"No" On the Bush-Paulson Bailout Package

``NO'' ON THE BUSH-PAULSON BAILOUT PACKAGE -- (House of Representatives - October 02, 2008)

Ms. KAPTUR. Madam Speaker, for the second time in one week, this House is confronted with a momentous vote on the economic emergency facing our Nation, and it is imperative that we get it right. We must do the right thing. We must vote ``no'' on the Bush-Paulson bailout package. Three days have passed since we rejected that inadequate proposal, but one thing hasn't changed: This is still a bailout for Wall Street. One thing has changed: The cost has increased dramatically. Believe me, if you didn't like the first version of the Bush-Paulson bailout, you're going to hate this one because it's even worse, 22 percent worse.

On Monday, the bailout bill would have cost the American taxpayer $700 billion. Three days later, the bill coming from the Senate is going to cost us $850 billion, driving up our deficit, driving up our borrowing. The Senate drove up the cost of the bailout by 22 percent by adding tax giveaways for special interest groups. America might be facing an economic emergency, but it's Christmas in October in the Senate here in Washington. The Bush-Paulson bailout bill is loaded up like a Christmas tree with ornaments known as tax giveaways for special interests. These ornaments will make a lot of people rich, but your children, grandchildren and great grandchildren will have to pay for them for years.

When this body, having been rushed to judgment by the President and by our own leadership, rejected the plan on Monday, it was alleged that the House vote was responsible for the Dow Jones Industrial Average's falling by 700 points. So how do we explain the fact that the stock market fell almost 350 points today, the day after the Senate passed the Bush-Paulson bailout bill?

What the stock market said today was heads you lose; tails you lose. America will still have a housing crisis even if the House puts the American taxpayer on the hook for another $870 billion for Wall Street. So don't believe people who tell you that the market is responding negatively to votes against the Bush-Paulson plan. The stock market is reacting negatively to the lack of leadership. The market knows that the Bush-Paulson plan is the wrong medicine. It knows the Bush-Paulson plan will not solve the problems in our economy.

Madam Speaker, the American people have already spoken, and the financial markets are speaking, too. The Bush-Paulson plan, even this porked-up version, is not the solution of the economic emergency facing our country, and that is why the House should not rush to judgment.

This House should stop and take a deep breath and make a commitment to stay in session until we enact comprehensive reform of the financial system and not take a quick vote on a stopgap plan that will cost the taxpayers $870 billion and counting. As I have said all along, we have to have reform first, not last after they take the money.

I know there's a political sideshow underway, and I realize that certain Members face tough reelection battles and that they desperately want to wrap up business here so that they can go back home to campaign. To them, I would say, ``Trust your constituents. They will respect you for staying in Washington to address the economic emergency rather than your running home to shake hands and to kiss babies.''

Madam Speaker, the Senate's response to the House rejection of the Paulson plan was to add more spending. So we got tax breaks for rum. You've got it right. R-U-M. We got tax breaks for mine rescue teams, tax breaks for railroads, tax breaks for automobile race tracks, and tax breaks for wool research. I'm not making this up. They added tax breaks for movie and television productions, 6 pages of earmarks for Alaska for litigation in the Exxon Valdez disaster and, the coup de grace, tax breaks for wooden arrows designed for use by children.

Now, our Nation is facing an economic emergency, and the Senate adds a tax break for wooden arrows designed for use by children. One would ask: Children's wooden arrows? Why not the bows, too?

This is surreal. The American people deserve better. It appears that the Bush-Paulson team has failed to sell the country on the merits of a Wall Street bailout, and has decided to buy the package. We saw the same thing here in 1993 when the Clinton administration couldn't sell NAFTA on its merits and, instead, opened the Federal Treasury to buy the votes of enough Members to win passage.

Let's get back to reality, but first of all, everybody needs to calm down. Don't give in to fear and don't give in to panic. We need regular order in this House. We need to be the deliberative body that our system of government envisions and demands.

First of all, this downturn is not--I repeat ``not''--as serious as ever faced by our Nation. In the late 1970s and early 1980s, the conditions were much worse: 3,000 banks failed. Interest rates shot up to 21 percent. Hundreds of agricultural banks failed. In using the powers of the FDIC and their emergency authorities, we worked it out without 1 cent being charged to the taxpayer.

Madam Speaker, I want to thank you for giving me the time this evening. We face a real financial crisis, and we ought to stay here until we resolve it the right way, not the fast way.

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