Economic Rescue Package
Tuesday, September 30th, 2008I want to take a few moments and bring you up to date on the recent activities in Washington surrounding the economic rescue/bailout plan which was defeated on the House floor yesterday.
America's economy is facing serious problems. The ongoing financial and credit crisis threaten the underlying health of our economy. It threatens growth and it threatens jobs.
I've spoken with many economists and many business leaders. All agree something has to be done.
The Bush administration's first proposal was for an unfettered $700 billion dollar bailout of the financial industry. I found this unprecedented government expansion with no oversight and 100% of the burden placed on the taxpayers to be unacceptable and began working on an alternative.
I proposed several changes:
An insurance guarantee program similar to existing government
programs. The insurance would require Wall Street to pay its fair share and
lessen the burden on the taxpayers.Limits on CEO compensation and "Golden Parachutes" for companies
benefiting from the government bailout.An oversight committee to ensure the rescue program is run fairly and the taxpayers are protected.Market reforms including suspension of the "mark to market rule" of accounting and stopping "naked short selling" of stocks.
As the negotiations progressed, some, but not all of my ideas were included in the final bill. Yesterday, the bi-partisan leadership in the House brought a compromise bill to the floor. The bill included my insurance proposal as an option along with a loan program and Secretary Paulsen’s plan to purchase troubled assets. The bill also included the oversight committee and a five year timetable to try and recoup some of the tax payers’ money.
The compromise still authorized between $350 billion and $700 billion to purchase bad debt. But the pork-barrel earmarks, including money going to special interests were eliminated.
While I am angry that we find ourselves in this situation, and the bill has many faults, I believe the price of inaction is unacceptable. Our economy, our jobs, our communities and our families are all at risk.
So, yesterday I voted for the compromise economic rescue package.
As you know, the bill failed and we are witnessing the consequences in the market now.
What I am working on now is finding common ground to fix this problem.
The consequences of inaction are real and Congress must act. 401(k) plans, 529 college savings plans, IRA's and other retirement accounts, and thousands if not millions of jobs hang in the balance. I applaud Speaker Pelosi for having called Congress back to Washington on Thursday to work on a plan which will have the necessary votes to pass and bring about calm to our markets and allow our economy to stabilize.
Please know that I am working hard to protect the tax payers and solve this economic crisis. I will try and keep you abreast of developments as they occur.
Sincerely,
Eric Cantor
