Bill Bennett: “I rise to discuss a situation that has been before us in the Chamber previously. We were all caught with some surprise…”

“I rise to discuss a situation that has been before us in the Chamber previously. We were all caught with some surprise earlier this year when the Secretary of the Treasury and the Chairman of the Federal Reserve Board came before a group of Members of Congress, House and Senate combined, to tell us of the crisis in Mexico and to ask for our support for a proposal to extend $40 billion in loan guarantees to the Mexicans. My initial reaction to that proposal was one of support, as were the reactions of the leadership of both parties in both Houses. Mexico is enormously important to the United States, economically and culturally. In addition, if we want to become crass about it, there are some 750,000 American jobs that are in jeopardy if the Mexican economy should collapse. It made sense for the United States to do what it could to reach out to the Mexicans and try to support their economy, and I supported the administration's request. As we got into the details of the deal, however, it became clear to me, as it did to a number of other Members of Congress, that the $40 billion loan guarantee was not a good deal, and we advised the Treasury of that.”