We face a critical moment in our nation’s history.  At no other time since the Great Depression has our economy stood on the brink of such widespread failure.  When Treasury Secretary Paulson and Federal Reserve Chairman Bernanke briefed Congress last week on the failing financial institutions, they stated that inaction would almost guarantee the start of a disastrous “domino effect” that would eventually work its way to every American’s pocketbook.

The Bush Administration has asked us in Congress to approve a $700 billion financial rescue package in an attempt to stop this domino effect before it starts.  However, I am not comfortable handing this administration an almost trillion dollar blank check without any guarantees to protect taxpayers, their investments or their retirement accounts.  Any financial package should include provisions for proper oversight, accountability, transparency and limits on executive compensation to ensure millionaire executives do not personally benefit from this plan.

I also realize the dire situation our economy faces.  Arkansans are being hit especially hard with high fuel prices, soaring food prices in grocery stores, shaky pensions and the growing inability of many who have made their payments on time to refinance their home mortgage.  If our financial institutions fail, all the experts say there will be a nationwide freeze on credit and lending.  Small businesses will not have access to loans to maintain or expand their operations and will be forced to lay off employees.  Farms will not have access to funds for seeds or equipment and will be forced out of business.  Local banks will no longer be able to make loans.  This scenario is completely unacceptable to me.

Let me make one thing clear:  we do not need to bail out Wall Street and reward their executives for bad decisions with golden parachutes.  Any financial rescue package should first and foremost protect working families and their pensions and seniors’ retirement accounts, while ensuring those who need loans can still get them.

I believe we must help those hit hardest by this crisis.  We need a plan that helps American families stay in their homes, American small businesses keep their doors open, and family farms continue to provide us with a safe and reliable source of food and fiber.

I believe that Congress should not adjourn until we have achieved a responsible bipartisan solution that restores confidence and functionality to the markets while protecting the American taxpayer.  You have my commitment that I will be closely reviewing the various plans Congress will be considering over the coming days, and I will only support those I believe will protect taxpayers and their savings while stopping this domino effect before it reaches our families and businesses here in Arkansas. 

Sincerely,

 
Mike Ross

Mike meets with the American Cancer Society's Cancer Action Network on September 23 in his Washington office.  Pictured (L-R): Sandy Prince of Fayetteville, Mike, and Joanne Blos of Hot Springs.