Senate Proceeding on Sep 25th, 2008 :: 0:11:04 to 0:18:25
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0:09:58 to 0:11:04( Edit History Discussion )
Speech By: Kay Hutchison

0:10:53 to 0:11:04( Edit History Discussion )

Kay Hutchison: to be recognized as if in morning business. the presiding officer: so noted. mr. isakson: the members of the united states senate and the members of the house of representatives will be called upon

0:11:04 to 0:11:18( Edit History Discussion )

Johnny Isakson: to make what very well may be the most important decision that any of us have been asked to make certainly domestically. there's been a lot of reckless comments, a lot of sobering comments, there's

0:11:04 to 0:18:25( Edit History Discussion )
Speech By: Johnny Isakson

0:11:18 to 0:11:31( Edit History Discussion )

Johnny Isakson: been a lot of speeches made on this floor, a lot of accusations made regarding the recovery or rescue supposed by secretary paulson. it is important to make sure that facts are reported accurately.

0:11:31 to 0:11:43( Edit History Discussion )

Johnny Isakson: second of all, that we give ourselves thehance to get this action right. because there will be no second chance. yesterday two united states senators, senator coburn from oklahoma and senator gregg

0:11:43 to 0:11:55( Edit History Discussion )

Johnny Isakson: from new hampshire made eloquent, accurate, and sobering speeches about the gravity of the economic situation we face, but also correcting some of the accusations that were made by some about the recovery

0:11:55 to 0:12:12( Edit History Discussion )

Johnny Isakson: that has been proposed. this morning i was heartened to see two people in the media make comments early on the morning news which gave me hope that we're finally coming to a point where people are

0:12:12 to 0:12:30( Edit History Discussion )

Johnny Isakson: going to report facts rather than fantasy. ari bellcher in fielding a question from a listener who blamed the recovery from being a -- for being a rescue of wall street pointed out to them, this is

0:12:30 to 0:12:42( Edit History Discussion )

Johnny Isakson: not a rescue of wall street. we're giving the chance for the liquidity of the banks, financial institutions of the united states of arica. boone pickens who was interviewed, ostensibly he lost lost $33 million.

0:12:42 to 0:12:54( Edit History Discussion )

Johnny Isakson: when asked about the consequences of us doing nothing, he said very simply, you must trust mr. paulson. i trust him to do what's right. those are sobering comments. i thought what i would do for a little

0:12:54 to 0:13:05( Edit History Discussion )

Johnny Isakson: bit is try to set the record straight or at least accurately on some of the things that have gun on, some of the things that are going on and what the paulson proposal can do when it is perfected

0:13:05 to 0:13:20( Edit History Discussion )

Johnny Isakson: to help us in a difficult period of time. first of all, as i said on the floor of this senate, on many occasions the villain in this situation is very essentially wall street's investment banking community

0:13:20 to 0:13:33( Edit History Discussion )

Johnny Isakson: and the moody's and standard & poors rating agencies. moody's and standard & poors wrote it at investment grade. they sold them around the world and when those high risks, poorly qualified, high-yielding

0:13:33 to 0:13:45( Edit History Discussion )

Johnny Isakson: loans were made and began to be defaulted on, the securities started losing their value and they lost them at a rapid rate. they became known as subprime securities or as some called them, toxic assets.

0:13:45 to 0:13:57( Edit History Discussion )

Johnny Isakson: the problem that faces the country today is the uncertainty and the sal -- in the value of those assets has plummeted their value to virtually zero. there is no market. the american people yesterday

0:13:57 to 0:14:10( Edit History Discussion )

Johnny Isakson: in looking for place to invest their money were willing to take zero interest to buy treasury bills. meaning they were looking for a place to park their money. we're not in a time where there is

0:14:10 to 0:14:25( Edit History Discussion )

Johnny Isakson: confidence in the investment community and everybody is worried and concern. secretary paulson's proposal is to spend up to, and i would use the word invest, up to rather than spend, $700 billion

0:14:25 to 0:14:41( Edit History Discussion )

Johnny Isakson: to purchase from financial institutions these mortgage-backed securities at a discounted price established by the secretary. assuming for a second the discounted price is 50%, that $700 billion would actually

0:14:41 to 0:14:50( Edit History Discussion )

Johnny Isakson: take off the shelves shelves $1.4 trillion in mortgage-backed security assets held currently by financial institutions. a significant amount of money. the minut -- the minute the treasury begins to buy these

0:14:50 to 0:15:04( Edit History Discussion )

Johnny Isakson: entities and these securities, there are going to be people coming back to the market to buy them as well, because think about this, mr. president. if you buy a security at 50 cents on the dollar,

0:15:04 to 0:15:16( Edit History Discussion )

Johnny Isakson: you're reducing by what the company paid for it, their investment by 50%. if the default rate on mortgages on subprime loans in the country is 12% or 15%, which in some cases it is, that's only 85%

0:15:16 to 0:15:28( Edit History Discussion )

Johnny Isakson: of 100, which means there is a 35% spread if those mortgages that are paid to maturity. and so with the strength of the country being able to buy those securities, hold those securities to maturity,

0:15:28 to 0:15:44( Edit History Discussion )

Johnny Isakson: there very possibly is a significant margin for the treasury of the united states. the amount of the investment made by this country will never be $700 billion. it will be somewhere between $700 billion

0:15:44 to 0:16:03( Edit History Discussion )

Johnny Isakson: and whatever we recover those securities from upon their maturity, which well could be $500 billion, $600 billion, $700 billion, even maybe possibly a margin above it. but this is not an investment

0:16:03 to 0:16:15( Edit History Discussion )

Johnny Isakson: to save wall street. this is an effort to derive liquidity to lending institutions to serve the people who now are struggling to get credit for their small business or for a car loan or mortgage. it is also

0:16:15 to 0:16:29( Edit History Discussion )

Johnny Isakson: important to recognize the actions taken by the fed and the treasury in the weeks leading up to this decision, have been in some case misrorted. the bear stearns investment of $29 billion helped the

0:16:29 to 0:16:40( Edit History Discussion )

Johnny Isakson: transaction to be made that cost bear stearns to lose 90% of its value. that is not a bailout. a.i.g. is paying the taxpayers of the united states of america 8.5% on a loan we made to a.i.g. to

0:16:40 to 0:16:50( Edit History Discussion )

Johnny Isakson: allow them to liquidate themselves, a loan, by the way, mr. president the united states treasury will make money. the proposal that's being made in those two are off balance sheets for the united states.

0:16:50 to 0:17:02( Edit History Discussion )

Johnny Isakson: the $700 billion proposal is on the balance sheet and it will create a liability, and during its maximum time it will raise the debt. but as the securities are held to maturity, as they are sold at

0:17:02 to 0:17:14( Edit History Discussion )

Johnny Isakson: a price between the discount they're purchased for and the value they ultimately are redeemed for, the united states treasury will have a reduced and diminished liability. now i'm not here to sell

0:17:14 to 0:17:26( Edit History Discussion )

Johnny Isakson: the secretary's proposal, and i'm anxious to wait for the meeting this afternoon to see the final details. but i am sayg words are important. and loose lips at a time like this in our country are

0:17:26 to 0:17:40( Edit History Discussion )

Johnny Isakson: very dangerous. for us to castigate a recommendation to save our economy that in fact is a rescue and not a bailout is wrong. and it's wrong for elected officials like me or anyone else to take

0:17:40 to 0:17:52( Edit History Discussion )

Johnny Isakson: fast and loose facts and apply them to a situation that's the gravest we've faced in this country for a long, long time. so i take the word of boone pickens to take confidence in those we've entrusted

0:17:52 to 0:18:04( Edit History Discussion )

Johnny Isakson: to represent us, in this case secretary paulson. i take solace in the words of the president last night and the sobering comments of judd gregg on the floor of this senate -- senator gregg -- when

0:18:04 to 0:18:15( Edit History Discussion )

Johnny Isakson: he explained accurately and correctly the financial effects of doing nothing in this situation. mr. president, we have 48 to 96 hours to make a decision. let's make it on the facts. let's make it in

0:18:15 to 0:18:25( Edit History Discussion )

Johnny Isakson: the best interest of the american people. let's make it in the best interest of main street. because after all and in the end, those are the people we serve, the ones that go to our banks, our savings

0:18:25 to 0:18:35( Edit History Discussion )

James Inhofe: and loans, run our small businesses and are our next-door neighbors. they were the americans that we represent. they are the georgians that i represent. when i make the decision this weekend, it's going

0:18:25 to 0:48:28( Edit History Discussion )
Speech By: James Inhofe
Bill: H.R. 7022: To reform the financing of House elections, and for other purposes