[Congressional Record (Bound Edition), Volume 153 (2007), Part 24]
[Senate]
[Pages 33268-33269]
[From the U.S. Government Publishing Office, www.gpo.gov]




              NORTH KOREA AND THE SUBPRIME MORTGAGE CRISIS

  Mr. REID. Mr. President, I always try and be aware of what happens in 
the morning news. The first thing I do when I get up in the morning is 
listen to what is on the radio as to what has developed over the night. 
Everyone knows I have criticized the President on occasion, but I think 
it is also appropriate, when we hear some good news, to throw an 
accolade toward the President on occasions when there are good things 
to talk about.
  I am confident of the reports we get this morning that the President 
sent a personal letter to North Korea's leader, Kim Jong-Il. He sent a 
letter. That is important. I have not read the letter, but all the news 
accounts indicate it is meant as a message to the leader of North 
Korea, to send a message that we want to work with North Korea. That is 
a positive step to breathe new energy into our diplomatic efforts with 
North Korea.
  I have long advocated that we must reach out to people, even though 
we don't like how they are conducting their government. Diplomacy must 
be grounded in communication and the personal touch. In taking this 
step with North Korea, I believe President Bush is taking a page out of 
Ronald Reagan's book of diplomacy.
  There was no elected official, at the time President Reagan was 
elected President, who more disliked the Soviet Union and the Communist 
way of government and life. But the President, President Reagan, 
reached out to them. In his first day in office, he sent diplomats to 
the Soviet Union to try to work things out. As a result of that, he 
held meetings with people he didn't admire and maybe even respect, but 
he did that because he believed, as did Jim Baker, as Secretary of 
State, that it was the right thing to do. And it proved to be the right 
thing to do.
  Too many throughout the world have come to view America's approach 
this past 7 years as ``shoot first, talk later.'' I take this letter as 
a sign that President Bush has learned that communication is not a sign 
of weakness but a sign of strength.
  As I have been saying since the national intelligence report on Iran 
was published earlier this week, we should be taking a diplomatic surge 
approach to Iran. The President should make Secretary Rice and 
Secretary Gates available to meet with their Iranian counterparts to 
begin those long overdue diplomatic efforts.
  On another subject, Secretary Paulson this morning, with the 
President, will unveil the administration's strategy to address the 
crisis in subprime lending. We know the effort will not cover 
everything, but it is a step in the right direction. We don't know the 
details of this plan yet, but I am glad to see the White House 
beginning to address this awful situation that now threatens the homes, 
security, and the way of life of millions of Americans, including about 
150,000 Nevadans.
  In Nevada, we continue to work hard locally with constituent services 
and in education to make at-risk homeowners aware of the options 
available to them. This crisis calls for national leadership and we 
look forward to Secretary Paulson's proposal. We believe our proposal, 
FHA Modernization Act, goes even further than the administration's.
  Earlier this week, Secretary Paulson called upon Congress to pass the 
FHA bill. Mr. President, we have been trying to do that. We have been 
prevented from passing it because of the Republicans. Secretary Paulson 
is part of a Republican administration. He should lean on the minority 
here in the Senate to allow us to get this passed. I call once again 
upon Senate Republicans to heed the call of millions of at-risk

[[Page 33269]]

homeowners and to heed the call of Secretary Paulson, to pass the FHA 
Modernization Act. The only thing standing in the way of passing this 
bill, so we do not pass it, is the Republicans.
  On November 15, we tried at the same time to pass the FHA Act to 
assist at-risk homeowners and the Transportation-HUD appropriations 
conference report. That bill was so important because, in that, Senator 
Murray provided $200 million for foreclosure counseling and mitigation. 
We have learned over the months this foreclosure crisis has been before 
us that people simply need to know how to get out of the problem they 
have. People in the home will lose, the lender will lose, the community 
where the home is located will lose. We need to try to keep people in 
these homes. That is why the FHA Modernization Act is so important.
  The Banking Committee sent the FHA Modernization Act to the floor 
with a 20-to-1 vote. As I said, Secretary Paulson, whom I respect, 
called for Congress to pass it. We can't do it unless he gets his 
Republican Senators to support this.
  Much of the burden for this crisis that exists in America today has 
to be met by the Finance Committee. The chairman of the Finance 
Committee is on the floor today. With him being present, I am going to 
ask unanimous consent the Senate proceed to the immediate consideration 
of Calendar No. 481, S. 2338, the FHA Modernization Act; and that the 
Dodd-Shelby amendment at the desk be considered and agreed to; the 
bill, as amended, be read a third time, passed, and the motion to 
reconsider be laid on the table, and any statement relating to this 
matter be printed at an appropriate place as if given.
  Mr. President, before I hear from my Republican colleagues as to 
whether there is going to be objection, let me repeat: The Secretary of 
the Treasury, appointed by President Bush, has called for passage of 
this legislation. We want it passed. We hope it could be passed. It 
would do a great deal to alleviate some of the problems facing our 
country.
  I met yesterday with realtors from Nevada. They said if this passed, 
it would be a tremendous boost to their ability to work out some of the 
problems we are having in Nevada, as we are having around the country.
  I came to the floor to say positive things about the President's 
actions to help as many as 200,000 people. That is, their efforts 
today, his and Secretary Paulson's efforts today, will help about 
200,000 people. That is about 10 percent of the people in real trouble.
  Is that enough? Of course it is not enough. But it is a step in the 
right direction. This FHA unanimous consent request I have made is also 
a tremendously big step in the right direction. I hope my Republican 
colleagues will not object and we can go forward with this legislation.
  The ACTING PRESIDENT pro tempore. Is there objection?
  The Senator from Wyoming.
  Mr. BARRASSO. Mr. President, I object on behalf of Senator Coburn.
  The ACTING PRESIDENT pro tempore. Objection is heard.

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