House Proceeding on Mar 30th, 2009 :: 0:06:10 to 0:11:55
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0:06:07 to 0:06:27( Edit History Discussion )

Brad Sherman: modernize medicare to meet the needs of patients and their families in their final days. thank you very much. the speaker pro tempore: the gentleman's time has expired. the gentleman from california, mr. sherman, for five minutes. mr. sherman: i ask unanimous consent to revise and extend.

0:06:10 to 0:11:55( Edit History Discussion )
Speech By: Brad Sherman

0:06:28 to 0:06:48( Edit History Discussion )

Brad Sherman: the speaker pro tempore: so ordered, without objection. mr. sherman:adam speaker, this country is being treated to kabuki theater in three acts. in the first act, the american

0:06:49 to 0:07:09( Edit History Discussion )

Brad Sherman: people are told, we feel your anger, we share your anger. you have a right to be age reap at a.i.g. and all the -- angry at a.i.g. and all the others on wall street that are bailed out. in the second act, they nick pick any practical proposal

0:07:10 to 0:07:30( Edit History Discussion )

Brad Sherman: that would be adverse to the interests of wall street. and then in the third act we transfer $1 trillion to wall street on very favorable terms. that is to say terms unfavorable to the taxpayer, terms very favorable to wall street.

0:07:31 to 0:07:55( Edit History Discussion )

Brad Sherman: now, the first act is one in which those of us who are angry are told that we are blinded by our anger and therefore should not participate in the decisionmaking. that should be left to those who are blinded by their gulliblity for wall street's demands and interests. we are told that those of us

0:07:56 to 0:08:16( Edit History Discussion )

Brad Sherman: who are angry are stupid peasants with pitch forks and torches. we are told it is wrong to be angry with the bonuses because that's just the tip of the iceberg. and it's wrong to be angry with the $170 billion we gave to a.i.g. because that's too complicated to talk about.

0:08:17 to 0:08:37( Edit History Discussion )

Brad Sherman: the fact is a.i.g. should have been in seavership. that would have -- in receivership. we need to compare a.i.g. to g.m. in just a second. that second act is o in which we nitpicked to death any proposal that wall street disagrees with. we had a proposal to impose

0:08:38 to 0:08:58( Edit History Discussion )

Brad Sherman: taxation on excess compensation, and we're told, oh, we can't change the rules after the game. the fact is this congress has often passed tax laws a few months into 2009 or any particular tax year that would affect the 2009 tax year or even prior tax years.

0:08:59 to 0:09:20( Edit History Discussion )

Brad Sherman: we've done it repeatedly. we just never did it to wall street. and then finally we go to the third act where we transfer $1 trillion to wall street as part of ts public-private partnership. now, how does that work? wall street puts up 6% of the money.

0:09:21 to 0:09:41( Edit History Discussion )

Brad Sherman: they get 50% of the profits and 100% of the control. i would say those are terms very favorable to wall street. i am not blinded by my anger, but i am indeed angry. now, let dealt with a.i.g. and how we dealt with general motors.

0:09:42 to 0:10:03( Edit History Discussion )

Brad Sherman: both entities need to continue to produce. the a.i.g. insurance companies are relatively safe. they're state regulated. they weren't part of the big disaster. the big disaster occurred at the parent company where they opened a casino and all guys on wall street and the powerful interests around the world went to the casino, they placed

0:10:04 to 0:10:25( Edit History Discussion )

Brad Sherman: their bets, they bet against the mortgage market in the united states, they won and they broke the bank and now they are being paid every penny they are owed down to the last penny. how can that be done when a.i.g. is bust? simple. taxpayer money, $170 billion. some of it we put it into

0:10:26 to 0:10:46( Edit History Discussion )

Brad Sherman: a.i.g. and tens of billions of dollars go to overseas banks within minutes. no the -- to general motors? they owe its bondholders and retirees and their workers. what is happening to what is owed by general motors under

0:10:47 to 0:11:08( Edit History Discussion )

Brad Sherman: these contracts? those contracts are being shrunk. the bondholders are going to take about a third of what they're entitled to in cash. the retirees are going to get only about half of what they're entitled to in cash. and the u.a.w. has already made substantial changes in their

0:11:09 to 0:11:29( Edit History Discussion )

Brad Sherman: union contract. so with general motors there is either a bankruptcy or -- and i hope we avoid a formal bankruptcy. there's in effect an informal bankruptcy. what is a bankruptcy? it is a reorganization process in which the company goes forward but its creditors have to take a haircut, have to lose

0:11:30 to 0:11:50( Edit History Discussion )

Brad Sherman: money, and all of the creditors of general motors are losing substantial amounts, even people who worked their whole lives expecting retirement benefits and health benefits when they retired. they are taking major haircuts. what about the rich and powerful that a.i.g. was owed money to? they're getting paid every

0:11:51 to 0:11:56( Edit History Discussion )

Brad Sherman: penny. they demand it. and it comes from the american taxpayer.