No longer cabinet nominee, Gregg speaks out

A day after stunning official Washington by pulling a "never mind" on his nomination to be commerce secretary, Senator Judd Gregg gave mixed reviews today to two key economic recovery initiatives of the man whose cabinet offer he eventually spurned.

The New Hampshire Republican said on CNBC this morning that Obama is on the right track in trying to shore up the financial system, despite the criticism that Treasury Secretary Timothy Geithner was much too vague in outlining the proposals this week.

"You are talking over a trillion dollars ... to clear off the books in the areas of consumer credit and commercial-backed real estate loans. That's big," Gregg said. "You are talking very strong initiatives in the area of foreclosure abatement. And you're talking a significant commitment to capital into the banks coming in either a direct infusion or through buying bad debt off their books."

But Gregg said that Obama made a "tactical error" made on the $789 stimulus bill, expected to be approved by Congress as early as today, by allowing the budget committee leaders to write most of the bill.

Gregg is expected to vote against the stimulus package, which he said "should be focusing mainly on trying to stabilize the real estate markets, and promoting small business and getting jobs."

Gregg is breaking his silence after taking the unusual move of recusing himself from voting on any and all Senate matters while his nomination had been pending. In announcing his withdrawal on Thursday, he said he concluded he had too many policy differences with Obama.

Obama, meanwhile, has been publicly more understanding of Gregg's change of heart than the initial snippy White House statement, which suggested that Gregg knew that by accepting the nomination, he would have to back Obama on policy.

The president told reporters aboard Air Force One last night that he and Gregg agree on 80 percent of the big issues that Americans care about.

And during a dinner in Springfield, Ill., commemorating the 200th anniversary of Abraham Lincoln's birth, Obama even managed to joke about the turn of events.

"In 1854, Lincoln was simply a Springfield lawyer who'd served just a single term in Congress, possibly in his law office, his feet on a cluttered desk, his sons playing around him, his clothes a bit too small to fit his uncommon frame, maybe wondering if somebody might call him up and ask him to be commerce secretary ..." Obama said, trailing off as the crowd burst into laughter.

Senator John McCain, the GOP presidential nominee last year, opined today on Gregg's decision.

“I’m not sure of the evolution in Senator Gregg’s thinking, but I’m glad to have him back,” he said on Fox News Channel, according to excerpts released by the network.

McCain disputed suggestions that fellow Republicans were angry with Gregg and forced him to withdraw.

“I don’t think Senator Gregg was pressured by anybody," he said. "He’s a bit of a New Hampshire-ite with free will and thinks for himself.”