Congressional Record—Senate S8996

S8996 CONGRESSIONAL RECORD — SENATE September 18, 2008 UNANIMOUS CONSENT REQUEST— grams for disabled veterans, traumatic Northeast and the Resolution Trust S. 1315 injury coverage for active duty service- Corporation came in, as well as the Mr. AKAKA. Madam President, I ask members, automobile and adaptive FDIC under Chairman Seidman. Chair- unanimous consent that the Veterans’ equipment benefits for individuals with man Seidman did an extraordinary job, Affairs Committee be discharged from severe burn injuries. In addition, the by the way, for us. We had to reorga- further consideration of H.R. 674 and bill includes a provision that would nize our banking system. The assets the Senate proceed to its immediate correct an injustice done to World War fell into the hands of the Resolution consideration; that all after the enact- II Filipino veterans over 60 years ago. Trust Corporation, which then pro- ing clause be stricken, the text of S. It grants recognition and full veterans ceeded to dispose of those assets which 1315, the Veterans Benefits Enhance- status to all of these individuals, both basically had caused the banking sys- ment Act, as passed by the Senate on those living inside and outside the tem to fail in the Northeast and earlier April 24, 2008, be inserted in lieu there- United States. in the Texas area. of, the bill, as amended, be read the In order to cover the costs of S. 1315, I think that vehicle was appropriate third time and passed; that a title the bill would overturn a court deci- to that time. I think what we are hear- amendment which is at the desk be sion in a case known as Hartness. That ing today in the term ‘‘resolution agreed to, the motions to reconsider be decision allowed for certain veterans to trust’’ is the concept, not the specifics laid upon the table, with no inter- receive an extra pension benefit based of that vehicle. Thus, when Senator vening action or debate, the Senate in- solely on their age, a result never in- SCHUMER said it was inappropriate for sist on its amendments, request a con- tended by Congress. The purpose of the Senator MCCAIN to throw out the con- ference with the House on the dis- provision in S. 1315 is simply to restore cept of resolution trust as an approach agreeing votes of the two Houses, and the clear intent of Congress, but some to addressing this extraordinarily crit- the Chair be authorized to appoint con- have mischaracterized it as an attempt ical matter, I think he may—I don’t ferees on the part of the Senate. to withdraw benefits from deserving know, I can’t speak for Senator The PRESIDING OFFICER. Is there veterans and grant them to MCCAIN—I suspect Senator MCCAIN’s objection? undeserving veterans. This misconcep- purpose was to talk about the concept Mr. CRAIG. Madam President, re- tion is the main reason that action on of a government entity, such as the serving the right to object—and I will S. 1315 has been held up. resolution trust, which comes in and object because of my concern of the I am not interested today in debating basically relieves the pressure on the way the given legislation is being han- the merits of the bill—either the in- financial markets by creating value dled—this is an issue on which the creased benefits or the revenue provi- under assets which nobody at the chairman of the Veterans’ Affairs Com- sions—but rather ask that the Senator present time can value. That is what mittee and I have had some difference. or Senators who object to the request we need. That is exactly what we need. I would not dismiss the idea out of At the same time, I clearly recognize to set up a conference with the House— hand. I would simply say it is a term of the phenomenal commitment of the advise me of their concerns to see if it art now versus a specific structure, and chairman to veterans and, in this case, might be possible to find a way for- the term of art is essentially stating to Filipino veterans who served us so ward. I am very committed to this vet- that the Federal Government does have gallantly during World War II. erans’ benefit legislation and would a role potentially of coming in and put- It is my understanding there is a con- like to see if we can reach final action ting value on assets which cannot be flict in the House at this minute relat- before the end of next week. If we are valued by the market and which are ing to the passage of legislation the not able to do so, I intend to renew my locked down and which have caused the Senate has moved. This is an effort to efforts in the next Congress. Madam President, I yield the floor whole credit market in the Nation to avert that conflict and bring the bill to and suggest the absence of a quorum. freeze down. a conference committee in a different The PRESIDING OFFICER. The That is what has happened today, of form by using a House-passed bill. It is clerk will call the roll. course, in these mortgage-backed secu- a tactic I hoped we would not use to The legislative clerk proceeded to rities. Nobody knows the value of the address this important issue. The Sen- call the roll. security underlying the mortgage- ate can and should revisit this issue at Mr. GREGG. Madam President, I ask backed security and, therefore, it is another time. I hope we will. unanimous consent that the order for impossible to sell them and, therefore, It is with that intent that I object to the quorum call be rescinded. the fluidity of the economy has been this unanimous consent request. The PRESIDING OFFICER. Without disrupted and, in fact, we are seeing a The PRESIDING OFFICER. Objec- objection, it is so ordered. freezing of the economy as these secu- tion is heard. The Senator from New Hampshire is rities hold in place instead of being The Senator from Hawaii is recog- recognized. traded. nized. Mr. GREGG. Madam President, I What has been suggested, and actu- f wish to return to the issue which has ally, interestingly enough, appears to been the topic of the day—and should be the suggestion of the Senator from THE VETERANS BENEFITS be, obviously—and that is the stress on New York, is we create some sort of ENHANCEMENT ACT the financial systems in the United structure which allows the Federal Mr. AKAKA. Madam President, of States. Government to step in and essentially course, I am very disappointed that an Earlier in the day, I asked why we put value underneath these mortgage- objection has been made to this unani- couldn’t have an adult discussion of backed securities by using the good mous consent request. The intent of this subject rather than a lot of hyper- faith and credit of the American tax- the request is to create a means by bole and partisanship. I doubt it was payer to essentially set a price for which there might be further action on my comments that energized it. In any those. He suggested a couple ways of this very important veterans legisla- event, the Senator from New York, Mr. doing this. Let me comment on those tion before the Congress recesses next SCHUMER, did come down and make a suggestions because I think they are week. couple of points on how he thought we worth commenting on. On April 24, 2008, the Senate passed S. could proceed. I wish to comment on First, as the price of doing this, he 1315, the Veterans’ Benefits Enhance- those specific points and elaborate a suggests we should change the bank- ment Act of 2007, by a vote of 96–1. little bit. ruptcy laws, a proposal debated here at Since that time, the bill has languished First off, the term ‘‘Resolution Trust some length earlier in the year, so in the House. Corporation’’ has been thrown around a bankruptcy courts would have the This bill would improve benefits and great deal. I am, as I mentioned earlier right to write down mortgages in bank- services for veterans, both young and today, rather familiar with that term ruptcy. That is an appealing idea on its old. It includes numerous enhance- because I was Governor of the State of face because most of these mortgages ments to a broad range of veterans’ New Hampshire at the time that we are going to be written down anyway. benefits, including life insurance pro- had the real estate meltdown in the But the issue becomes, what is the cost

VerDate Aug 31 2005 03:12 Sep 19, 2008 Jkt 069060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\G18SE6.065 S18SEPT1 rfrederick on PROD1PC67 with SENATE September 18, 2008 CONGRESSIONAL RECORD — SENATE S8997 of that on the marketplace. If the $160 billion. If we had not handed it out ginning of next year, then that short mortgage underwriter knows there is a in $600 increments to everybody to be seller is probably going to move over to potential that the mortgagee may file spent to buy a television made in China the debt side. bankruptcy and that mortgage may be so the Chinese benefited from it—we Spreads jump dramatically, and the adjusted significantly in bankruptcy, didn’t benefit from it—instead, if we practical effect of that is it becomes then the cost of that mortgage is going had put it on the problem, which is the virtually impossible for people to bor- to go up and go up a lot because it is mortgage issue and the fact there was row money because the spreads are so going to have to cover the premium a lot of debt nonperforming and where high, and that is an equally con- and some actuarial estimate of how you couldn’t ascertain the value and tracting event. It makes commercial many mortgages might end up in bank- use it to settle out that part of our paper very hard to move. ruptcy, might end up being written economy, we might have made great I do hope that as we look at the down. strides earlier, and we might not be short-selling issue, we not only look at As we know, bankruptcy doesn’t deal where we are today, which is in such the equity side but we also look at the with secured assets such as a mortgage dire straits. debt side. In that arena, there are a lot in the sense it doesn’t write them I think it is good at least that the of different ideas that have been sug- down. The secured assets come first. topic has been opened, and I congratu- gested. One that I heard is that you This proposal has its upside from a late Senator MCCAIN for being willing should—and I don’t know that this standpoint of being attractive to a way to stick his toe into this rather choppy works, but I think it is worth throwing of getting these mortgages performing water and do it in a way that isn’t in out—is that you have to look at the again. But it has the downside of prob- the tradition of what one would call credit default swap arena and have ably creating a much higher price for classic conservative politics. He is ba- more transparency so people know mortgages in the marketplace in the sically suggesting we might need to what the risks are and they know what initial offerings. look at a major initiative through the the value is and they know what is Of course, what we want to do is Government to stabilize the situation. going on in this arena. make mortgages more readily avail- That is a departure. He should be con- That can be done through creating able in a sound and reasonable way, gratulated for being strong enough, some sort of clearinghouse along the not in a speculative way, the way they creative enough, and mature enough to lines of what we do with S&P futures. were in the last few years under the be willing to step into that direction. That has been a suggestion. Maybe subprime system. I wish, quite honestly, Senator that is the way to go. There may be a way to do this. I BAMA was saying something similar. O In any event, we cannot fix half of wouldn’t close the door to it. I simply Senator OBAMA continues to talk, un- this equation, in my opinion, and ex- say, in looking at this, we have to be fortunately, in hyperbole on this issue, pect the markets to not adjust in a realistic and recognize that the cost of sort of out here on some other planet, way that actually continues the retar- writing mortgages in this way will go relative to the reality of the on-the- dation of the markets or the retarda- up, and there may be a way to keep ground problem. At least Senator tion of the economy because of the that price from being excessive by lim- MCCAIN is talking about the problem in lack of transparency on the debt side iting the availability of that option. So a mature, substantive way. Obviously, as to who owns what and what the I am willing—not that it is my role, the ideas haven’t totally evolved or de- spreads are. Not the transparency on but I would certainly think it is some- veloped yet, but he is opening a dialog the spreads but the fact that people are thing to look at. that I think is very constructive to the not going to be able to get commercial The second idea the Senator sug- question of how we get to a solution, as paper because the spreads will be too gested was that we allow the Federal Senator SCHUMER, quite honestly, did high as a result of the short selling. Government to basically buy into trou- in his proposal. bled banks and get what I presume As I said, I have outlined what I I am not talking about eliminating would be equity back by creating a new think is the point to begin the dialog. it. I am not even talking about entity, a new agency to do that. This may all be moot anyway because chilling. I am talking about making it That is also an interesting idea, and there is significant rumor that the more transparent, and that I think will I respect the fact he brought that idea Treasury and the Fed are moving much be very helpful. forward. I suggest that is a long, com- faster than the Congress, which should In any event, it seems to me at least plicated exercise, however, and we are not be a surprise, which they usually we are getting some good and positive not in a period where we have a whole do. That is why we have them. The discussion on these issues around here, lot of time. What we need is something Treasury did a good job, in my opinion, which is a change, and hopefully we that is going to make sense soon and on Freddie Mac and Fannie Mae, and can continue on this track. It may be give us some fluidity in the market- the Fed did the right thing with AIG. that the Congress will be out of session place reasonably quickly. Another issue that has been raised, before anything can be done, and that Probably the only way we are going however, that is giving us some prob- may actually be good, too, if we don’t to accomplish that is to pursue a lems is the short-selling issue. There have anything good to do. But as a course of the Federal Government in- has been a lot of discussion about short practical matter, I think we have to jecting itself into the process by pur- selling, how it has been predatory and maintain our flexibility as a govern- chasing mortgage-backed securities in inappropriate. It is true. There is no ment, and we have to be willing to sup- some manner, maybe through one of question but that naked short selling is port those who are trying hard in this the agencies we have already gotten a serious problem. I congratulate the area to try to get our markets back op- possession of—Freddie Mac, Fannie SEC for pursuing aggressive rules on erating at some level of normalcy, spe- Mae, or one of our other agencies—and the equity side of naked short selling cifically the Secretary of the Treasury taking them off the books of these en- so people have to cover what they are and the Chairman of the Fed. And we tities and reselling them in some way doing. should not try to hyperbolize this issue that recoups value to the taxpayer. But when you do an event on short and create an atmosphere where the That gets liquidity into the process, selling on the equity side, it opens well of opportunity to look at things and it hopefully gets a stability into short selling on the debt side. If a short that are different and creative, maybe the pricing mechanism for these mort- seller thinks a company is a target and outside the tradition of the ideology of gage-backed securities which are at the they are going to go after that com- one side or the other, is poisoned by ex- core of our problem. pany, a person who is approaching this cessive partisan discussion. Honestly, if we had done this or from a very predatory approach on the Madam President, I yield the floor, taken this type of route with stimulus equity side and the equity side is shut and I suggest the absence of a quorum. 1, where we used $160 billion, we prob- down by the SEC or, more importantly, The PRESIDING OFFICER. The ably could have abated this entire by financial houses, with the British clerk will call the roll. problem or at least muted it signifi- action which basically bars short sell- The assistant legislative clerk pro- cantly because that is a lot of money, ing from financial houses until the be- ceeded to call the roll.

VerDate Aug 31 2005 03:12 Sep 19, 2008 Jkt 069060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G18SE6.068 S18SEPT1 rfrederick on PROD1PC67 with SENATE S8998 CONGRESSIONAL RECORD — SENATE September 18, 2008 Ms. KLOBUCHAR. Mr. President, I tion Agency, a shadow of its former as we go forward and how we can put ask unanimous consent that the order self, with 50 percent fewer employees incentives in place so we can keep for the quorum call be rescinded. than it had during the Reagan era. Big going. The PRESIDING OFFICER (Mr. surprise when these toxic toys started I see my friend from Kansas across BROWN). Without objection, it is so or- coming in from places such as China. the aisle, and I know he has a picture dered. There was no one there to mind the of a wind turbine in his front office. We Ms. KLOBUCHAR. Mr. President, we store. There was one guy named Bob in know there is a future for this country have some startling new figures about a back room. with development in this area. how difficult it has become for the When you look at these mortgage in- In 1995—and this is just an example middle class to get by. We now have struments, there was no one watching from Minnesota—SMI & Hydraulics, some new numbers, through the Joint over them, no one to enforce the rules. Inc. began their business in Porter, Economic Committee and the work of As a former prosecutor, I know you can MN, primarily as a welding and cyl- Professor Elizabeth Warren, that in have all the laws on the books, but if inder repair shop for the local farmers fact the average middle-class family you don’t have people enforcing them and businesses. Today, SMI & Hydrau- has lost about $2,000 in wages, $2,000 per and people who are committed to the lics, which manufactures the bases for year, for the last 8 years, and the ex- purpose of making sure that regular the wind towers we see all across this penses have now gone up about $4,400 people are protected in this economy, country, just recently expanded a facil- per year. That is a net loss of $6,400 per it is not going to matter what laws are ity to 100,000 square feet and created over 100 new jobs in just this little year. And with family childcare, you on the books. add an additional $1,500 per year. This We also had rampant change in some town. It is a barn with these big wind is how much more expensive it was of our regulations—the Enron loophole. bases that actually come out of it. It is than 8 years ago. We had the chair of the Commodity Fu- an amazing success story. Last year, the renewable electricity So we are seeing more and more fam- tures Trading Commission before a ilies in debt, more and more families sector pumped more than $20 billion joint meeting with our Agriculture into the U.S. economy, generating tens having trouble getting by due to the Committee, and I asked him if he failed economic policies of this admin- of thousands of jobs in construction, didn’t want some more tools in his ar- transportation, and manufacturing. istration, and as we have seen from the senal so he could maybe look at what events of the past week, the country is Throughout the country, renewable en- is going on with these trades and the ergy has led us down a path toward new facing an enormous financial crisis, speculation going on with foreign coun- probably the largest we have seen since jobs, lower energy bills, and enhanced tries. Even if you don’t want to use economic development. We need to the Great Depression. them, I asked him: Don’t you want Although the administration is still move this country forward. those tools we can give to you? As a wary to admit this is a recession, we For me, and the State of Minnesota prosecutor, I figured I wouldn’t use have seen time and time again over the and so many other areas across this every law that was on the books, but I last 8 months more and more jobs lost. country, the protection tax credit is always wanted more tools to look at Many institutions—some that have critical to realizing this goal. The pro- things. been on Wall Street for decades, some tection tax credit, in combination with He said: No, we are fine the way we for a century—are finding themselves strong State renewable electricity are. It was that attitude, Mr. Presi- in the same position as many families standards, has been a major driver of dent, that got us where we are today. were when their house was foreclosed wind power development in Minnesota. So we are going to have to change on, with nowhere to go, and secretaries That is why I was so concerned we things in this country. We are going to with nothing to their name. People had might actually lose it. All the studies have to get some balance. I believe in their retirement money in stock in the show if you let it go, about 8 months vigorous entrepreneurship. My State is company. They were depending on that before it is forecasted to go off, you stock for their future but now have home to nine Fortune 500 companies have an enormous drop in investment, nothing to their name. This week we and many thriving small businesses. and that is exactly what we don’t need saw things take an even greater turn We believe in entrepreneurship in our now in this country. We need a plan to for the worse. State, but we also believe there must go forward. When Chairman Bernanke was in be a balance and there must be fairness I personally would like to see it go front of the Joint Economic Com- and somebody minding the store. And into effect for 3, 4, or 5 years. I have a mittee back in April, days after the that has been lacking over the last 8 bill with Senators SNOWE and CANT- Bear Stearns buyout, there was some years. WELL to put it in place for 5 years. But talk that maybe that would stabilize We do have an opportunity as we if all we can agree on today is to ex- things. But Wall Street was simply in look at how we are going to get this tend it for another 1 year for wind, denial. When you look at this past dec- economy moving. I mentioned there solar, geothermal, and all kinds of re- ade, Mr. President, you can see it was was so much greed and not enough fear newable products and wasted energy, a decade of greed, a decade of risk, and in the last 8 years. Well, now we stand that is what we should be doing. But I there wasn’t much fear in how those on the precipice of where we don’t have will try. We are working on a bipar- deals were made—jumbo mortgages, se- too much fear, but we want to move tisan basis with a group of Senators to curities with no backing. Too much, forward as an economy, and there is extend it for at least 3 years for renew- too much, too much. one thing we know we can do imme- able fuel sources. Because as we strug- Look at IndyMac in California, and diately in the next few days. We can gle with this economy we know, as we Fannie Mae, Freddie Mac, Lehman make sure the incentives are in place say in Minnesota, the approach is not Brothers, Merrill Lynch, AIG, and all to keep moving forward with this new just going to be a silver bullet, it is of these firms that insisted they were green economy to compete with other going to be silver buckshot. It is going solvent, until the eleventh hour. That countries and have the right incentives to involve all kinds of energy produc- practice put everyone’s savings at risk. in place. tion, increased energy production. But Next week, in our Joint Economic I am talking about the extenders for it is also going to involve looking at Committee, we are going to be hearing renewable energy that have really led things in a new way. That has been from Chairman Bernanke and dis- to a boom in my State. We are third in lacking so much, this long-term look cussing exactly where we go from here. the country with wind energy. South- at our economy while other countries I believe in this country. I believe we western Minnesota is home to hundreds have leapfrogged us. While we devel- will move forward. But I can tell you of large-scale wind turbines, helping to oped the technology for wind and solar, lax regulation, decaying agencies, and make us a leader in wind power. Along we have been leapfrogged by other some of the people who were put in with biofuels, these wind energy farms countries. Anyone who watched the charge of them have led us to where we have spurred a rural economic renais- Olympics in China knows what we are are today. sance in that part of our State. up against on the world stage for com- I saw it firsthand on the Commerce Let me give a few examples of this petition. They saw not only the ath- Committee with the Consumer Protec- and examples of hope for this economy letes from all over the world but they

VerDate Aug 31 2005 03:12 Sep 19, 2008 Jkt 069060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\G18SE6.070 S18SEPT1 rfrederick on PROD1PC67 with SENATE September 18, 2008 CONGRESSIONAL RECORD — SENATE S8999 saw the precision with which the Chi- less. It is not the sort of thing that we We need a 21st century grid. That is nese were able to pull off that opening should rob from one piece of the energy going to require not just wind being ceremony in those Olympics. pie and sector to put it in another one. harnessed to it but also the base power We have to get our act together. We That is not the way to go forward on being generated for times in the season have to get our act together for our this. It is to grow the entire energy and places where wind is not blowing, economy and be sensible and not look piece. to be able to move it. I urge my col- at 1-day solutions and 1-day spins. We This bill will alter current law and leagues to look at this as the total have to have a plan for this economy, freeze a manufacturing tax deduction package. That is how we move this for- and this is a start, but we also have to at 6 percent instead of the current law, ward and how we balance the three E’s have some balance in our regulatory which would raise it to 9 percent by of energy, environment, and the econ- system so our economy can function 2010 for the sale and exchange of oil, omy. It is all of them working together and our businesses can function as they natural gas, or primary refined prod- to get us a more stable economy, hav- were meant to. ucts. This is something that was going ing more of this energy production Mr. President, I yield the floor. to be used by refineries to expand refin- here at home and having a better envi- The PRESIDING OFFICER. The sen- ing capacity and was going to provide a ronment in the process. It is not just ior Senator from Kansas is recognized. tax deduction from 6 to 9 percent. That throwing any of these out in the proc- Mr. BROWNBACK. Mr. President, I is a good incentive. It will see the re- ess to get that done. join my colleague from Minnesota. I fining industry that is important to I hope in a new Congress, when we have a map that shows the wind energy my State as well that is looked at, a can look at these things, and in a new capital of the world, the Saudi Arabia refining industry that has been pun- administration, I hope we can look at of wind, right in the middle of our ished by Hurricane Ike, in rebuilding, these things together and work them country. I have a nice corner here in to use that money to encourage more all in together, balancing those three Minnesota with some good wind power. refining capacity in the United States. E’s to move the country forward. We have a lot right here in the middle We need to do it rather than to tax it. Mr. President, I yield the floor and That is why I urge, when we look at of the country in Kansas and we want suggest the absence of a quorum. to harvest it. I am delighted to see that these in the future, we do not punish The PRESIDING OFFICER. The the wind energy piece in the produc- one piece of the energy sector to pay clerk will call the roll. tion tax credits is in the bill, the tax for another one. I support wind power The assistant legislative clerk pro- extenders bill. That is what I wanted to generation. It is key and critical. I am ceeded to call the roll. come to the floor, because it is critical very supportive of the wind package in Mr. BROWN. Mr. President, I ask to the investment taking place for here. I want to make sure that we do unanimous consent that the order for wind power generation. We are doing all in the energy field because we need the quorum call be rescinded. all of it in the energy field. We do not that in this particular bill. The PRESIDING OFFICER (Mr. want to continue sending $500 billion I, as well as my colleague from Min- WHITEHOUSE.) Without objection, it is nesota, wish to see these production overseas every year for oil. Much of so ordered. tax credits extended for a series of that goes to countries that do not like Mr. BROWN. I ask unanimous con- us. We need to be able to do more of years rather than one; planning that sent to speak for 5 minutes as in morn- the production and the refining here in arrives in a 3 to 5-year window would ing business. the U.S., and the current state of the give a lot better opportunity for cap- The PRESIDING OFFICER. Without technology will allow us to do it. objection, it is so ordered. ital to come into the business. I think We have somewhere between 10 and this is a critical piece we have to get Mr. BROWN. Mr. President, in the 18 billion barrels of oil available under last 18 or 19, 20 months since I have done. 2,000 acres in ANWR, along with an- I met with my Kansas wind energy been a Member of the Senate, joined by other 45 billion barrels available in the my friend from Rhode Island, I have associates yesterday, people putting in offshore and deep water areas of the held, around my State, about 115 or so these units on a big scale, and small Gulf of Mexico. Unfortunately, many of roundtables in most of Ohio, all of scale. They are saying we need to have those proposals, we are not going to be Ohio’s 88 counties, from Mahoning these credits in place. able to vote on here. We need to be able County to Ashtabula to Williams Coun- I was at Pratt Community College to get at that oil and we need to be ty, from the southeast to the south- about a month ago. They have put in able to get at the oil shale production west, all over the State, listening to three midsize wind turbines that are in the western United States—in Utah, groups of 15 to 20 people for an hour cutting down the community college’s Wyoming, and Colorado. electric bill about $1,000 a week. They I note to my colleagues, we need to and a half or so tell me about their are looking at it and saying this credit do all of it. On this side of the aisle I hopes and their dreams and what we is a great one, it has a nice payoff. It is think they will find support for all of can do to build their communities and right in this zone where we have high it, but not to pick pieces of it. help strengthen the middle class in the wind electric generation. It is working There is another thing I want to State. and working well. point out, and I don’t have the map I hear regularly, in more emphatic I do note for my colleagues, on this here, but I think it is illustrated by the terms almost every month, about the particular issue you cannot rob Peter map I do have here. We have a lot of anxiety facing our State’s middle-class to pay Paul. This is the sort of thing electric wind power capacity genera- families. They can be as rural as Ful- where you have to do all the energy tion, given the strength of wind we ton County or Highland County, they issues. You can’t punish one or an- have in our State. But we need to be can be as urban as Cuyahoga or Frank- other. We need all of it. We have said able to move that to markets; we need lin or Hamilton County, or they can be that for some period of time. I hope we to be able to move it to markets in my in between, places such as Mansfield would start to do that. State but also be able to move it across and Lima and Zanesville and Chil- The unfortunate piece of the tax ex- State lines as well to be able to take licothe and Portsmouth. I hear people tenders is the pay-for provision of it, advantage of this energy production. in Ohio who work hard, who play by where it is going at the refining capac- To do that you need backbone lines to the rules, and they are watching too ity in the United States. I do not think be able to move it. many of their jobs or their neighbors’ that is wise at all. I want to cover this A lot of times you are going to need jobs move overseas. They are seeing briefly here. that wind to mix with, whether it is their own health care and energy costs Of the $17 billion energy portion of natural gas electric production, coal or soar. In far too many cases, even in this tax package, that is being paid for nuclear production. We need to expand unionized plants, they are seeing their mostly by tax incentive freezes and ad- those so you have the base load there pensions disappear. justments to other sectors of the en- to build the wind energy into, to have I hear this sense of betrayal. People ergy industry, primarily the refining the pipelines of electricity to move it understand—intuitively understand— sector. That is not where we should go. to various places in the market that in most of the last 8 years, espe- We need more refining capacity, not throughout the country. cially up until last year but even so,

VerDate Aug 31 2005 03:12 Sep 19, 2008 Jkt 069060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\G18SE6.071 S18SEPT1 rfrederick on PROD1PC67 with SENATE S9000 CONGRESSIONAL RECORD — SENATE September 18, 2008 still, how they feel this Government serve in the Senate that many years. I product safety, all the things that has betrayed the middle class. When was in the House then, and I was not Americans care about, and when you President Bush had control of the here when Phil Gramm served as a Sen- deregulate Wall Street, we know what House and Senate, with the Republican ator. Phil Gramm was JOHN MCCAIN’s happens. It is pretty clear but nowhere majority in the House and Republican economics mentor. JOHN MCCAIN is it clearer than it is on Social Secu- control of the Senate and Bush and looked to Phil Gramm for advice about rity. I know the Senator from Rhode Cheney in the White House, they saw economics. Phil Gramm is the one who Island and I and the majority of people the drug companies writing the Medi- said we are not in a recession; we are in in this Senate want to protect Social care laws; they saw the insurance in- a mental recession. Americans should Security, don’t want to privatize it. dustry dictating health care policies; just get over this. Then he told Ameri- JOHN MCCAIN, George Bush, and DICK they saw the oil industry ramming cans to quit whining. It is easy for Phil CHENEY tried to privatize it back in through energy legislation; they saw Gramm who, I assume, has a pretty 2005. We know if they get a majority in Wall Street pushing these job-killing good pension. I also know he is now an the House and Senate, they will try to trade agreements through the House investment banker and adviser to large privatize Social Security again. It is and through the Senate. They under- corporations. I am sure he is making a bad for the American people. stand, again intuitively, that the Bush- salary of several multiples of what he We saw this week the best illustra- Cheney-McCain ideology that markets was making in the Senate. So, to him, tion yet of what happens if this crowd can always police themselves is bank- recession doesn’t much matter. He is in Washington, the people who are so rupt. still cashing his bonus checks. I am out of touch with the middle class— Every year of the Bush administra- sure he doesn’t whine about his eco- JOHN MCCAIN, George Bush, DICK CHE- tion and every year of Republican con- nomic situation. But I am equally sure NEY—if they get their chance ever to trol of the House and Senate, we heard he doesn’t understand the economic privatize Social Security, far too many this mantra, this conservative ortho- woes of people in Galion and Cambridge of my constituents will be hurt. doxy that markets always do the right and Bellaire, OH. Mr. DURBIN. Will the Senator yield things; that markets can police them- I am equally sure both JOHN MCCAIN for a question? selves; that any regulation is evil; just and Phil Gramm probably own more Mr. BROWN. Yes. open our country, no reason for envi- homes each than almost anybody in Mr. DURBIN. I thank the Senator for ronmental rules, no reason for worker any of those communities and don’t his comments. This whole concept, the safety rules, no reason for rules, pe- face these kinds of economic problems. underlying philosophy that you will riod, governing financial institutions. hear from President Bush and Senator Let’s take one issue. Imagine if Phil Gramm said he wants to be Treas- MCCAIN with his support, is the notion George Bush and Dick Cheney and ury Secretary if JOHN MCCAIN is elect- ed. of the ownership society which, to put JOHN MCCAIN had gotten their way 3 Look at one of his other advisers, it in shorthand, means: Just remember, years ago, in January 2005—I believe Carly Fiorina, ousted CEO of Hewlett we are all in this alone. They believe January or February. President Bush Packard. She pretty much failed at her when it comes to at least the issue of and JOHN MCCAIN and Dick Cheney au- Social Security, it would be preferable thored their scheme, their legislation— job, was ousted, and was given a huge to divert money from current benefits call it legislation—to privatize Social golden parachute. She is JOHN and to put it in the stock market. That Security. This risky, reckless privat- MCCAIN’s chief economic adviser in the was the notion supported by JOHN ization scheme they were trying to campaign. Phil Gramm was the men- MCCAIN and President Bush which the push through Congress met incredible tor. Now Carly Fiorina is his chief eco- American people rejected. It is my un- opposition, not just from Democrats in nomic adviser. She said she doesn’t derstanding as well that Senator Congress—because we believe strongly think JOHN MCCAIN is capable of run- in a Social Security that works, not ning a corporation, and she wanted to MCCAIN has taken this ownership soci- one that is privatized, that Wall Street be Vice President. ety idea to the notion of health insur- gets its hands on—but the American I guess I should not be surprised that ance too, that they would penalize em- people spoke resoundingly, loudly, Ohio’s middle-class families intuitively ployers that provide health insurance clearly that they did not want this So- understand they can’t afford four more and give people a tax break to go out cial Security privatization. of Bush, CHENEY, and MCCAIN, of de- into the market and go shopping for But go back. Imagine if the voters of regulation and privatization, how so their own health insurance policies. Rhode Island or the voters of my State many in this institution—and unfortu- I ask the Senator if he has any reac- of Ohio—if George Bush and JOHN nately, Senator MCCAIN—are so out of tion to the notion of individuals and MCCAIN had gotten their way 3 years touch with the middle class of Ohio, families shopping for health insurance, ago with that risky scheme to privatize the people he is going to ask to vote for not as part of some pool where they Social Security, imagine what Amer- him. I think none of us are fooled by work but on an individual family basis. ican seniors would think today as their this latest change in rhetoric where Mr. BROWN. The first thing Senator private Social Security accounts dis- Senator MCCAIN is all of a sudden MCCAIN would do is tax those health integrated before their eyes. Imagine showing an anger at what these compa- care policies that tens of millions of the next Social Security statement nies and Wall Street have done. Americans have. In my State there are they would get after we have had a As we know, JOHN MCCAIN was one of an awful lot of still pretty good health week like this, when they opened up the cheerleaders not just for privatiza- care policies, health care coverage, the envelope that was mailed to them tion of Social Security, he was also a often negotiated by unions, often ex- that itemized how their private ac- cheerleader for deregulation, saying we tended voluntarily by employers. Sen- counts were doing, their Bush-Cheney- have way too many regulations, too ator MCCAIN wants to tax the worth of McCain private accounts. many environmental, worker safety, those policies. So if you have a policy Imagine what choices they would consumer product safety, and health worth $6,000 for your family, then that face. Their food prices are already regulations and rules on Wall Street. would be taxed under the McCain plan. going up. Gas prices are through the We know when you relax regulation He turns around then and gives some roof. Heating prices, especially in of consumer product safety, you get tax breaks in their place. But the net States such as Rhode Island and Ohio— toxic toys coming from China. When effect simply means it isn’t going to imagine what seniors in Dayton and you relax regulation on food safety, work. Findley and Bowling Green and Akron you get too many cases of E. coli. You It goes to the heart of our philosophy and Canton would think when they get too many contaminated ingredients as a people, the values we hold. The opened their Social Security state- that end up in drugs such as Heparin values that we hold, in my view, are ments and saw what had happened, as that killed several people in Toledo, about communities. We really are in they look forward to the winter and contaminating prescription drugs. this together. Our country works best high energy prices. When you weaken environmental laws, when we are cooperating, working to- Look at JOHN MCCAIN’s economic ad- we know what happens. When you gether. We pulled together after Sep- visers. I have not been privileged to weaken food safety laws, consumer tember 11. We pulled together during

VerDate Aug 31 2005 03:12 Sep 19, 2008 Jkt 069060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\G18SE6.072 S18SEPT1 rfrederick on PROD1PC67 with SENATE September 18, 2008 CONGRESSIONAL RECORD — SENATE S9001 World War II. When we pull together very privatized way of thinking that overall package. While I will not talk and work together, things work for ev- Phil Gramm has taught him. He has about the overall package, I will talk erybody so much better. carried that into the campaign as Phil about the energy provisions. I thank Senator MCCAIN is taking up where Gramm continues to advise him on eco- them for their hard work. It takes a lot George Bush and DICK CHENEY left off. nomic matters. Just because JOHN of time and energy. I also thank Sen- They think it is every man and woman MCCAIN is saying some things today ator ENSIGN and his staff, particularly for himself or herself: privatization of that you and I agree with about going Jason Mulvihill, who spent many hours Social Security, messing with em- after Wall Street and that I want regu- working with my staff, Lauren Bazel ployer-based health benefits as they lation, his whole history is deregula- and Amit Ronen, and my chief of staff are, without replacing them with any- tion, fighting for deregulation, doing Maura O’Neill. All have worked on this thing that makes any sense. The ‘‘you Wall Street’s bidding, doing the oil in- in a bipartisan effort to try to get this are on your own’’ attitude makes no dustry’s bidding, doing the health in- legislation across the finish line. sense for the American people. The surance companies’ bidding. It is a bipartisan effort that got us more people know about this, the more Mr. DURBIN. I would ask the Sen- here today. And I hope we will con- upset they are going to be. ator from Ohio, is it fair to say when it tinue bipartisan efforts on many of Mr. DURBIN. I don’t know if the Sen- comes to regulation that Senator these policies moving forward because ator, when he was a Member of the MCCAIN was against it before he was that is what it is going to take given House, ever served with Phil Gramm, for it? the structure of the Senate for us to who is from Texas. I did. Then Senator Mr. BROWN. I think he was against continue to move forward on important Gramm came over and represented the it before he was for it. He was for the legislation. State of Texas in the Senate. For the head of SEC, Chris Cox, and now he is What are we doing in this Energy bill longest time, Senator Phil Gramm was against him. Maybe tomorrow he will that is going to hopefully be before us the economic adviser to JOHN MCCAIN, want Secretary Paulson fired. I don’t this evening? First and foremost, we not just on a campaign basis but on a know. He has been for a lot of things are doing several things that are new, personal basis. They shared a lot of before he has been against them, unfor- new policies that will help our nation thinking together. It was Phil tunately. I thank the Senator from Illi- realize a clean energy future. First we Gramm’s inspiration that moved us to nois. are unleashing the power of solar en- this moment now where we have a lack I yield the floor. ergy. In 2005, we took a very important of oversight, a lack of accountability The PRESIDING OFFICER. The Sen- step by incenting solar energy for 2 when it comes to basic investments ator from Washington is recognized. years. Now we are doing something and credit institutions. The Gramm- f much more robust. We are giving an 8- McCain view of the world was govern- year investment tax credit to the solar TAX EXTENDERS ment should step aside and get out of industry because we believe that it will the way for the magic of capitalism Ms. CANTWELL. Mr. President, I unleash the potential of this unbeliev- and the magic of the free market. come to the floor hoping that the two able energy source for our Nation. We There is no question that the entrepre- leaders, Senator REID and Senator think that over 440,000 new jobs could neurial spirit is a major part of the MCCONNELL, might be close to getting be created in the solar industry just in success of America, but time and again an agreement that allows us to move the next 8 years. Much of that growth in history we have seen that if there is forward on voting on the tax extenders is coming from new concentrating not a government entity involved in package, including the critically im- solar plants, a breakthrough in tech- oversight, demanding accountability, portant energy provisions. While we nology that has great promise to pro- many times the forces in the market wait for that, I thought I would take vide affordable and predictable base- go to extremes. an opportunity to come down and men- load power in rapidly growing parts of What we have seen in the last 2 tion some of the key provisions of the the Southwest. Without this bill that weeks are the extremes of the Phil bill and also to thank many people who is going to be before us, electricity Gramm-John McCain approach to regu- have worked on it. rates surely would have risen in these lation. In fact, Senator MCCAIN prided We are the cusp of breaking this log- fast growing parts of the country, and himself by saying he was one of the jam on clean energy tax policy and our environment would have suffered. leading deregulators in the Senate. In pushing the United States into more of Now if we pass this bill, States such the last couple days, as companies have a leadership position on clean energy as Nevada, Arizona, and New Mexico been crashing and taxpayers have been technology. Getting to this point took not only will be able to produce emis- picking up the bills, he now says he fa- a lot of work and dedication. Senator sion-free solar power at a stable and af- vors regulation. I ask the Senator, REID of Nevada, obviously coming from fordable rate, but the industry will be isn’t this part of the same mindset, a State that has incredible resources to a new source of manufacturing jobs for privatizing Social Security, privatizing participate in this, has long been an this part of our country. The new 8- health care, and basically removing the advocate of renewable energy. He in- year investment credit will also, I be- government from market operations stinctively understands what it is lieve, unleash a similar opportunity for that can ultimately damage investors, going to take for us to get off of fossil fuel cell technology because we are giv- savers, retirees, and the taxpayers? fuels and on to other alternative, more ing this nascent industry great predict- Mr. BROWN. There is no question. sustainable technologies. He has con- ability. Earlier we were talking about Phil sistently forged a consensus on critical Second, we are jump-starting the Gramm, who says we are in the middle issues in the Senate. I know Senator transition to plug-in electric vehicles. of a recession and Americans should REID knows how desperately our Na- This is the first time we are giving tax quit whining; Phil Gramm, whose in- tion needs to get on this path toward breaks to consumers who purchase come is many times what it was in the energy independence. plug-in electric cars, trucks, and SUVs. Senate, and we are paid very gener- I also take the opportunity to thank These are cars that are about to appear ously in this body. JOHN MCCAIN has Senators BAUCUS and GRASSLEY for on the showroom floor, and may followed the policies of the Bush-Che- their commitment and leadership. I achieve 100 miles per gallon. By giving ney administration, but he gets his ad- don’t think there has been a time dur- consumers up to a $7,500 tax rebate per vice, if he ever strays, from Phil ing this whole process that these two vehicle, we can accelerate the adoption Gramm. Phil Gramm was his mentor wise leaders of the Finance Committee rate and the mass production and, I be- on his economic views. have waivered, and we have had many lieve, help this game-changing tech- If you remember JOHN MCCAIN said votes to try to get to this point where nology be deployed more quickly. several times in the last couple years, we are today. This provision was part of a bill that I don’t know much about economics. I especially want to thank the Fi- Senator HATCH, Senator OBAMA, and He may or may not. Apparently, he nance Committee staff: Cathy Koch, myself began working on over a year doesn’t know much. But what he does Pat Bousliman, and Mark Prater, who and a half ago. We recognized that our know comes from this very corporate, all worked long hours crafting the current electricity infrastructure,

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