October 1, 2008
As I said at the beginning of the
year at our first Town Hall meeting, this is as economically murky a time as
I’ve ever seen. Recent events and the
concerns over the stability of the global financial markets have captured the
world’s attention. The defeat of the
proposed financial recovery plan by the U.S. House of Representatives on Monday
has only added to the concern and confusion.
While the press has termed it a
“bailout,” thereby implying it just aids a bunch of overly-rich Wall Streeters,
the facts are it most aids the very people who should benefit … Main Street
America. There are thousands of banks
not just the big banks getting the attention, and they are all connected in their
dealings. Meaning if the big ones are
having issues, those same issues exist in smaller ones, or will soon. As banks run into issues, they stop lending
to everyone, small and large, the whole system slows down, and the recession
risk deepens for everyone. It is an
It also has been incorrectly
suggested that the $700 billion is just “given.” It is not.
Existing mortgage loans are bought at market value, meaning what it’s
worth today. For example, while a bank
may have loaned $60,000, if that loan is worth only $42,000 today that is all
they would get. When the government sells that same loan later, they would
recover the $42,000 or hopefully more.
This may be more than you wanted to
know, but this is a time when making your voice heard can really make a
difference. This legislation is good for
Main Street America. Credit markets need
to be able to flow for people to go on with their lives … buying a house,
buying a car, financing education … it is important to us all. Right now, credit markets are gripped by fear
and our government is trying to take the actions needed to ensure a tough time
doesn’t become an extended, extremely difficult time for people across America.
can help by urging your members of Congress to enact this legislation that will
restore confidence and bring stability to the financial markets. While the legislation that failed on Monday
was imperfect (all legislation is), its swift passage would have been a big
step toward restoring confidence in the financial markets and making credit
more widely available across the country for everyone.
Houses of Congress will reconvene over the next two days, so it’s important to
make your voice heard right away. Please
call (202) 225-3121 and ask for your Congressional representative by name to
express your concerns. Please ask them
to find a path, work out the issues, and pass a bill to stabilize our markets.
Not all of you will agree, of course,
and I do understand that. But I can also
assure you that, as an American business leader, this legislation truly is
important to the well-being of Main Street America.
Your immediate support is very much
appreciated. Thank you.