Washington, D.C. -- I will not vote to bail out the people who committed a massive fraud on the American public.  Instead, I’ll vote to rescue the taxpayer from the consequences.

During years of the government’s deregulation of the financial industry, housing lenders developed a menu of ‘creative’ mortgages: no down payment; interest only; no interest for the first year; and a variety of adjustable rate mortgages (ARMs).  These gimmicks led many people to take on more debt than they could really afford, and millions of mortgages have now gone into foreclosure.  Now, all that bad debt is dragging down the entire financial sector and threatens an economic meltdown.

President Bush is pushing Congress to give the Secretary of Treasury virtually unlimited authority to buy as much as $700-billion in non-performing mortgages and related loans.  Such a bail-out would have the government take responsibility for the bad loans and allow banks to continue making small business, commercial, and automobile, college and other personal loans to creditworthy customers. 

But, a bail-out means we’re saving the people who caused this mess.  I want an economic rescue for taxpayers and homeowners.  I want a process with strong, independent oversight, accountability for those who got us into this mess; a plan that provides protection for homeowners and taxpayers.

The Administration is demanding an immediate decision on their $700-billion giveaway.  I have not lost sight of who’s being asked to foot the bill.  When all the details of a real rescue plan have been put together, I want to consult directly with the people of Hawaii before I make a decision.     

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