Transcripts

"Reviving the Economy" -A Congressional Difference of Opinion-Rep. Dennis Cardoza, D-CA

SUSIE GHARIB: We continue now our focus on the government's role in "Reviving the Economy" with a series of commentaries that we call a congressional difference of opinion. Tonight Representative, Democrat of California gives us his take on fixing the economy.

REP. DENNIS CARDOZA, (D) CALIFORNIA: We must continue to address the ongoing foreclosure crisis that is dragging down our economy. Just last fall, one in 10 Americans was either behind in their housing payment or in the midst of a foreclosure. In the third quarter of 2008, housing prices had fallen in 41 states. States such as California, Nevada, Arizona and Florida have been especially hard hit. The net effect from the downward spiral has been a significant cause of our recession. The banks which have been left holding the defaulted mortgages have had to write down much of their net worth. This in turn has led to a freezing of credit lines for everything from student loans to small business and car loans. The solution is to provide affordable mortgages to as many homeowners as possible, ensuring families remain in their homes and that banks receive their payments. Since January, I have been working on legislation to accomplish just this. The Home Act would provide all homeowners with much needed below market, fixed rate mortgages. Those who have faithfully paid their mortgage each month would have more cash in their pocket at the end of the month. Make no mistake. The United States will see its economy improve over time. However, we must strike at the root of the problem. And that means we must put an end to the foreclosure crisis. I'm Congressman Dennis Cardoza.