILL HAVE TO CERTIFY THE NEED FOR ANOTHER $100 BILLION. IT'S AT THAT POINT, I BELIEVE THAT WE'LL START BUYING UP ASSETS AND OUR INSTRUCTION AT THAT POINT TO THE SECRETARY, THE CONGRESSIONAL INSTRUCTION, IS BUY UP MORTGAGE ASSETS IN A WAY THAT ALLOWS US, AT THE FEDERAL GOVERNMENT, TO BE IN CHARGE OF THESE MORTGAGES, AND THEN WRITE DOWN THE PRINCIPLE SO WE CAN AVOID FORECLOSURE. THAT'S THE PART OF IT THAT I THINK SHEILA BAIR WOULD BE VERY VERY WELL QUALIFIED TO HELP SUPERVISE.
BARTIROMO: WE'RE OF COURSE WATCHING RIGHT NOW EARNINGS COMING OUT FOR TEXAS INSTRUMENTS $0.43 CENTS A SHARE. BREAKING NEWS HERE. DO YOU THINK WE'LL ACTUALLY SEE THIS MARKET RETURN TO FOCUSING ON FUNDAMENTALS, EARNING NEWS LIKE THE QUARTERLY NUMBERS THAT WE'RE TALKING ABOUT RIGHT NOW IN THE NEAR FUTURE OR DO YOU THINK THAT WE'RE STILL VERY VERY FOCUSED ON THE STIMULUS PLANS AND ALLEVIATING THIS TROUBLED BANKING SYSTEM?
FRANK: I OBVIOUSLY HOPE THAT WE WILL GET BACK TO THE FUNDAMENTALS. I THINK IT'S CLEAR THAT THE FUNDAMENTALS ARE BETTER THAN THE PSYCHOLOGY.YOU KNOW YOU HAVE THIS PROBLEM, IF YOU ARE IN THE MARKET, YOU AREN'T JUST REACTING TO THE MARKET, YOU'RE REACTING TO HOW OTHER PEOPLE ARE GOING TO REACT TO THE MARKET, WHICH IS WHY OVER LONGER TERM, THE MARKET'S A WONDERFUL ALLOCATION OF RESOURCES. SHORT TERM IT'S PRONE TO NERVOUS HYSTERIA. IF WE CAN GO FORWARD ON THIS STIMULUS PACKAGE WITH BEN BERNANKE'S ENDORSEMENT OF AN ECONOMIC RECOVERY, AND WITH THE CREDIT CRISIS, THE ELEMENTS ARE IN PLACE FOR THINGS TO GET BETTER AND I HOPE THAT THEY WILL. BUT WHO KNOWS. WHO KNOWS HOW PEOPLE ARE GOING TO REACT. WE'RE GOING TO ELECT A NEW PRESIDENT IN TWO WEEKS. I WILL SAY THIS. WHOEVER THE NEW PRESIDENT IS, I OBVIOUSLY HOPE IT'S BARACK OBAMA, HE CAN'T DO WHAT FDR DID TO HERBERT HOOVER, SEVENTY WHATEVER YEARS AGO, AND WAIT UNTIL INAUGURATION DAY TO TAKE OVER. IT IS GOING TO BE IMPORTANT PRECISELY BECAUSE AS YOU KNOW PSYCHOLOGY HERE IS SO IMPORTANT.WE'RE GOING TO HAVE TO HAVE THE PRESIDENT-ELECT ON THE DAY AFTER THE ELECTION GET A NIGHT'S SLEEP AND START IMMEDIATELY WORKING WITH THE CURRENT ADMINISTRATION SO WE CAN CARRY THIS STUFF OUT.
BARTIROMO: SO YOU AGREE, TAXES SHOULD GO UP, THEN, FOR THE TOP EARNERS, EVEN IN THIS SLOW ENVIRONMENT?
FRANK: NOT, NOT RIGHT AWAY. I'M WILLING TO WAIT A YEAR.
BARTIROMO: DID YOU ASK HIM TO PUSH THE PLAN BACK THEN? BECAUSE HE WANTS TO RAISE TAXES AS SOON AS HE GETS IN OFFICE, CORRECT?
FRANK: WELL I DO NOT THINK HE HAS SAID RECENTLY THAT HE WOULD DO IT AS SOON AS HE GETS INTO OFFICE. I DO THINK THAT WE CAN INCUR SHORT TERM DEFICIT INCREASE AND NOT RAISE THOSE UNTIL LATER IN THE YEAR. IF THE ECONOMY IS STILL LAGGING BADLY, THEN I WOULD DEFER THE INCREASE. ALTHOUGH I WILL HAVE TO SAY THIS, I THINK IF YOU'RE TALKING ABOUT THE INCOMES OF SOME OF THESE PEOPLE AT THE UPPER END, THE NEGATIVE AFFECT, THE NOTION THAT PEOPLE SAY WELL YOU KNOW I'M ONLY MAKING MAKING $9 MILLION INSTEAD OF 9 1/2 AND I'M NOT GOING TO WORK AS HARD. I DON'T THINK AT THAT LEVEL THAT THAT'S THE MAIN MOTIVATOR. I THINK THERE ARE A LOT OF OTHER THINGS THAT DRIVE PEOPLE, FRANKLY, LIKE YOU AND ME AND PEOPLE WHO ARE AT THE UPPER END OF THE FINANCIAL SYSTEM TO WORK. BUT I DO THINK IT WOULD BE -- LET ME PUT IT THIS WAY. CONCERN FOR A SHORT-TERM INCREASE IN THE DEFICIT IS INAPPROPRIATE AT A TIME WHEN YOU'VE GOT A SERIOUS RECESSION. I THINK THAT'S FUNDAMENTAL ECONOMICS. THERE WILL BE TIME WITHIN EIGHT MONTHS, A YEAR, TO START TO RECOVER THE REVENUE. AND AGAIN I WANT TO STRESS, LET'S START TO PULL OUT OF THE WAR IN IRAQ AND THAT'S A LOT MORE MONEY WE'RE GOING TO GET FROM ANY OTHER SOURCE. AND IT'S A GOOD THING TO DO ON ITS OWN.
BARTIROMO: CONGRESSMAN FRANK GOOD TO HAVE YOU ON THE PROGRAM. THANKS VERY MUCH.
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