OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

Broaching the Subject of the Automotive Industry Recovery Plan on Fox News
November 13, 2008

... IRRESPONSIBLE AND RECKLESS BEHAVIOR -- THOSE WHO CAUSED THIS PROBLEM AND LOST SHOULD BE ALLOWED TO LOSE, AND UNFORTUNATELY, SOME PEOPLE ARE GOING TO REALLY GET HURT, BUT THIS IS WHAT HAPPENS WHEN YOU MISMANAGE THE COUNTRY'S FINANCES. I THINK WE WOULD BE BETTER OFF IF THE GOVERNMENT WOULD START BACKING OUT AND LET THE FREE MARKET SYSTEM SETTLE IT. NEIL: ALL RIGHT, BARRY, ALWAYS GOOD SEEING YOU. THE WELL, MY FRIEND. PUSHING FOR A $25 BILLION BAILOUT FOR THE AUTOMOTIVE INDUSTRY, GIVING THE GOVERNMENT A STAKE IN THE BIG THREE. HOUSE MAJORITY LEADER STENY HOYER SAYS THAT WE NEED THIS, AND HE JOINS ME RIGHT NOW. MR. MAJORITY LEADER, ALWAYS GOOD TO HAVE YOU. THANK YOU FOR COMING. GO AHEAD. >> I WAS LISTENING TO MR. GOLDWATER, A FORMER MEMBER OF CONGRESS, OF COURSE, AND IT IS INTERESTING THAT HE DID NOT SAY WHY THE GOVERNMENT NEEDS TO STEP IN. IT HAS TO STEP IN BECAUSE THE PRIVATE SECTOR BADLY MANAGED ITSELF AT GREAT RISK TO THE COUNTRY, AND THAT IS WHY PRESIDENT BUSH MOVED, AND THE CONGRESS SUPPORTED HIM. NEIL: I CAN SEE THE LOGIC IN THAT, BUT WHAT CONCERNS ME THEN AND NOW AND OTHERS IS THAT IT IS OUT OF CONTROL, AND THE GOVERNMENT IS TRYING TO FIX THE PROBLEM WITHOUT A, CONSISTENTLY FINDING A WAY TO DEAL WITH THE PROBLEM, SUDDENLY CHANGING THE RULES AT PLAY, THE COSTS FOR CHANGING THOSE RULES, AND EVEN WHO YOU ARE HELPING OUT. >> NEIL, NONE OF US, I THINK, ARE HAPPY WITH WHERE WE ARE OR WHAT WE THINK WE NEED TO DO. I DO NOT THINK ANYBODY WAS HAPPY WITH THE TARGET PROGRAM. THE ASSETS PROGRAM. -- THE TARP PROGRAM. NEIL: RIGHT. >> I DON'T THINK ANY OF US ARE HAPPY WITH THE AUTOMOTIVE SITUATION. WE ARE CONFRONTED, QUITE POSSIBLY, WITH THE INCONCEIVABLE, AND THAT IS THAT THE AUTOMOTIVE COMPANIES WOULD FAIL. NEIL: WHY NOT LET THEM, CONGRESSMAN? IF THEY FILE FOR CHAPTER 11 OR WHATEVER THE CHAPTER DU JOUR IS, AND THEY WORK THEIR WAY THROUGH THE BANKRUPTCY COURT SYSTEM, WHAT WOULD BE SO BAD ABOUT THAT? >> WELL, THAT IS A POSSIBILITY, AND IF THEY WENT BANKRUPT AND COULD NOT ORGANIZE, AND PEOPLE DID NOT WANT TO BUY THE CARS OF A BANKRUPT COMPANY, BECAUSE THEY WERE NOT SURE THAT THAT COMPANY WOULD BE AROUND, THEY, THEREFORE, WENT OUT OF BUSINESS, THAT IS 3 MILLION JOBS IN AMERICA ARE LOOKING AT, DEALERSHIPS, SUPPLIERS, NOT JUST THE WORKERS AT THE FACTORIES, AND IN ADDITION TO THAT, NEIL, WE HAVE TO BE CONCERNED ABOUT OUR INDUSTRIAL CAPABILITY. THAT IS A NATIONAL SECURITY ISSUE. HEAVEN FORBID THAT WE GET IN A VERY HOT WAR AND NEED TO PRODUCE TANKS, TRUCKS, ETC., ETC. WE ARE GOING TO NEED THAT CAPACITY. NEIL: WHERE DO YOU DRAW THE LINE? I THINK, STENY HOYER, WITH THE BEST OF INTENTIONS, THEN THE HOUSING GUYS -- I HAVE HAD ALL OF THE HOUSING CEO'S ON, AND THEY HAVE TOLD ME THAT THEY NEED A RESCUE. CREDIT-CARD COMPANIES COME FORWARD, ""WE NEED A RESCUE."" AND I SAID I COULD NOT PAY MY DINNER BELL THE OTHER DAY. I WANTED TO SEND IT TO YOU THE OTHER DAY AND WANTED TO SEE IF YOU WOULD PAY IT. -- I COULD NOT PAY MY DINNER BILL. >> NEIL, WE UNDERSTAND THAT. CLEARLY, SECRETARY PAULSON AND BEN BERNANKE COME TO US A LITTLE A OVER A MONTH AGO, MAYBE SIX WEEKS NOW, AND THEY SAID, ""WE HAVE GOT A CRISIS. WE ARE CONFRONTING THE DEEPEST ECONOMIC CRISIS SINCE THE GREAT DEPRESSION."" WE KNOW WHAT HAPPENS IN THE GREAT DEPRESSION, THE REASON IT WENT TO A DEPRESSION IS BECAUSE THE GOVERNMENT FAILED TO ACT. THE GOVERNMENT FAILED TO STEP IN AND STABILIZE THE ECONOMY. WE KNOW THAT. BEN BERNANKE, THE HISTORY OF THE GREAT DEPRESSION, AS YOU WELL KNOW, SAID, ""IF YOU DO NOT ACT, WE ARE GOING TO HAVE A REAL CRISIS."" NEIL: WHAT IF YOU OVERREACT? AND THAT IS ABOUT NOW. WHAT IF YOU ARE OVERREACTING? >> I DO NOT KNOW IF WE ARE OVERREACTING WITH THE POSSIBILITY OF OUR AUTOMOTIVE INDUSTRY FEELING. IT IS CLEARLY THE LARGEST INDUSTRY IN OUR COUNTRY. I GUESS THE FINANCIAL INDUSTRY IS NOW, OR WAS, AT LEAST, BUT THE AUTOMOBILE INDUSTRY IS CERTAINLY THE LARGEST MANUFACTURING ENTERPRISE WE HAVE IN THE COUNTRY. NOT ONLY DIRECT EMPLOYEES, BUT AS I SAID, ALL OF THE OTHER EMPLOYEES AND THE INDUSTRIAL CAPACITY IS CRITICAL TO US, SO THAT IS NOT LIKE SOME OF THE OTHER ENTITIES THAT YOU DESCRIBED, BUT, CLEARLY, WE MAY WELL -- EVERY ONE OF US IS VERY CONCERNED OF TAKING THESE ACTIONS. ...