January 17, 2008: Kaptur Questions Fed Chairman Bernanke, Urges Quick Action to Stimulate the U.S. Economy

January 17, 2008
Press Release
In prepared remarks, Congresswoman Kaptur said, “America is facing an economic situation that has the potential to be catastrophic.  Because of the poor judgment and intense greed of a few banks, companies, organizations, and, indeed, politicians, the average American has been thrust into economic insecurity.  The sub-prime mortgage crisis, perpetuated by profit-hungry lenders and those who traded these loans, contributed heavily to the problems we are discussing today.  But the problem is larger than just the housing bubble—the problem lies in the securitized culture of lending and in the inherent flaws of the global finance system in its current incarnation.”

Congresswoman Kaptur questioned Federal Reserve Chairman Ben Bernanke during his appearance on Capitol Hill to testify to the Budget Committee.
Congresswoman Kaptur said she is encouraged that Congress and the Federal Reserve “have recognized the anguish of the American people, who are facing dire circumstances, soaring inflation, and a possibly bleak economic outlook.  I hope that as a result of this hearing, the steps Congress can take to rectify this situation will become more obvious, and that Congress can work closely with the Fed to effectively stimulate the economy in the short term, and to regain American financial security in the long term.”

Congresswoman Kaptur said her constituents are suffering from the economic downturn not only due to rising foreclosure rates—Ohio ranks among the top three states for foreclosures—but a more general economic downturn, or, dare I say it, recession, and must watch while Wall Street and even the American government parcel off our national security and sell it to the highest bidder.

“I believe we are losing our independence as a country,” Congresswoman Kaptur said earlier in the day on C-SPAN’s Washington Journal.  “As a result of faulty judgment, bad planning, and corporate greed, the mortgage crisis has taken a huge chunk from Citigroup, Merrill Lynch, J.P. Morgan, and the rest of Wall Street.  Now, these banks are turning to Saudi princes, Chinese banks, and the government of Singapore to come to their aid. “

Congresswoman Kaptur said an economic stimulus package should focus on infrastructure projects to create jobs and consumer spending on American products.

Congresswoman Kaptur’s appearance on Washington Journal can be seen on the C-SPAN home page.