Submitted by Mike Conaway on October 1, 2008 - 2:49pm.
Monday afternoon I made the difficult decision to vote against the $700 billion bailout of Wall Street. I struggled with the issue all weekend, and I still had doubts walking onto the floor. Ultimately, Congress needs to ensure confidence in America’s lending system, and I thought this bill would not provide the best solution for the American people.
I will remain here in Washington, D.C., working hard to pass legislation that will curb this potential economic crisis. I understand the grave consequences of not acting, but we need to do more than simply provide a bailout to Wall Street courtesy of the American taxpayers. For example, we need expanded FDIC insurance coverage and a strengthened insurance program for mortgage-backed securities.
I appreciate all the emails and phone calls from people in my district this past week. It certainly helped me make my decision. Check back here as Congress moves forward in the coming days.
Please help me keep up a dialogue on this issue by sharing your thoughts here.
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Economic Package
I was at first all for this,however after reviewing the bailout plan, I printed out the entire bill, I have changed my mind, as it does not have exact and definite solutions to this situation, it is only a taxpayer floated moving of trash for our cash. The Glass-Stegall bill that was removed in 1999 was put into place to keep Banks out of Wall Street, the Bank Lobbyist wanted to use Depositors money to play casino, (1929) and this is the result. I am a RE Broker for over 25 years I worked with the first S&L foreclosures and RTC as an independent Broker. The RTC intervention prevented the natural RE Market correction by 2 years while we played Teach the Government Real Estate.
I am not in favor of any bill that does not reinact the Glass-Stegall(misspelled I'm Sure) as unless Banks go back to banking, this problem will continue with the next good idea that Wall Street starts. There should be no compensation for the top 3 Execs of any company we give Bailout to, and Oversight should be with Disinterested parties who are not connected to this mess. NO more Bailouts for the foreclosure parties, they too, were gambling with Real Estate and the 93% of persons making their payments on time for the past 2 years, should be given 2 months, forgiven Mortgage payments and a 50 point boost to their credit rating, as Congress is continuing to reward and justify, bad business and financial decisions which is making the other people, wonder why should they continue to make their payments, when next door neighbor gets his loan reduced to 90% of current market and a lower interest rate. Congress is exasberating this problem, and we did not save any other foreclosure markets, this is natural cycle for Real Estate it goes up, it comes down, it goes up. That is a true open market, based upon supply and demand, the issue is not foreclosures, it is the CDS and other non profitable instruments tied to the Real Estate.
Wall Street took a simple Real Estate process and they have completely entangled it. Please use some common sense, and dont' bail out WallStreet nor any more irresponsible homeowners who bought a 500,000 home, instead of one they could afford, because they planned to flip it and make a 50,000 profit in one year. RE is a long term, live in it proposition, not a liquid Casino bet. They need Real Estate Brokers and outsiders to oversee this mess or the Investment banks will sell us the worthless CDS paper, and keep the MBS securities as they are attached to a Real Asset and they know this, Real Estate will come back and it always has value. Finally, 65% of the people Congress bails out, ie: restructures their loans will be in foreclosure within 2 years. I want stats on this someone needs to keep the numbers, and I hope I am wrong, but I assure you they could not afford the payment on the 400,000 home and they can not pay the high utility bills either and eat. Real Estate Needs to continue to lose value as it should since it was over inflated by 400%, when it re adjusts to where first time homebuyers can actually make the payments again, and the Builders are not able to make 200,000 profit on a 400,000 home, you will see a stable more logical RE Market. Do NOT Vote on any bill that does not rein in the Banks again ( wonder if they still want to sell Real Estate like they did 2 years ago) Remember that????,,,,
No Bill unless top 3 execs, CEO, CFO etc, get no compensation for the bailout year, GLas Stegall reinacted, as it was written, and several bankers,wall street investment bankers in HANDCUFFS on the Senate Floor.
WallStreet needs to stick with Stocks, stay out of the day to day Real Estate.
Your vote in Congress on the Bailout
You have the knowledge that I don't have. I,like every other one of your constituents, wants the best for all of us! I just want you to know that I am trusting you to make the very best decision based on your knowledge of the situation. That is why we voted for you.
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