Obama's response to my concerns about the Wall Street BailoutSubmitted by dhashd on Fri, 09/26/2008 - 18:36
I am from Illinois. Obama is one of our Senators.
This is his response to my concerns about the bailout:
Thank you for writing to share your concerns on the current state of the U.S. economy and the government’s response to the ongoing stress on our financial markets, homeowners, and families.
From Wall Street to Main Street, the U.S. economy is in trouble. We have suffered 600,000 lost jobs since the beginning of this year, over a million families have lost their homes to foreclosure with millions more at risk, and many banks and other financial institutions are struggling to stay afloat. The bailout of investment bank Bear Stearns, the federal takeover of Fannie Mae and Freddie Mac, the collapse of Lehman Brothers, the Federal Reserve’s emergency intervention to save AIG, and the emergency Treasury action to shore up money market mutual funds demonstrate the seriousness of the situation we face.
In response to these concerns, Federal Reserve Chairman Bernanke and Treasury Secretary Paulson have met with congressional leaders to request legislation that would authorize direct intervention in the economy. The plan would grant the Treasury Secretary $700 billion to purchase bad assets from financial institutions. By doing so, the Treasury would inject much needed liquidity into the market and work to rescue the economy from a worsening downturn.
While I agree that urgent and decisive action is necessary during this time of economic turmoil, I will not grant a blank check for billions of taxpayer dollars to the Treasury to bail out banks, with no oversight, accountability, guaranteed help for homeowners, or even assurances that the risky plan will work to the benefit of American workers and taxpayers.
Instead, we must insist upon a plan that includes relief for burdened homeowners, ensures restraints on exorbitant executive salaries, and ensures that the American people share in the upside as Wall Street recovers. It is also critical that the power to spend $700 billion is not left to the discretion of any one person but is instead under the rigorous oversight of an independent and bipartisan board.
Further, we need to move forward on a second emergency economic stimulus plan including tax rebates to help families cope with rising food and gas prices and investments in jobs and relief for state budgets.
In closing, be assured that as this process moves forward I will continue to work for a fast, fair and viable response to our nation’s economic crisis. Again, Dragos, thank you for sharing your comments and concerns with me. Please feel keep in touch on this, or other matters of importance to you.
United States Senator"