
One can always hope, right?
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Thank you for contacting me about the $700 billion to bail out Wall Street. I voted against it because I believed it lacked meaningful relief for homeowners facing foreclosure, and it left taxpayers with the short end of the stick.U.S. Senator Orrin Hatch (UT) on my disdain for his vote for the bailout:
Still, make no mistake: I understand the severity of this financial crisis. The bottom line is that until we stem the record number of home foreclosures, this crisis will continue to worsen.
That’s why I’ve proposed a three-part plan to address the financial crisis, including help for homeowners.
First, I’m working on legislation to create new ways for homeowners to refinance their mortgages and stay in their homes. My proposal will require Fannie Mae and Freddie Mac to retool mortgages that they hold on their books. It will also establish a direct loan facility within the Federal government to require lenders and other financial institutions that benefit from the bailout to refinance or modify mortgages in danger of default or foreclosure.
Second, I am calling for an investigation into the business practices of major credit rating agencies that helped foster the enormous growth of the mortgage-backed securities industry. Investors relied on and trusted in those credit ratings, and the public deserves to know how these rating agencies concluded that such risky investments could receive high credit ratings.
And finally, we must better regulate all aspects of the financial markets. Today’s financial crisis results from years of inadequate oversight that has been far too tolerant of excessive risk taking.
Meantime, I’ll continue to press Congress to act quickly to keep people in their homes and put our economy back on track.
Thank you for contacting me to express your concerns about the current crisis in our financial markets and the state of the economy. I appreciate hearing from you.
As you well know, our financial markets have become increasingly volatile over the past weeks. The collapse of major financial institutions and a giant insurance company sent a clear signal that we were on the brink of a major financial catastrophe. Something had to be done in order to prevent the problems of our financial markets from leaking into other sectors of our economy. Secretary Paulson and President Bush offered the first solution to the exacerbating economic decline as an attempt to get the dialogue flowing. However, many, including myself, believed that this plan was not sufficient. The House amended the original plan in an attempt to protect taxpayer's interest, prevent exuberant executive packages for participating entities, and provide more oversight. Even with these additions, the plan failed to pass the House, and that day the Dow Jones Industrial Average fell nearly 778 points, the biggest single-day point loss in history.
As you, I am deeply troubled by the financial situation we are facing. We did not get here because of any one decision or policy - these problems were years in the making. For example, in the late 1990s, the Clinton Administration began pressuring Fannie Mae and Freddie Mac to purchase loans to subprime borrowers. We are seeing the consequences of a long series of policy errors, both in private and public sectors, which have combined to create a "perfect storm" of financial problems. In my view, one thing was for certain, inaction was not an option. We had to provide relief quickly because the consequences of inaction far outweighed the cost of the provisions in the legislation.
If we had not addressed this problem, we would be ignoring a much greater danger. For everyone who has a savings account, retirement savings, or a job, inaction placed these lifelines in jeopardy. For anyone who needs a mortgage loan, to borrow for a car, or to finance an education, the prospects had significantly worsened. With business expansion and job creation, there is a need for credit in order to make our economy work.
The Senate version of the Emergency Economic Stabilization Act, HR.1424, which ultimately passed the Senate and the House and was signed into law on October 3rd, broadened the ability of the federal government to revitalize our economy. The legislation is designed to help secure retirement savings, help small-business owners meet payroll and help restore the American people's confidence in their own financial well being. Furthermore, the Senate added specific provisions to curtail the jobless rate and promote investment. Among the added provisions was a set of extensions to expired and expiring tax provisions, including the research tax credit and the Alternative Minimum tax (AMT). While it is estimated that 70 percent research tax credit dollars are used for wages of R&D employees, the AMT relief will free 23 million Americans, including hundreds of thousands of Utahns from having to pay the unfair AMT.
This legislation, while not perfect, will have a greater impact beyond Wall Street into Main Street. I believe that one reason why the financial rescue legislation failed to pass in the House the first time was because the American people were not convinced that the bill would help them personally. Along with this, I believe that many Americans failed to see the connection with the current crisis with our financial markets and their own future economic well being.
While the Economic Stabilization Act may hold off an impending economic meltdown, it must now be followed up with decisive action on our part. Foremost, we need to change the way the financial sector works. The Federal Reserve needs to rethink its definition of good monetary policy and determine whether its existing policy tools -- such as reserve requirements, oversight capabilities, and reporting rules -- are adequate. In addition, Congress must reconsider what it has charged the Federal Reserve to do. The Fed has been charged with two goals: 1) providing a sound currency with stable purchasing power, and 2) maintaining steady economic growth with low unemployment. At this point, it is obvious that an aggressive, excessively easy monetary policy in pursuit of short-term growth is self-destructive in the long-run. It leads only to inflation and speculative excesses in the credit markets that harm the economy. Only by focusing on a stable currency can the Federal Reserve achieve both its objectives.
We also need to completely rethink Fannie Mae and Freddie Mac. As we've heard countless times over the last few weeks, in creating these two government-sponsored enterprises, we have made sure that the benefits of their investments are private while all the risks are public. Put simply, this is bad policy, with considerable moral hazard. Fannie Mae and Freddie Mac together represent an immense government-created and government-coddled duopoly. In the years since their creation, they have focused mainly on their own expansion, recklessly urged on by many in Congress who believed this was a way to make home ownership more affordable for lower income families. However, as a recent Fed study has demonstrated, most of the benefit of the previously implicit - now explicit -- federal guarantee of their debt has gone to their shareholders as higher earnings, not to reducing costs for new homeowners. In their efforts to expand, Fannie and Freddie took too many unwarranted risks. They needed an ever-expanding supply of new mortgages to package and resell and to hold for income. Others fed this expansion effort with unsound lending. The recent Federal rescue package of these institutions requires an immediate step: Congressional oversight. It is a little late in coming, but, as of right now, it is essential.
The regulatory and rating agencies also need to be reviewed. We need to ask whether they have enough resources for adequate supervision and whether they've failed to recognize the evolutionary changes in the credit markets and the new business arrangements that reduced transparency in financing. These and other questions will have to be explored as we move forward.
I believe that we clearly need to reform our financial markets and refine the powers of the Federal Reserve in order to ensure crises like this don't happen again. And, though I hesitated to support the idea, it is not unreasonable to conclude that government intervention can provide immediate relief and prevent any more catastrophic losses in the near future and give the financial market time to sort out the mess. But, if we don't adopt policies that are pro-growth, pro-business, and pro-job creation, we won't be able to ensure long-term economic security for our country, no matter how many bad mortgages we purchase with taxpayers' money.
In order to address these concerns, Congress must be very careful as we work to solve this crisis. We must meet the demands of taxpayers and restore confidence in our financial markets.
Again, thanks for writing.
Sincerely,
Orrin G. Hatch
United States Senator
Call your Congressman. Call your Senator. Tell them to change the mark-to-market accounting law and to extend insurance but extend no loans. If they extend loans - if they borrow the money on the national debt in order for us to all go into the mortgage business a trillion dollars - you're going to fire their butts and send them home. [words by Dave Ramsey]
I am very concerned about the current bailout proposal as well as all the other bailouts that the government and federal reserve has implemented. Where is all the money coming from? How much of this money is going to have to be covered by the American taxpayers? Why in the world would we want to add more money to the national debt that is already at record levels? I recently read information on the United States Credit Rating. It is currently sitting at AAA, which is the highest it can be. As the U.S. takes on more debt, it is my understanding that this credit rating could be in jeopardy of being lowered. This could have a huge impact on the government's ability to borrow money. All these bailouts are weakening the fiscal profile of the United States. This is very concerning to me. It is my understanding that the best way to show that you are fiscally responsible to never get into debt and to pay everything in cash, not on a payment plan. If this is something that individuals, families, and businesses should live by, why not the government.
The other concern I have is the ability the federal reserve has to just print more money when they need it. I'm not an economist but I have done enough reading to know that the easiest way to increase inflation is to print more money. It is my understanding that is what will have to be done in order to cover the exorbitant amount of money the government will be using to bailout all of these companies.
The government created the current problems on Wall Street and the American taxpayers should not be responsible for fixing a problem they didn't create. It is only common sense to not give loans to people who do not have the means to pay those loans back. Owning a house is not a right and should absolutely not be an entitlement for every American. It should be a goal of every American to work towards owning a house but every American needs to prove themselves that they are fiscally responsible enough. If they are not, they should not be given a loan. It is that simple. In regards to the companies that decided to give loans to people without checking their credit, their income, or anything else that shows they are ready for a loan, they should go under. Because of what they did, people are losing their houses, expecting that would be able to afford the house at some point. These practices by these mortgage companies are unconscionable but they were pushed and sometimes threatened by the government to do so in the name of getting more minorities into a home or getting more Americans into a home. This has also had a huge impact on other areas of the financial market that were just doing their job. AIG had to insure all those bad loans. What were they supposed to do when all those loans defaulted. This will continue to rollover into other areas: more banks will fail (as we see with Washington Mutual today) and more people will lose their jobs. Is this something the U.S. government wanted on their heads? I don't think so. I do not blame this administration, they are just the one's that have to deal with the messed caused by laws and regulations enacted in 1977, 1995 as well as others.
I'm very disturbed by the current trend of the U.S. government to drag this country further and further towards and into socialism. That is NOT the way to fix this country's problems. The market will correct itself, it always has and it always will as long as the government STAYS OUT OF THE WAY. That is the way it was designed. It may be hard to get through and people may loose money, jobs, homes, etc but just as with the Great Depression, the American people made it through and were stronger because of it.
As citizens of these United States of America, we should all know the literal meaning to this question. On July 4, 1776, the Declaration of Independence was unanimously voted upon and signed by members of Congress. We were declaring our independence from Great Britain, which was at that time the largest and most powerful empire in the world. The simple fact that we beat the British, when we shouldn't have, and were able to become an independent nation is reason enough to celebrate this all important day. Independence Day was (and still should be) the most important day in the history of this country. In all likelihood this nation would not have been formed had it not been for the signing of the Declaration of Independence.
That is the literal reason for celebrating Independence Day but why do each of us celebrate this day. This can vary greatly from one person to the next. For me, Independence Day reminds me of how blessed I am to be a citizen of this country. I thank God everyday for the opportunities that we have here. There are many things that Americans take for granted that are just not available in any other country. For example, the ability to go to a grocery store and pick up any food item that we need for our family is something that isn't available in every country. The amazing thing about this country is the technological advancements have been far quicker than any other country, especially considering this is one of the youngest nations in the world.
This is a great nation and I believe it has been prepared by God to be an example to the world of how democracy should work. It is certainly not perfect but as long as we continue as a giving, religious society based upon self government and capitalist principles this nation will continue to grow and flourish the likes of which has never been seen in the history of this world.
From my limited understanding, I am under the impression that these two terms are basically the same. Let's start with the definitions:
Socialized Medicine -
any of various systems to provide the entire population with complete medical care through government subsidization and regularization of medical and health services. [1]
A government-regulated system for providing health care for all by means of subsidies derived from taxation. [2]
A system for providing medical and hospital care for all at a nominal cost by means of government regulation of health services and subsidies derived from taxation. [3]
Universal Healthcare -
health care coverage which is extended to all citizens, and sometimes permanent residents, of a governmental region. Universal health care programs vary widely in their structure and funding mechanisms, particularly the degree to which they are publicly funded. Typically, most health care costs are met by the population via compulsory health insurance or taxation, or a combination of both.
Universal health care systems require government involvement, typically in the forms of enacting legislation, mandates and regulation. In some cases, government involvement also includes directly managing the health care system, but many countries use mixed public-private systems to deliver universal health care.[4][5][6]
It still sounds very similar to me. According to Wikipedia, "definitions [of socialized medicine] vary, and usage is inconsistent. The term can refer to any system of medical care that is publicly financed, government administered, or both." [7]
From what I can see, whether it is called 'Socialized Medicine' or 'Universal Healthcare' there is still some amount of government involvement, which is never a good idea. Including healthcare in the 'inalienable rights" of "Life, Liberty, and the pursuit of Happiness"[8] is not what the founder of this great nation intended. They knew that adding more power to the nation's government would lead this country towards the type of government they just liberated themselves from. It would also mean the start of this country down the road to becoming a 'Welfare State'. What is a 'Welfare State'?
a state in which the welfare of the people in such matters as social security, health and education, housing, and working conditions is the responsibility of the government.[9]
'Social security, health and education, housing, and working conditions'[9] are NOT 'unalienable Rights' that are 'endowed by [our] Creator'.[8] If all these things were given to us without any work on our part, we would become dependent on the government for everything. I can see two problems with this:
'Socialized Medicine' or 'Universal Healthcare', whatever you want to call it, may not seem like a big deal to some. It may even seem like a good idea in the short term. In the long term, it is a step towards government control of everything and the removing of taking personal responsibility over our own actions.
[1] socialized medicine. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved July 01, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/socialized medicine
[2] socialized medicine. (n.d.). The American Heritage® Dictionary of the English Language, Fourth Edition. Retrieved July 01, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/socialized medicine
[3] socialized medicine. (n.d.). The American Heritage® Stedman's Medical Dictionary. Retrieved July 01, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/socialized medicine
[4] http://en.wikipedia.org/wiki/Universal_health_care
[5] Insuring America's Health: Principles and Recommendations, Institute of Medicine at the National Academies of Science, 2004-01-14, accessed 2007-10-22
[6] The Case For Single Payer, Universal Health Care For The United States
[7] http://en.wikipedia.org/wiki/Socialized_medicine
[8] http://en.wikipedia.org/wiki/United_States_Declaration_of_Independence
[9] welfare state. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved July 01, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/welfare state
Lately, we have been hearing about this concept called the "Fairness Doctrine". What is it? The term is very misleading if you don't know what it is. Wouldn't it be good if everything in life was fair and all opinions were, as Fox News says about their programming, "Fair and Balanced"? As I have told my children many times, life isn't always fair. Sometimes we have to do things that we don't want or like to do. Sometimes the information that we read or see on the news we have to take with a 'grain of salt'. That is why we have a brain. We have to think about what everything we see on a daily basis and see if it makes sense to us. We don't need the government to step there big foot in the ring and decide what we should and should not hear or see or read. That is where the 'Fairness Doctrine' comes in to play.
The 'Fairness Doctrine' is just this, plain and simple:
a United States FCC regulation requiring broadcast licensees to present controversial issues of public importance in a manner deemed by the FCC to be honest, equitable, and balanced. [1] [2]
To me, this sounds too much like the government trying to restrict the freedom of speech (aka the First Amendment) on the airwaves. The liberals and democrats in congress are all for it. In a resent article on HumanEvents.com the Speaker of the House, Nancy Pelosi (D-CA), was asked the question, "Do you personally support revival of the ‘Fairness Doctrine?" by John Gizzi and her response was "Yes." The other event that occurred was when Pelosi denied a vote on the floor for the 'Broadcaster's Freedom Act' which would make the 'Fairness Doctrine' dead.
According the same article...
Experts say that the “Fairness Doctrine,” which was ended under the Reagan Administration, would put a major burden on small radio stations in providing equal time to Rush Limbaugh and other conservative broadcasters, who are a potent political force. Rather than engage in the costly practice of providing that time, the experts conclude, many stations would simply not carry Limbaugh, Sean Hannity, and other talk show hosts who are likely to generate demands for equal time. [3]
The issue I have with liberals, democrats and even some so-called conservatives is that they want the government to control more of the American people's civil liberties and freedoms. As we turn over more control of our lives to a centralized government, we lose more and more control of the country until we no longer have the power to change the course of this country.
[1] http://en.wikipedia.org/wiki/Fairness_Doctrine
[2] http://www.slate.com/id/2108443/
[3] http://www.humanevents.com/article.php?id=27185
As I have become more involved in politics and the discussion of the current issues facing our nation today, I have become increasingly concerned. There are many people out there that are going more and more in the direction of socialism. Throughout history, different types of governments have come and gone. Socialism seems to be the one that continues to resurface. Why might that be? What is socialism? Why does it appeal to so many people? Let's start by defining what socialism is, shall we?
Socialism - An economic system in which the production and distribution of goods are controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity. [1]
So, according to that, socialism supposedly helps us work together in 'cooperation' with each for the betterment of society as a whole. Sounds good right? It's a great idea to work together for the common good. I have heard it said that socialism would eliminate classes in society because there would be no poor. That sounds great, right? Of course it does, but that is where is stops sounding good, especially for the people under socialist rule.
The first problem I see is that government controls everything. Is that ever a good idea? Have we ever heard the saying: "Absolute power corrupts absolutely"? When people have power, in most circumstances, they hunger and thirst after more power. Second, what happened to free enterprise or any freedoms for that matter? I personally believe that in order for a society to progress, people need to be free to develop their own ideas, learn from their mistakes (without having the government 'fix' everything for everybody), and free to take care of themselves. When you take away personal responsibility and let the government control everything, you 1) lose more & more of your civil liberties and freedom over time and 2) people won't know how to take care of themselves when the government isn't there to support them.
In the end, those who profess socialism as the way to go, don't have a problem with the government taking what is theirs and doing whatever they want with it.
In a future post, I will give an example of how socialism doesn't work... especially when it comes to healthcare.
[1] socialism. (n.d.). The American Heritage® New Dictionary of Cultural Literacy, Third Edition. Retrieved June 26, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/socialism