Update on Financial Bailout

I would like to thank the many of you who have contacted my office and shared your comments on America's unfolding financial difficulties.  Today the House of Representatives passed the financial bailout plan by a vote of 263 to 171.  I voted against it.  The House of Representatives forced improvements in the bill; however, in my judgment it was not the correct approach.

I called for a serious consideration of alternatives that would restore asset values and liquidity by providing loans or guarantees, rather than purchasing troubled assets with taxpayer dollars.  Additionally, I helped introduce an initiative, H.R. 7226, to use net worth certificates to meet capital requirements.

You may be interested to read my statement in the Congressional Record opposing this legislation:

“The choice before us today is not between action and inaction.

That is a false choice. 

Clearly there is a very serious economic challenge.  The decision before us is whether to adopt a potential $700 billion taxpayer liability to nationalize bad corporate debt or an alternative that may be less costly, easier to implement, and fairer to most Americans who have no blame for this mess.

Earlier in the week, many of us said no to this, and because we said no, many helpful changes were made such as FDIC increases and a change in accounting rules that may be artificially driving down asset values.

I know every member is making a tough judgment call according to their conscience. 

But I have not heard a single member say:  “I really believe in this.  This will work.”

Instead we hear:  “It stinks, it's the best we got, our problems will get worse, and we've got to get it done.”

We are the legislative body. We make the law.  There are other reasonable options that could be unpacked — hopefully quickly — to address falling asset value, increase liquidity, and provide needed capital.”

Sincerely,