[Congressional Record Volume 155, Number 42 (Tuesday, March 10, 2009)]
[Extensions of Remarks]
[Pages E613-E614]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  STOCK MARKET RECOVERY ACT, H.R. 1406

                                 ______
                                 

                         HON. MARK STEVEN KIRK

                              of illinois

                    in the house of representatives

                        Tuesday, March 10, 2009

  Mr. KIRK. Madam Speaker, the stock market's loss over the last six 
weeks suggests that the policies of this Congress are magnifying the 
depths of this recession, not aiding its recovery. Let's look at recent 
events:
  1. Stocks are now traded in a bear market that declined 20 percent 
since the President's inauguration. This decline is faster than any 
other President since the First World War. The decline is steeper than 
Presidents Hoover or Roosevelt experienced. In fact, by this point in 
the Roosevelt administration, the market showed gains.
  2. The market decline accelerated as the Congress and President 
promulgated their policies:
  a. From the year's-end to the inauguration, the market fell 5 
percent.
  b. From inauguration to Secretary Geithner's speech, the market rose 
2.5 percent in anticipation of good economic policies.
  c. From Secretary Geithner's speech to the budget release, the market 
fell 12 percent.
  d. From the budget release to March 6, the market fell another 11.2 
percent.
  As details of congressional legislation and the Administration's 
plans were published, the market accelerated its fall. A number of 
``recession-proof'' industries lost value after the President released 
his budget. Oil prices rose nearly 4 percent, but the value of American 
energy companies fell by the following amounts up to 20 percent.
  In other words, Americans are paying higher gas prices while the 
American companies that hire our people for this sector expect to see 
lower returns on capital. This is not a good trend and sends a strong 
market signal to serve the U.S. market (where prices are higher) from 
offshore facilities (where costs are lower).
  Congress should consider more than just spending and borrowing from 
abroad. Key policies that would make stocks more attractive include:
  Suspending the Mark-to-Market rule that makes banks look less 
valuable than they actually are.

[[Page E614]]

  Reinstating the Uptick rule so that short sellers do not have an 
advantage in driving down the value of stocks.
  Today, I am introducing the ``Stock Market Recovery Act of 2009,'' 
mandating the SEC to implement these reforms. I am confident this will 
be a first step continuing the 4 percent rise we have seen today.

                          ____________________