I voted against the $700 billion bailout for Wall Street, but I will vote for the $14 billion loan to save the auto industry.

 

No one in Congress wants to be in the position of picking which industries merit government aid and I believe that some of the present challenges facing the auto industry are a consequence of their own poor past business plans.  However, I am convinced that the threat posed from the bankruptcy of a domestic auto company presents too great a risk to an already weakened economy for the Congress not to provide temporary loans for these key manufacturers.  This industry is responsible for up to 1 in 10 American jobs, and allowing one of these companies to fail is a step in the wrong direction for our nation and its struggling economy.  It is also a question of our national security.

 

I did not vote for the $700 billion financial industry bailout because I believed it put the taxpayer at too much risk and that the implementation of the program lacked strong oversight.  This has been proven correct in past days.  While a finalized bill has not been brought to the Senate floor, I do believe that the auto loan proposal before us today has much stronger taxpayer protections and appropriate mechanisms to call back these loans if the auto companies are unable to prove that they are viable into the future.  The interest earned will be five percent the first five years, and nine percent after that.

 

This money has already been appropriated.  It simply shifts already approved funds and gives the car companies the ability to use the funds during this tight credit market.  An appointed ‘Car Czar’ would be there to protect taxpayers’ funds.  With so many American jobs on the line, including dealers and parts makers, their failure would be felt drastically on every Main Street in America.