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Text from Tom Feeney's Forgotten Man Speech and Video:
The Forgotten Man Speech
Mr. Feeney:
Well, I thank my friend from Texas and I would say that people in my district, there are some people that are hurting right about now as there are around the country. There are some people that indeed are homeowners in very bad shape. Some, for example, were duped or lied to by people that loaned them money. Some, a few, have lost their jobs. Some bought homes at the high of the housing market, say $150,000 now to find that their house is worth more like $120,000 or $100,000 and we all feel very sympathetic for those people.
But I don't feel too terribly bad for speculators that went in search of ways to get higher returns and take higher risks as an exchange and that's who is getting bailed out today -- and that's who is getting bailed out today. I also don't have sympathy when it comes to use taxpayer money to reimburse people who didn't put any money down on their home. They bought an option to buy the home. people that bought into a 3% teaser rate knowing that if the interest rate went to 7% they would never be able to stay in that home. People that used no documentation to demonstrate that they ever had the chance to repay. They moved into a home with an option to continue buying it. they didn't make the type of commitment that most homeowners do to put $10,000 -- 10% or 20% or 30% down and to make sure they have a mortgage and loan that they can pay under virtually any circumstances, except for a disaster.
Who does this bill help? "The Wall Street Journal" made it very clear who this bill helps. This bill is a bailout from American taxpayers of speculators and imprudent borrowers. Less than 1% of borrowers in homes under this bill would be eligible when all is said and done to be helped.
I come today to speak on behalf of the forgotten man and that includes some 50% of Americans that either own their home or are renting. every one of them watching today needs to know that they are bailing out irresponsible speculators and lenders and they will pay the price of this bill. I come here to speak for the 95% of homeowners that are making their payments on time that took out responsible loans. They need to know that they are bailing out irresponsible speculators and people that went in search of higher profits. Investors who take advantage of this program are basically getting a guarantee gift from the government of 85% of a loan that they know is not likely to perform. we are bailing out people that will cherry pick the very worst loans in their portfolio. Who is here speaking on behalf of the forgotten man who is here speaking on behalf of 99% of Americans that did not behave irresponsibly, that did not behave foolishly, that ultimately will pay the price for this bill? Well, some of us in the minority are here speaking on behalf of the forgotten man, which is 99% of America. and I would leave you with this. Chairman frank and the c.b.o. and others can estimate how much this bill will cost. 99% of Americans that were not irresponsible that will pay the price. the answer is, we don't know. we don't have a crystal ball. if property prices around the country take off by another 50% and go up, there will be no cost. If they go down by 30%, the costwill be closer to $300 billion than $2 billion. The speaker pro tempore: the gentleman's time has expired. who seeks recognition? the gentleman from massachusetts. mr. frank: i yield two minutes to an author of an amendment in the bill, the gentleman from wisconsin, mr. kagen.