-- Randy’s Roundup --

A Weekly Newsletter from Congressman Randy Neugebauer

September 22, 2008

Securing the Economy and Financial Markets

Late last week, the Treasury Department sent Congress draft legislation aimed at addressing serious problems in the U.S. financial markets.  Congress is being asked to act on this legislation within a week.

As I review this proposal, I have a number of questions about the exposure taxpayers would face, how broadly current difficulties in the financial markets are affecting Americans and how the federal government would purchase and later sell assets through this authority.

Authority for the federal government to use up to $700 billion to purchase financial assets that have become difficult for financial firms and banks to value and use is serious authority.  What this proposal really comes down to is buying time so that calmer markets can value these assets thoroughly.  However, when the amount being requested is more than the annual budget of the Department of Defense, Congress simply cannot authorize such a use of the taxpayers’ money without more information.

Our nation faces financial difficulties that have not been experienced in a long time.  There is no shortage of blame to spread around – from those who purchased homes they could not afford, to lenders who made bad loans, to investors who bought risky securities backed by mortgages or tried to pass those on to others and also to regulators for not slowing lax lending practices sooner. 

Due to the actions of many, it’s as if a disease has spread through our financial system that doesn’t just affect Wall Street.  This disease could also affect the ability of families to get a loan for a car, hinder small business owners who are trying to borrow money for new equipment or make workers’ pension or retirement accounts less secure.  We are fortunate in Texas that our local banks and institutions remain sound and protections are in place for account holders.

I agree with the concerns of many that taxpayers should not bail out those who made poor decisions.  As I evaluate this request from the Treasury Department, there are a number of important details that still must be filled in.  Most important to me is understanding how widespread the problem is and whether or not this proposed solution could even produce the intended results.  Congress must not rush to act without having thorough information when we’re being asked to put this amount of your tax dollars on the line and expand the federal government’s authority.

Celebrating Hispanic Heritage Month

September 15 to October 15 is National Hispanic Heritage Month in which we celebrate the cultures and contributions of those individuals whose ancestors came from Central and South America, Spain and Mexico. In addition, September 15th is important because it marks the anniversary of the independence of five Latin American countries: Honduras, Nicaragua, Costa Rica, El Salvador and Guatemala, and September 16th commemorates Mexican independence.

Many celebrations of Hispanic Heritage Month have taken place already across District 19, and others are scheduled for the remainder of the month.  I hope all those who attend the celebrations come away with a better understanding of how Hispanic heritage and culture are a part of our area’s history.

The Public Prayer Protection Act, H.R. 2104

Last week, I was honored to receive the Sacred Fire of Liberty Award for co-sponsoring the Public Prayer Protection Act. This legislation would protect the rights of government officials when expressing their religious beliefs through public prayer.  I believe it is important to stand up for our nation’s rich tradition of protecting and respecting religious freedom, and I will continue to support legislation that upholds religious freedom. 

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As always, when events unfold in Washington, I will be sure to update you. In the meantime, do not hesitate to visit my website or call my office toll free district wide at (888) 763-1611 or my Washington, DC office at 202-225-4005.