**Carter Courier**

http://carter.house.gov

October 1, 2008 Volume 6, Issue 16

**[LETTER FROM THE CONGRESSMAN]{.underline}**

Dear Friends,

If you are like me you have been glued to your television watching the
reports on the economy and the actions Congress must take to ensure our
economic stability. Many of you called my office and encouraged me to
vote against the Wall Street bailout. I thank you for voicing your
concerns. Although I opposed the bailout, I do realize that Congress
must pass a comprehensive package that will correct the problem but also
protect the taxpayers.

As always, I will continue fighting for the conservative principles that
are so important to the people of the 31^st^ District.

Until next week,



**[WE WILL FIND A SOLUTION]{.underline}**

There is no doubt our economy is treading tough waters.  The actions of
Congress this week have left many Central Texans with two questions:

How did we get into this mess and can we get ourselves out?

Almost a decade ago the government encouraged greater levels of home
ownership.  Lenders in metropolitan areas gave loans to people who would
not typically qualify.  Not long after, our economy was hit hard as
terrorists murdered thousands of Americans on 9/11.  In response, the
government lowered interest rates making homes more affordable and
infusing more cash into the economy.  While these rates meant a
recovery, they made it easier for more questionable borrowers to obtain
a mortgage.

Suddenly it was profitable for banks to give exotic loans to borrowers
who had no business getting a mortgage so they could flip the house for
a profit.  Homebuilders continued to build until we reached a point
where there were more homes than borrowers.  As prices started to fall,
the plans of these investors began to unravel.  Suddenly the plan to
repeatedly sell houses at a profit wasn't an option anymore.  Borrowers
were no longer able to make a six-figure profit just for signing a
mortgage and began to default on their loans as they faced higher
payments.

This problem quickly began to affect Wall Street.  These subprime
mortgages were sold to investors hoping to make a buck.  To add even
more confusion, many of these loans were sliced and diced and packaged
with other loans to give an illusion that they were stable.  The
economic world calls these packaged loans a Mortgage Backed Security
(MBS).  Since these MBS's were bought at significant prices, but now
have little or no value, investment firms now face massive losses and a
sudden lack of capital to back up existing obligations.  Thus, the stock
market is losing value, banks are failing, and everyday Americans are
suddenly finding it hard to get a credit. 

This is where Congress must act.  As a free market believer, I firmly
believe that the less government intervention the better, but one cannot
argue that this drastic situation demands drastic action.  However, I do
not believe the plan which the House rejected is the best our country
can do to alleviate this financial crisis.

On paper, the bailout plan appears to be a better alternative to the
\$700 billion the administration asked for.  However, the administration
would still have received \$700 billion to bail out the very people that
created the problem without providing a clear answer as to how we will
pay for this. I find it unacceptable that the plan would defer the
decision on how to pay the bill to whoever is in charge of Congress in
five years.  This plan must have a clear outline of how Wall Street, not
Main Street, will foot the bill. 

I opposed this plan because America can do better.  In the days leading
up to the vote, many options were presented by other economists,
including William Isaac who dealt with the Savings and Loan crisis of
the 1980s.  While this plan offers greater taxpayer protection, it was
not considered.  I am also part of a group that is seeking out
alternative plans.  We worked through the weekend and are continuing to
work toward a solution.  Whatever plan we go with, we must remember that
there is more than one solution to solve this problem, and we are better
served coming to an agreement on a plan that is acceptable rather than
trying to force through a plan that puts taxpayers at risk of losing
\$700 billion.

I know the uncertainty you face today.  I know the apprehension we all
feel as we watch what's happening on Wall Street.  Rest assured that we
are working diligently to create a plan to address this problem, and I
will not rest until we have made sure that you no longer have to worry
about your retirement, your house or your job.  We will recover from
this current crisis and our economy will again be strong. 

**[CITY OF AUSTIN AWARDED DEFENSE EMPLOYER SUPPORT FREEDOM
AWARD]{.underline}**

I recently had the privilege of congratulating the City of Austin for
being selected as one of the 15 recipients of the 2008 Secretary of
Defense Employer Supporter Freedom Award.

It is an honor to recognize the City of Austin with this prestigious
award. This award honors employers for their support of employees who
serve in the National Guard and Reserve. With so many members of the
National Guard and Reserve in Central Texas, it is no surprise that the
good folks in Austin have been recognized for their outstanding support
of our men and women in uniform. I am proud to represent them in
Congress, and even prouder that as a city, they have continued to show
their unrelenting support for America's bravest.

The Secretary of Defense Employer Support Freedom Award publicly
recognizes employers, who were nominated by their employees, for
exceptional support above the requirements of federal law. More
information about the Freedom Award is available at
www.FreedomAward.mil.

**[DEMS YIELD TO PRESSURE FROM REPUBLICANS]{.underline}**

**[let ban on offshore drilling expire]{.underline}**

This week the ban on energy exploration on the Outer Continental Shelf
and the oil shale reserve in the western mountains expired. House
Democrats have finally yielded to the needs of the American people and
will not reinstate the ban.

After months of pressure from Republicans, Democrats are finally putting
aside politics and listening to the call of the American people. For
years, Republicans have brought forth commonsense, environmentally
responsible energy policies that would provide our country with its own
secure oil and gas supply, but those policies have consistently been
road blocked by Democrats in Congress, the Senate and the White House.

Make no mistake, without the intense pressure put on their leadership by
Republicans in Congress and the White House, they would have continued
their strong stance to ban any new energy exploration off America's
coastline.

This is no doubt a strong victory for the American people, however, this
should be the first step in bringing a broader, 'all of the above'
energy plan to the table.

**[HOUSE PASSES continuing resolution]{.underline}**

**[INCLUDES DISASTER RELIEF FOR TEXAS]{.underline}**

**[Allows offshore drilling ban to expire]{.underline}**

Recently the House passed a Continuing Resolution package that will
prevent a government shutdown and keep federal programs running at their
current levels until March 6, 2009. The package also includes critical
funding for our nation's military as well as homeland security and
disaster relief for those areas impacted by natural disasters this year.
The bill, H.R. 2638, also allows the ban on offshore drilling to expire.

Earlier this year, Democrats shut down the entire appropriations process
because Republicans were working to end the ban on offshore drilling.
Instead of compromising then, Chairman Obey halted all work on critical
spending bills. Because of this inaction, Congress passed a massive
spending bill to keep the government funded and prevent it from shutting
down.

This bill is far from perfect, but it does include critical funds to our
military and veterans. Additionally it contains \$22.8 billion for Texas
and areas affected by hurricanes and other natural disasters.

**[CARTER OPPOSES BAILOUT]{.underline}**

As many of you know, I strongly opposed the Wall Street Bailout bill
that failed the House earlier this week. I was part of a small group of
Members of Congress that met and produced a common sense alternative to
the \$700 billion Bush/Paulson Bailout Plan. The plan would have
mandated Wall Street fund the recovery of the economy rather than
American taxpayers.

Now that the Paulson plan has failed, I am ready and willing to go back
to the drawing board and come up with a plan that won't put taxpayers on
the hook for another government bailout. I also think we should see the
evidence from all sides of the issue, not solely the advice from the
administration.

I want to thank the thousands of constituents who called and voiced
their opinion. Rest assured that your voice was heard and will continue
to be heard during the next round of negotiations.