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Senator McCaskill sells MO out

Thank you for contacting me regarding the housing crisis and the credit crunch. I appreciate hearing from you, and I welcome the chance to respond.

The housing crisis is one of the biggest challenges facing the American economy. Foreclosure rates soared by 50 percent between June 2007 and June 2008. Home prices nationwide have dropped by 15 percent. Meanwhile, losses in the mortgage market have wreaked havoc on credit markets and have had a typhoon effect on Wall Street.

I understand that there is a lot of blame to go around for this state of affairs. Predatory lenders pushed unwitting consumers into loans that they did not understand and could not pay back. Financial firms packaged risky subprime loans into securities which they said were as safe as government bonds, and investors made reckless bets on these new products.

Unfortunately, the individuals and institutions that made bad decisions in the subprime housing market are not the only ones feeling the pain of its collapse. It has had ripple effects throughout the economy. Every foreclosure negatively impacts the value of an estimated 22 neighboring homes, and foreclosures are tearing apart many communities. The loss of housing wealth has hurt consumer confidence and consumer spending, and hundreds of thousands of jobs have been lost, especially in the construction industry. Because banks have lost so much money, even businesses and creditworthy consumers are having difficulty getting loans.

I think that Congress has the responsibility to take measures to stabilize the economy. While it is not perfect, the housing bill that Congress passed and the President signed into law in July 2008 includes several common sense steps to stop the bleeding in the housing and credit markets and prevent future crises. Among other provisions, it expands the Federal Housing Administration’s mortgage refinance assistance program to allow at least 400,000 families facing foreclosure to work with their lenders to stay in their homes. However, in exchange for government help, lenders will have to accept serious losses, and homeowners will have to pay the government back if they sell their homes for a profit. Additionally, a new $7,500 tax credit for first-time homebuyers, which will work like an interest free loan to be paid back over 15 years, should help reduce excess housing inventories.

The housing bill also sought to address the problems with Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, which together hold or guarantee about half of all U.S. mortgages. The companies’ survival was put in jeopardy when investors began to question whether they had enough capital reserves to cover their losses in the mortgage market. The bill attempted to buttress Fannie and Freddie in the short term by allowing the U.S. Treasury temporary authority to extend the companies credit and purchase equity as necessary. At the time, the non-partisan Congressional Budget Office (CBO) estimated that there was a less than 50 percent chance that this authority would need to be used. These guarantees were accompanied by increased oversight. The bill creates a stand-alone regulator with the power to set new capital requirements for Fannie and Freddie, and it will have the power to reject any proposed compensation packaged for company executives.

Unfortunately, by September 2008, Treasury Secretary Hank Paulson felt that he needed to use the authority provided him in the housing bill to intervene directly to prevent the collapse of both GSEs and the damage they would have caused to the global economy. The federal government took control of the management of Fannie and Freddie and will back up to $200 billion in losses if necessary. It will also buy at least $5 billion of mortgage-backed securities issued by the two companies. However, the federal government will be the first group to be paid back if the companies recover and return to profitability.

The bailout of Fannie and Freddie is far from ideal. Allowing the companies to fail would be catastrophic for the U.S. economy. Many experts have speculated that the mortgage market would have shut down altogether. Nonetheless, it bothers me that it happened so soon after Congress received assurances that the authority granted in the housing bill would not be used. It infuriates me that the executives who steered the companies towards a cliff stand to receive huge severance packages. They need to be held accountable, and I am confident that, if the Treasury does not act, Congress will.

As for the broader economy, the passage of the housing bill is a serious achievement, but the work is far from done. We need to invest in our workers through education and job training, and we need to invest in renewable energy to create good jobs and work toward energy security, just to name a few. As your Senator, I will be working hard to strengthen our economy and improve life for all Americans.

Thank you again for contacting me. I hope you will continue to reach out in the future with your thoughts and advice.

All best,
Senator Claire McCaskill



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McCaskill-

I haven't received nothing from her but Sam Graves Republican house member sent me some phony ass email to my say no to the bail-out letter.

When is she up for re-election?

And who are we running against her?
 
Freedom, Prosperity and Peace

 
Freedom, Prosperity and Peace

meekandmild's picture

Sunday morning round of e-mails sent

stay tuned more to follow w phone calls

replacemccaskill.com

replacemccaskill.com

http://www.dailypaul.com/node/64444

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

Senators not afraid

Senators are not afraid of voting for this, they are not up for election this time. The US Representatives are up for election. They are the ones holding things up because they know they will be losing their seats if they vote for this.

NCMarc's picture

HAHA THEY DON'T GET IT!

Additionally, a new $7,500 tax credit for first-time homebuyers, which will work like an interest free loan to be paid back over 15 years, should help reduce excess housing inventories.

This is the reason we have the problem we have now. This makes it easier for people to buy homes who have no money. We already have a program like this. This doesn't help the situation at all. They need to go back to people needing 10-15% down payment to buy a home. It used to be a privilege to have a home, not a right.

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A great empire, like a great cake, is most easily diminished at the edges. - Ben Franklin

down payment assistance

A $7500 federal gov't tax loan to buy a house is like down-payment assistance for people who can't get 20% or 10% or even 5%. The effect is that it artificially keeps housing prices higher than they would be, which causes housing to be unaffordable. It prolongs the problem.

It seems that nationalized banks

participate in usury, infecting the currency to the point of extinction

meekandmild's picture

my response

I just received your letter concerning the Bailout. I'm very disappointed. I think you will find you will be very disappointed come election time. 90% of MO does not want any kind of bailout for these corrupt businesses. You are ignoring the wishes of the people you said you your support, you disregarded your oath of office and the constitution. I will actively campaign against you.

meekandmild's picture

oops, typo

i should have proof read

Good. Straightforward and direct. She not only loses your vote,

she adds a vote and a volunteer to her opponent's forces.
_________________________________________
"An economy built on fiat money is a society on its way to ashes."

_________________________________________
"An economy built on fiat money is a society on its way to ashes."

what is.......

MO?

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."

she is my senator

I am embarassed to say that but its true. her voting history has been pretty good until now. I'm sorry everyone I did not vote for her but it is my responsablitiy to get the vote out in my state co keep these people out of office I am so sorry I have let you all down. I am so embarassed.sighh!

She's my senator, too.

And I did vote for her. But I voted for her solely to try to get the Bush-ass-sucking neocon clown Jim Talent out of office. He's gone, so I'm not terribly sorry about it.

I am, however, very embarrassed that she favors the bailout. I will also actively campaign against her in the future. I can hardly wait! It begins tomorrow!

I have been speaking for Ron Paul and promoting the Constitution and limited government, and against the Fed and current presidential candidates since spring of last year (when Dr. Paul woke me up) and have been almost completely ignored. I do freight deliveries, so I talk to a LOT of people, so I've been ignored A LOT.

But in the last few days the people that I talk to around central and NE Missouri are starting to worry and are actually asking me questions about all of this! On Friday, a couple of them even wrote down Dr. Paul's name so they wouldn't forget to do some research on him (better late than never?). This has never happened to me here in Neocon Central. It's very exciting in a way.

A bunch of people have decided to not even vote. These are political types who had been McBama zombies before now, so I am assuming that my influence had something to do with this recent change. Now I have to convince them to vote third party. I only have a month or so. I hope I am successful. Wish me luck.

The powers that be are handing us a golden opportunity to wake up the people by using the bailout as an example of their evil. AND THEY ARE DOING HALF THE JOB FOR US! It's all over the news (and so is Dr. Paul lately). Let's not waste this opportunity.

meekandmild's picture

she mine too

hopefully not after her next election

Oh I will be walking my city for somone else I hope there is a

third party person running. I will not vote Democrat or Republican ever again. These people have to go. period. The only thing worse than them would be satan himself. Any other party is better than this crap.

Republicae's picture

Ya ever heard of the State

Ya ever heard of the State of Missouri?

Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Missouri

_________________________________________
"An economy built on fiat money is a society on its way to ashes."

_________________________________________
"An economy built on fiat money is a society on its way to ashes."

oh......

ok, go it!

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."

what unmitigated bullsh*t

It's like living in Communist China here.

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Support H.R. 6594 to give 9/11 First Responders (heroes) the help that they need and deserve. Watch "Dust to Dust" and "Dust to Deceit" to learn about the ongoing 9/11 Holocaust.

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"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

LOL!

China said this is something that even there government wouldn't do!!!!!
If it is too communistic with a communist country, than something has to be wrong!

__________________________________________________________
"The real terrorist's are in this country. They are not planning to blow us up,......... but rather, take our money, our freedom, and our country."