Congressman Travis Childers Stands Up for Working Mississippians, Questions Treasury and Fed on Country's Economic Outlook

Statement

Congressman Travis Childers Stands Up for Working Mississippians, Questions Treasury and Fed on Country's Economic Outlook

Today, Congressman Travis Childers (D-MS) followed through on his campaign commitment to fight for working Mississippians. The Congressman questioned Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke this morning during a Financial Services Committee hearing to investigate recent controversial policies affecting American jobs and the economy.

The Financial Services Committee, on which Congressman Childers serves, conducted the hearing to explore the Treasury and Federal Reserve's almost unprecedented steps to aid JPMorgan in its takeover of Bear Stearns, which the financial services firm announced in March.

"The Fed and the Treasury need to direct relief to American citizens struggling from unemployment and a difficult economic environment, not to bailing out bad deals on Wall Street," said Congressman Childers. "Bad policies and lack of foresight are costing Americans jobs and damaging our already weakened economy. Secretary Paulson and Chairman Bernanke need to remember everyday citizens and small businesses in places like North Mississippi when they make their policies. I'm proud to represent the hard working people of the First District and honored to have the opportunity to stand up for their interests."

During this morning's hearing, Congressman Childers directed the following questions to the Secretary and Chairman:

As of this morning, the United States Dollar stands at $1 for every 1.57 Euros. In July 2001, the exchange rate was 1.19 Euros for every U.S. dollar. As a small town businessman from North Mississippi I do not claim to be an economic expert, but it is evident to me that the infiltration of foreign held debt has crippled the growth of the U.S. dollar across the international marketplace. Could you please explain to my constituents why the current Administration has advocated for economic policies that would put every day Americans in federal bankruptcy court?

It is evident the American economy is suffering drastically. Consumer confidence and unemployment are suffocating people in North Mississippi, and on a daily basis I hear the concerns of these hard working people, specifically related to high energy costs. Can both you gentlemen explain to me why it is essential for the Federal Reserve and the Treasury to take almost unprecedented steps to aid JPMorgan in its takeover of Bear Stearns, which overextended itself in a poorly construed mortgage lending market, when the Fed and the Treasury should start thinking of ways to help my constituents who are suffering right now from inflation?

As a realtor I am well aware of the market concerns associated with the mortgage crisis the United States faces. The First Congressional District of Mississippi encompasses a multitude of smaller community banking institutions that for years have been instrumental in their communities through their support of economic and personal development. What steps should these local banks take in order to ensure they are not associated with the larger financial institutions that overextended their assets in the subprime mortgage market?

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