Pelosi: 'The Thoughts and Prayers of This Congress Are With the People of Georgia Today'

/PRNewswire/ -- Speaker Nancy Pelosi spoke on the House floor this afternoon in support of a resolution expressing condolences to the families of the individuals killed during storms and floods in the state of Georgia this past week. The resolution was approved by the House by a vote of 421 to 0. Below are the Speaker's remarks:

"I thank the gentleman for yielding and for giving us this opportunity to come to the floor to express on the floor of the House our condolences to the people of Georgia in this very, very sad time.

"Thank you, Mr. Chairman and Members of the Georgia delegation, for calling attention to the serious flooding in Georgia and other parts of the American Southeast and for this resolution to offer our condolences on behalf of all Members of Congress.

"Of course, we all offer our condolences to those who lost their lives -- we're very sad to hear about those who have lost their homes and livelihoods. Those lost -- Mr. David Scott referenced those nine people dead, dozens stranded, and more than 30,000 without electricity.

"Those lost include a teenage boy trying to rescue another in danger, a mother of two young children, and a very young child, 2 years old, who was swept away from his father's arms. When that word came over the TV, my colleagues, all of America wept. It is so sad and our hearts ache for those who have lost so much.

"But in the emerging sun, what do we see? We see neighbors coming to the aid of neighbors, and the tireless work of our first responders.

"Members of Congress are being briefed on the ongoing effort by our Members of the Georgia delegation. Thank you, Mr. Lewis, for being the author of this resolution. We are all trying to reach out to you to see what we can do to help individually in conversation and as a Congress. I know that President Obama will act upon the request that he has just received -- well he has received the request from Governor Perdue, now he has received the formal documentation from FEMA and I'm certain that will be addressed immediately.

"The thoughts and prayers of this entire Congress and the people we represent -- the American people -- are with the people of Georgia today, and in the days ahead as we work with them to ensure they have all that they need.

"And I hope that it is some level of comfort to them that their representatives on both sides of the aisle from Georgia have made us fully aware of the direct impact that the rains have had on Georgia and we stand ready to help with whatever we can do officially. But always, what we can do in our prayers."

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House Democrat's Health Care Reform Bill Is a 1,018-Page Nightmare

/PRNewswire/ -- The Democrats' health care reform bill currently on the floor of the House of Representatives creates a new government-run health plan that will undercut the private market and force as many as 119 million people to lose their private health insurance and be forced into a Medicare-like plan, according to National Center for Policy Analysis President John C. Goodman.

"Americans who desperately need health care relief won't get it in this bill," said Goodman. "This legislation is going to create a financial and medical nightmare for Americans."

"Of course, members of Congress will be able to hold on to their Cadillac health care plans because this reform won't apply to them," he added.

The bill requires employers to pay the government for health reform - either by purchasing government-approved insurance for their employees, or (more likely) by paying a tax and sending their employees over to the government-run Medicare-like plan.

"This bill has ALL the bad ideas from previous versions, plus a cost of one trillion dollars, and NO long-term solutions that will control costs or improve quality," added Goodman. "This bill contains 1,018 pages of new regulations that will REQUIRE you to buy as much health insurance as the government mandates, even before you buy groceries, gas, or pay your rent. If you don't buy government-approved insurance, you will be taxed."

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Oxendine Supports S 604: Encourages Isakson and Chambliss to Co-Sponsor‏

As Comptroller General of Georgia, I am proud to offer my support to S.604, The Federal Reserve Sunshine Act of 2009.

S. 604 is the companion to H.R. 1207, legislation introduced in the House of Representatives by Congressman Ron Paul, which currently stands with 237 cosponsors, a majority of the House.

This important legislation directs the Comptroller General to complete, before the end of 2010, an audit of the Board of Governors of the Federal Reserve System and of the Federal Reserve banks, followed by a detailed report to Congress.

This legislation is supported by conservative leaders Senator Jim DeMint (R-SC), Senator Michael Crapo (R- ID), and Senator David Vitter (R - LA). I encourage Georgia's two United States Senators, Johnny Isakson and Saxby Chambliss, to sign on as co-sponsors and provide their credibility to this legislation.

"America needs transparency and accountability at our nation's central bank and S. 604 provides the American taxpayers a realistic vehicle for this to happen," said John Oxendine, Candidate for Governor of Georgia 2010.

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Just Say No to Cap and Trade Before It's too Late

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Newly Proposed Government Loan Program to Bring Relief to All Homeowners

/PRNewswire / -- A newly proposed home loan program known as 4/40 for Freedom was introduced today to address the continuing housing crisis, as evidenced by the recent AP story "Mortgage Delinquencies Hit Record High (May 28, 2009)." The program calls on Congress to draft a bill to reduce interest rates on all home mortgages to 4 percent and give new home buyers a 4 percent, 40-year loan option, which would dramatically stimulate the economy, prevent any more "toxic debt" and put America back to work.

On average, housing represents 35 percent of total family expenditures. The proposed program offers hope to struggling homeowners because it immediately decreases the monthly mortgage burden. Expected savings with the program are approximately 33-38 percent per month per household.

"Americans are begging for relief," said Ken Parker, founder of 4/40 for Freedom. "The program benefits are immediate; lower mortgages means increased disposable income, which translates to available cash to stimulate the economy through investments and product and service purchases. We have received enthusiastic support from the financial and business community regarding the program," Parker continued.

The program is simple: for existing homeowners it would be available automatically -- no qualification process or credit report required. The existing loan would be modified to a 4% interest rate, 40 year term, with no credit check. For foreclosed owners and first time buyers, the program offers a no nonsense qualification and application process, similar to FHA. Jumbo loans would also be offered, up to 3.5 million. Once passed by Congress, the program would be available for one year. As the economy improves and home values go up, homeowners will refinance with conventional programs and the U.S. backed real estate interest loan debt will be repaid, resulting in additional economic capital.

The Seidman Research Institute, a part of the W.P. Carey School of Business at Arizona State University, has produced a cost report regarding the 4/40 for Freedom program and it is available for purchase, along with bumper stickers and additional support material at www.4-40forFreedom.com.

Parker states that it is in the opinion of many business leaders that the money that is saved on interest will have an economic multiplier effect of three to five times the amount reinvested back into the economy. "If each homeowner saves an estimated $250 a month on their mortgage, all of a sudden they can make additional purchases and the effect on the economy will be tremendous," Parker said.

Nationwide, homeowners are being asked to sign an online petition to show their support of the program through the 4/40 for Freedom Web site, www.4-40forFreedom.com, which will then be taken to Congress.

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Sen. Max Baucus: Answer 10 Questions About Mandatory Purchase of Health Insurance Including Why the Public Was Excluded From Today's Committee Meeting

/PRNewswire / -- The U.S. Senate Finance Committee, in closed-door health care discussions today, must answer ten questions about how its plan to require all Americans to show proof of insurance or face tax penalties will provide affordable health care, said Consumer Watchdog.

Questions listed below. Download Consumer Watchdog's letter to Senator Baucus here: http://www.consumerwatchdog.org/resources/BaucusClosedMeeting.pdf

In a letter to Senator Baucus sent today, Consumer Watchdog wrote:

"Americans should not be locked out of any discussion about health care reform, particularly one that will consider whether everyone should be required to buy health insurance policies without any limits on what insurers can charge. Mandatory purchases of private insurance policies without offering a public alternative to the private market is nothing other than a bailout for HMOs -- whose greed, waste and indifference to our health have created the current mess.

"There's no mention of cost-cutting in the Senate Finance Committee's 'policy options' document being discussed in today's closed meeting -- no regulation of HMO premiums, no limits on how much consumers will have to pay out of their own pocket in co-pays or deductibles."

Earlier this week, the Senate Finance Committee circulated a "policy options" white paper to be discussed in today's meeting, which excludes members of the media and public. The senate finance document makes the president's promised "public option" to the private insurance market optional, and does not include cost controls.

Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, has received more campaign contributions from the health insurance and pharmaceutical industries than any other current Democratic member of the House or Senate; the third highest contributions of any member of Congress.

Consumer Watchdog posed the following 10 questions to Senator Baucus, the Senate Finance Committee, and members of Congress about the affordability of the mandatory purchase of insurance policies:

1. Senate rules appear to only allow committees to meet in closed session
under very limited circumstances, including discussions concerning
national defense and protection of trade secrets, none of which appear
to apply to today's meeting. What Senate rule justifies today's
closed-door committee meeting?
2. Why have you offered such deference to the top lobbyists of the
insurance industry, which bears a large share of the responsibility for
the current health care crisis, while locking consumers and consumer
advocates out of the debate?
3. The only guaranteed provision in the "policy options" report is that
every American would have to file proof of an insurance policy with
their tax returns on April 15, 2013 or face tax penalties. How does
threatening Americans with tax penalties lead to affordable health
care?
4. If there are no limits on how much an insurance company can charge for
the coverage that Americans will be required to buy, how can you
promise that it will be affordable?
5. Your policy options do not adequately protect Americans against
low-benefit, junk insurance that fails to provide access to necessary
benefits and does not limit out-of-pocket expenses (co-pays and
deductibles) when patients get sick. How does "owning" an insurance
policy under these circumstances equal being able to get health care?
6. There are documented cases of insured people facing hundreds of
thousands of dollars in unpaid medical bills. Without a cap on
out-of-pocket expenses, how can you prevent this?
7. Your report says that, with few exceptions, hefty tax penalties will be
levied against Americans that don't either purchase coverage or get it
through their job. Is it true that only Christian Scientists would
avoid tax penalties without having to prove their income?
8. One of the options that the committee is considering is to not require
any employers to chip in for health insurance. Why isn't the committee
considering an option where Americans would not be forced to buy
coverage?
9. Your plan focuses on "wellness" services. But if patients face a $5000
deductible how will they pay for treatment for severe obesity, diabetes
prevention, or even effective smoking cessation?
10. Your plan does not clearly protect state laws providing access to
necessary health care services like a California woman's right to
visit an OB-GYN, a New Jersey child's access to a Hepatitis B
inoculation, a Tennessee patient's coverage for diabetes treatment,
and other benefits including screenings for cervical and prostate
cancers. Will states be allowed to require additional health benefits
beyond those required under federal rules, or will federal rules
pre-empt more expansive state benefits?


** Read Consumer Watchdog's letter to President Obama and Sens. Kennedy and Baucus warning them not to agree to agree to the health insurers' plan to gut state health care laws. http://www.consumerwatchdog.org/patients/articles/?storyId=27228

** Read Consumer Watchdog's letter to U.S. Senator Ted Kennedy (D-MA) urging that he continue to protect patients consistent with the principles he has articulated during his 40 year career. http://www.consumerwatchdog.org/patients/articles/?storyId=26398

** Read Consumer Watchdog's analysis of health insurer and drug company contributions to members of Congress. http://www.consumerwatchdog.org/patients/articles/?storyId=25468

** Read about a recent national poll that found that 65% of voters support giving every American of any age the option of joining Medicare; 60% are willing to pay more in payroll deductions for this option. http://www.consumerwatchdog.org/patients/articles/?storyId=24826

** Read about a national poll that found, by contrast, that only 16% of U.S. voters support, and 53% oppose, the insurance industries' plan of requiring every American to provide proof of private health insurance or face tax penalties or other fines. http://www.consumerwatchdog.org/patients/articles/?storyId=24110

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Georgia Housing Leaders Call on Congress to Help Main Street

(BUSINESS WIRE)--The Georgia housing industry called on Congress January 7 to address the housing crisis that is at the root of the nation’s recession. Rick Porter, owner of Richport Properties, Inc.; Kenny King, president of Kingsland Corp.; and Kurt Cannon, owner of Rabun Builders, Inc. and the president of the Home Builders Association of Georgia, urged Congress to enact bold measures that will stimulate the housing market and, in turn, revive the local, state and national economies.

“Housing is central to our economy and is an engine of production that can lead us out of the recession,” said Porter. “But it is crucial for Congress to enact a major stimulus package to stop the decline in home values, stem the tide of foreclosures, stabilize financial markets and re-ignite consumer demand.”

To get the Georgia economy moving again, the housing industry is urging Congress to support enhancements to the home buyer tax credit and provide below-market, 30-year fixed-rate mortgages for home purchases.

Specifically, the legislation should include:

1. A 10 percent tax credit for all qualified home buyers capped at 3.5 percent of FHA, Freddie Mac or Fannie Mae loan limits (equaling $10,000 to $22,000 depending on geographic market). All primary home purchases through December 31, 2009, would be eligible. Repayment would be required only if the home was sold within three years. And the credit would be available at closing, making it easier for buyers to use it as a downpayment;

2. A below-market, 30-year fixed-rate mortgage for home purchases. The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent interest on contracts closed until June 30, 2009 and 3.99 percent interest on closings between June 30 and December 31, 2009; and

3. Continued measures to reduce foreclosures and keep people in their homes.

The housing industry representatives cited a similar plan with both a tax credit and a mortgage rate subsidy that was enacted in 1975 when the nation was also in the midst of a recession. That successful stimulus plan jump-started the depressed economy, and the effects continued in communities across the country long after the measure expired.

“We’ve been in business for about 20 years, and we’re currently working on a project of 23 units which we began back in 2005,” explained Kenny King, president of Kingsland Corp., out of Snellville. “In all my years in home building, this project is probably our best product in our best location, but in this market, we can’t turn the units over. We sold three in 2007, and only four in 2008 – we’ve got 16 left and we don’t know how we’ll sell them. Consumer confidence is basically ‘zero.’ We need stability and confidence brought back to the housing market to end this extended recession.”

Kurt Cannon, owner of Rabun Builders, Inc., from Clayton, and the current president of the Home Builders Association of Georgia, builds second-home and retirement properties. “Our business is basically just shutting down. Last year we only did 25 percent of what we should have done, and now we are finishing up projects without any others lined up. Over the past three months, I’ve talked to between 70 and 80 builders around the area, and I keep hearing the same story over and over again. Builders with high credit ratings, with decades of good credit, current on their payments, are suddenly told by their banks that they have to pay off their loans in 10 days or the bank will foreclose. Of course, they end up foreclosing and the bank just ‘fire-sales’ the neighborhood. It’s the same story all around. We must stop the bleeding.”

“When the housing industry is in a crisis, the entire community is affected,” continued Porter. “Retailers, manufacturers, service providers and even the local government are affected. Most important, local residents suffer.”

“Three million home building-related jobs across the country have been lost as a result of the slowdown in housing production, which represents $145 billion in lost wages and $4.9 billion in lost purchases,” said National Association of Home Builders (NAHB) economist Bernard Markstein. “Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market and the economies of states like Georgia.”

"We are leaving no stone unturned in our efforts to convince Congress to quickly enact a robust housing stimulus program. There’s no question that stopping the decline in home values and restoring demand for housing is the fastest and most effective way of reviving the economy," Porter said.

The housing leaders in Georgia are part of a new coalition called Fix Housing First, consisting of more than 600 organizations, home building companies and manufacturers advocating for this major stimulus package to stem the decline in home values, stabilize financial markets and re-ignite consumer demand. To learn more about Fix Housing First, go to www.fixhousingfirst.com.

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GAE Members to Ask Obama for Piece of Stimulus Package for Georgia's Public Schools

The Georgia Association of Educators (GAE), realizing the urgency of the ongoing economic climate and its impact upon Georgia¡¯s families and public education system, has developed a plan to help Georgia obtain a piece of the economic stimulus package being proposed by the incoming Obama Administration. Its members will be asked to lobby their U.S Senators and Representatives on behalf of Georgia's families and public schools.

"Our students, our educators, and their respective families, like all Georgia citizens and their families, are living with the realities of today's economic difficulties," said GAE President Jeff Hubbard. "These difficulties, which are forecast to only worsen, will continue to have an impact upon our state's ability to fulfill its budgetary obligations, which will impact public education both directly and indirectly....More

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Auto Bailout Leaves Taxpayers on the Hook

U.S. Rep. Lynn Westmoreland on Wednesday voted against the $14 billion bailout package that would provide loans to the Big Three automakers. The bill passed the House 237-170.

“The Detroit automakers maintained an outdated business model, bowing to union demands for bloated salaries and benefits and falling behind their competitors in meeting consumer demands,” Westmoreland said. “I don’t see how my constituents should be asked to pay for those decisions when so many small businesses in my district are facing very tough times and many are going into bankruptcy. There’s no federal bailout for them.

“There’s a Kia plant opening in my district in west Georgia and thousands are applying for the 2,500 jobs that will come there. Why should U.S. taxpayers who work in plants of foreign-based automakers pay to bail out Detroit, their competition? The Big Three’s workers cost their companies, on average, $20 to $30 an hour more than workers of foreign-based automakers.

“It’s good that the bill is designed to prevent huge payouts to executives and golden parachutes, but this still leaves taxpayers on the hook if the Big Three continue to unravel. I also have a problem with the creation of a federal “car czar.” Perhaps the only thing guaranteed to be less responsive to the market than the management of the Big Three is a new federal bureaucracy. Washington politicians and bureaucrats can’t credibly lecture anyone on how to balance the books.

“Congress doesn’t have the best record of late with bailouts. The $700 billion bailout for the financial services industry has not worked. The money has not filtered down to the small businesses and individuals to get loans. The construction industry especially is being hit hard, with banks refusing to restructure loans and allow liquidity. Banks are using the money to buy other banks rather than freeing up the credit market. I’m afraid this auto bailout won’t fulfill its intentions either.”

The bill now goes to the Senate.

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Arts Across Georgia

Indiana Governor Mitch Daniels, Newt Gingrich, Amity Shlaes, U.S. Rep. Mary Fallin (OK), U.S. Rep. Tom Price (GA), and Others to Speak

Indiana Governor Mitch Daniels, Newt Gingrich, Amity Shlaes, U.S. Rep. Mary Fallin (OK), U.S. Rep. Tom Price (GA), and Others to Speak at National Gathering of State Legislators in Washington, D.C.

/PRNewswire-USNewswire/ -- The American Legislative Exchange Council's (ALEC) annual States & Nation Policy Summit will be held in Washington, D.C. at the Marriott Wardman Park Hotel, 2660 Woodley Road, NW, from December 4-6, 2008. State legislators from across the United States will gather for three days of intensive discussions on the critical issues facing the states and nation, share their knowledge and experiences with each other, and hear from national leaders and renowned policy experts who share their commitment to common sense, conservative policy.

"ALEC members participate in substantive public policy sessions throughout these meetings and legislators return to their state capitols better prepared to serve their constituents," said Arkansas State Senator Steve Faris, ALEC's 2008 National Chairman.

ALEC conferences are renowned for developing cutting edge legislative policy and garnering top policy speakers. This year's speakers include: Indiana Governor Mitch Daniels, who will speak on state budget issues; former Speaker of the U.S. House of Representatives, Newt Gingrich, who will provide election analysis; syndicated columnist Amity Shlaes, author of The Forgotten Man: A New History of the Great Depression; U.S. Rep. Mary Fallin (OK), who will speak regarding federalism issues; and U.S. Rep. Tom Price (GA), the only medical doctor currently in the House of Representatives will speak on health care reform issues.

December 4 - 6, 2008
Marriott Wardman Park Hotel
2660 Woodley Road, NW
Washington, D.C.

The American Legislative Exchange Council (ALEC) is the nation's largest nonpartisan, individual membership organization of state legislators, with over 2,000 legislator members from all fifty states, and 85 former members serving in the U.S. Congress. www.alec.org .

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Prepackaged Bankruptcy Wouldn't Help Big Three Automakers, Says Bankruptcy Expert

If the Big Three automakers can't come up with a plan for Congress by Dec. 2 on how they'll use $25 billion in federal funds, one proposed alternative is for the companies to undergo a so-called "prepackaged" bankruptcy. But bankruptcy expert Frederick Tung of Emory University School of Law says he finds it hard to see how a prepackaged bankruptcy could help.

"With a prepackaged bankruptcy, the management of the company has already worked out details of the restructuring with constituencies, which includes bondholders, banks, suppliers, unions and employees, and other interested parties" says Tung. "But it doesn’t look like automakers have worked out anything with anyone; all they've done is gone to Capitol Hill and asked for $25 billion."

Under a prepackaged bankruptcy, says Tung, the automakers would have two questions to work out before they file for bankruptcy: What operational fixes will they make, if any? How will they reduce their debts?

"The latter process is simply a negotiation among all the debt holders to try to get them to take less than full payment," Tung says. "On the operational side, it doesn't sound like the management of these companies think they need to make any changes to the path they're on. It doesn't seem like they've talked to any of their creditors to make any adjustments on their debt. So if they don't have a deal beforehand, they can't do a prepackaged bankruptcy."

The other major question, says Tung, is how are automakers going to get the cash to run the business going forward? "Without that piece, bankruptcy is not only not helpful, but in my opinion would likely put the company into a free fall."

Are they playing chicken?

“I would have thought that automakers would have taken a more constructive tone with Congress," says Tung. In his blog entry on theconglomerate.org, Tung says automakers "seem to be playing chicken with Congress, on the 'too-big-to-fail' theory." Congress apparently didn't buy it.

"Needless to say, that's a dangerous game," Tung writes. "Especially during the interregnum, the specter of political gridlock looms large."

Tung teaches and writes in the areas of corporate and securities law and bankruptcy, both domestic and international. Professor Tung has served as a lecturer in law at Peking University. He also practiced corporate and bankruptcy law with Gibson, Dunn & Crutcher in Los Angeles and San Francisco.

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Congressional Expert: Lame Duck Congress not Likely to Make Progress on Economy

The deep shifts in power occurring on Capitol Hill during Congress' current lame duck session will likely delay any major economic initiatives until after President-Elect Obama's inauguration in January, says Emory University political scientist and congressional expert Randall Strahan.

"What we're seeing here is a transition of the Democratic Party to becoming the real governing party in an extremely difficult political environment," says Strahan. "At the same time, Republicans are making the transition from having been the party of government to being the party of opposition. The current impasse over the bailout of American automakers and enactment of new fiscal stimulus measures is indicative of what's happening politically."

With growing skepticism in the country over big bailouts from the Treasury, "Republicans for the most part have decided they are not going to push back against that public opposition. For both principled and political reasons, most Republicans in Congress are not supporting further commitments of federal funds to finance these bailouts, leaving Democrats to take responsibility for economic policy from here on out. We'll likely see a political stalemate until January," Strahan says. "Congress may extend unemployment benefits and some short-term help to automakers, but we're not likely to see a new stimulus package or big bailout."

"Everyone is worried but there is not a consensus about what to do," he says. "Political responsibility is diffused right now. That's one reason why the Republicans are pulling back, not wanting to share the heat for approving tens of billions of dollars in new aid that may or may not work. Waiting until January makes it clear that whatever is passed at that point is Democratic policy. It will require the leadership of a new president working in tandem with congressional leaders of his party to move forward on major new economic initiatives."

Strahan, a professor of political science, is the author of "Leading Representatives: The Agency of Leaders in the Politics of the U.S. House," published in 2007 by Johns Hopkins University Press. He currently is working on a book about partisanship in Congress.

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Emory's Alexander Asked to Weigh in on Defeated Bailout Bill

As Congress wrestled over the weekend with the now defeated financial bailout bill, Emory University housing expert Frank Alexander was asked to look at the impact of the proposed legislation on easing the crisis in the residential real estate market. Would this bill help ease this country's mortgage and home ownership crisis?

Alexander says the answer is no, but the reason is complex.

"The proposed legislation has two purposes," says Alexander. "One is to deal with the liquidity and credit crisis; the other is to deal with the mortgage crisis and homeownership preservation concerns. If this legislation is passed and Secretary [Henry L.] Paulson acquires large investments in mortgage-backed securities, he most likely would not have the authority to address the home ownership preservation activities contemplated by the statutes."

"The reason this bill wouldn't help the mortgage crisis is not the wording of the statute, but the nature of the product that would be acquired by the Secretary of the Treasury," Alexander explained in a letter dated Sunday, Sept. 28, to Rep. Dennis Kucinich, chairman of the House Domestic Policy Subcommittee.

"When and if the Secretary elects to acquire the mortgage related asset of any single financial institution, the Secretary will not be acquiring a portfolio of whole loans, or even a controlling interest in a securitization of loans," wrote Alexander.

And that is the heart of the problem:

"When the Secretary buys a fractional interest in large pools of mortgage backed securities, he is not acquiring controlling interest of the mortgages themselves," Alexander explains. "So he may be purchasing a five, 20 or 30 percent interest in a mortgage backed security, but that minority interest is not necessarily sufficient authority to modify the loans."

Or as Alexander said in his letter: "The Secretary will lack the authority to authorize, require or even permit a program designed to encourage or facilitate home ownership preservation or foreclosure avoidance actions."

The bill in its most recent form, says Alexander, "has many provisions that make it far superior to the bill that was submitted on behalf of Secretary Paulson eight days ago. I probably would have voted for the bill today (September 29, 2008)."

But in order to address home ownership preservation, says Alexander, the Troubled Asset Relief Program outlined in the legislation should have as one of its goals the acquisition of Troubled Assets, "which will provide the Secretary with a controlling or majority interest in the underlying pool of whole mortgage loans. In such a context the Secretary will be in a position to implement the Homeownership Preservation goals of this legislation."

Alexander, founding director of Emory's Center for the Study of Law and Religion (CSLR), earlier this spring gave testimony before a congressional subcommittee on how federal funds could be targeted to neighborhoods most affected by rising rates of vacant and abandoned properties.

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Duke University: A Rescue Plan for Main Street, not Just Wall Street

By Andrew Foster
Duke University
Associate Clinical Professor of Law

Amid the headlines about huge stock market losses and collapses in the financial services sector, it can be easy to forget the human face of the problem that our nation now confronts.

As the federal government debates whether to give the U.S. Treasury Department unprecedented authority to spend up to $700 billion to bailout big banks, sophisticated investors and giant insurers, it is critical that a more strategic intervention be employed to address the housing and credit crises comprehensively and with fundamental fairness.

There is no question that a rescue plan is needed to strengthen many U.S. financial institutions and to shore up the economy. At the same time, policymakers cannot ignore the nearly five million American families who are either delinquent on their mortgages or are in foreclosure. Certainly, some of these consumers may have been irresponsible in taking on more debt than they could handle. The vast majority, however, were simply trying to buy a piece of the American Dream. Instead of building wealth and enjoying the security of homeownership, they now find themselves trapped in a nightmare of predatory debt and foreclosure.

Before Congress authorizes hundreds of billions of taxpayer dollars to save Wall Street from the crisis it created, steps need to be taken to rescue American homeowners, as well as the communities across the country being devastated by high rates of foreclosures. To achieve these goals, any final rescue plan should incorporate three basic elements that are now absent from the bill under consideration.

First, it must create mechanisms through which problem loans can be modified so that homeowners can stay in their homes. This can be achieved, in part, through federal intervention similar to the Home Owners Loan Corporation in the 1930s to help our country through a similar crisis. That corporation acquired problem mortgages directly from banks, and then modified them so that people who were in default could keep their homes. To achieve a similar goal today, the government will need to purchase whole loan pools -- not just the “slices” of loans typically incorporated into mortgage-backed securities -- so it can modify the terms of predatory mortgage loans and stave off another wave of defaults and foreclosures.

Federal bankruptcy law also must be revised so that, where appropriate, judges have limited authority to modify mortgage loans through the Chapter 13 bankruptcy process.

By taking these steps, the government can prevent an estimated additional 600,000 foreclosures. In addition to bringing needed relief to millions of Americans, this should help stop the devaluation of home prices.

Second, the plan needs to begin to re-establish effective regulation of the financial services industry. Though more will need to be done over time, two immediate steps can be taken. The Homeownership Preservation and Prevention Act of 2007, which has been before Congress for more than a year, should be immediately passed to address the pervasive problem of predatory lending. Drafted by Sen. Christopher Dodd, the legislation will help eliminate many of the abusive lending practices that led to this crisis.

Additionally, the Community Reinvestment Act (CRA), a federal law that requires commercial banks to make credit broadly available in a manner consistent with safety and soundness guidelines, should be extended to mortgage brokers, investment banks and insurance companies. This will enable government regulators to ensure that credit continues to flow to low- and moderate-income communities, but in a responsible manner.

Third, the rescue needs to be structured so as not to create a windfall for Wall Street. At a minimum, this will require that Treasury establish clear maximum prices that it will pay for the mortgage-backed securities clogging the system, that these purchases be conducted through a transparent process and that Congress maintain oversight of Treasury’s actions in this area. In no event should taxpayer funds be used to overpay for these devalued assets.

Finally, it should be beyond debate that any rescue plan must include provisions that limit the compensation of the managers of firms that receive governmental assistance.

There are no easy answers to the economic problems we now face as a country. In order to begin to address these systemic challenges fairly, however, we must ensure that any plan coming out of Washington puts as much focus on rescuing those of us living on Main Street as it does on helping those of us working on Wall Street. It is only by addressing both ends of the crisis that we have any hope of solving it.

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State's Best 4-H'ers Compete at Georgia 4-H Congress

Two hundred forty-five Georgia 4-H’ers gathered July 22-25 at the Crowne Plaza Ravinia in Atlanta to compete in the 66th annual Georgia 4-H Congress. At the end of the week, 48 returned home with first place honors.

“These students represent the best of the best of Georgia 4-H,” said Roger “Bo” Ryles, director of the Georgia 4-H program. “Only those students who are the most prepared and dedicated to hard work advance from district competition to state competition.”

In order to compete on the state level, a 4-H’er must first exceed at district competition.

At state congress, the 4-H members gave 12-minute demonstrations and prepared portfolios of their research and service in 49 project areas such as public speaking, history, wildlife and human development. Expert judges evaluated their work and interviewed them on their presentations and portfolios.

Those who earned first place honors will go on to compete against 4-H’ers from across the nation this November in Atlanta.

This year's winners, projects and donors, listed by their home counties, are:

BEN HILL — Jenna Gilleland, 15, daughter of Jeri and Frank Gilleland of Fitzgerald, won in communications, sponsored by Sandra Spradley and the Georgia 4-H Volunteer Leaders Association.

BLECKLEY — Christin Taylor won in family resource management, sponsored by Katrina Bowers and the Sarah L. Huff Fund.

CARROLL — Katie Comer won in human development, sponsored by Jeff Christie and Georgia GAE4-HA.

CHARLTON — Hillary Thornton, 17, daughter of John and Elaine Thornton of Folkston, won in public speaking, sponsored by Mary Kiley of the Farm Credit Association of Georgia.

Andy Smith, 18, son of Teresa and Rickey Smith of Folkston, won in history, sponsored by Arch Smith, Kirby Thompson and the Georgia 4-H Foundation.

CHATTOOGA — Matt Hicks, 18, son of Mike and Gaylee Hicks of Summerville, won in housing, equipment and environment, sponsored by Bucky Cook.

COWETA — Allison Gordy, 16, daughter of Donna and Randall Gordy of Sharpsburg, won in forest resources and wood science, sponsored by Bill Lott, Kirby Thompson and the Georgia 4-H Foundation.

Emilee Brinton won in veterinary science, sponsored by Janice Hayes and the Georgia Veterinary Medical Association.

EFFINGHAM — Matthew Rahn, 16, son of Parker and Linda Rahn of Rincon, won in safety, sponsored by Kirby Thompson, the Georgia 4-H Foundation, Lindsey Thomas and AGL Resources Inc.

EMANUEL — Hannah Bowen, 15, daughter of Sam and Jennifer Bowen of Garfield, won in flowers, shrubs and lawns, sponsored by David Skinner and Georgia Development.

Whitney Bush, 18, daughter of Mr. and Mrs. Mike Bush of Swainsboro, won in performing arts-vocal, sponsored by Melinda Ashcraft and Six Flags White Water.

Kat Thompson, 15, daughter of Kathy and Herman Thompson of Swainsboro, won in companion animals, sponsored by Dr. and Mrs. Bill Sell, Dr. Henry Wall, Monroe Veterinary Clinic Inc., Kirby Thompson and the Georgia 4-H Foundation.

EVANS — Taylor Smith, 17, son of Lamar and Edie Smith of Reidsville, won in wildlife and marine science, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

FORSYTH — Mary Singleton, 16, daughter of Frank and Phyllis Singleton of Cumming, won in festive foods for health, sponsored by Carol Barnett and Publix Super Markets Charities.

GRADY — Justin Womble, 16, son of Gene and Jenifer Womble of Cairo, won in health, sponsored by Ellinore Nicholson, Mr. and Mrs. Lamar Martin, Kirby Thompson and the Georgia 4-H Foundation.

GREENE — Tristan Dunn, 17, son of Victor and Tracy Dunn of Greensboro, won in food fare, sponsored by David Skinner and Georgia Development.

GWINNETT — Jayla Freeman, 17, daughter of Darla Freeman of Lawrenceville, won in sports, sponsored by Melinda Ashcraft of Six Flags White Water.

Grace McCurry, daughter of Sharon and Kurt Hansen of Loganville, won in dog care and training, sponsored by Janice Hayes and the Georgia Veterinary Medical Association.

HARRIS — Kevin Roberts, 20, son of Tracee and Don Roberts of Pine Mountain, won in computers, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

Katelyn Pawlowki, 15, daughter of Lisa and Brian Pawlowski of Midland, won in performing arts-dance, sponsored by Mr. and Mrs. Burley Page.

HENRY — Josh Payne, 18, son of Sue Payne of Stockbridge, won in dairy foods, sponsored by Marcia Crowley and the Agricultural Commodity Commission for Milk.

Franklin Duke, 16, son of Karan Duke of Stockbridge, won in performing arts-general, sponsored by Melinda Ashcraft of Six Flags White Water.

IRWIN — Justin Sutton, 18, son of Jenny Sutton of Chula, won in conservation of natural resources, sponsored by Brian Skeens of the Georgia Water Wise Council.

LOWNDES — Ashleigh Stevens, 17, daughter of Terri and Dan Stevens of Valdosta, won in arts and crafts, sponsored by Marian S. Fisher, Kirby Thompson and the Georgia 4-H Foundation.

LUMPKIN — David Morris won in physical, biological and earth sciences, sponsored by Paul Wood and Georgia EMC.

MORGAN — Sarah Wibell, 16, daughter of Peter and Karen Wibell of Madison, won in target sports, sponsored by Speer Burdette of the Callaway Foundation and Catherine Boddie Linz.

OCONEE — Drew Bowers, 17, son of Katrina and Andy Bowers of Watkinsville, won in outdoor recreation, sponsored by Melinda Ashcraft and Six Flags White Water.

Josh Daniel, 16, son of Mike and Elyse Daniel of Bogart, won in pork production, sponsored by Charles Griffin of the Georgia Pork Producers Association.

Abby Anderson, 18, daughter of Chris Anderson of Watkinsville, won in general recreation, sponsored by Jimmy Gisi and the Georgia Recreation and Parks Association Inc.

PICKENS — Rachel Wiggington, 16, daughter of Earlene and Edwin Wigginton of Jasper, won in fruits, vegetables and nuts, sponsored by Dot Knox and Meadows-Knox Family Fund.

P.J. Wilkie, 18, son of Phil and Leslie Wilkie of Jasper, won in food safety and preservation, sponsored by Rhonda and Gary Keve.

POLK — Jasmine Williams, 18, daughter of Dora and Lee Williams of Aragon, won in fashion revue, sponsored by Sherrie Carlson of the Georgia Master 4-H Club.

PUTNAM — Kari Crandall, 17, daughter of Joan Parker, won in dairy and milk sciences, sponsored by Angela Broder Nemeth and Marcia Crowley of the Georgia Department of Agriculture.

ROCKDALE — Jordan Alexander won in plant and soil science, sponsored by Jimmy Champion and the Georgia Plant Food Educational Society Inc.

SEMINOLE — Zenobia Williams, 18, daughter of Audrey Williams of Donalsonville, won in photography, sponsored by Ann Orowski of Georgia Magazine and Jim and Barbara Smith.

SPALDING — Morgan Kelley, 18, daughter of John and Lisa Kelley of Griffin, won in poultry and egg science, sponsored by Richard Jamison and Richard Rateau of Perdue Farms and Abit Massey of the Georgia Poultry Foundation.

TAYLOR — Brent Hamilton, 17, son of Judy Hamilton of Byron, won in entomology, sponsored by Valera Jessee of the Georgia Pest Control Association and Keith Delaplane of the University of Georgia’s entomology department.

Stephen Payne, 16, son of Nancy Payne of Butler, won in performing arts-other instrumental, sponsored by Melinda Ashcraft of Six Flags White Water.

THOMAS — Blake Williams, son of Brett and Angie Williams of Thomasville, won in power and energy, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

TIFT — Jack Branch, 16, son of Tim and Judy Branch of Tifton, won in environmental science, sponsored by Dick Shermerhorn and the Georgia Cooperative Council Inc.

Michael Luo, 17, son of Meng Luo and Longmei Li of Tifton, won in international, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

Tiffany Suggs, 15, daughter of Timothy and Margaret Suggs of Tifton, won in textiles, merchandising and interiors, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

TURNER — Hunter Brock, 17, son of Brinson and Ginger Brock of Ashburn, won in workforce preparation and career development, sponsored by the Georgia 4-H Foundation.

UNION — Sara Bottinelli, 16, daughter of Susan and Michael Bottinelli of Blairsville, won in horse, sponsored by Kirby Thompson and the Georgia 4-H Foundation.

Melissa Lance, 17, daughter of Janice and Bobby Lance of Blairsville, won in beef, sponsored by Dr. Jim and Renee Williamson and Terry England of the Homeport Farm Mart.

WALTON — Chasmine Harris, 18, daughter of Cherisa Ballard of Monroe, won in food fast and healthy, sponsored by M.K. “Curly” Cook.

WARE — Haley Thigpen, 17, daughter of Cindy and Steve Parker of Waycross, won in sheep and meat goats, sponsored by Dr. Jim and Renee Williamson.

WILKES — Christina Albertson, 16, daughter of Steven and Daphne Albertson of Washington, won in performing arts-piano, sponsored by Melinda Ashcraft and Six Flags White Water.

By Sharon Omahen
University of Georgia

Sharon Omahen is a news editor with the University of Georgia College of Agricultural and Environmental Sciences.