reply to post by maudeeb
This was my reply from my Representative:
September 29, 2008
Dear Mr. *****,
Thank you for sharing your concerns regarding the current financial crisis. I appreciate your interest in this important issue.
Over the past two years, we've witnessed the effects of a growing financial crisis. While the Administration has bailed out some companies, others
have failed, throwing the market into greater uncertainty. At this point, Fannie Mae, Freddie Mac, and AIG are all essentially owned by the federal
government. The federal government may very well end up seeing a positive fiscal contribution from the recent interventions. However, the government
may also suffer significant losses, as has also occurred in the past.
The credit markets are frozen. Although this sounds like an issue that only matters to large businesses, the availability of credit affects all of us.
We all want to send our children to college, buy a home for our families, and look for opportunities to expand our businesses. Without access to
credit and financial institutions, it's just not possible for most of us to be able to afford these things on our own. We all rely upon access to the
credit markets and the system has stopped working.
Just a few weeks ago, historic bank failures and worries about the stock market showed further deterioration in the financial sector. The
Administration responded by asking Congress for $700 billion in order to allow the Treasury Department to selectively bail out some private companies.
This idea came in the form of a 3-page bill, which was simply not enough to address the problem.
The bailout envisioned by the Administration violated the principles of good government. Congress did insist on some important taxpayer protections in
comparison to the original bill written by the Administration, which sought to spend $700 billion overnight without any oversight. While I respect the
efforts of many leaders of both parties to find the right solution, I was unconvinced that this plan will solve the larger crisis. I joined a majority
of my colleagues in voting against the plan, which failed to pass the U.S. House of Representatives.
The current crisis represents a difficult time in U.S. history. I take the situation very seriously and I have concerns about the state of our
economy. I am also very concerned about the effect of this crisis on Utahns and the possible long-term effects on all Americans. We cannot just write
another blank check that will have to eventually be backed up by money the government will have to borrow.
We need true reform of a financial system that allowed private companies to make such bad business decisions, at the expense of their shareholders and
ultimately, of taxpayers. Congress now has the opportunity to reassess the situation.
Again, thank you for sharing your concerns with me. If you have any additional questions, please feel free to contact my office.
Member of Congress