Jim Bunning

Mr. BUNNING

Mr. BUNNING. Mr. President, it is with great admiration and respect that I take this time to recognize one of Kentucky's most distinguished citizens, Roman Catholic Bishop John McRaith, who retired as the third Bishop of the Diocese of Owensboro. Bishop McRaith's service over the last 26 years in the Diocese of Owensboro--which consists of 32 counties with 79 parishes, 3 high schools, 2 middle schools and 13 elementary schools--has made him a legacy in the community. In addition to being a large diocese, Owensboro Diocese is one of the more diverse dioceses--home to a large number of Hispanic Catholic immigrants, along with a priesthood that recruits men from Latin America, Asia, and Africa. The work done by Bishop McRaith and the priests at Owensboro Diocese has increased church attendance to levels that are considered among the highest in the Nation. Bishop McRaith has left his community a better place because of the authenticity and kindness of his services and faith. While I am sad to see him retire, I am comforted knowing that those who learned from him will continue the good work that he displayed each day. On behalf of all of those who are part of the Owensboro Diocese, I thank Bishop John McRaith for the grace and strength he brought to western Kentucky.

Mr. BUNNING

Mr. BUNNING. Mr. President, are we as in morning business?

Mr. BUNNING. Thank you. Mr. President, I rise to speak on the auto bailout proposal before the Senate. But before talking about any legislation, I wish to say that I am very concerned, as everybody in the United States is, about the state of the auto industry, not only in Detroit but other States that have a great deal of auto workers and related industries. As I said at the first Banking Committee hearing on this issue, I am not concerned about any sense of American pride or because of the great history of the American auto industry. What concerns me is the workers--the men and women who assemble our cars and trucks, who sell and service the vehicles, and those who work for the suppliers who keep the industry running. Auto manufacturing is the largest manufacturing sector in my Commonwealth. That is the Commonwealth of Kentucky. I know Detroit's pain is felt in many towns and cities in Kentucky. In many counties, jobs supplying parts to GM, Ford, or Toyota are some of the best jobs anywhere in Kentucky. Those jobs are in danger, and I am concerned for the workers and their families. The question facing Congress is what, if anything, we can and should do about the industry's current problems. As I understand it, one of the two bills that is going to come before the Senate--as soon as this afternoon--one is the bill passed by the House, and the other is a similar Senate proposal. Unfortunately, much like the other bailouts we have passed, those bills rely on hopes and promises of future actions and do not require serious concessions. Those bills do not address the immediate problems facing the industry, which is a lack of funding for car loans and dealer floor plans, and many other related issues. While the Detroit manufacturers were forced by the economic crisis to come to Congress for aid at this time, their problems are not just the result of problems in our current financial markets. The companies are simply uncompetitive in today's marketplace because of decades of bad business decisions by both the corporate management and the labor unions. What is needed is a serious restructuring of the companies that brings their costs in line with the costs of cars made by manufacturers such as Honda and Toyota and their capacity in line with the true demand for new cars, not the artificially inflated demand of the last few years. Neither the House bill nor the Senate bill forces these companies and their stakeholders to make the changes necessary to force restructuring. The so-called car czar has no real power to make the companies and stakeholders reach an agreement accomplishing the cost and capacity changes that must be made. Because the companies would not survive in the long term without those changes, they would be back before Congress next year asking for more money to get them through the next few months, and back again and again. That is an irresponsible use of taxpayer dollars and would ultimately lead to the death of the companies and many thousands and thousands of jobs permanently being lost. Because I care too much about the workers, I cannot support either of these bills as they are currently written. I have previously said I would support Federal assistance for companies if they undertake a chapter 11 bankruptcy restructuring. Federal financing and warranty guarantees would enable the companies to emerge from that restructuring successfully and more quickly than they would otherwise. Senator Shelby and Senator Ensign have an amendment to do just that, and I will be supporting their amendment if they are allowed to have a vote on it on the floor of the Senate. However, chapter 11 bankruptcy is not the ideal solution, and I know just the word ``bankruptcy'' causes many people whose jobs, retirement, and health care depend on the companies to shudder. A similar restructuring that accomplishes significant changes outside of bankruptcy would work as well. Senator Corker has an amendment that would require those significant changes as a condition of Federal assistance provided in the majority's bill. If the majority allows a vote on Senator Corker's amendment, I will support it. If the amendment is adopted to the Senate version of the bill, I will support passage. If the majority blocks any minority amendments, as they have done for nearly the entire Congress, I will oppose the bill and any cloture motions. I will go ahead and state for the record that if the Corker amendment passes and the bill becomes law, I will oppose any and all attempts to weaken its requirements. Now, I say that knowing full well that I am very concerned that come January 20, the majority might try to rewrite the requirements so that the companies are not forced to make painful changes that are necessary for them to survive in the long term. I hope that will not be the case. For these companies to survive and thrive, there must be painful changes made, and we all know some jobs will be lost. However, with a successful restructuring, the Corker amendment being included, more jobs will be preserved for the long term than if we just prop up the companies with taxpayers' dollars for a few short months and hope for the best. Mr. President, I yield the floor. Mr. President, since no one else is in the Chamber, I suggest the absence of a quorum.

Mr. BUNNING

Mr. BUNNING. Madam President, today I congratulate the top public schools in the Commonwealth of Kentucky. I was pleased to learn that U.S. News and World Report awarded 26 high schools in Kentucky with a bronze medal for their outstanding performance on standardized exams and for providing college-level coursework. These 26 Kentucky high schools have shown that they foster an environment that serves all students, no matter their academic goals, by demonstrating a commitment to excellence through quality education. These Bronze Medal Schools back this up with measurable academic outcomes that show improvement throughout a range of performance indicators. I have always been proud of Kentucky education because of its relentless effort to enhance and develop the lives of every student. This is a well deserved recognition for the excellent work that is done by all of these high schools, and I would like to congratulate each for its great success. The following schools were commended with awards: Barbourville City School in Barbourville, KY; Bardstown High School in Bardstown, KY; Central High School in Louisville, KY; Corbin High School in Corbin, KY; Dawson Springs High School in Dawson Springs, KY; Eminence High School in Eminence, KY; Evarts High School in Evarts, KY; Frederick Fraize High School in Cloverport, KY; Graves County High School in Mayfield, KY; Hancock County High School in Lewisport, KY; Harlan High School in Harlan, KY; Hazard High School in Hazard, KY; Hickman County High School in Clinton, KY; Jackson City School in Jackson, KY; Johnson Central High School in Paintsville, KY; Magoffin County High School in Salyersville, KY; Owensboro High School in Owensboro, KY; Paintsville High School in Paintsville, KY; Paris High School in Paris, KY; Phelps High School in Phelps, KY; Pineville High School in Pineville, KY; Russell County High School in Russell Springs, KY; Walton-Verona High School in Walton, KY; Whitley County High School in Williamsburg, KY; Williamsburg City School in Williamsburg, KY; and Williamstown High School in Williamstown, KY. Again, I commend these high schools for a job well done. I hope that their efforts will inspire other schools in Kentucky and around the country to strive for the best.

Mr. BUNNING

Mr. BUNNING. Madam President, today I congratulate the top public schools in the Commonwealth of Kentucky. I was pleased to learn that U.S. News and World Report awarded seven high schools in Kentucky with a silver medal for their outstanding performance on standardized exams and for providing college-level coursework. These seven Kentucky high schools have shown that they foster an environment that serves all students, no matter their academic goals, by demonstrating a commitment to excellence through quality education. These Silver Medal Schools back this up with measurable academic outcomes that show improvement throughout a range of performance indicators. I have always been proud of Kentucky education because of its relentless effort to enhance and develop the lives of every student. This is a well deserved recognition for the excellent work that is done by all of these high schools, and I would like to congratulate each for its great success. The following schools were commended with awards: Beechwood High School in Fort Mitchell, KY; Bowling Green High School in Bowling Green, KY; Dupont Manual High School in Louisville, KY; Highlands High School in Fort Thomas, KY; Louisville Male High School in Louisville, KY; North Oldham High School in Goshen, KY; and South Oldham High School in Crestwood, KY. Again, I commend these high schools for a job well done. I hope that their efforts will inspire other schools in Kentucky and around the country to strive for the best.

Mr. BUNNING

Mr. BUNNING. Mr. President, I would like to honor my friend and colleague from Oregon, Senator Gordon Smith. I have worked with Gordon since coming over to the Senate in 1998. It has been an honor and privilege to serve on both the Senate Finance Committee and Energy and Natural Resources Committee with him. Gordon has a long list of accomplishments to show for the people of Oregon and the Nation. He has served the people of Oregon well, and I know they are proud to call him one of their own. His leadership in the Senate will be missed, and it has truly been an honor serving with him. I thank Gordon for all of his contributions to the U.S. Senate, and I wish him and his family the best of luck in their future endeavors.

Mr. BUNNING. Mr. President, I wish to join my fellow Senators to honor a colleague and a friend, Senator John E. Sununu, who is departing the Senate at the close of this Congress. I have enjoyed working with Senator Sununu over the years--first in the House of Representatives and later in the Senate. While in the Senate, I have had the great fortune of serving with John on the Senate Finance Committee. He is a revered advocate of fiscal discipline, personal responsibility, and free markets. The two of us have stood together on numerous issues--most notably tax--and I have always believed that we could accomplish any goal because I had his voice of conviction and intellect by my side. Representing New Hampshire, Senator Sununu has proven to all Granite Staters that he will fight for the simple motto that reads on their State license plate: Live Free or Die. Whether the item of the day was social security, trade, or any other topical issue, including the original intent of the Constitution, Senator Sununu has proven that he is up for any debate. The U.S. Senate will not be the same without Senator John Sununu. In a time when many politicians try to increase the role of government in American life, Senator John Sununu has always bet on the American people rather than government. I will miss John Sununu.

Mr. BUNNING

Mr. BUNNING. Mr. President, I have had the good fortune of coming to the Congress in 1987 as a Member of the House of Representatives. Therefore, I did not get to mingle and get to know Ted Stevens really well--just in conferences. If you want to get through to the other side of Ted Stevens--not the one we have heard about so much on the floor today--go to a conference with Ted Stevens, and he will defend his issues and his particular beliefs in that conference as good as anyone I know of these 100 people who are in the Senate. But then, in 1998, I had the good fortune of being elected to the Senate. When you come to the Senate for the first time, and you have had an encounter with Ted Stevens in any manner, it is kind of like: Oh, my God, is he really that tough to deal with all the time or is that a facade we see? Well, I have gotten to know, over the last 10 years, the true Ted Stevens. If you want someone who represents America representing you in the Senate, it is Ted Stevens--not only for his State, for the defense of our country, for the principles of the United States on which we stand, our Founders embedded in Ted Stevens' mind, but for all the other things this country stands for: the goodness of its people, giving to others, allowing them to get to know you to the point of changing that gruff outside into pure love. I have found Ted Stevens to be the most straightforward, honest Senator I have ever dealt with. He has given me, just by association for the last 10 years, the basis on which I serve here in the Senate. He has given me the example. He has given me the principles and the things that each and every one of us here on the Senate floor should demonstrate daily. Sure, we all look out for our State; he does it better than everyone. Sure, we look out for the United States of America as a whole--and he has done it better than anyone--but for family values or love of family, for love of fellow citizens and fellow Senators, this man is a shining example of what a Senator should be. I will hold his friendship dear until we both die. I thank him for his service.

Mr. BUNNING

Mr. BUNNING. Mr. President, I rise to say a few words in response to what I have heard on the floor of the Senate today. Many Senators have stood up and spoken in favor of the Wall Street bailout bill we will be voting on later tonight. That is their right, but they are only telling one side of the story. I have heard a lot about changes made to this bill in the last few days, but make no mistake about it, this is the same bailout that the House of Representatives rejected Monday afternoon. The only thing that is different is the packaging. The failed House bill has been attached to a tax bill which the Senate has already passed overwhelmingly, a mental health parity bill which is broadly supported in the Senate, and an increase in FDIC insurance limits. In other words, a few sweeteners have been added to buy off a few more votes. But the bailout remains the same. Now, let me say a few words about some of that lipstick. Though the tax extenders bill does not have everything I hoped for in it, I strongly support it and voted for it just a few weeks ago. I also have cosponsored the Senate version of the mental health parity bill. I still support both and want to see them become law. I am disappointed that I am being put in a position of having to vote against those bills. I have been clear since Secretary Paulson proposed his plan that I thought it was a bad idea and would not work. I still think so, and apparently so does a majority of the House of Representatives. The House rightly rejected the bailout we will be voting on tonight because it is a bailout of Wall Street at the expense of Main Street. The American people are outraged by this proposal, and all any Senator needs to do is stand around their front office and listen to the phone calls to understand that. Now, about the proposal itself, I have no confidence it will work, and the only people I have heard that have confidence that it will work are the Treasury Secretary and the Chairman of the Federal Reserve, the people who proposed it in the first place. Even Senators supporting this bill say things like ``I hope this will work'' or ``we have to do this because nothing is not an option.'' I say that $700 billion is a lot of money to gamble on hope, especially when there are other options. Sadly, no other options have been considered. Secretary Paulson and Chairman Bernanke both admitted they did not consider other proposals. Congress certainly has not considered any other option. Why not? Because we are told there is not time and we have to do something now. Well, here we are, 2 weeks after the initial proposal, and the sky has not fallen. Now, I recognize there are real problems in our financial markets and those problems could hurt the overall economy and average Americans. As I have said on this floor as recently as last week, we have both policy and structural problems in our financial system that need to be addressed. Those problems are largely a result of bad monetary policy, bad governmental policies, and bad oversight by regulators. But these problems cannot be fixed by just throwing money at Wall Street as we run out the door to go home and campaign. They require serious thought and serious work. While the problems in our financial markets have been a long time in the making and cannot be solved overnight, the freeze in the credit markets and the panic that we are seeing now came about rather quickly. That is because Secretary Paulson and Chairman Bernanke set expectations for Government intervention when they bailed out Bear Stearns in March. The markets operated all summer with the belief that the Government would step in and rescue failing firms. Then they let Lehman Brothers fail, and the markets had to adjust to the idea that Wall Street would have to take the losses for Wall Street's bad decisions, not the taxpayers. That new uncertainty could be the most significant contributing factor to why the markets have lost confidence. Even worse, to sell the public and Congress on this Wall Street bailout, the President, Secretary Paulson, and Chairman Bernanke have pushed the media and public to the edge of panic by telling everyone we are staring at the second coming of the Great Depression. But this bill is not going to solve those problems. I am not alone in my concerns about this bill. Last week, I entered into the Record two letters from nearly 300 economists who said it will not work. I have also heard from many market participants that this program will not work. In fact, the only way anyone has any confidence that this plan will work is if the Government overpays and gives a windfall to the banks and others selling their bad investments. But that is not just dishonest, it is also not even the most efficient way of getting funds into the institutions. This bill also has no requirements that the institutions take their newfound cash and use it to lend to Main Street or anyone else. They are going to put that money to the use they think is in their best interest, not in the best interest of the average American. Now, I do support taking action to address the mess Government created. To restore confidence, instead of giving the Secretary $700 billion, we should send a signal that we are serious about this and stay in Washington until we have a real solution. One way we could do that is to give the Secretary a far smaller amount of funds to use to unfreeze the markets and take a few weeks to hold some hearings, meet with experts who might have different ideas, and find a way to fix what is broken. We certainly should not just rely on the opinions of the people who created this mess and stand to benefit the most from this proposal. There are plenty of other ideas that are worth exploring but, unfortunately, have been ignored. We could allow companies with earnings overseas to bring that money back to the United States tax free if they invested it in the same troubled assets the Secretary wants to buy. Rather than buying toxic paper, we could create a system to support the top-quality, AAA-rated, debt market, which must begin functioning for the credit crunch to end. We should also immediately put in place policies that will encourage economic growth, such as energy exploration and development and tax policies to encourage job creation. We also need to address the regulatory and structural problems I mentioned earlier. I am sure there are plenty of other ideas that could help as well. My intent here is not to list everything that needs to be done but to point out that there is a lot that should be considered and is not even being discussed. Finally, I want to say that I hope for the best with this bill. I am going to vote against it, and I hope that I am wrong. Even if this bill passes and becomes law, I am not going to give up on looking for the right long-term solutions to our problems.

Mr. BUNNING

Mr. BUNNING. Mr. President, I would like to recognize Ms. Jo Price Craven, principal of Piner Elementary School in Morning City, KY. Ms. Jo Price Craven was recently honored by the National Association of Elementary School Principals as one of the recipients of the 2008 National Distinguished Principals Award. The National Distinguished Principals Program was established in 1984 as an annual event to honor exemplary elementary school principals who set the pace, character, and quality of the education children receive during their early school years. One principal is chosen from each of the 50 States and the District of Columbia, and this year Ms. Jo Price Craven has been selected as a National Distinguished Principal from the Commonwealth of Kentucky. Throughout her time at Piner Elementary School, Principal Jo Price Craven has displayed herself to be an example of excellence in primary education. Her educational philosophy fosters a school environment that is considerate and challenging to allow teachers at Piner Elementary to mobilize and enhance student performance. Kentuckians are extremely proud of Ms. Jo Price Craven. I am honored to pay tribute to her, and I encourage my colleagues to join me in wishing Principal Craven continued success as she continues her exceptional work in education.

Mr. BUNNING

Mr. BUNNING. Mr. President, today I recognize Ms. Kelsey Landt of Paducah, KY, who is a premed senior at the University of Kentucky at 13 years old. Before her teenage years Kelsey participated in spinal cord injury research at the University of Kentucky, and while at the National Institute of Neurological Disorders and Stroke, she utilized transcranial magnetic stimulation to understand reward processing. At the age of 10, she presented her work at the 2005 Community College Conference for Student Research in Madisonville, KY, and this year, she participated in a summer internship program at the National Institutes of Health in Maryland. At an age when many children look to hangout at a local mall, Kelsey has already built a resume that mirrors those students who were born more than a decade before her. In addition to her academic activities, Kelsey is involved in community life. She is presently the youngest account holder at the Community Foundation of West Kentucky where she raises money for medical and research based charitable organizations. She is a regular at the local Salvation Army and makes time to volunteer at a local children's hospital in Lexington, KY. After earning a bachelor's degree in biology at the University of Kentucky next spring, Kelsey will begin her postbaccalaureate position at the National Institutes of Health and then hopes to attend medical school. Like most Kentuckians, I look forward to seeing all that she will accomplish as she works toward her goal of becoming a medical scientist.

Mr. BUNNING

Mr. BUNNING. Mr. President, I would like to take this opportunity to congratulate West Knox Elementary School on being named a President's Challenge State Champion by the President's Council on Physical Fitness, PCPFS, for 2007-2008. Their accomplishment is an example for all schools across the Commonwealth and our Nation. Each year the PCPFS State Champion award is presented in all 50 States to 3 schools with the highest number of students scoring at or above the 85th percentile on the President's Challenge Physical Fitness Test. The test measures four components of physical fitness: a 1-mile run-walk for heart and lung endurance; curl ups for abdominal strength and endurance; a ``sit and reach'' stretch for muscular flexibility; pullups for upper body strength and endurance; and a shuttle run for agility. The inclusion of West Knox Elementary School in this group is a credit to the dedication of its students, staff, and administration. West Knox Elementary School is a role model to other institutions through its dedication to helping students gain physical fitness skills and to understanding the health benefits of regular physical activity. In a time in which many young people are faced with weight related problems, West Knox Elementary has proven to be a leader by encouraging students and adults to engage in physical activity. West Knox Elementary School is an inspiration to the citizens of Kentucky and to student and community leaders everywhere. I look forward to seeing all they will accomplish in the future.

Mr. BUNNING

Mr. BUNNING. Mr. President, I would like to take this opportunity to congratulate Walker Intermediate School on being named a President's Challenge State Champion by the President's Council on Physical Fitness, PCPFS, for 2007-2008. Their accomplishment is an example for all schools across the Commonwealth and our Nation. Each year the PCPFS State Champion award is presented in all 50 states to 3 schools with the highest number of students scoring at or above the 85th percentile on the President's Challenge Physical Fitness Test. The test measures four components of physical fitness: a 1-mile run-walk for heart and lung endurance; curl ups for abdominal strength and endurance; a ``sit and reach'' stretch for muscular flexibility; pullups for upper body strength and endurance; and a shuttle run for agility. The inclusion of Walker Intermediate School in this group is a credit to the dedication of its students, staff, and administration. Walker Intermediate School is a role model to other institutions through its dedication to helping students gain physical fitness skills and to understanding the health benefits of regular physical activity. In a time in which many young people are faced with weight related problems, Walker Intermediate has proven to be a leader by encouraging students and adults to engage in physical activity. Walker Intermediate School is an inspiration to the citizens of Kentucky and to student and community leaders everywhere. I look forward to seeing all they will accomplish in the future.

Mr. BUNNING

Mr. BUNNING. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. BUNNING

Mr. BUNNING. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. BUNNING

Mr. BUNNING. Mr. President, I yield the floor.

Mr. BUNNING. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. BUNNING. Mr. President, I do not wish to interfere with the negotiations going on and the potential of an agreement being reached on the judges and the other things that are being discussed, but I do have about 15 minutes on the current situation in the markets, and I would like to speak on that. So I would be more than happy to wait for them to finish their negotiations or go ahead and speak as though in morning business, depending on the ruling of the Chair.

Mr. BUNNING. Thank you, Mr. President. Federal Reserve Policy Mr. President, I rise to speak about the current economic situation and the bailout bill that will soon be coming to the floor of the Senate. Let me start by saying I am as concerned about what is going on in the financial markets and the economy as everyone else. I know there are extreme tensions in the credit markets, and those problems could soon have an impact on businesses and individuals who had nothing to do with the mortgage mess. However, I do not agree that the bill we have been discussing, and would probably come to the floor of the Senate, will fix those problems. I also strongly disagree with the Senators who have come to the floor and declared that this crisis is a failure of the free markets. No. The root of the crisis is the failure of Government. It comes from a failure of regulation and, most importantly, monetary policy. In the long term, we certainly need to update our financial regulations to reflect the realities of our modern economic system. But it is just plain wrong to blame failures of our regulations and regulators on the markets. A little history is in order. Our financial regulations are based on structures put in place during the Great Depression. Our laws simply do not reflect the current landscape of the financial markets. Once upon a time, banks may have been the only instruments that were a danger to the entire financial system, but it is now clear that other institutions are now so big and connected that we cannot ignore them in the future. Also, many of today's common financial instruments did not even exist 20 years ago, much less when our laws were written. But our regulatory structure is not the only problem. The real fuel on the fire of this crisis has been the monetary policy of the Federal Reserve. I have been a vocal critic of the Fed for many years and have been warning that their policies would hurt Americans in the short and long run. For most of these years, I did not have much company. But I am glad many economists and commentators have recently joined me in my criticism of the Fed. During the second half of his time as Fed Chief, former Chairman Alan Greenspan tried to micromanage the economy with monetary policy. Any economy is going to have its ups and downs, and it was foolish to try to stop that. But Chairman Greenspan did it anyway. By trying to smooth out those bumps, he overshot to the high and low sides, creating bubbles and then recessions. I have spoken many times on the floor about the Fed policies that led to the housing bubble, but a few parts are worth repeating. Everyone remembers the dot-com bubble, which itself was partly a result of the easy money pumped into the system by the Fed in the late 1990s. Well, Chairman Greenspan set out to pop that bubble and kept raising interest rates in the face of a slowdown, driving the economy into recession. In order to undo the problems created by his tight money, he then overshot the other way, taking interest rates as low as 1 percent for a year and below 2 percent for nearly 3 years. In turn, that easy money ignited the housing market by bringing mortgage interest rates to alltime lows. Low-cost borrowing encouraged excessive risk taking in the financial markets and led investors to pump borrowed funds into all kinds of investments, including the various mortgage lending vehicles. In 2004, Mr. Greenspan encouraged borrowers to get adjustable rate mortgages because of all the money they would save. Four months later, he started a series of 17 interest rate increases that helped make those mortgages unaffordable for the hundreds of thousands of borrowers who listened to his advice. I warned him about that advice the following day after his speech, but that warning fell on deaf ears. Then, in 2005, rising interest rates and housing price appreciation overcame the ability of borrowers to afford the house they wanted. To keep the party going, borrowers, lenders, investors, rating agencies, and everyone else involved lowered their standards and kept mortgages flowing to less creditworthy borrowers who were buying evermore expensive homes. Chairman Greenspan also let investors and homeowners down by failing to police the banks and other lenders as they wrote even more risky mortgages. Regulated banks were allowed to keep most of their risky assets off their balance sheets. Even worse, he refused to use the power Congress gave the Federal Reserve in the Home Ownership and Equity Protection Act of 1994 to oversee all lenders, even those not affiliated with banks. His refusal to rein in the worst lending practices allowed banks and others, including Freddie Mac and Fannie Mae, to write the loans that are now at the center of our mortgage crisis. Chairman Ben Bernanke issued rules under that law in July of 2008--14 years later--but that was far too late to solve the problem. Before turning to the coming legislation, I wish to mention a few more failures of Government that directly contributed to this mess. Federal regulations require the use of ratings from rating agencies that have proven to be wrong on the biggest financial failures of the last decade. The Community Reinvestment Act forced banks to make loans they would not otherwise make based on the credit history of the borrower. The Securities and Exchange Commission, under former Chairman Donaldson, failed to establish meaningful oversight and leverage restrictions for investment banks. Fannie Mae and Freddie Mac used the implied backing of the Government to grow so large that their takeover by the Government effectively doubled the national debt. They were pushed by their executives and the Clinton administration to loosen their lending standards and write the loans that drove the companies to the point of being bailed out by the taxpayers. Finally, the same individuals who have come to this building to ask for the latest bailout set the stage for the very panic they are using to justify the bailout. The Secretary of the Treasury and the Fed Chairman set expectations for Government intervention when they bailed out Bear Stearns in March. The markets operated all summer with the belief that the Government would step in and rescue failing firms. Then they let Lehman Brothers fail, and the markets had to adjust to the idea that Wall Street would have to take the losses for Wall Street's bad decisions, not the taxpayers. That new uncertainty could be the most significant contributing factor to why the markets panicked last week. What is more, the panic today is a result of the high expectations set last week when the Secretary and Chairman announced their plan. When resistance in Congress and the public outrage over the plan became clear, the markets walked back to the edge of panic. Bailout Proposal Now I wish to talk about the bailout bill that we expect to have on the floor of the Senate soon. The Paulson proposal is an attempt to do what we so often do in Washington, DC--throw money at the problem. We cannot make bad mortgages go away. We cannot make the losses that our financial institutions are facing go away. Someone must take those losses. We can either let the people who made the bad decisions bear the consequences of their actions or we can spread the pain to others. That is exactly what Secretary Paulson proposes to do: take Wall Street's pain and spread it to Main Street, the taxpayers. We all know it is not fair to taxpayers to pick up Wall Street's tab. But what we do not know is if this plan could even work. All we have is the word of the Treasury Secretary and the Fed Chairman. But they have been wrong throughout this whole housing mess. They have previously told us that subprime problems would not spread and the economy was strong. Now they say we are on the edge of a severe recession or maybe the second-largest depression in the history of this great Republic. Well, I am not buying it, and neither are many of our Nation's leading economists. If some sort of Government intervention is needed to fix the mess created by the Government failure I talked about earlier, we need to get it right. Congress owes it to the American people to slow down and think this through. We need to know that whatever we do is going to fix the problem, protect the taxpayers, not reward those who made bad decisions, and make sure this does not happen again. But we cannot do that in 1 week as we are all trying to rush home. Congress needs to take this seriously and stay until we find the right solution, not just throw $700 billion at Wall Street as we walk out the door. Now, Mr. President, before I yield the floor, I ask unanimous consent that the two letters I mentioned from economists opposing the bill, along with an article from the New York Times from 1999 about the Clinton administration pushing Fannie and Freddie into risky loans, be printed in the Record.

Mr. BUNNING

Mr. BUNNING. Mr. President, today I pay tribute to Kenny Perry and J.B. Holmes for their contribution to the success of the 2008 United States Ryder Cup team. The 2008 Ryder Cup was recently held in my home State at the Valhalla Golf Club in Louisville, KY. On Sunday, the American team defeated the Europeans 16\1/2\ to 11\1/2\. This was their first Ryder Cup victory since 1999. If not for the remarkable performances by Mr. Perry and Mr. Holmes, this success would not have been possible. Mr. Perry was born in Elizabethtown, KY, but calls Franklin, KY, his home. He started playing golf at the age of 7 and spent years perfecting his game. He later went on to attend Western Kentucky University and started golfing professionally in 1982. He has shown his dedication to the game of golf by building a public golf course in his hometown specifically designed for handicapped individuals. Perry's performance at this year's Ryder Cup was exceptional as he finished with a total record of two wins, one loss, and one tie. His achievements on and off the course are to be commended. Mr. Holmes was born and currently resides in Campbellsville, KY. He has played golf most of his life, including playing for his local high school golf team as a third grade elementary student. He later went on to attend the University of Kentucky and started playing professional golf in 2005. His hard work and dedication have earned him the right to be named among the highest skilled golfers in the world. Mr. Holmes' performance at the 2008 Ryder Cup was one of the best. He finished with a total score of two wins, no losses, and one tie. It was a pleasure to watch Mr. Holmes compete and I congratulate him on an outstanding performance. I now ask my fellow colleagues to join me in congratulating Mr. Perry and Mr. Holmes for their remarkable performance and achievement. These two men have represented Kentucky and the United States well.

Mr. BUNNING

Mr. BUNNING. Mr. President, today I wish to congratulate the Institute of Real Estate Management, IREM, on its 75th anniversary. As an affiliate of the National Association of Realtors, IREM advocates on behalf of the real estate management industry. With 80 U.S. chapters, eight international chapters, and several partnerships around the globe, IREM constantly strives to promote the principles of professional real estate management. Ethics are the cornerstone of the IREM mission. The IREM Code of Professional Ethics seeks to defend the public interest, promote healthy competition, and guarantee that IREM members will act ethically. Actively and strictly enforced, the Code of Professional Ethics provides a foundation for public trust in the integrity and expertise of professional real estate managers. IREM's commitment to ethics underlies its 75 years of success as a professional association. I would also like to congratulate IREM Kentucky chapter 59, which will be celebrating its 40th anniversary on November 10, 2008. Kentucky chapter 59 is the largest IREM chapter in the Commonwealth of Kentucky and serves as an excellent resource on real estate management education and information for its members. I congratulate IREM on more than seven decades of dedication to the real estate management profession. By providing dedicated service to its members, as well as maintaining high standards for the real estate industry as a whole, IREM serves as an exemplary model of a professional association.

Mr. BUNNING

Mr. BUNNING. Mr. President, I rise today to pay tribute to a great U.S. Senator and friend, Senator Wayne Allard. His strong political leadership will be greatly missed by the people of Colorado and the United States. I got to serve with Wayne on the Senate Banking, Housing, and Urban Affairs Committee and the Senate Budget Committee. As fellow fiscal conservatives, we share many of the same values and concerns. One of his core beliefs, and mine, is that we must reduce wasteful government spending and work to balance the Federal budget. This is a philosophy that Wayne applied to every piece of legislation that came in front of him. It was important for him to do everything he could do as a public servant to save the taxpayers' money. I know that I could always count on Wayne to follow these principals and stay true to his conservative roots. As many of you know, Wayne had a successful career as a veterinarian before he came to Congress. With the help of his wife Joan, they built a successful veterinary practice in Loveland, CO, where they raised their two daughters, Christi and Cheryl. As a veterinarian and as a U.S. Senator, Wayne contributed more than most to the people of this country. He will be greatly missed by me here in the Senate, but I know he is looking forward to spending more time with his family back in Colorado. I wish Wayne the best of luck as he begins the next chapter of his life.

Mr. BUNNING

Mr. BUNNING. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. BUNNING

Mr. BUNNING. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. BUNNING

Mr. BUNNING. Mr. President, I congratulate Ms. Laura Sanders as Kentucky's 2008 No Child Left Behind American Star of Teaching. Initiated in 2004, the American Starts of Teaching is part of the U.S. Department of Education's Teacher-to-Teacher Initiative. By offering regional and district workshops, roundtables for teachers and principals, and digital learning, the Teacher-to-Teacher Initiative allows some of our nation's best teachers to share strategies to raise student achievement and inform teachers of successful research-based practices. Each year, over one million, students are taught by a teacher who participated in the Teacher-to-Teacher Initiative. Ms. Sanders, a kindergarten teacher at Cumberland Trace Elementary School in Bowling Green, KY, has been recognized as one of Kentucky's top teachers. She developed teaching practices in her classroom along with research-based materials that have helped her students to consistently make clear improvements. Over the past 2 years, her students' reading scores have gone from the 50th percentile in the fall to over the 85th and 91st percentile the following spring. Ms. Sanders' ability to assess the individual needs of each student has enabled her to ensure that every child is working at an appropriate pace and level. Having already been a recipient of numerous awards for her contribution to education, her work is widely recognized. I am proud to recognize Ms. Sanders for her ability to effectively challenge students at Cumberland Trace Elementary School, while at the same time sharing her techniques with other teachers--making a difference in the lives of students. Her work is an inspiration to the citizens of Kentucky and to teachers everywhere. I look forward to seeing all that she will accomplish in the future.