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NDN calls for Congress to do more to prevent home foreclosures

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For Immediate Release:
September 29, 2008

Editor's Note: Biographies of the three principals are below.

NDN: TO END THE FINANCIAL CRISIS, MORE MUST BE DONE TO KEEP PEOPLE IN THEIR HOMES

While we applaud the bipartisan effort by Congress and the White House to craft a response to the turmoil in the American financial markets, we are concerned that this package does not address critical issues causing the current problems and will not be effective unless additional steps are taken.

First, Congress and the President must do much more to stabilize the housing market by helping people keep their homes. This crisis began when the home mortgages that had been securitized with massive leverage began a precipitous decline. As housing prices fell and more mortgages defaulted, the decline in the value of the only real assets in this financial house of cards began to pull down the highly leveraged securities and their derivatives. The financial crisis will continue so long as the housing market declines. A real solution to this crisis, therefore, must include far-reaching measures to break this vicious cycle and end waves of foreclosures.

Last week Senator Obama, Senator Clinton, NDN and others argued that an effective response to the financial crisis must include a mechanism for rapidly renegotiating the mortgages of Americans facing imminent foreclosure, or a direct federal loan facility to help those Americans stay in their homes. After Congress finishes with this bill, it should turn immediately to legislation designed to keep people in their homes.

Further, if the new legislation fails to restore confidence in financial institutions, as we believe may well be the case, Congress and the Administration should also come together to consider approaches other than a massive bailout to provide stability to the financial sector.

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From 1997 to 2001, NDN Globalization Inititiative Chair Dr. Robert Shapiro was U.S. Under Secretary of Commerce for Economic Affairs and was principal economic advisor in Arkansas Gov. Bill Clinton's 1991-1992 presidential campaign and senior economic advisor to Vice President Albert Gore and U.S. Sen. John Kerry in their presidential campaigns. Shapiro holds a Ph.D. from Harvard University, a M.Sc. from the London School of Economics and Political Science, and an A.B. from the University of Chicago.

NDN President Simon Rosenberg has worked in national politics and the media world for more than 20 years. He started his career in network television before working on the Dukakis and Clinton Presidential campaigns. On the Clinton campaign, he was a member of the 1992 Clinton War Room. After the campaign, Rosenberg worked at the Democratic National Committee, the Democratic Leadership Council and then started what is now NDN in 1996. During his time at the helm of NDN and its predecessor organization, the New Democrat Network, Rosenberg has been a leader in creating a 21st century progressive movement. In 2007, Rosenberg was named one of the 50 most powerful people in DC by GQ Magazine.

Michael Moynihan, NDN Fellow and Green Project Director, currently is a William Bowen Merit Fellow at The Woodrow Wilson School of Public and International Affairs at Princeton University and on the faculty of New York University's Real Estate Institute. From 1996 to 1999, he served in the Clinton Administration in which he held the Internet portfolio and advised Secretaries Robert Rubin and Lawrence Summers as Senior Advisor for Electronic Commerce. He holds degrees from Columbia and Harvard and is currently a PhD candidate at Princeton.

1 Comment

THE GUYS ON WALL STREET DON'T GIVE A HOOT ABOUT
THE PEOPLE ON MAIN STREET!
THEY JUST WANT THEIR GOLDEN PARACHUTES AND THEY
ARE OUT OF THE GAME!
DON'T GET INVOLVED IN A MORTGAGE YOU KNOW YOU
CAN'T AFFORD!
DON'T BORROW MONEY YOU CAN'T PAY BACK!
DON'T VOTE FOR MCCAIN AND PALIN!

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Lynn Sweet

Lynn Sweet is a columnist and the Washington Bureau Chief for the Chicago Sun-Times.

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This page contains a single entry by Lynn Sweet published on September 29, 2008 11:49 AM.

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