[Congressional Record (Bound Edition), Volume 154 (2008), Part 16]
[House]
[Page 21861]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   ALTERNATIVE TO WALL STREET BAILOUT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Michigan (Mr. McCotter) is recognized for 5 minutes.
  Mr. McCOTTER. Madam Speaker, before I was elected to Congress, we 
used to hear--and unfortunately with some justification--that when 
faced with a crisis, Members of Congress would invariably soil 
themselves, throw money at the problem, and hoped it went away. 
Unfortunately, in these dysfunctional economic times, we find that this 
process has continued. As American families face a potential meltdown 
of the financial sector, we have seen what I believe to be an 
inappropriate response starting with this administration.
  From the time that we were informed that a potential financial 
meltdown was going to occur, the separate, equal branch of governance, 
which is the United States Congress, was told that we had but one 
alternative, and that if we did not pass it quickly in the time period 
specified by the executive branch, that our economy would be severely 
damaged.
  It has been my opinion that we were elected to serve in this Congress 
by the sovereign people of the United States, to make important 
decisions on their behalf, to do it with our due diligence and our 
devotion that it's due, and to come up with a positive solution to 
their situation.
  Last night, as I watched the President of the United States explain 
his view of this, I was struck by the fact that again we were told that 
if we did not give unlimited amounts of money, up to $700 billion, and 
unlimited powers--with lack of adequate oversight--to the executive 
branch, that we were failing in our due diligence and responsibilities 
to the American people.
  I heard the President of the United States say that if we do not 
support what they put forward as the only alternative to this crisis, 
we do not understand the need to act. That statement is false. We 
understand the need to act.
  We heard from the President of the United States that if we did not 
support his plan and the Paulson plan, that we did not care about 
American families. That statement is false. We care very much about 
American families.
  What we did not hear was a recognition that a three-page document 
that gives to the Treasury Secretary and the Chairman of the Federal 
Reserve unlimited powers--the likes of which Stalin and Mao killed 
people for--was not an acceptable response to give to this separate, 
equal branch of government.
  Today, we are told that House Republicans are standing in the way of 
a $700 billion use of your tax dollars to bail out the very people who 
caused this problem. Guilty as charged. House Republicans believe that 
there is an alternative.
  The administration tells us that their first, last, only resort is to 
go to the taxpayers and bail out Wall Street. We fundamentally disagree 
with this. What we believe should happen is Wall Street should bail out 
Wall Street. House Republicans believe that the toxic assets that are 
clogging up our economy should first attempt to be recapitalized by the 
people sitting on the sidelines with their money waiting for you, the 
taxpayer, to be fleeced and put it in so they are confident that the 
market will work. This is not making the market work.
  I heard from the President last night that the free market has 
failed.

                              {time}  1945

  The free market has not failed. The free market is correcting from 
the bad deeds of actors within that market. It is the government that 
is trying to interfere in the market for political purposes.
  We cannot reinflate the bubble to save the American economy. What we 
need to do is be responsible and lay forward a private recapitalization 
plan with appropriate backstop that first and foremost protects the 
innocent, namely the taxpayers. The people who on Main Street invested 
and saved and had good credit their entire lives should not be asked to 
go back in and help the cowboy capitalists who shot themselves in the 
foot. House Republicans understand this. Just as we understand the need 
to act quickly, we also understand the need to act appropriately.
  This is not an attempt to engage in an argument with the President. I 
have admiration for the President. And I have supported the President, 
as have House Republicans, when he has been correct. But he is in error 
now. House Republicans stood and supported the Petraeus surge so our 
troops would have victory in Iraq. Today House Republicans oppose the 
Paulson splurge so that we can have prosperity in America over the long 
run. And make no mistake. We understand the gravity of this situation. 
But we will not engage in a rush to judgment that destroys the 
possibilities of a free market and prosperity for American families for 
decades to come.
  We will not walk out of this room after a forced vote, waving a piece 
of paper in our hands and claiming ``peace in our time.'' We will do 
the job we were entrusted. And we will get the job done.

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