Note: Senator Casey's e-mail is posted in its entirety, without editorial comment from this individual as to content. The individual reader may draw his/her own conclusions
Dear Mr. Bowie:
Thank you for taking the time to contact me regarding the efforts underway to stabilize the economy and our financial infrastructure. I appreciate hearing from all Pennsylvanians about the issues that matter most to them.Currently we face troubling economic conditions, and we have spiraled into what could be a severe and prolonged recession. Earlier this year, the Congress acted to pass the Emergency Economic Stabilization Act (EESA) of 2008, which was signed into law by the President on October 3, 2008. The EESA provided up to $700 billion for the Troubled Assets Relief Program (TARP). Initially TARP funds were to be used mainly to purchase troubled assets from financial institutions thereby restoring confidence and prompting banks to begin lending to one another and consumers again. Subsequently, however, Secretary Paulson shifted course. Since the TARP program began, the Secretary has used more than $300 billion of these funds to make loans to, and acquire equity stakes in, a number of banks and AIG, a large insurance company.
While these actions have successfully prevented further failures, they have not properly addressed the foreclosure crisis or other looming issues within the broader economy.For many families in Pennsylvania and throughout the country, the recession has been part of their lives for many months now. Unemployment and foreclosures are on the rise, many families face escalating costs for basic necessities and retirees are experiencing staggering losses in their savings. To address these needs, I am advocating for the passage of a second stimulus package that would increase funding for the Low Income Home Energy Assistance Program (LIHEAP), provide additional food stamp assistance and fund long-term infrastructure projects that can create jobs and lasting improvements in Pennsylvania and across the Nation. In addition to this stimulus, at least $350 billion TARP funds are currently reserved for investment by the new Administration. Among other uses, I will work to ensure that a portion of these funds is used to address the foreclosure problem.
In the third quarter of this year, Pennsylvania experienced a 73% increase in foreclosures. Foreclosures not only hurt homeowners who lose their homes; they hurt entire communities by bringing down property values. With declining property values, people who are able to make their house payments lose equity in their homes, causing continued instability in the housing market and more dangerous ripples throughout the economy. There are promising strategies to stem this tide. The Federal Deposit Insurance Corporation (FDIC) has a successful program designed to keep families in their homes by reworking mortgage agreements to make payments affordable. I have been pressing for the adoption of this successful program by other institutions in order to extend its benefits to more Pennsylvanians.
I remain committed to achieving financial and economic stability. First, we need proper oversight of all government investment to ensure the sensible use of funds. Second, no blank checks should be awarded. All government support should be an investment with returns payable to the taxpayer. Lastly, there need to be clear limits on executive salaries and bonuses in all companies receiving taxpayer support. Again, thank you for sharing your thoughts with me. Please do not hesitate to contact me in the future about this or any other matter of importance to you.If you have access to the Internet, I encourage you to visit my web site, http://casey.senate.gov. I invite you to use this online office as a comprehensive resource to stay up-to-date on my work in Washington, request assistance from my office or share with me your thoughts on the issues that matter most to you and to Pennsylvania.
Sincerely,
Bob Casey
United States Senator
Dec 4, 2008
E-MAIL FROM SENATOR BOB CASEY ON THE ECONOMIC CRISIS
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