Axelrod: "U.S. Can Handle The Truth"

"The American people and the markets can handle the truth," senior White House advisor David Axelrod said, when discussing the Treasury Department's bank stress tests to be released this week.

Face The Nation host Harry Smith noted that there is fear among some that if information about certain banks' financial standing were released it could give way to a run on some of them.

Axelrod argued instead the importance of disclosure. "I think the banks are going to want that, because they're going to want the markets and the country and the world to know exactly what their condition is.

"Yes, some [banks] are going to have some very serious problems," Axelrod said, but he feels confident they have the tools to fix the situation.

On the president's 2010 budget, Axelrod said that the Republican Party has taken an unfortunate political stance in rejecting the proposal.

"There seems to be political decision that has been made that it is better for the Republican Party to say 'No' than to say 'Yes,' or to make constructive contributions to the problem," he said. "We hope that changes."

He also said the issue of Texas secession, which arose during this week's tax protests, "does not warrant a serious response."

More from Face The Nation (4.19.09):

  • Axelrod: Words And Handshakes Not Enough
  • W.H.: No Reason To Hide Torture Memos
  • Heated Debate Over Assault Weapons
  • Read The Complete Transcript> (pdf)

    To watch David Axelrod's appearance on Face The Nation click on the video player below.