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AFL-CIO: Mortgage Bailout Needed, Plus New Stimulus Package |
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The federal bailout of mortgage giants Fannie Mae and Freddie Mac—institutions pivotal to middle class home ownership—was clearly necessary. But the government needs to go further and provide a second economic stimulus package to spark the struggling economy, AFL-CIO President John Sweeney says.
The federal government announced Sunday that it is taking control of mortgage giants Fannie Mae and Freddie Mac. Treasury Secretary Henry Paulson said the companies will be placed into conservatorship under government control. The Treasury also will invest up to $100 billion to each company over time and lend them money as needed.
But part of the bailout grants executive severance packages totaling more than $21 million—and that portion of the bailout should be frozen pending a full review of their conduct, Sweeney said in a statement.
With the unemployment rate at 6.1 percent—the worst in five years—Sweeney says Washington must be just as aggressive in enacting a stimulus package “that will quickly stabilize and spur our nation’s entire sinking economy.”
Congress must pass a stimulus package that focuses on fiscal relief for states and cities and extends unemployment benefits to cover those still without work. It should include funding for food stamps to make sure that all Americans can provide for their families. Finally, it must provide funding for ready-to-go construction to repair schools, roads and bridges—construction that will help create good, family-supporting jobs in many communities where there are currently none.
Democratic presidential candidate Barack Obama agrees and has called for a second stimulus package for the nation’s working people. He also says the bailout
must not focus on the whims of lobbyists and special interests worried about their bonuses and hourly fees, but instead on strengthening our economy and helping struggling homeowners who are also being hit by lost jobs, stagnant wages and spiraling costs of everything from gas to groceries.
Despite the jobless figures, which include eight consecutive months of job losses, a Bush administration spokesman said there was no need for a second stimulus package because the first stimulus plan was having the intended impact.
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Just wandering.
The Treasury is going to invest $100 billon to Fannie and Freddie each. Where is the money coming from? Why the Treasury does not help to small businesses? What about executive severance packages totaling more than $21mil.? To reward executives for lauzy job that is ridiculous. Greed of bankers, lenders and irresponsibility of borrowers brought us to this mess. Everyone should be responsible for own decision and do not live above means. Are you “tax payer” happy to pay for this mess with higher taxes or higher inflation consequences? Is not enough we pay for military adventures around the world?
When finally our democratic majority legislators in DC will work for us hard working middle class? They are good to listen to lobbyists, which by the the way should be outlowed. But too much money is involved in this “dirty business”. So our senators and congressmen will “suffer” for some extra dollar to push special interest. Democratic Congress and Senat did not bring any changes in last few years. Do you think if we add democratic president we can see any changes? If we have republican president can we see any positive changes? It seems I have to chose between garbage and manure.
I am just looking for honesty, fairnes to everyone.
You have the general idea, but Damn man! Invest in a spell checker! It was really difficult to understand what you said!
The thought of G.W’s lay-off check is what’s keeping me smiling..Is there any way you could post a facsimile?
Send me fax # and wait please.
Ya know, I do not remember jobs being this scarce even during Reagan’s term! For Executives Severance, I believe a pink slip and wages due are the only things that should be in a severance package for poor performing executives. After all, what do working people get when our jobs are sent to China, Philippines, Mexico and Costa Rica? a final check is all, often there is not even an advance notice!
America needs a raise. Paychecks have not kept up with the cost of living. I live in the mid west, (St. Louis) where the housing is considered relatively cheap compared with the nation. And I’m looking at homes in the Sunday paper $200, $300, $400,000 and nothing special. Small apartment like condos without a garage are $150,000.
With all of the part time and casual labor these days at $8,$9 and $10 an hour, it’s a wonder anything sells!
Many families spend $150 a week on groceries now, $600 a month. Another round of stimulus checks would be beneficial but the speed in which the last ones were spent only goes to show how dire the situation is when money spends like water.
Not because we’re wasteful. Everything costs so #@>% much!