We believed that sensible regulations could prevent another crisis, shield families from ruin, and encourage fair competition. Today, we have new tools to stop taxpayer-funded bailouts, and a new consumer watchdog to protect us from predatory lending and abusive credit card practices.

FactCheck: Deficits cut in half, but still higher than 2008

Fact Check: The federal budget deficit has declined in half since 2009, from $1.3 trillion to about $600 billion, but that's not much to brag about. The 2009 figure was not just a deficit Obama inherited from his predecessor, since it also reflected the impact of decisions, such as the $800 billion stimulus bill, enacted early in the president's term.

Moreover, the deficit soared in the first place because of the recession, so as the economy has improved, the deficit naturally decreased. The United States still has a deficit higher than it was in nominal terms and as a percentage of gross domestic product than it was in 2008 and a debt much greater as a percentage of the overall economy than it was prior to the recession.

FactCheck: $2.5T deficit reduction is a debatable estimate

Obama has cited the $2.5 trillion figure on numerous occasions. It is based largely on two pieces of legislation: the Budget Control Act, which placed caps on discretionary spending, and the American Taxpayer Relief Act, which prevented tax hikes on most Americans but allowed rates to go up on the top 1% of taxpayers.

Republicans challenge the $2.5 trillion figure with some justification, because the amount of savings depends heavily on the baseline--that is, the starting point of comparison.

$4T in deficit reduction: tax the top 1%

Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion-- mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.

Uphold full faith & credit of US; keep government open

Home mortgage problems are holding back our economy

After 10 years of war, it's time for nation-building at home

The first lady has done great work with an organization called Joining Forces putting our veterans back to work. And as a consequence, veterans' unemployment is actually now lower than general population, it was higher when I came into office. So those are the kinds of thtwings that we can now do because we're making that transition in Afghanistan.

Romney's plan will blow up the deficit or raise your taxes

Economic patriotism instead of top-down policies

Now, it ultimately is going to be up to the voters, to you, which path we should take. Are we going to double-down on the top-down economic policies that helped to get us into this mess? Or do we embrace a new economic patriotism that says America does best when the middle class does best? And I'm looking forward to having that debate.

$5T in tax cuts & $2T on defense is failed recipe from 2003

ROMNEY: If the tax plan he described were a tax plan I was asked to support, I'd say absolutely not. What I've said is I won't put in place a tax cut that adds to the deficit. So there's no economist that can say Mitt Romney's tax plan adds $5 trillion if I say I will not add to the deficit with my tax plan.

OBAMA: Well, for 18 months he's been running on this tax plan. It is not possible to come up with enough deductions and loopholes to avoid either raising the deficit or burdening the middle class. It's math. It's arithmetic. Look, we've tried this. Gov. Romney's approach is the same sales pitch that was made in 2001 and 2003, and it all culminated in the worst financial crisis since the Great Depression.

Deficit came from two wars paid for on a credit card

ROMNEY: You've been president four years. You said you'd cut the deficit in half. We still have trillion-dollar deficits.

You elected me to tell the truth: The path ahead is hard

And the truth is, it will take more than a few years for us to solve challenges that have built up over decades. It'll require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one.

But know this, America: Our problems can be solved. Our challenges can be met. The path we offer may be harder, but it leads to a better place. And I'm asking you to choose that future. I'm asking you to rally around a set of goals for your country, goals in manufacturing, energy, education, and the deficit; real, achievable plans that will lead to new jobs, more opportunity, and rebuild this economy on a stronger foundation.

That's what we can do in the next 4 years, and that's why I'm running for a second term as President.

House of cards collapsed in 2008; new rules now in place

In 2008, the house of cards collapsed. We learned that mortgages had been sold to people who couldn't afford or understand them. Banks had made huge bets and bonuses with other people's money. Regulators didn't have the authority to stop the bad behavior. It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, and saddled us with more debt. In the 6 months before I took office, we lost nearly 4 million jobs. And we lost another 4 million before our policies were in full effect.

Those are the facts. But so are these. In the last 22 months, businesses have created more than three million jobs. Together, we've agreed to cut the deficit by more than $2 trillion. And we've put in place new rules to hold Wall Street accountable, so a crisis like that never happens again.

We don't need a Constitutional amendment to balance budget

Hundreds of conservative organizations and Tea Party groups got behind the responsible Cut, Cap, and Balance plan. After the House passed it with a large majority (including 5 Blue Dog Democrats) Senator Reid promised a full debate in the Senate.

Many polls showed increased public support for the bill and a balanced budget amendment. Over 70% of Americans supported a balanced budget amendment to the Constitution, and a CNN poll found 66% of Americans supported the Cut, Cap, and Balance bill.

Obama economic stances compared to Romney

• Corporation Policy
• Financial Bailout
• Wall Street Reform
• Economic Stimulus
• Trickle-Down Economics
• National Debt
• Balanced Budget
• Campaign Finance Reform
• Card Check
• Unemployment
• Social Security Privatization
• Trust Fund
• Entitlement Policy
• Tax-and-Spend Policies
• Death Tax

Appoint bipartisan fiscal commission and re-establish PAYGO

At this point, we know that the budget surpluses of the '90s occurred in part because of the pay-as-you-go law, which said that, well, you should pay as you go and live within our means, just like families do every day. 24 Republicans voted for that, and I appreciate it. And we were able to pass it in the Senate yesterday.

But the idea of a bipartisan fiscal commission to confront the deficits in the long term died in the Senate the other day. So I'm going to establish such a commission by executive order and I hope that you participate, fully and genuinely, in that effort, because if we're going to actually deal with our deficit and debt.

Some earmarks are defensible, if done in full light of day

Pres. OBAMA: We didn't have earmarks in the Recovery Act. We didn't get a lot of credit for it, but there were no earmarks in that. I was confronted at the beginning of my term with an omnibus package that did have a lot of earmarks from Republicans and Democrats when we had to make a whole bunch of emergency decisions about the economy. So what I said was let's keep them to a minimum, but I couldn't excise them all. I think all of us are willing to acknowledge that some earmarks are perfectly defensible, good projects; it's just they haven't gone through the regular appropriations process in the full light of day. So one place to start is to make sure that they are at least transparent, that everybody knows what's there before we move forward.

Some wealth of the last economic boom was illusory

As Pres. Obama said of the economic boom that went bust: "I think it's important to understand that some of that wealth was illusory in the first place."

Exactly. But let's also understand the source of the illusion and what to do about it. Of course not everyone is instinctively against this illusion-weaving power, and many even welcome it. They just want to get back to the times when "everything was good" even though it was all just a mirage--a creation of the appearance of wealth by the Fed.

Tragically, the innocent who understand little about the complexity of the monetary system suffer the most, while those who are in the know reap great profit whether the market is going up or down.

Bottom-up economics instead of trickle-down economics

Obama believes that all will benefit from the system he envisions, that Wall Street & Main Street are intertwined, that you can't have successful securities investing without successful companies to invest in, and you can't have successful companies without motivated engaged workers

Focus on economic justice instead of macroeconomic policy

These words are from Barack Obama's major economic policy speech on Feb. 13, 2008. It had a completely different focus than the macroeconomic issues we are used to hearing discussed in Washington. Rather, he focused his remarks on what, for him, is the most pressing need today in America, the need for economic justice. To a great degree, much of Barack Obama's platform for America is about a singular issue, economic justice.

OpEd: "Hope" translates into economic opportunity

Many of us remember these striking words as the keynote speaker at the 2004 Democratic Nominating Convention. If there is one word associated with Barack Obama, from all of his campaigns, speeches and books, it would have to be hope. From an economic perspective, the word hope easily translates into economic opportunity. Without economic opportunity, there is no hope.

Take China “to the mat” about currency manipulation

A: We have legislation that says that if, in fact, they are manipulating their currency--and I think there’s no dispute that they are--that we need to take strong action. It’s in the Banking Committee. I will say that it’s actually a blunt tool. I’d prefer not doing this legislatively. The problem is we’ve had a president that has shown no leadership on it. So when I am in the White House, I will meet directly with the Chinese leadership and indicate we have to restore balance. And, by the way, we have to mobilize our allies, such as the European Union, to have that conversation with us. This is an imbalance that is not good for any economy over time. It’s not sustainable, the trade imbalances that we have.

Supports federal programs to protect rural economy

Freeze annual domestic spending for next five years

This freeze will require painful cuts. Already, we've frozen the salaries of hardworking federal employees for the next two years. I've proposed cuts to things I care deeply about, like community action programs. The Secretary of Defense has also agreed to cut tens of billions of dollars in spending that he and his generals believe our military can do without.

The worst has passed, but the devastation remains

But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder.

This recession has also compounded the burdens that America's families have been dealing with for decades--the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.

So I know the anxieties that are out there right now. They're not new. These struggles are the reason I ran for President.

OpEd: Each bailout revealed more of Washington's inside game

Push mortgage refinancing; banks repay deficit of trust

That's why I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won't add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.

Let's never forget: Millions of Americans who work hard and play by the rules every day deserve a Government and a financial system that do the same. It's time to apply the same rules from top to bottom: No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody.

Establish a Financial Crimes unit; end era of recklessness

We will also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud and protect people's investments. Some financial firms violate major anti-fraud laws because there's no real penalty for being a repeat offender. That's bad for consumers, and it's bad for the vast majority of bankers and financial service professionals who do the right thing.

Recession because Wall St. and Washington failed us

"We've gone through the deepest recession since the Great Depression, and folks here have had their lives uprooted by lost jobs and foreclosed homes, shuttered businesses, vanished savings," he said. "Many good, hardworking people who met their responsibilities are now struggling, in part because folks on Wall Street and people in Washington didn't meet their responsibilities. Now, these are the things that I hear about every day in the letters I get--from families going bankrupt; from small businesses crushed by their health-care costs. I am not going to walk away from these efforts. I am not going to walk away from these people."

2008 financial collapse: final verdict on failed philosophy

[Federal Reserve chair Bernanke addressed Congressional leaders]: "I am a student of the Great Depression," he began. "Let me state this clearly. If we do not act in the next few days, this will be worse than the Great Depression." He let the statement sink in, just long enough for Senator Chris Dodd to gasp audibly, before he continued: "Investors have lost confidence in our capital markets. It is a matter of days before we will witness a series of catastrophic failures."

OpEd: Undermined message of restraint with new "investments"

This was the same argument Obama used to justify his exorbitant $800 billion "stimulus" program. Although that spending binge failed to improve the economy, with unemployment rising from 7.6% when the stimulus passed to roughly 9% today, it looks like Obama's prescription is more of the same. A few weeks after his State of the Union speech, Obama proposed a budget with yet another record deficit--one exceeding $1.65 trillion. Unsurprisingly, as I write these words, the federal government hit its debt ceiling, sparking demands from the Obama administration to raise the ceiling even higher.

OpEd: Economy recovering, but not feeling it on the street

OpEd: Crisis means Obama won, but world's falling apart

The crisis was good news for him in another way. Suddenly there was a clear and historic purpose to the first year of an Obama presidency: to stop the bleeding and place the nation on a sharply different course. Instead of letting go of his big campaign promises on energy, health care, and education, he now sought to connect them to the recession.

Source: The Promise: Obama Year One, by Jonathan Alter, p. 5 , May 18, 2010

Worked on TARP & bank bailouts during 2008 transition

During the 1932-33 transition, FDR's strategy was to spurn efforts to cooperate with Hoover. Obama consciously chose a different course, at least on the banks. "I explicitly rejected FDR's strategy of not taking any ownership of what needed to be done during the transition and I think that was the right decision," he said later. "If I had refused to weigh in on TARP prior to my being sworn in--we would not have hit the ground running. And I think the situation could have spiraled out of control much more severely."

We all hated the bank bailout; but it was necessary

But when I ran for President, I promised I wouldn't just do what was popular--I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today.

So I supported the last administration's efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we've recovered most of the money we spent on the banks. Most but not all.

To recover the rest, I've proposed a fee on the biggest banks. I am not interested in punishing banks. I'm interested in protecting our economy.

$1T avoided Depression; but I took office with $8T debt

Just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact. I'm absolutely convinced that was the right thing to do.

FactCheck: Obama's estimate of $8T deficit is closer to $3T

Obama: "In 2000, America had a budget surplus of over $200 billion."

FactCheck: Fiscal year 2000 ended with a total budget surplus of $237 billion.

Obama: [By 2009] "a one-year deficit of over $1 trillion."

FactCheck: Deficit when Obama took office: CBO projected the deficit would total $1.2 trillion.

Obama: [By 2009, we had] "projected deficits of $8 trillion over the next decade."

FactCheck: CBO projected only a $3.1 trillion deficit over 10 years.

So the president actually understated matters regarding annual surpluses and deficits for years past, but he may have strained the facts when he spoke of what was being predicted for future years. His figure is based on a "baseline" projection by Obama's own OMB projecting a 10-year deficit of $8.9 trillion.

G-20 produced "collective document" on global economy

"Today we've learned the lessons of history. We are committed to growth and job creation.... The US [will] clean out the troubled assets... to ensure that our action leads directly to loans to businesses large and small. And our G-20 partners are pursuing similarly comprehensive programs."

"We've got a global economy, and if we're taking actions in isolation in the US, but those actions are contradicted overseas, then we're only going to be halfway effective... [We have had] a drastic reduction in US exports... and the contagion from the financial markets debilitating the economies elsewhere" is affecting other US companies. Obama explained, "this is a collective document."

US will emerge from this recession, stronger than before

But while our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before.

The answers to our problems don't lie beyond our reach. They exist in our laboratories and our universities; in our fields and our factories; in the imaginations of our entrepreneurs. What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more.

Not enough to help those at the top: it doesn’t trickle down

OBAMA: It’s not enough just to help those at the top. Prosperity is not just going to trickle down. We’ve got to help the middle class. Part of the problem is that for many of you, wages and incomes have flat-lined. For many of you, it is getting harder and harder to save, harder and harder to retire. Sen. McCain is right that we’ve got to stabilize housing prices. But underlying that is loss of jobs and loss of income. That’s something that the next treasury secretary is going to have to work on.

McCAIN: We obviously have to stop this spending spree that’s going on in Washington. Do you know that we’ve laid a $10 trillion debt on young Americans, $500 billion of it we owe to China? We’ve got to have a package of reforms and it has got to lead to reform prosperity and peace in the world. And I think that this problem has become so severe, that we’re going to have to do something about home values.

Pay attention to Main Street, not just Wall Street

McCAIN: We’ve got fundamental problems in the system. And Main Street is paying a penalty for the excesses and greed in Washington, DC, and in the Wall Street. There’s no doubt that we have a long way to go, and obviously stricter interpretation and consolidation of the various regulatory agencies that weren’t doing their job that has brought on this crisis. But I have a fundamental belief in the goodness and strength of the American worker. And the American worker is the most productive, the most innovative.

Regulate institutions for what they do, not what they are

Free market needs proper government oversight

Obama's overall economic philosophy: He understands the power of the free market to create jobs and encourage creativity, but he also understands that, left to its own devices, without proper government oversight, it has a way of bouncing wildly between booms and busts. Individual participants in a market economy can do little to influence the overall stability of the system, but government can, and must, act to assure our financial markets remain strong and stable.

Prosecute mortgager fraud; require full mortgage disclosure

• Protect homeownership and crack down on mortgage fraud: Obama will make sure homebuyers have honest and complete information about their mortgage options.
• Ensure more accountability in the subprime mortgage industry: Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal fraud penalties for mortgage professionals, and requires industry insiders to report suspicious activity.
• Mandate accurate loan disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric for home mortgages.
• Close bankruptcy loophole for mortgage companies: Obama will eliminate the provision that prevents bankruptcy courts from modifying an individual's mortgage payment.

Latinos & blacks are hardest hit by housing & gas crises

More accountability in subprime mortgages

• Ensure More Accountability in the Subprime Mortgage Industry:Obama introduced comprehensive legislation over a year ago to protect consumers against abusive lending practices. Obama’s STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for law enforcement, and creates new criminal penalties for mortgage fraud.
• Create a Universal Mortgage Credit:Obama will create a 10% universal mortgage credit to provide tax relief to homeowners who do not itemize. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.
• Mandate Accurate Loan Disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.

Help the homeowners actually living in their homes

Accountability and oversight over the financial markets

Modify some of the fraudulent & predatory lending practices

Government regulation needed for when markets fail

We neglect nation-building here when we nation-build abroad

ROMNEY: For us to be able to promote peace requires us to be strong, and that begins with a strong economy here at home.

OBAMA: [When considering Mideast policy], what is also important for us to understand, is that for America to be successful in this region, there are some things that we're going to have to do here at home as well. You know, one of the challenges over the last decade is we've done experiments in nation building in places like Iraq and Afghanistan. And we've neglected, for example, developing our own economy, our own energy sectors, our own education system. And it's very hard for us to project leadership around the world when we're not doing what we need to do here.

OpEd: Stimulus bill derisively called "porkulus"

Then, on February 17, 2009, President Obama signed the American Recovery and Reinvestment Act, commonly referred to as the "stimulus" bill. A young woman called it by its real name: pork. So did about a hundred other people who showed up at a "Porkulus" protest.

OpEd: Stimulus vote turned GOP into "party of No"

But sometimes saying "No" is what's right for this country--an all 178 Republican members said just that to President Obama, Speaker Pelosi, and Leader Reed's pork-laden stimulus package.

In a sense, President Obama had been correct when he identified the stimulus vote as a turning point--he was just wrong about what message it sent to the American people. Far from revealing us as the party of "no," our solidarity in the face of the majority party's bullying tactics revealed us to be an awakening movement of responsible leaders.

Recovery Act averted a second Great Depression

Well, that's what the Recovery Act was. Now, I am happy to report this morning that we saw another sign that our economy is moving in the right direction. The latest GDP numbers show that our economy is growing by almost 6%--that's the most since 2003.

Across-the-board tax cuts wouldn't stimulate economy

Pres. OBAMA: This notion that this was a radical package is just not true. A third of them were tax cuts, and they weren't--when you say they were "boutique" tax cuts--95% of working Americans got tax cuts, small businesses got tax cuts, large businesses got help in terms of their depreciation schedules. I mean, it was a pretty conventional list of tax cuts. And the notion that I would somehow resist doing something that cost half as much but would produce twice as many jobs--why would I resist that? I wouldn't. I am not an ideologue. The problem is, I couldn't find credible economists who would back up the claims that you just made.

Increased spending comes from Bush's automatic stabilizers

Pres. OBAMA: I want to just push back a little bit on the underlying premise about us increasing spending by 84%. The fact of the matter is, is that most of the increases in this year's budget, this past year's budget, were not as a consequence of policies that we initiated but instead were built in as a consequence of the automatic stabilizers that kick in because of this enormous recession. So the increase in the budget for this past year was actually predicted before I was even sworn into office and had initiated any policies.

Rep. RYAN: I would simply say that automatic stabilizer spending is mandatory spending. The discretionary spending, the bills that Congress signs that you sign into law, that has increased 84%.

Spending freeze now would be destimulative; later is better

Pres. OBAMA: The reason that I'm not proposing the discretionary freeze take into effect this year is, I am just listening to the consensus among people who know the economy best. And what they will say is that if you either increase taxes or significantly lowered spending when the economy remains somewhat fragile, that that would have a destimulative effect and potentially you'd see a lot of folks losing business, more folks potentially losing jobs. We'll have a longer debate on the budget numbers, all right?

Restore Pay-As-You-Go law

Now, I know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting. And I agree--which is why [the proposed 3-year spending] freeze won't take effect until next year--when the economy is stronger. That's how budgeting works.

But understand, if we don't take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery--all of which would have an even worse effect on our job growth and family incomes.

Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new. Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here. Let's try common sense. A novel concept.

OpEd: Stimulus trillions must be borrowed, printed, or taxed

Servicing the $11.5 trillion debt is a huge annual expenditure in the federal budget. Those who hold our debt, including foreign countries like China and Saudi Arabia, must be paid first. Last year we spent more than $400 billion to service our debt. Is that what the president meant by "change"?

Where is all of this money going to come from? It can come from only three places. Government borrows it, government prints it, or government taxes the people for it. So far the administration has done the first two. We've borrowed massive sums from foreign countries & we've also simply printed money. Economists call this practice "monetizing the debt," and it's not something we hear much about. Higher taxes won't be far behind.

We’re in the worst financial crisis since Great Depression

A: We are going through the worst financial crisis since the Great Depression. As we engage in this important rescue effort, we’ve got to make sure that we’ve got oversight over this whole process. $700 billion, potentially, is a lot of money. We’ve got to make sure that taxpayers have the possibility of getting that money back--and gains--if & when the market returns. We’ve got to make sure none of that money is going to pad CEO bank accounts or t promote golden parachutes. We’ve got to make sure we’re helping homeowners, because the root problem has to do with the foreclosures taking place all across the country. This is a final verdict on 8 years of failed economic policies--a theory that says w can shred regulations & consumer protections and give more to the most, and somehow prosperity will trickle down. It hasn’t worked. The fundamentals of the economy have to be measured by whether or not the middle class is getting a fair shake.

Spending freeze is like a hatchet where you need a scalpel

McCAIN: How about a spending freeze on everything but Defense, Veterans Affairs and entitlement programs? We ought to seriously consider, with the exceptions of caring for our veterans, national defense and several other vital issues.

OBAMA: The problem with a spending freeze is you’re using a hatchet where you need a scalpel. There are some programs that are very important that are currently underfunded. I want to increase early childhood education. We’re currently spending $10 billion a month in Iraq when they have a $79 billion surplus. It seems to me that if we’re going to be strong at home as well as strong abroad, that we’ve got to look at bringing that war to a close.

Voted against limiting credit to 30%, because 30% too high

Obama did vote against--and Clinton voted for--an amendment that would have placed a 30% cap on the interest rate that could be charged on any extension of credit. The amendment failed by a vote of 74 to 24 in 2005. When the amendment came up for a vote, Obama was standing next to Sen. Paul Sarbanes, D-MD, the senior Democrat on the banking committee and the leader of those opposing the landmark bill, which would make it harder for Americans to get rid of debt.

As for whether the 30% cap was too high, that’s certainly a matter of opinion. Sen. Mark Dayton of Minnesota, sponsor of the amendment, said on the Senate floor that such a cap “is still consumer abuse” but is much better than rates of more than 300%, which he said were being charged by some loan operations in the country.

I opposed both the 2001 and 2005 bankruptcy bills

Voted NO on paying down federal debt by rating programs' effectiveness.

Proponents recommend voting YES because:

My amendment says we are going to take about $18 billion as a strong signal from the Congress that we want to support effective programs and we want the taxpayer dollars spent in a responsible way. My amendment doesn't take all of the $88 billion for the programs found by PART, realizing there may be points in time when another program is not meeting its goals and needs more money. So that flexibility is allowed in this particular amendment. It doesn't target any specific program. Almost worse than being rated ineffective, we have programs out there that have made absolutely no effort at all to measure their results. I believe these are the worst offenders. In the following years, I hope Congress will look at those programs to create accountability.

Opponents recommend voting NO because:

The effect of this amendment will simply be to cut domestic discretionary spending $18 billion. Understand the programs that have been identified in the PART program are results not proven. Here are programs affected: Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, child abuse prevention, and treatment. If there is a problem in those programs, they ought to be fixed. We ought not to be cutting Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, and the rest. I urge a "no" vote.

Voted NO on $40B in reduced federal overall spending.

Get minorities into home ownership & global marketplace.

The CBC is focused on economic empowerment issues including:
• New Markets and Small and Minority Business Development. The CBC will seek to increase opportunities for minority and small and disadvantaged businesses by expanding contracting opportunities in the public and private sectors, increasing access to capital, creating tax incentives for capital improvements, removing outdated and restrictive regulatory barriers, and streamlining and enhancing procurement tools to encourage minority and small business utilization.
• Trade and Global Economic Empowerment. The CBC will work to ensure that the benefits of the dynamic global marketplace extend to minority businesses, and Africa and developing countries. To this end, the CBC will propose and support trade and investment initiatives designed to bridge the global digital divide, create jobs, improve infrastructure, promote sustainable development, and raise living and work standards for people of color around the globe. Moreover, the CBC will work to ensure that America’s international trade agenda and priorities also meet these goals.
• Increasing Affordable Housing Opportunities. The CBC’s goal is to increase the nation’s homeownership rates. Home ownership is one of the best wealth creation vehicles for minority families. We will work with lending institutions and community organizations to ensure that minorities are afforded every opportunity to realize the dream of owning a home.

Require full disclosure about subprime mortgages.

Sen. DODD: Today we are facing a crisis in the mortgage markets on a scale that has not been seen since the Great Depression: over 2 million homeowners face foreclosure at a loss of over $160 billion in hard-earned home equity; over one out of every 5 subprime loans is currently delinquent. These high default rates have frozen the subprime and jumbo mortgage markets and infected the capital markets to the point where central banks around the world have had to inject liquidity into the system to avoid the crisis from spreading to other segments of the market.

One of the fundamental causes of this serious crisis is abusive and predatory subprime mortgage lending. The Homeownership Preservation and Protection Act of 2007 is designed to protect American homeowners from these practices, and prevent this disaster from happening again. The legislation will:

• realign the interests of the mortgage industry with borrowers to insure the availability of mortgage capital on fair terms both for the creation and sustainability of homeownership;
• establish new lending standards to ensure that loans are affordable and fair, and
• provide for adequate remedies to make sure the standards are met; and create a transparent set of rules for the mortgage industry so that capital can safely return to the market without bad lending practices driving out the good.

In the coming months, the housing crisis is going to get worse. We will need to continue to press lenders and servicers to provide real relief for homeowners threatened with foreclosure.

Reform mortgage rules to prevent foreclosure & bankruptcy.

• Foreclosure Prevention Act of 2008 - refinance mortgages originally financed through a qualified subprime loan.
• Makes FY2008 appropriations for emergency needs of states and local governments to redevelop abandoned and foreclosed homes; and the Neighborhood Reinvestment Corporation for foreclosure mitigation activities.
• Helping Families Save Their Homes in Bankruptcy Act of 2008 - Authorizes a bankruptcy plan for individuals with regular income to provide for payment of such claim for a period of up to 30 years. Creates a principal residence homestead exemption for debtors over 55 years of age.
• Mortgage Disclosure Improvement Act of 2008 - Amends the Truth in Lending Act to set forth additional disclosure requirements governing any extensions of credit (not only mortgages) secured by the dwelling of a consumer.