{news} Fournier calls Larson bailout plan "incoherent" -CTNEWSJUNKIE

[Tim McKee]

Larson Tries To Explain Financial Crisis To Constituents

by Christine Stuart | October 2, 2008 8:23 AM
Posted to General News

Christine Stuart photo 

Christine Stuart photo

US Rep John Larson’s constituents were angry Wednesday night. After they
waited patiently for Larson and his local panel of experts to stop
talking they wanted some answers about how the US economy got here.

Jerry Dolan of Bristol said he wanted to know what happened to the cash?
If more than 95 percent of people are paying their mortgages, then where
is that money going? he asked.

Larson attempted to explain it by talking about how the problem is
two-fold. On one hand, the mortgage crisis resulted in excess paper
“sold, bundled, and resold,” he said.

On the other hand, Larson referenced a conversation he had with United
Technologies Corp. Board Chairman George David who explained to him the
cost of business went up overnight. Larson said UTC is big enough to bear
the increase in costs, but is worried about its supply chain.

“Did anyone understand that?” Dolan asked after Larson attempted to
answer his question.

Next up, was John Patrick President and Chief Executive Officer of
Farmington Savings Bank, who explained that the crisis is “market to
market accounting.” He said he has to maintain certain capital levels and
when the secondary mortgage market collapsed so did the market’s
confidence and along with it the amount Fannie and Freddie Mac were
paying on mortgage bonds.

Douglas Glazier of Windsor Locks said over the past four years Congress
was warned by a number of people about the subprime mortgage situation.
He said it’s beyond his comprehension to understand “how this couldn’t
have been seen?”

“The fox is guarding the hen house,” Larson said. He said while Congress
was aware of the subprime mortgage situation, “Americans were thriving in
that environment.”

“But for the housing market things would be different,” Larson said.

One young man seen here in above video wanted to know why Congress would
leave Chairman of the Financial Services Committee US Rep. Barney Frank,
D-Mass., in charge because he’s perceived by some as one of the people
who contributed to the current crisis.

Larson defended Frank and reminded his constituents that Frank has only
been in charge for the past 18-months. He said before that Frank was not
the chairman because the Democratic Party did not hold the majority in
Congress until recently.
In his opening comments Larson said he understands the outrage and anger
over the “rescue mission, mislabeled as a bailout.”

Referring to Monday’s vote where the proposal was defeated 228 to 205, he
said “not to act even with an imperfect plan was not the right thing to
do.”

Doing nothing, “is too severe,” he said. “My belief is that this requires
action.”

Stephen Fournier, the Green Party candidate challenging Larson for his
seat, said, “So we give them the money now and regulate them later?”

Larson said regulation requires specific legislation. He said Congress
will be going back to address some of these things like bankruptcy
protection for homeowners in foreclosure. Larson said the problem is this
bill needs the Senate’s approval and the President’s signature. The
delicate balance of getting the bill passed requires, “a certain amount
of leverage and certain amount of politics,” he said.

Outside in the hallway, after Larson had departed for the airport,
Fournier said he thinks the Congressman made more arguments against the
bill than for it. He said Larson was incoherent and the banker, Mr.
Patrick, was even less coherent. He said he’s concerned that Larson is
“sowing panic.”

Allyn Nelson of Windsor, who got to speak only after Larson had left to
catch his flight back to Washington, said he thinks the bill was put
together “much too fast.” He said he wants it explained to him in “terms
we can understand.”

“What was in that 110 page bill?” Nelson asked.


http://www.ctnewsjunkie.com/general_news/larson_tries_to_explain_financ.php#more

******************************************
Tim McKee, Manchester CT, main number cell-860-778-1304, 860-643-2282
 National Commitee member of the Green Party of the United States and is a spokesperson for the Green Party of CT.
BLOG-http://thebiggreenpicture.blogspot.com

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