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Sen. Brown discusses worsening economy during visit to Dayton
He says Fed's rate cuts are a good start, but he fears that Bush is downplaying the mortgage crisis.
Wednesday, March 19, 2008
DAYTON — U.S. Sen. Sherrod Brown said the Federal Reserve's recent moves to stabilize the economy are good short-term solutions but Congress needs to act quickly on longer-term fixes.
Brown, D-Ohio, spoke on Tuesday, March 18, prior to an appearance at a Montgomery County Democratic Party fundraiser.
Extras
On Tuesday the Fed cut interest rates three-quarters of a percentage point, setting a benchmark rate of 2.25 percent, the lowest since 2004. The Fed this week also pledged $30 billion to prop up investment bank Bear Sterns Co., which nearly collapsed over the weekend before JPMorgan Chase agreed to purchase it at a bargain-basement price.
Brown said President Bush ignored the ballooning mortgage lending and home foreclosure crisis until "it moved from Main Street to Wall Street." Now that it has his attention, Bush is still downplaying the seriousness of it, Brown said.
Brown called for more funding for neighborhood counseling organizations that help people facing foreclosure, reform of the bankruptcy laws to keep people from losing their homes, and more regulation of the banking industry.
He said Congress can act quickly once it returns from a two-week recess, "but will President Bush veto everything? It sounds like he will."
Brown said he does not want to be alarmist about the country's worsening economic conditions.
"But I am very concerned," Brown said. "I think this is fundamentally one of the most difficult times in my life."
