[Congressional Record Volume 153, Number 61 (Tuesday, April 17, 2007)]
[Extensions of Remarks]
[Page E754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH

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                               speech of

                          HON. LORETTA SANCHEZ

                             of california

                    in the house of representatives

                         Monday, April 16, 2007

  Ms. LORETTA SANCHEZ of California. Mr. Speaker, I rise in strong 
support of H. Res. 273--Supporting the goals and ideals of Financial 
Literacy Month.
  Have you seen the headlines recently? Only yesterday, it was reported 
that mortgage defaults are at an all time high in California. According 
to one report, 46,760 borrowers defaulted between January and March. 
That's an increase of 23.1 percent relative to the previous quarter, 
and 148 percent compared with the same period a year ago.
  In another story, I read that foreclosures of homes in California 
were 11,033 in the first quarter. That's an 81.5 percent increase over 
last quarter.
  I'm concerned about the effect that this is having on families in my 
home state. I'm also concerned about the effect that this is having on 
the economy of the nation as a whole.
  While it is impossible to say that this crisis could have been 
avoided, we can certainly do more to shield consumers from its worst 
effects. One of those ways is to promote greater financial literacy.
  This bill, H. Res. 273, is an important tool for increasing 
awareness, and points the way forward toward creating greater financial 
literacy in our communities.
  The potential benefits of greater financial literacy are almost 
incalculable. We can be sure that greater awareness and understanding 
of finances will lead to higher savings rates. It will allow consumers 
to gain access to less expensive and less risky loans. And it will 
protect people from getting into a precarious financial situation 
without their understanding the consequences.
  I urge my colleagues to support this legislation, and for us to join 
together to not only promote the goals of financial literacy, but also, 
to make them a reality.

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