[Congressional Record (Bound Edition), Volume 154 (2008), Part 3]
[Senate]
[Pages 3519-3520]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              MORNING NEWS

  Mr. REID. Mr. President, every morning when I get up, I go out and do 
my exercise. It takes about an hour. I usually listen to public radio. 
I am anxious to hear the news in the morning to see what has happened.
  This morning, hearing the morning news was very distressing. It was a 
terrible day both at home and abroad in Iraq. A coordinated suicide 
bombing killed--we don't know how many at this stage--at last count, 
about 70 and injured at least 120. We don't know how many, but 120 will 
die. It happened in a crowded Baghdad shopping district.
  A couple days ago, another attack killed 26. A few weeks ago, a 
horrifying suicide attack on Shiite pilgrims killed about 100. This 
doesn't take into consideration the kidnappings, the small bombings, 
and other acts of terror that take place in Iraq every day.
  Although it may have receded from the front pages of our newspapers, 
there is no doubt the Iraqi civil war wages on, with no end in sight.
  There are 150,000 brave young Americans in that far-off land policing 
another country's civil war. Our troops are shouldering an enormous 
burden of the war, but all Americans are suffering the consequences. We 
are now spending $12 billion a month on that war. That is more than 
$400 million every day, $17 million every hour. In my short remarks 
here, we will wind up spending about $5 million in Iraq. Mr. President, 
$12 billion a month from a country, our country, that is staggering 
economically; $12 billion a month to build roads in Iraq while our own 
roads crumble.
  From where does this money come? It is all borrowed. President Bush 
already burned through trillions of dollars prudently saved by the 
Clinton administration and has spent trillions of dollars on tax 
giveaways for big business and the superwealthy.
  We are putting the cost of the war on credit cards. Who will pay the 
bill? My children, my children's children and my children's children's 
children will be paying this bill. Future generations will be burdened 
with paying this bill, plus interest; meanwhile, the burden of an 
economy that is spiraling downward every day.
  This morning's news on the economy announced the U.S. economy lost 
63,000 jobs last month. When I first started listening to the news this 
morning, they expected this report to come out that they expected 5,000 
jobs lost. They were 58,000 wrong; there were 63,000 jobs lost--the 
largest monthly job loss in nearly 5 years. For the second month in a 
row, our country has lost jobs. We also learned that the number of jobs 
lost in January was larger than previously reported. The number has 
been revised up to more than 20,000.
  It comes as no surprise that the manufacturing and construction 
sectors were among the hardest hit. Manufacturing had 52,000 jobs lost; 
construction, 39,000 job losses. Homebuilders are laying off 
construction workers as new homes remain unsold. Today, we learned the 
fourth quarter of 2007 saw the highest level of homes having 
foreclosure in our history. And now the amount of equity Americans have 
in their homes has dropped to the lowest level since World War II.
  Yesterday, oil went to more than $106 a barrel. We all remember when 
we were concerned when it hit $50 a barrel. It was good news last night 
because it dropped to $105.47 a barrel.
  The American people are already struggling under the enormous burden 
of skyrocketing prices for groceries, heat for their homes, gasoline.
  I heard my friend, the distinguished junior Senator from Texas, say 
that during the Bush administration 9 million jobs have been created. 
That is nothing to brag about. During the Clinton 8 years--this 
President has been on the job 7 years and going on 3 months--President 
Clinton created 23 million jobs.
  By every indication, things are getting worse. President Bush said 
this week that he does not believe our country is heading for a 
recession. This morning, all signs say he is wrong. But regardless of 
what label we use, there is no doubt whatever that people in America 
are suffering. There is likewise no doubt that if we do not take 
action, things will get worse.
  The economic stimulus bill we passed last month will help. I am 
pleased Democrats were able to secure rebates for 21.5 million senior 
citizens and 250,000 disabled American veterans in the bill that was 
passed. There is no doubt that an extra $600 will help Americans pay 
for groceries, health, and gas. But no one thinks this economic 
stimulus is enough to turn our economy around. We must legislate the 
growing housing crisis--the eye of the economic storm.
  President Bush, who does not think America is headed for a recession, 
responded to the housing crisis by directing Secretary Paulson to 
create a voluntary program to encourage banks to work with homeowners 
facing foreclosure. Do we need a directive from the President to tell 
banks to work with homeowners who are facing foreclosure? I hope not.
  This week, Secretary Paulson released data on the President's 
proposal. How did the voluntary approach work? Not very well. Just a 
drop in the bucket. It helps hardly any; some say about 2 percent. For 
hundreds of thousands, the only thing this offer did was to add on the 
amount of the missed payment to the amount due. That is not a 
modification. That will do nothing to help struggling families keep 
their homes.
  The voluntary efforts Secretary Paulson led have had a positive 
impact but not much. Even one family saved from foreclosure is a good 
step. But with millions at risk to lose their homes and the news 
growing worse every day, the Bush administration's voluntary program is 
not the way to approach this.

[[Page 3520]]

  Last week, we introduced a comprehensive housing stimulus bill that 
would help hundreds of thousands of homeowners that the President's 
voluntary program leaves behind. It has five points to help families 
avoid foreclosure: First, by improving loan disclosures. Second, we 
help families avoid foreclosure by increasing preforeclosure counseling 
funds. Third, we expand refinancing opportunities for homeowners stuck 
in bad loans. Fourth, we provide funds to help the highest need 
communities purchase and rehabilitate foreclosed properties. Fifth, we 
amend the Bankruptcy Code to allow home loans on primary residences to 
be modified.
  How have our Republican colleagues responded to our responsible plan? 
They blocked us from going forward, stopped us. The Republicans 
proposed an alternative plan consisting of four concepts. One of these 
was to change the tort law. This is not the way to go. One of their 
other proposals was to lower taxes. This is not the way to go.
  Just this week, Chairman Bernanke said the crisis demands a vigorous 
response. He said:

       Reducing the rate of preventable foreclosures would promote 
     economic stability for households, neighborhood, and the 
     Nation as a whole. Although lenders and servicers have scaled 
     up their efforts and adopted a wider variety of loss-
     mitigation techniques, more can, and should, be done.

  Those are the words of Chairman Bernanke, a call for our legislation 
to pass. That is what we need to do. Voluntary programs will not work. 
We have to move forward. We ask the Republicans to join with us in this 
most important legislation and stop blocking our ability to stimulate 
the economy as it relates to housing. They have to stop being beholden 
to the big banks and Wall Street and be beholden to the people who are 
in trouble--middle-class America.
  We have a few things left here.
  My friend from Montana, who has, at this stage of the year, probably 
the most important job in the Senate, being chairman of the Finance 
Committee--every problem we have, we go to the Finance Committee to see 
what we can do to work it out. So I appreciate the good work of my 
friend from Montana. The people of Montana are fortunate to have this 
good man as their Senator because we all know that with Senator Baucus, 
Montana comes first, but we all know, all of us serving in the Senate, 
that he is a reservoir of good will, intelligence, and understanding, 
and he helps us all with our problems.
  The PRESIDING OFFICER. The Senator from Montana.

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