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There’s Too Much at Risk, says
Ryan
(Washington, D.C.) -
Congressman Tim Ryan voted today in favor of the emergency economic recovery
package, which was defeated 228 - 205. While Ryan had deep reservations with
some the provisions of the government bailout, his concerns of a serious credit
market freeze outweighed those hesitations. Ryan fears constituents in the
17th District would not be able to secure basic financial instruments
like home and auto loans. Citizens seeking college student loans or home equity
loans may also find it more difficult than in the past. Whether an individual
works in the public or the private sector, are working or retired, the collapse
of the financial markets will have a significant negative impact on 401k and
other retirement plans, most of which are invested in the stock market.
Ryan also believes that further problems on Wall Street could
cause businesses in northeast Ohio to suffer from a tighter credit
market—jeopardizing the area’s fragile economic recovery. Businesses across the
country depend upon lines of credit to purchase inventory, pay their
employees and stabilize their income over expenses during regular business
cycles. Additionally, company expansions and new product development will come
to a standstill as a result of the tighter restrictions on lending, leading to a
trickle-down effect on suppliers and service providers like the construction
industry.
The original plan initially introduced by the President was
rejected by Democrats, but in subsequent negotiations Democrats improved the
plan to protect taxpayers by putting them in a position to share in the profits
and recover assets. Democrats also required the next President to deliver a plan
that would ensure taxpayers are repaid in full if, in five years, the recovery
package does not earn back the money that taxpayers put into it.
“After numerous conversations with retirees concerned
about their pensions, local business people concerned about their credit lines
drying up, and local labor leaders concerned about a lack of work if credit
markets freeze-up, I reluctantly supported today’s rescue package. Supporting this package was necessary if the US
is going to avert an economic recession and further hardship for the American
public.”
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