Helping Middle Class Families Weather the Storm

Last night, facing one of the most serious economic crises in our nation’s history, I joined 73 of my colleagues in the United States Senate to support an emergency economic rescue package. The bill we passed aims to prevent the failures on Wall Street from plunging our entire economy into a severe and lasting recession.

Many Coloradans are angry and frustrated with this economic rescue plan. They are rightfully asking why middle class families are being asked to tackle a problem that is not of their own making. Many urged me to oppose this bill.

I, too, am angry and frustrated that we have reached this point. But my fundamental responsibility as Colorado’s United States Senator is to do what I believe is best for our state and our nation - and I believe the risks of doing nothing are far too great.

The failures on Wall Street have left pensions and retirement savings hanging in the balance.

Credit for middle class Americans is rapidly drying up. That means that small businesses will soon be unable to make payroll.

It means that when consumers go to the grocery store, the hardware store, or to buy a new car, their credit cards won’t carry enough credit to make the purchases.

With credit drying up, young families won't be able to borrow money for their first home. Students will find it more difficult to extend their college loans.

If this continues, interest rates for farmers and ranchers will skyrocket, making it more difficult to buy seed, fuel, and fertilizer.

Already, construction projects in Colorado are grinding to a halt.

This economic crisis threatens every sector of Colorado’s economy and all 64 of our counties.

The economic rescue package we passed last night is far from perfect, and I respect the positions of my colleagues and my constituents who have expressed principled opposition to this bill. Their voices are important to this debate.

The bill we passed last night, however, is a far cry from the $700 billion blank check that the Administration originally requested.

Under the Senate’s bill, the Treasury Department will be authorized to immediately buy the troubled assets that are at the heart of the problem on Wall Street. Taxpayers will own these assets and, as they regain their value, taxpayers will recover most, all, or perhaps more than they are being asked to commit.

The funds will be dispensed in installments. The Treasury Department will receive $250 billion immediately and another $100 billion contingent on Presidential certification. A final $350 billion would be available subject to a Congressional resolution of disapproval.

The bill also includes strong, independent oversight. It appoints a special Inspector General for the program and a bipartisan oversight panel.

It imposes limits on executive compensation for participating companies and penalizes ‘golden parachutes.’

Importantly, the bill requires the Treasury Department and other federal agencies to help American families keep their homes by working to modify the troubled loans they purchase or control. We need to help Americans facing foreclosure and stem the tide that is sweeping the country.

I am also pleased that the Senate modified the bill to include a set of critical middle class tax cuts and incentives for job creation and renewable energy development. This will help stimulate an economy that is struggling, and will help middle class families weather the storm.

At the same time, this legislation will help provide Americans peace of mind that their savings are safe. It raises the limits on FDIC insurance so that up to $250,000 of individuals’ savings in the bank will be insured by the federal government. For the last 28 years, this important protection of Americans’ savings has been at the $100,000 level.

This is not a perfect bill but, in my view, it is necessary.

This economic crisis is the final verdict on eight years of failed economic policies, of greed on Wall Street, and of failed regulation.

Middle class Americans did not create these problems. They did not ask for this challenge. But it affects us all. We must put our nation on the path to prosperity and restore our economy to its rightful place as the envy of the world.

Our best days are still ahead.

Sincerely,

Ken Salazar
United States Senator

Please e-mail me with any questions or concerns you may have 

Senator Ken Salazar's DC office is located at 702 Hart Senate office building, Washington, DC 20510. He has Colorado regional offices in Denver, Colorado Springs, Fort Collins, Ft. Morgan, Pueblo, Durango, Grand Junction and Alamosa. For contact and mailing info, click here.