C&L Live Chat With Senator Jeff Merkley (D-OR)
By Howie Klein Monday Mar 30, 2009 3:00pmMore than with many candidates Blue America supported for the U.S. Senate, it always seemed to us that with Jeff Merkley (D-OR) we were electing one of us -- not some private-school millionaire, but a guy from a working family who still sees his goals as helping out other ordinary Americans from working families. His victory over multimillionaire reactionary Gordon Smith in November was one of the sweetest of the cycle. And as soon as he got to the Senate he got busy working with the Obama Administration and his colleagues on creating jobs and turning around the mortgage crisis. His voting record is the most progressive of any new senator Blue America helped elect.
Today John and I asked Senator Merkley to spend some time with us blogging about his efforts to get the country back on the right path by rebuilding and strengthening the middle class. “If we are going to put America back to work and turn this economy around," he explained, "we need to take on the mortgage crisis. Millions of Americans have lost their homes and millions more are teetering on the edge. Each foreclosure not only devastates the family involved, but drives down neighbors’ property values, deepens the banking crisis, and worsens the recession.”
In just a few weeks, Congress will be taking up legislation that addresses this foreclosure crisis. We need to support aggressive efforts to enable families entrapped in high-cost mortgages to negotiate modifications to their loans.
And if mortgage modifications fail, we need to support the ability of bankruptcy judges to adjust the terms of the loan. Bankruptcy judges currently have the power to adjust the terms for loans for yachts and vacation homes-- it’s time to allow the same option for family homes.
This economic crisis started in the broken housing market, and it's not going to end until we fix the housing market.
While Harry Reid has signaled to Republicans and to reactionary Democrats that if they don't budge, he'll jettison the "cram down" legislation the House has already passed. Before joining us in the comments section, please take a look at this clip of Senator Merkley on the floor of the Senate explaining why this legislation, the Helping Families Save Their Homes Act, is so critical:
Login or Register to post comments.
Senator Merkley, welcome to C&L-- and thanks for joining us today. Excellent floor speech your staff sent us about the Helping Families Save Their Homes Act. I hope everyone has had a chance to watch it. You made a point that I didn't know about and that seems really horrifying and that is how progressives like yourself seem to be fighting an uphill battle against vested interests opposing bankruptcy judges doing with mortgages what they are already authorized to do-- adjusting the terms-- for yachts and vacation homes. I can't imagine what rationale they could use against it. I mean what will some inflexible reactionary claim is the reason for opposing this?
It's great to be on Crooks and Liars.
The argument the opponents of "cramdown" - what I like to call "lifeline" legislation - make is that allowing bankruptcy judges to modify the mortgage terms would raise core mortgage interest rates, making access to home ownership more difficult.
I don't buy it. Rates for investments homes, yachts, etc. are only slightly higher than home mortgages even though the risk is much higher of the owners walking away. Yet "lifeline" adjustments have been legal for yachts and vacation homes forever.
We need to give ordinary homeowners the same lifeline that the privileged have with their luxury investments.
Medicare Prescription drug benefit and do more than just merely give Medicare the ability to negotiate drug prices.
That itself appears lame when elderly and retired middle class people have to shell out $675 in monthly premiums and a yearly deductible that they should not have to pay in the first place. They have to pay this before they get any benefit. Then they have to endure the coverage gap.
The new prescription drug benefit should go into Medicare Part B and not have any extra monthly premium, no extra annual deductible, no means test and no coverage gap.
Sen. Boxer's bill does not do much and should do what I described above.
Many middle class people here reading this have parents or family wither retired or disabled and have Medicare. So why doesn't this appear an important issue?
If you believe Medicare Part D appears a piece of crap and should get fixed, then email me at info[at]democratz[dot]org with the subject MEDICARE to join a mailing list in order to force congress to enact a new prescription drug benefit in Medicare Part B.
Thank you.
[Edited. I edited your email addy, so email addy harvesters don't put it on a million spam lists. People wishing to contact the email address should substitute @ for [at] and . for [dot]. If you don't mind the spamming, feel free to undo my edit-Sitemonitor]
On Wednesday morning I will get interviewed by Wes Brain at 10am EDT (7 am PDT) on a radio station in Oregon but which also broadcasts on the web.
I will talk about my strategy to enact the employee free choice act, a 10 dollar an hour minimum wage, single payer universal health care, a new effective prescription drug benefit in Medicare Part B, and an accelerated end to the Iraq war.
How will we do this? By stopping doing business with some major Republican campaign contributors and telling Mitch McConnell that we demand such legislation and until we get that legislation a section of the population that wants this legislation will no longer buy their products.
Put the following link in your Windows Media Player.
http://audio1.kskq.org:8080/studio.m3u
and listen Wednesday Morning 10am Eastern Daylight Time on the web.
I want to thank the administration at Crooks and Liars for allowing me to post my effort to peacefully take back America though this grass roots movement in open threads, or threads germane to my and others efforts to get legislation enacted into law and to stop Republican filibusters.
I'm so glad you could make it. When I last saw you, we were in the middle of the election...Congratulations on a huge win.
And, thanks for supporting me in a tough race. When folks speak to me and say, "Senator," I still look over my shoulder to see who they're talking to. It is an incredible privilege and responsibility to be here.
I know you've been a major advocate when it comes to consumer protection. A lot of people in this community are majorly pissed off about credit card companies' unscrupulous tactics. Do you think there's a way to address this legislatively that will get by a de facto Republican filibuster?
I think we're in for a tough battle.
This is the first time in decades that there is the possibility of serious reform. There are so many tactics that credit card companies use to squeeze citizens. It's time to end a whole list of unscrupulous practices. This is a great issue for the blogging community because virtually every ordinary citizen has experienced some outrage from a credit card company. The only way we're going to win this battle is for citizens to be very mobilized and weighing in heavily with their Senators.
Let me give you an example of an unscrupulous practice. The credit card company promises a teaser rate at 0%, but hidden in the fine print is that any change in your credit score will trigger an increase to the highest percentage rate, often over 25%. This "universal default" is completely at odds with the publicized teaser rate. There are about a dozen other similar practices that are patently unfair and should be ended.
Just an additional note. We should give Senator Dodd our full appreciation for championing credit card reform and authoring the bill that we're marking up tomorrow.
On Friday, Chuck Todd at NBC reported you received $2,500 from Citigroup; $4,000 from Bank of America in February.
http://firstread.msnbc.msn.com/archive/2009/0...
Did you return this money, as some have done (e.g. Harry Reid, Richard Shelby, Sherrod Brown), or will you keep it as legitimate donations?
We are sending the money back.
What's your opinion of having received these monies in the first place?
Scarce, not only is he sending the money back, he authored the bill to prevent the credit card companies-- read CitiGroup-- to continue charging rates that amount to usury.
Jeff, welcome to C&L. You've certainly traveled a long road since we had that dinner in Austin ...
Anyway, I was pleased to read about your sponsorship of the interest-rate-cap bill. I was wondering if you'd read Tom Geoghegan's piece in this month's Harper's about the role of the demise of the cap on interest rates in our current economic dilemma. (He talks about it here.
I expect the financial sector is going to fight this tooth and nail.
I haven't seen the article but thanks for the link, I'll check it out.
By the way, Austin was terrific. I hope I can make it to the next Netroots Nation conference.
to use the Senatorial procedure to help get the budget passed?
The budget resolution only requires a majority vote. On Thursday night there will be a process often called "vote-a-rama", in which numerous amendments will be considered with little advanced knowledge of their contents and very limited debate.
I think though you might be referring to the use of reconciliation to address major issues such as health care, cap and trade, and education. Right now there is a debate underway as to whether coherant legislation can be passed on these topics using reconciliation. The problem is that any part of a bill that doesn't have a budget impact, can be thrown out of the bill by the parliamentarian. This can leave a policy bill somewhat scrambled.
It shouldn't surprise anyone that the opponents fiercely oppose the use of reconciliation because it reduces the required votes from 60 to 50. I personally think that every legitimate mechanism should be fully explored to pass legislation in these important areas.
senator jeff merkley, can you please comment on the opinion(s) by some of the republicans(Bachman-R) in the house that say the "cram down" ruling will be a tax on responsible home owners. i personally don't believe all home owners in pre/foreclosure are irresponsible. it's not uncommon to hear home owners struggling because they couldn't get refinanced. the banks have been reluctant/slower. also it's systemic problem if you will. with neighbor(s) in foreclosure and unemployment on the steep rise this is affecting many who have been responsible. thanks for your time.
No I do not agree. I do not think that "lifeline" legislation to give bankruptcy judges the same power to adjust home mortgages that they already have on all other loans will make any significant impact on interest rates. What happens in practice is that the lifeline is rarely used. It simply serves to motivate the lender to reach an agreement with the borrower so that they never end up before the judge. In many cases such an agreement makes money for the lender because the worst possible outcome is foreclosure, in which a lender often loses half the value of the house.
Take a look today's NYT article. Sometimes the value of a home after foreclosure is so low that lenders don't even bother to take possession of it.
Here is the link:
http://www.nytimes.com/2009/03/30/us/30walkaw...
i believe certain lawmakers against the cram down ruling have concern that there is a unfair cost shift to "responsible" homeowners. i am saying there are many people who have been/are responsible that have been affected by this financial/economic crisis. whether it's the loss of their job(s) because the business they work for can't borrow money so they lay off or people that have to foreclose their home because they can't refinance and/or they lost their job. there has been plenty of collateral damage from the "shadow banking scheme".
Great having you in the Senate and thanks for stopping by here! Can you give us your take on Evan Bayh and his "moderate" coalition? It looks like they're poised to kill cramdown and at best water down cap and trade and that's just for starters. What can we do to put pressure on them and what are progressive Senators such as yourself doing to exert pressure from the left in the Senate? How many Senators are we going to need before we actually have a governing progressive majority?
is really a problem. And it comes at a critical time.
It's like the Bayh People in the Senate and the Blue Dogs in the House want to assume the role of the loyal opposition, since most of the Republicans would rather see America fail than Obama succeed and are more like the DISloyal opposition these days.
My approach is to reach out to as many Senators as possible to help build a successful coalition. Hopefully, if Senators hear from enough folks in their own states, they will recognize that it is a win-win for homeowners to obtain terms they can afford because they keep their homes and the banks avoid expensive foreclosures.
It is also a win for the community because a foreclosed home can drive down the value of other homes on a street by $5-10,000. Moreover, stabilized homeowners are going to be much more reliable consumers, helping to put our economy back on track for everyone.
the Blue Dogs and Bayh's seem to be only interested in the power they can wield.
Hi Senator Merkley.
I had heard early on in the financial crisis that there would not be any prosecutions of corporations that were engaged in illegal activity because there was a risk of failure, as in the case of Arther Anderson during the Enron debacle.
Will there be any criminal prosecutions of individuals in the companies if illegal activity had been taking place, or would they receive the same immunity as the corporate entities for whom they work?
Sometimes I get the feeling that until Congress really addresses the root of all political evil-- Big Money in the electoral system-- the whole concept of good governance is just doomed. Does anyone on the Hill ever talk seriously about some real campaign finance reform?
President Lincoln once said, (this is my best memory of the quote), that "the biggest challenge to the future of the union is that every citizen continues to have an equal voice."
I was surprised that Lincoln used the word "voice" rather than "vote" and that he would consider this to be the biggest threat given that we were in the middle of the civil war. So I asked a curator at the Lincoln Monument about the quote. The curator said that during the civil war Lincoln was extremely concerned that the representatives of the arms manufacturers were coming to the capitol and drowning out the voice of ordinary citizens.
Now, of course, the problem has increased many times. I don't see easy answers. The Supreme Court has associated political expenditures with free speech and greatly limited the ability to control money in campaigns. The limit on individual contributions under McCain - Feingold, came at the expense of allowing unlimited individual contributions to independent expenditures. Thus the total amount of money was not affected at all and the responsibility of the candidate for the content of advertising was reduced. Not a good outcome.
The Presidential model of public financing holds some promise, but that model has been blown up at least at the Presidential level. Obviously this is a big issue we're going to have to keep working on.
when she used the word "lobbyists" to describe the military lobbyists that are swarming DC and trying to not get their pipeline shut off. She then called them
http://crooksandliars.com/john-amato/barbara-...
"defense contractors" They are very powerful and it's interesting to see that nothing has changed since Lincoln with them.
darwinian capitalism knows NO limits. that's the problem your correct. there's approximately
30,000 lobbyists/special interests reps. in the beltway. i believe Lincoln would say the Union/the people's voice has been lost to the voice of monopolies/corporations/elites.
ABC News ran a story tonight about Joseph Cassano who was paid more than $300 million as a severance bonus after he was forced out for running AIG into the ground with his financial shenanigans. Given that the US taxpayer now effectively owns AIG, what's the possibility of the US govt filing suit against Cassano to recover this money as compensation for his gross fiduciary malfeasance and corruption? Shouldn't people like Cassano be held financially (and possibly criminally) responsible for the mess they make?
But CNBC's got their backs at all times...
The bonus is outrageous beyond belief. Most working families in my state won't make a million dollars during their working life, and a bonus, if any, might be a holiday ham. How anyone can take or be offered a bonus for destroying a company is beyond my understanding.
there has been a lot of criticism about focusing on the "retention" bonuses. i believe it's reasonable and rationale but many of us want for accountability for the TARP/talf monies. i would like to see more clarity. most of us understand there is more "bailout" to come.
companies off of the college campuses? There was a great documentary about it and I believe Hatch's vote was paid for.
It's very important that we protect the financial future of young people. Dodd's bill has several important provisions on this topic. Here they are:
Title III B PROTECTION OF YOUNG CONSUMERS
Sec. 301. Extensions of credit to underage consumers. Requires that credit card issuers, when soliciting to persons under the age of 21, obtain an application that contains either: (1) the signature of a parent, guardian, other qualified individual willing to take financial responsibility for the debt; (2) information indicating an independent means of repaying any credit extended; or (3) proof that the applicant has completed a certified financial literacy or financial education course.
Sec. 302. Restrictions on certain affinity cards. Mandates that credit card issuers, as a condition for entering into commission-based affinity cards with higher education institutions, require that all affinity card customers under the age of 21, comply with the requirements listed above.
Sec. 303. Protection of young consumers from prescreened offers of credit. Prohibits consumer reporting agencies from furnishing reports in connection with firm offers of credit or insurance that are not initiated by consumers under age 21. Allows consumers who are at least 18, but not yet 21, to elect, in writing, to have their names and addresses included in any list of names provided by such agencies in connection with such transactions.
These commonsense protections definitely have my support. Students are already burdened by huge tuition debt. We should not enable credit card companies to pile on additional debt.
Are Democratic politicians from Ohio abbreviated D'OH!
as opposed to running for the seat? What does it feel like to be in Congress?
I've got to run. A big thanks to Howie Klein and John Amato and the entire Crooks and Liars community for having me. I look forward to many more discussions in the future.
we know you have a busy schedule. Your voting record has been excellent and this new bill you are proposing is awesome.
Senator Merkley, thanks for taking some time out of your day to spend it at C&L. We appreciate your frank answers-- and we appreciate the extraordinary job you're doing in the Senate. I get the feeling there aren't many like you there (not counting Bernie).
There aren't many members of the Senate as down to earth and as concerned about the aspirations of working families as Jeff is. I couldn't ask while he was here-- against Senate rules-- but now that he's gone, please consider making a donation to Jeff's re-election efforts at our Blue America ActBlue page. And please remember, even a $5 or $10 contribution start mounting up and prevents good elected officials from being at the mercy of special interests.
thanks howie and john. nice work.
I'm an Oregonian, supported Merkley and had the honor of meeting him in person during the election. It's good to be from a small enough state where that is possible. Also have talked to Sen. Wyden at his townhalls. We are so fortunate to be represented by these two men--both hard-working and astute and as honest as they come.
I may not live in Oregon, yet....but I wanted to make sure my future home state had 2 democratic senators & a democratic governor.
Mr. Merkley - Congratulations on your victory in 2008, I couldn't be happier that you are now representing the fine state of Oregon. I'm proud to say that I can't wait to be a constituent of yours.
My wife & I can't wait to live in a state, where we can make a difference, our vote counts, our voices will be heard, and our representatives have our best interests in mind.
Thank you for all that you do, senator. And as long as you do the people of the state of Oregon proud, you will continue to receive our praises and financial support.
Login or Register to post comments.