CNN's Jessica Yellin talks to TARP Congressional Oversight Chair Elizabeth Warren about the details of her report about to be released to Congress. Warren stressed the need to get legislation passed to give the government resolution authority over these "too-big-to-fail" institutions so the taxpayers aren't put on the hook again when they "mess up". That's a kind way to put it, but she's right.
You've gotta' love Jessica Yellin asking if it's "un-American" to regulate these industries. Unbelievable. I've got to wonder just how much more out of control she thinks they should be allowed to get before it's "American" to do something about it.
YELLIN: Well, the white house plan is just the latest controversy over T.A.R.P. the Congressional oversight committee is about to release a December report, a detailed review of T.A.R.P. to date. Elizabeth Warren is the chair of the T.A.R.P. Congressional oversight committee and joins me now from Washington.
Elizabeth, so good to see you again. The bailout, we know, was unpopular, as the president acknowledged today. But I remember a year ago, the prognosticators were warning of economic calamity. People certainly are hurting today, more than 60 million unemployed. But a second great Congressional didn't happen. So could we argue that the bailout actually worked?
WARREN: Absolutely. One of the things that we conclude in our report, which will be out tomorrow, is that the bailout was part of a larger, strong government response that probably kept this economy from tumbling over the abyss. So in that sense, we have to admit T.A.R.P. did its job. Now, T.A.R.P. was also supposed to do a lot of other things and we should also evaluate along those metrics. But for the number one thing, that is stop the crisis and stop that feeling that it's all tumbling into depression, it did it.
YELLIN: All right. Let's talk about some of the other things. It was supposed to unfreeze credit and make sure credit was flowing. It was supposed to help keep jobs and businesses from laying off employees. It was supposed to help homeowners in some way through a trickle-down effect to keep their homes. How well has it scored on some of those measures?