Congressman McNerney's response to my Letter on the American Financial Crisis

Dear Raj

Thank you for sending me your thoughts and views on the economic recovery plan.

I share your frustration and anger that the last eight years of oversight failures and lax regulation by this Administration and its supporters in Congress have plunged our nation in a deep financial crisis.

I voted in favor of the economic recovery package because the jobs, retirement savings and homes of too many Americans are at risk in an economy that faces the very serious threat of meltdown.

Already we have seen the failures of major banks and insurance companies. Recently, we were greeted by the news of a takeover of Wachovia, another one of our country's largest banks.

Failure to act would make it more difficult for people to get car and home loans and for students to take out college loans. I've heard from families who have had college loans approved only to be told, because of the current credit crunch, that their loans won't be paid.

A lack of credit availability also means small businesses wouldn't be able to make payroll and credit card interest rates would rise. One restaurant owner called me to say that she is having trouble securing a small loan to do improvements required by their parent company.

We're also learning that California may need a $7 billion loan to pay teachers' salaries, law enforcement, nursing home facilities, and all other state-run programs. We must un-freeze the credit markets immediately to keep our state running.

Although far from perfect, the plan did include many important provisions to protect taxpayers by requiring Congressional and independent oversight, repayment in full and no golden parachutes for corporate executives. It also included assistance for families facing foreclosure.

I can understand and respect your opposition to the plan.

Yet, I could not, in good conscience, vote against the economic recovery package because it offered the hope of stabilizing our volatile economy.

Sincerely,

Jerry McNerney