Economic Stabilization Plan

Floor Speech

ECONOMIC STABILIZATION PLAN -- (Senate - September 24, 2008)

Mr. McCONNELL. Mr. President, Senator McCain has just announced he is willing to suspend his campaign, set politics aside, and sit down with all sides to come to a solution to the looming threat to our economy. That is really an outstanding idea. The threat to Americans and their homes, savings, and retirements is really not a partisan problem, and it will not be fixed with a partisan approach. Americans want to know that their home values and college funds and retirement accounts are safe; in other words, that the problems on Wall Street are not going to spread to Main Street. So I appreciate my colleague's proposal, and I hope it will be given serious consideration.

My constituents are not calling and asking me to help their brokers. They are asking for help to protect their mortgages, their ability to grow their small businesses, their ability to send their kids to college. And they are worried about the security of their life savings. I am concerned that if we do nothing, their savings, their ability to buy a home or finance college, and their financial security are all at very serious risk.

These are not ordinary circumstances, and if this economic stabilization plan was nothing but a bailout for Wall Street bankers, I would not have anything to do with it.

The only reason to support this action is to save ordinary Americans from an economic disaster that they had absolutely no hand whatsoever in creating. And to say that I am more than a little mad at this situation--created largely by bad decisions of those in the subprime housing market--is an understatement.

But if we are to take action, then it needs to put Main Street ahead of Wall Street. This isn't about bailing out investment bankers; this is about keeping the U.S. economy from entering a downward spiral. To that end, any action we take must include the following: No. 1, limits on executive compensation; No. 2, debt reduction; No. 3, congressional oversight and transparency. And yes, of course, taxpayer protection.

With regard to executive compensation, if weak companies are seeking Government assistance, the taxpayers should expect no less than a firm limit on what kind of executive compensation might be possible for those involved in these distressed companies.

Debt reduction. Any proceeds that are earned from the Government buying these assets and then selling them in the marketplace must be used to reduce the national debt. These revenues must not be used to pay for unrelated and unnecessary pet projects.

Congressional oversight and transparency. Americans need to be able to see how their money is being used and that it is being managed wisely. We in Congress will watch where every dollar goes to ensure there is no waste and no funny business.

Taxpayer protection. Americans have a right to expect that there is no fraud or abuse. It is the taxpayer and the American economy we are protecting, and we must take steps to ensure they are protected first.

The American people who were not involved in creating this situation need to be protected from the mistakes of those who were. Main Street needs to be insulated from Wall Street. That is what this plan is meant to accomplish. But we must insist on the protections I have just enumerated.

Mr. President, I suggest the absence of a quorum.

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