Fox News "Your World" - Transcript
MR. CAVUTO: A big sell off on concerns that we've got a big bailout coming. Congresswoman Sheila Jackson Lee is for this bailout, does not draw that conclusion.
Congresswoman, always good to have you. Do you think part of the concern, though, is that we just keep pumping out bailouts and no regard to their cost?
REP. LEE: You know, it's good to be with you as well. But let me just say that if we don't want the second in command to Osama bin Laden who issued a hateful statement this morning to just take over because of the absolute collapse of the economy in the United States and around the world, then this is something we need to do. I tie it to the whole issue of terrorism. Why? Because the collapse of America, the undermining of the economy is something that they would clearly celebrate.
So I think it is important because we're talking about the American people. We're talking about jobs.
MR. CAVUTO: Congresswoman, that's the first time I've seen Osama bin Laden drawn into this rescue of the automakers, so touche for originality. But I mean, the fact of the matter is you could be giving good money after bad, right? I mean, this industry is losing, what, 2 billion bucks a month. At the rate they're going, I mean, by the time the new president takes over, they could be hurting all over again, right?
REP. LEE: Well, I don't want to seem to be stretching beyond the boundaries, but I would say is that the capitalistic economy in America can be equated to the underpinnings of our democracy, everyone having an equal opportunity. Of course we're struggling with this, but we're working very hard. But the struggle is to ensure the right kind of requirements and restrictions. It should not be, if you will, an unrestricted bailout, unrestricted help.
MR. CAVUTO: But is it the government's job to sort of prop up capitalism now? That's what I'm asking.
REP. LEE: No. I think it is the government's job to rescue, and that's what this is. And as well, you know that we loaned Chrysler in the 1980s an enormous loan for that time frame. Not only did they pay it back before the time that it was due, but our government gained --
MR. CAVUTO: That loan in today's dollars, ma'am, would be about $5 billion. That's chump change compared to this. Maybe then different cases, different events. I grant your argument.
REP. LEE: No, it's a good example to say that they paid it back.
MR. CAVUTO: But this is a slippery slope. I mean, the financial rescue looked like a waste. Who's to say this isn't a waste?
REP. LEE: Well, I would say that the financial rescue is yet to be tested. I do believe that we should come back again and insist that they move the credit market and also to invest in mortgage workouts.
But let me just reemphasize. When we look at the auto industry, we're looking at manufacturers, we're looking at suppliers, we're looking at auto dealers, we're looking at the civic leaders of our communities, the people who pay for the Little League teams. This is a far-reaching impact, the loss of 3 million jobs or more. You know, I think this is an investment in America.
MR. CAVUTO: Well, get ready for housing guys. They're going to make that argument. Petrochemical guys are going to make that argument. Real estate guys are going to make that argument. They've got a long line of people with tin cups behind them.
REP. LEE: Neil, let me respond to that. Let me respond to that. These times do not equal the Depression -- 30-percent-plus unemployment compared to 8 to 9 percent. But it is a recession, and it does require extraordinary time and extraordinary action. Interestingly enough, I don't know what the voices said when FDR was creating this massive, seemingly government-run business sector, but one thing that happened is that we were strengthened, we had the prosperity of the 1950s with Eisenhower. We got back to our ground legs of capitalism. I believe that will happen now.
We need to intervene, frankly, to save the jobs of Americans. And you know what, Neil? I am concerned that America makes nothing. Wall Street has its place, but we need to be shipbuilding, building roads and making cars, and they need to be better. They need to be better products, hybrid, electric cars. We could have a saying that --
MR. CAVUTO: I hear you, ma'am. But my only concern is once the government steps in -- you mentioned the New Deal -- that's still kind of like the deal. It didn't go away. I mean, bottom line, it stayed. And that might be all well and good. I'm not dismissing it. I'm just telling you that you guys in government, God bless you, you're like the guests at the party who won't leave. I mean, no offense to you. I'd like you at a party. But you don't leave.
REP. LEE: (Laughs.) We don't want to be at the party. But I will say this for you and your ears. The restrictions, obviously, or the guidelines or the requirements certainly, I think, should have an expedited repayment. I think that we should make a profit. Obviously, no bonuses and no parachutes. And certainly, a time line. And I think there should be a requirement to show how the industry will grow, grow itself and make itself better for the American people. But we cannot close our eyes and our minds and our hearts to the American people all over this nation that will lose their jobs and their livelihood if we don't step in.
MR. CAVUTO: All right. Congresswoman, always a pleasure. Thank you very much.
REP. LEE: Thank you.