Emergency Economic Stabilization Act Of 2008
Madam Speaker, I rise in opposition to the Emergency Economic Stabilization Act of 2008. As an elected official tasked with the tremendous responsibility of protecting the taxpayers' interests and money, I cannot in good conscience support…
Madam Speaker, I rise in opposition to the Emergency Economic Stabilization Act of 2008. As an elected official tasked with the tremendous responsibility of protecting the taxpayers' interests and money, I cannot in good conscience support this fundamentally flawed legislation before us today.
As Chairman of the House Judiciary Committee, I am often required to engage in oversight of the enforcement of our nation's antitrust laws, the statutes which ensure the competitive balance of our free market economy. One of the important things I have learned during my tenure is that the free market serves America best when it keeps prices low for the people on Main Street and doesn't cater to the titans of Wall Street. The only way this properly functioning market can be realized, is when no corporation or bank is allowed to become too big or too powerful to fail. Otherwise, corporations grow too bold, and begin to take more risks than a prudent business afraid of bankruptcy should.
For the last 8 years, President Bush has governed from the intersection of Pennsylvania Avenue and Wall Street; leaving Main Street behind. Desperately needed priorities like children's health insurance and heating fuel for the poor have gone unfulfilled, while the top one tenth of one percent have benefited from dramatic cuts to the capital gains and income taxes. During this same time, President Bush's Justice Department sat by as the financial juggernauts grew larger and larger and their financial wheeling and dealing grew more and more reckless.
Now, President Bush has proposed a $700 billion dollar bailout of Wall Street. And why is the Congress held hostage? Because financial institutions and investment banks are too big to be allowed to fail. Unless the American tax payer foots the bill for Wall Street's risky behavior, credit will freeze, investment will cease, and the economy will crash and burn.
Or so the President's former Goldman Sachs executive, Treasury Secretary Paulson, would have us believe. I am not sure, considering the source here.
True, buying the worthless mortgage backed securities from these firms and banks would likely improve their ability to lend. I'm sure it's just a coincidence that this approach also magically turns institutions on the verge of collapse back into profitable business ventures.
If injecting credit into our financial industry is the solution to the current supposed credit squeeze, why hasn't this body been given the option to vote for other proposals, like giving tax payers a no- risk equity stake in the bailout recipients or supporting the direct injection of capitol into the financial industry, as we did during the Savings and Loan crisis of the 1980s? The likely reason is because Wall Street would have to give up a piece of its wealth; something this crony-capitalist Administration is loathe to do.
Although the President's radical proposal has gradually been improved over the last week by the Leadership, the fundamental structure and capital delivery method remains flawed. No number of federal loan modifications or oversight boards will alter that.
People all over the country are up in arms over this bailout, not because it's not necessary, but because it is just more of the same. The American people can't take another transfer of wealth from the working class to the upper crust. I encourage my colleagues to vote today to scrap this deal so that we can put together a real plan that addresses the credit crunch by directly injecting capital into the markets, updating our outdated regulatory structure, helping people who are struggling to stay in their homes, legitimately providing for the recoupment of taxpayer dollars, and restoring the competitive balance of the free market by ensuring that no firm is too big to fail.