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Boucher defends votes to bail out financial industry, automakers


Published January 3rd, 2009 | 9 Comments


 

ABINGDON — U.S. Rep. Rick Boucher is defending his congressional votes for the $700 billion financial industry rescue and the multibillion-dollar bailout for the Big Three automakers, although he says a narrow margin of his constituents backed both measures.

The financial industry rescue, also known as the Troubled Asset Relief Program (TARP), passed Congress, but the automakers’ bailout failed in the Senate.

Still, the outgoing Bush administration awarded $13.4 billion in “short-term financing” from TARP to the automakers under certain conditions.

Boucher, an Abingdon Democrat, said a “bare majority” of his 9th Congressional District constituents who sent e-mails and messages encouraged him to vote for both measures.

“People understand what’s at stake here. They know this is not a gift to anybody. They understand this is an investment,” Boucher said during a year-end interview at his Abingdon office.

Boucher said the federal government made “similar kinds of investments” in the 1980s to avert the demise of savings and loan institutions and avoid Chrysler’s bankruptcy in the late 1970s.

“In the case of TARP, the government is buying stock in banks,” Boucher explained. “As these banks stabilize and begin to earn greater profits, the government will get its money back and potentially profit from it. ... In the absence of the government making these investments, the economy would be in a lot worse shape than it is today.”

Boucher admitted it is “personally distasteful” to invest in automakers the same way the federal government did with Chrysler about 30 years ago.

“In this case, it’s necessary because if any of these (car) companies go under and has to liquidate, there is a great risk the other two would as well because they all depend on a common base of parts suppliers,” Boucher said. “If any of those suppliers loses a big customer, one of the Big Three, that supplier is no longer there for the other two alone. ... About 2 million jobs nationwide vanish. That cannot happen. If that were to happen this economy would be in total free fall. We would be back to Depression-era unemployment numbers.”

Boucher, 63, is entering his 14th term in the Democrat-controlled Congress in 2009. He ranks 30th in seniority in the 435-member House.

Boucher has been a member of the House Energy and Commerce Committee and served as chairman of the subcommittee on Energy and Air Quality. Incoming committee chair U.S. Rep. Henry Waxman, D-Calif., may realign some subcommittees, said Boucher.

“Sixty percent of all legislation goes through Energy and Commerce Committee, and I am the fourth most senior person on that committee...” Boucher said. “(But) it’s not entirely clear how the subcommittee structure will be in the next Congress. ... My exact role is unclear at this point, but it will either be energy and air quality or telecommunications.”

Boucher pledged to reintroduce legislation in the next Congress to give journalists a legal privilege to refrain from revealing confidential information sources.

The legislation, which had passed in the House but was not taken up in the Senate, had emerged after former New York Times reporter Judith Miller was jailed in July 2005 for contempt of court for refusing to testify before a federal grand jury investigating a leak naming Valerie Plame as a covert CIA agent.

“What we’re seeking to do is protect the public’s right to know,” Boucher said of the legislation. “Sometimes the best information about government corruption or misdeeds within a large corporation will come from an inside source who will not talk to a reporter about what’s going on unless anonymity is assured.”

Boucher also said he is looking forward to working with incoming Northeast Tennessee U.S. Rep. Phil Roe, R-1st District. Boucher did not have a strong working relationship with Roe’s predecessor, Republican U.S. Rep. David Davis. Roe, former Johnson City mayor, narrowly defeated Davis in the August 2008 GOP primary and easily won the November general election.

“My impression of him is he is very strongly in the tradition of (the late GOP U.S. Rep.) Jimmy Quillen (of Kingsport) and (retired U.S. Rep.) Bill Jenkins (of Rogersville) as a person who looks for workable, practical, common-sense solutions for problems,” Boucher said of Roe. “We have talked on the phone about ways we can work together. ... I think we will have an excellent partnership.”

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As enlightened as I'm sure you are Mr. Johansen I fail to see how my arguement against democracy is validated by your retort. You said, "I don't have a problem with the minority, I don't see color, I feel women can do anything they want", but guess what? Most people are not like that. Most people are bigoted, self serving, and stuck in the roll of sheep. If true democracy was ever instigated the trains to the gas chambers would roll tomorrow... and you, who are supportive of all these minorities, would be right there with us.

CommentBrother Early | 1/5/2009 - 7:32 PM - (CommentSuggest Removal )

Mr. Thomas as for your post I agree some of the comments below are way off, but NO I do not want a hand out, that is the main reason for my storybook below because I think alot do and that is the wrong way to be thinking. As for your house and car paying full price question, that is actually not a handout that is bartering which goes back to the very fundamentals of the american way. If only the bailout would have been used properly but have you seen how much it has helped 0% for local banking if your credit is good you can still get the same credit you could get last month or six months ago, etc,etc, and its still tight for buisiness'. It has allowed banks to bolster there bottom line and make the black blacker, if these banks would have refied there bad loans in the first place mainly these ARMS. It was greed they could have made a 100,000 profit but no they wanted 600,000 point is they could have refied some of these loans when the red flags started two years ago for less interest and saved alot of the economy themselves and looked like hero's and still have been profitible. As for the auto industry I agree something had to be done, the problem is I don't think there is a solution, they will be back in March or April asking for more. The bottom line there is they don't make a profitable product, understand that they lose money on every single vehicle they make, thats just bad business and the inevitable will be bankruptcy unless the union gives up major and I mean major concessions to get them from 70 a car to 35 or 40 and I just dont see them doing that same problem with all of it greed. I don't think the auto industry will fail but I do think they will have to have bankruptcy to deal with the UAW and other creditors. Keep in mind that every plant and building these guys own are leveraged to the kilt, they have no collateral to get a loan from anyone but uncle sam there is only one forseable way out, an extra 2cents I would rather buy a vehicle from a bankrupt company with a plan for profitibility than a non bankrupt company with no long term viable plan for profitibility.

CommentJay Johansen | 1/4/2009 - 5:59 PM - (CommentSuggest Removal )

LOL, As for the remarks on my Welfare comments, First off anyone who takes a stimulus check or a bailout is on welfare that puts us all in that hat. Thats the way I feel about it we didn't work for that money, yes its tax dollars but the government never owed us that money that was for all the other spending the government does. My last stimulus check was donated to the susan kohn foundation and if another round of welfare is given that one will be donated to another worth while organization, I don't and never will support government stimulus or bailout, I will not accept money that I did not go out and work for. That doesnt mean I look down on anyone that uses there stimulus thats what it was for and this is my feeling for me, I am not here to judge anyone else but this is my soapbox and we all have one. AS for those drawing real welfare fine those single parents and the elders that need it thats fine, but I have seen more robbery of the system with my own eyes and if you think for one minute that 50 percent of the people on welfare deserve it you are wrong, as for most wanting to work I am glad you see more of those people than I do as a business owner I see a generation that is mostly lazy and wants something for nothing granted there are a few out there that understand what it means to work for a living but it is not the majority I truly wish thats the way it was, that people wanted more for themselves, that is the one thing this nation was built on is hopes and dreams but you have to be willing to go after them and I have seen to many people that dont care. I have seen people want to make less money, even when given an oppurtunity to make more so that they can stay in there government houseing, I have seen people not get married because if they did they couldnt get there wic card even though together thay make 50,000 there are alot of problems with our government but there is a huge problem with the large amount of the population that think they are owed something that they have not earned and for the record I do vote, I vote every year but it sucks when you are voting crook after crook, not all but most. that is why congress needs terms so the crooks could be kept to a limited amount of destruction and that is why serious matters that affect my tax dollars should be voted at the polls by the people that pay those taxes rather than those that abuse them. So there is your justificatio from my world these are things I have seen not made up those that need welfare more power to you but I have seen the system raped and pilfered and it needs to be regulated stiffly. I have to say RF your description of a true democracy had me laughing for a good long while because non of that is where I am coming from, I don't have a problem with the minority, I don't see color, I feel women can do anything they want, My point is governmet will always be crooked and never ran the way each of us would like, I would like to see all government with terms so that one person can inject there good ideals and that there damging ideals would be limited, As stated any major decisions of my country should be voted at the polls by the country and that people need to want more and get back to chasing the american dream whatever ones dream may be instead of waiting for someone to hand it to them.

CommentJay Johansen | 1/4/2009 - 5:40 PM - (CommentSuggest Removal )

I must have a computer problem, the story above has nothing to do with the stories comments.
Most every one wants a hand out. Be truthful. All want the most for the least price. Buy a car pay sticker price, buy a house pay the asking price. NO ?
If not for Boucher there would be longer lines at the welfare counter.
Without the auto industry there will be a 30% unemployment rate.
Banks don't blame them ,blame the Democrats or GOP they passed the laws that let every Tom,Dick and Mary get a home loan for the asking. Money was not needed the banks had to say under the law, we have a loan just for you.
Just wait till Jan 20 and watch your money, they are going to give away TRILLIONS.
Blame the people who voted for the washington bunch.

CommentTracy Farmer | 1/4/2009 - 11:51 AM - (CommentSuggest Removal )

Always enjoy the comments by Greg and Eric. It's always so much more refreshing than the typical "EVERYONE IS GOING TO HELL...EXCEPT ME!!!" rant. I get so disgusted by those sheep who justify their bigotry on faith and not on the fact that they are ignorant.

Ok, time for my soapbox. Don't you just love it when someone gripes and gripes about "welfare" but for some reason can't come up with anything to justify their opinion except a few anecdotal examples? As someone who has worked extensively with the low-income families in Kingsport, I can assure you 99% of them would rather be working and making a higher wage, but for whatever reason, lack the tools, lack opportunity, are hindered by health, race, family, etc.
I have met few I would consider lazy, shiftless, good for nothings, and believe it or not they aren't in the normal stereotype but come from a typical WASP background and have learned how to work the system. My favorites are the ones drawing disability (including all their children) because of illnesses which are easily be faked, have prescriptions for half the pain killers known to man and are making pretty good money on the side selling those same prescriptions. But, again this is NOT a common make up of those in need. (Did you know that the majority of those claiming assistance are elderly and a great many of those forced into substandard living because of continued lack of funding to sustain programs aimed at helping them?)

Another point I need to comment on. God help us the day we become a true "democracy." Contrary to what Mr. Johansen wants we are not, and never have been, a democracy. We are a Representative Republic base on the rule of law i.e. Constitution. The last thing I would ever want to see is mob rule which is exactly where democracy leads. There is no more powerful form of despotism and evil than democracy. If the majority ruled here's what the world would look like: Only white Anglo Saxon protestant land owning males would have the right to vote, women would be forced out of the workplace, all civil rights laws would be repealed, anyone in poverty, not of the desired color, race, orientation, ethnic background, political affiliation, religion etc. would be sent to concentration camps,.. When the majority rules all suffer. What we have now (as the ideal, of course) is a system designed to defend the minority which in turn protects ALL people. We don't need the chaos of democracy. We need to strengthen our current system and start living by the creeds we claim we cherish. If you think we have crooks in Washington then vote, encourage your neighbors to vote. Let’s put representation in place that is concerned with the good of the people (all people) and not with lining their and their friends’ pockets.

Ok, I'm done. Back to Greg and Eric. I join my fellow Philistines. Oh and to Micheal, "HEY CUZ!" :)

CommentBrother Early | 1/4/2009 - 9:45 AM - (CommentSuggest Removal )

Ye Philistine!

CommentDiffident Dissident | 1/3/2009 - 6:58 PM - (CommentSuggest Removal )

Well Greg, if you would read the instruction book it clearly states that gays and abortions are what is holding back the Second Coming..or wait, are they provoking the second coming...hmmm. I dunno, all I know is I didnt eat shellfish today, but I did wear clothing of two types of material, and i did shave this morning. I guess Im goin to go get saved again.

CommentEric Taylor | 1/3/2009 - 6:40 PM - (CommentSuggest Removal )

In the USA, under prezinint gEorGe Wanker bUsh, the financial policies are; Capitalism for Profits and Socialism for Losses. That way the corporation always remains in control, and the taxpayer always takes it in the well, the private place. So smile and bend over. I can't wait to see how this thread gets turned into rant against gays and abortion.

CommentDiffident Dissident | 1/3/2009 - 6:20 PM - (CommentSuggest Removal )

IF they would call it what it is I could deal with it alot better = WELFARE. IT is already given to half the nation that doesnt deserve it why not give it to the banks and the automakers as well god knows they are just the same. why get up and work and run a profitable business when uncle sam will give you free money. Alot in common with the others on welfare. IF we gave welfare to those that truly deserved it I could see the deficit being significantly reduced. REGULATE THE BAILOUTS, REGULATE WELFARE, GIVE CONGRESS TERMS, LET THE PEOPLE VOTE ON EVERY MAJOR ITEM, THESE BAILOUTS SHOULD HAVE BEEN VOTED AT THE POLLS NOT BY THE CROOKS IN WASHINGTON.

CommentJay Johansen | 1/3/2009 - 5:49 PM - (CommentSuggest Removal )
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