Our economy must be viewed from both the short-term and long-term perspective. We are now coming out of the most severe recession since the Great Depression. It is clear that this recession could have been prevented. Regulations put in place following the Great Depression were removed in the 1980s and 1990s by both Democrats and Republicans in Congress. This resulted in a situation which allowed subprime loans to be given to many individuals who clearly could not be expected to continue to make payments. The mortgage brokers who were selling these mortgages were making their money up front and did not suffer when foreclosures resulted. The mortgages were packaged as derivatives and Wall Street made additional profits by betting that these would fail. I support tighter regulation to prevent similar problems in the future.
The bank bailouts and stimulus package were needed to prevent this Great Recession from turning into the second Great Depression. Once the economy has stabilized, it will be necessary to make long-term plans to eliminate the deficit and start paying off the national debt. I supported the legislation which would have forced an up or down vote by Congress on the recommendations of an independent commission. This bill was passed by the House of Representatives, but unfortunately it was defeated in the Senate. The commission which has since been appointed by the president can only make recommendations which may or may not be implemented by Congress. If elected, I will seriously consider any recommendations the commission might make to start the country toward deficit reduction. I will also work with the Obama administration and any willing Democrats or Republicans to reduce our national debt. It is critical to the future of economic health in this country.