Providing For Consideration Of H.R. 7321, Auto Industry Financing And Restructuring Act
Floor Speech
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Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, there is an old saying that the road to hell is paved with good intentions, and I think, today, we realize that the well-intentioned road may lead to bankruptcy, not just for the automakers but, perhaps, for the U.S. Treasury.
Today, we have heard from well-meaning Members of this House that, unless we send $15 billion to the Big 3, the American economy will fail. I don't doubt their sincerity, but I do disagree with their conclusions.
Some of my constituents support the bailout, but most of them don't. As you can see from the picture next to me, the American citizens are hurting right now. The car in this picture is a Dodge Dynasty. By the way, this car has not been produced since 1993, so you can understand the angst of the car owner who realizes that his hard-earned tax dollars and those of his children and grandchildren are going for these bailouts. His message is very clear: Where is my bailout?
The bill before us today does nothing to address the real pain being felt by American citizens. Nothing helps to lower health care costs or to protect the mortgages on their homes.
I would also like to say that we had, again, a rush to judgment, a rush to bringing the bill to the floor, and we need to be concerned about that process. Please remember that Chrysler is a privately owned entity by a massive hedge fund firm in New York City. This hedge fund firm is not willing to invest one cent more in Chrysler, and yet we are asking our cash-strapped taxpayers back home to do it for them.
Like we saw with the last bailout boondoggle, there are not enough safeguards here. We have to remember, too, that the loan and the conditions that are attached to it do not correct the structural weaknesses at these companies. They merely postpone the consequences for a short while. They will be back for more and more and more.
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Ms. GINNY BROWN-WAITE of Florida. This loan policy also continues the tragically flawed policy of picking winners and losers in this economy. Who is to say that the Big 3 are more worthy of financial assistance than are the small businesses that, like the owner of this car, are struggling every single day to survive and to make their payroll.
Mr. Speaker, there is an old saying that ``the road to hell is paved with good intentions.''
Today that well intentioned road leads to bankruptcy, not just for the automakers, but for the U.S. Treasury.
Today we have heard from well meaning Members of this House that unless we send $15 billion to the Big Three, the American economy will fail.
While I do not doubt their sincerity, I must disagree with their conclusions.
Serving on the Financial Services Committee I have listened to hours of testimony from the automakers, their unions, and academic experts.
More importantly though, over the past few weeks I have heard from hundreds of my constituents about how best to deal with the American automakers.
While some of my constituents do support a bailout, the vast majority do not.
As you can see from the picture next to me, the American citizens are hurting right now. The car in this photo is a Dodge Dynasty. It hasn't been in production since 1993.
But his message to Congress is pretty clear, ``where is my bailout?''
the bill before us today does nothing to address the real pain being felt by American citizens.
Nothing in this bill helps my constituents create jobs, lower health care costs or protect the mortgage on their home. In fact this bill takes their hard earned tax dollars to fund yet another bailout.
I would also like to say that I resent the actions of the Democrat leadership and the White House for trying to ram this down our throats at the last minute before the holiday season, with the hope that the American people aren't paying attention.
Well, I have been paying attention, and here are some of my biggest concerns.
Chrysler is privately owned by a massive hedge fund in New York City named Cerberus. If this hedge fund is not willing to invest in Chrysler, why should cash-strapped taxpayers do it for them?
Like we saw with the last bailout boondoggle, this $15 billion today is likely only a down payment. If Congress is honest with the American people they will tell us that a vote for the bailout today is a vote for much, much more in the future.
This loan, and the conditions that are attached to it, do not correct the structural weaknesses at these companies, it merely postpones the consequences for a short while.
This loan continues the tragically flawed policy of picking winners and losers in the economy. Who is to say that saving the Big 3 is more important than propping up the 160,000 small businesses in towns like Clermont or Brooksville that could go under during this recession?
The automakers lose money even when the economy is doing well and creating jobs. GM alone lost $39 billion in 2007. That followed a $10.6 billion loss in 2005 and ``only'' $2 billion in 2006.
This is the best possible time to file for Chapter 11. Sales are at their lowest levels in decades, shareholder equity is already wiped out, and consumer confidence in the Big Three is already shaken. If bankruptcy means that consumers stop buying your brand, why not go through this now while sales are historically low and the explicit backing of the government is on the table?
Put simply, the American taxpayers were sold a bill of goods in the financial sector bailout, and have learned that we cannot trust the current leadership in Congress and the White House to do what is in their best financial interests in the future.
I ask that Members heed the wishes of their constituents and vote down the bill. Let's continue work through December and in the next Congress to put together a bill that protects taxpayers and provides stability in the American automobile markets.
Mr. Speaker, I urge a no vote on the rule and the bill.
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