[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[Senate]
[Page 1027]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        ECONOMY AND FORECLOSURES

  Mr. REID. Mr. President, last night, President Bush spoke of the 
bipartisan effort we've seen to put together an economic stimulus 
package.
  I have joined this chorus of praise. It is important for us to 
remember that despite our differences, we can find common ground in 
pursuit of common good.
  The stimulus package is in markup today in the Finance Committee. I 
am confident that Chairman Baucus and Senator Grassley will send a bill 
to the floor that all 100 Senators can proudly support.
  We all agree that with our economy ailing, homeowners struggling and 
energy prices rising, this short-term stimulus plan will help working 
Americans make ends meet.
  But I think we also all agree that this is only the first step. A 
short-term solution will help, but we must create long-term solutions 
that will treat the cause rather than the symptoms.
  President Bush suggested last night that this could be accomplished 
with more tax cuts for the wealthy.
  We strongly disagree. No one wondering if they can make their next 
mortgage payment or whether they can afford to retire believes that 
more tax cuts for the rich will solve this problem.
  This morning, the Reno Gazette Journal reported that home 
foreclosures in Washoe County--the Reno area of Nevada--skyrocketed 614 
percent in 2007 from the year before.
  This pain isn't just felt in one area or neighborhood. Foreclosures 
have risen in all parts of the Truckee Meadows.
  One realtor said:

       It's ridiculous. I'm up to 22 right now. A year ago, I had 
     zero. I have potentially another 50 homes not foreclosed on 
     yet but are on the brink. And that's just me.

  Experts say this crisis in Reno, throughout Nevada, and all over 
America is going growing worse.
  Nationally, foreclosures jumped 79 percent in 2007.
  One of America's largest lenders, Countrywide, just reported that one 
out of every three subprime loans is now delinquent.
  And this is affecting not just the families who may lose their 
homes--but their neighbors who are seeing property values drop, and all 
of us who are faced with the collateral damage of a badly damaged 
housing market.
  We call on President Bush to work with us to solve this and other 
economic problems.
  We need to provide tax incentives for companies to invest in 
renewable energy. This will create jobs, save consumers money, and 
protect our air.
  America's infrastructure is crumbling. We saw it in the bridge 
collapse. Investing in our infrastructure will not only strengthen our 
communities, it will strengthen our economy by creating good-paying 
jobs.
  For every $10 billion we spend on infrastructure, we create 47,500 
new jobs. And for every $10 million capital investment in public 
transportation, we create $30 million in sales for businesses.
  Instead of cutting funding for community block grants and the 
Consumer Credit Council in his budget, the President should sit down 
with us to come up with real long-term solutions.
  With less than a year to go in his term, we can still come together 
to solve these problems and get America's economy working again.

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