shAARP Talk: Observations from AARP

The conversation about the financial rescue package was so active that we asked two key individuals in Congress to talk about the bill right here on Shaarp Session.

Majority Leader Steny Hoyer and Republican Whip Roy Blunt have posted below about why they think this bill can help you and why working together in a bipartisan way has become so important to helping mainstreet grow stronger.

Read on and tell them what you think.

Hardworking Americans watching the activities of the House Monday afternoon couldn't have liked what they saw. That's because the chamber rejected a bill aimed at stabilizing our financial markets and ensuring that credit would be available in the future to those who need it, want it, and have proven they deserve it.

Of course, the parameters within which we began to debate this rescue package were set askew from the very start. That's because it was introduced to the American people as a bill to manage "illiquid assets," a plan to help "Wall Street fat-cats," and, worst of all: A "bailout." While none of that is true, the attachment of that last word very nearly preordained the bill's outcome. It hardened opposition and prevented many from actually giving the bill a second (or, in some cases, first) look.

Now, I'll admit: The concept introduced by Secretary Paulson last week was not one I was comfortable with. But having been tapped by Leader Boehner to take up that plan, restructure it, and negotiate a good deal on behalf of the American people, I took a second look at the bill and started talking to people with a much broader understanding of the consequences of inaction. It didn't take long to arrive at the realization that our economy had a real problem on its hands.

The economic stability package the House is set to consider this week would achieve a couple of key objectives. For one, it'll allow the Treasury to bring some stability to the market by providing time for assets of currently uncertain value to reach their true level of valuation. When that happens, the American taxpayer will be first in line to collect that value - and if Treasury is able to achieve what experts believe it will, it may actually make a profit on those investments and help pay down our national debt.

In the meantime, the challenges we face are significant - and the window of action available to us is closing rapidly. I hope when the House brings this bill up for a second time this week, members will have benefited from taking a second, maybe third, look at this bill. And if they do, I'm confident we'll be able to pass it.

Republican Whip Roy Blunt

On Monday, despite the support of 60% of Democrats, the House of Representatives voted down a rescue package to save our country from an economic emergency. By the end of the day, $1.2 trillion of invested wealth had been wiped out.

It's easy to think of Wall Street as almost another country, far removed from our daily lives. But think of how much of that $1.2 trillion was in pension funds, retirement accounts, or 401(k)s. What happens on Wall Street affects all of us. Bill Novelli, the head of AARP, wrote that he's found 10 ways in which a financial crisis could harm families and retirees, from higher credit card interest rates, to more home foreclosures, to layoffs, to devastated pension funds. In fact, the value of equity investments held by pensions has declined 23% over the past year--that means that nearly $600 billion in retirement savings had evaporated. This morning brought the news that the economy lost 159,000 jobs last month, and more than three-quarters of a million jobs this year.

Worse could be on the way without strong action from Congress. Fortunately, we're bringing a new version of the rescue plan to the floor of the House today. The Senate passed that version on Wednesday, and we hope to do the same.

Both Democrats and Republicans have significantly improved the President's plan. We fought to ensure that taxpayers will be the first to profit if and when those assets rise again in value.

We restricted executive compensation, because CEOs whose recklessness helped bring on this crisis do not deserve taxpayer-subsidized golden parachutes.

Finally, we will help homeowners renegotiate their mortgages, to prevent a further flood of 2 million projected foreclosures that would devastate our communities.

On Wednesday, the Senate raised federal insurance of bank accounts from, $100,000 to $250,000, and also chose to add several tax cuts.

I disagree with those tax provisions, because they will be financed irresponsibly, by borrowing more money on top of our huge national debt.

But an emergency like this is the time to compromise. For the sake of families struggling to keep their homes, workers afraid of pink slips they did nothing to earn, and millions of seniors who deserve to keep the money they saved all their lives--the House must act today.

Majority Leader Steny Hoyer

Cast your vote below and tell us who you think won the Vice Presidential debate. When you're done voting, tell us why in the comment section.

I know you guys have plenty to say...and I can't wait to hear it!

The Associated Press has a piece about how stock losses are taking a heavy toll on retirement savings:

So close and yet so far. It's a frustration being felt by Americans who thought the finish line to their working life was almost in sight.

The financial crisis that toppled major Wall Street banks and snarled credit markets around the world has also taken a toll on nest eggs, forcing people to rethink when -- and even if -- their savings will allow them to retire.

More than half of people surveyed in an Associated Press-GfK poll released Wednesday said they worry that they will have to work longer because the value of their retirement savings has declined. (Emphasis mine)

Of course this poll doesn't come as much of a surprise. The crazy thing to me is that older Americans had already begun to have second thoughts on retiring before this financial meltdown. If we were in a crisis before, what is a more adequate term for what we're in now?

Dear Gwen Ifill,

Millions of retired Americans and Americans on the verge of retirement are more worried than ever about their retirement savings. Just look at the overwhelming response we received to our post earlier in the week asking for personal stories about how congress' inaction affects their lives. You are moderating tonight's Vice Presidential debate, and millions of AARP members will be tuning in.

AARP members--indeed all Americans--have high hopes that at tonight's debate, Governor Palin and Senator Biden address these fears directly. So please, Ms. Ifill, do not let either Vice Presidential candidate off the hook tonight. Press them to answer what specifically a McCain or Obama administration would to address the anxieties of retired and retiring Americans. Millions will be watching.

Sincerely,

ShaarpSession

We asked and you answered! Your overwhelming repsonse to yesterday's "Cost of Inaction" post has been truly amazing.

No matter what the idea, or where you stand on the political spectrum...thank you for sharing with us. Keep 'em coming, because we love nothing more than when you let us know exactly what's on your mind!

Yesterday, we watched the Dow plummet 778 points. It plummeted because Congress voted down the rescue package. And frankly, they failed to offer any solution to American families.

Slowly but surely our fears are becoming reality and the cost of Congress' inaction at this moment is resulting in lower home values, retirement dreams lost and younger generations losing opportunities of their own.

Opinions are abound and vary wildly. Where do you stand on this? Have you lost a dream yet? Do you stand to lose a dream? All we know at this point, is that Congress must do something, and they must do it fast.

So for the record, we've got a credit crisis, a housing crisis, and a gas price crisis. Well let's add another one to the list. Thanks to the huge hike in gas prices in combination with the spike in demand last winter, road salt has seen a jump in price and a dive in supply. Who cares, right? Well many states aren't going to be able to stock up on salt for the upcoming winter and are being forced to look into cheaper, but less effective alternatives. You might want to invest in a pair of snow tires, or one of these:

When it comes to tests, scoring over 90% tends to be a good thing. When you're talking about the percentage of nursing homes that were cited for violations during inspections, not so much. As part of an effort to improve quality in Medicare, the government has stiffened standards and greatly increased inspections for nursing homes. The most common violations: "improper storage and distribution of food, accident hazards and lack of services necessary for residents' mental and physical well-being". Looks like these facilities haven't gotten the message yet.

Divided We Fail is proud to announce our Facebook and MySpace winners of the Champ Summer Concert Ticket Contest.

(Drumroll please...)

Congratulations to Laura Rothenberg on Facebook and LexiLETDOWN on MySpace! Laura is from Richmond, VA and attends the University of Virginia. Lexi is from Indiana and will be starting her senior year in high school this Fall. Both winners are the proud recipients of up to $1000 in concert tickets for themselves and 3 friends each, to the concert of their choice. The contest required that each contestant recruit as many friends as possible to the DWF Facebook Fan Page or MySpace page, in order to see what network could grow the fastest.

Many thanks go out to both Laura and Lexi for recruiting their friends to join Divided We Fail! As for the winning network, it looks like Facebook has the edge over MySpace.

Just because the contest is over, don't let that stop you. Follow in Laura and Lexi's footsteps and tell your personal networks what DWF is all about.

TAGS: Divided We Fail, DWF, ShAARP Session, Laura Rothenberg, LexiLETDOWN, University of Virginia, concert, Facebook, MySpace, Champ

Who says that older people can't get an education?

While most would think that seniors have already had their fair share of school, this isn't the case for all of us. And for those who want to take classes, being older can sometimes include some barriers - after all, there's a big difference between 18 and 81! Fortunately, a new NY-based program allows older students to take classes without having to leave their home. DOROT University Without Walls allows older people to take classes by telephone, and is guessed to be the largest program of its kind in the U.S.:

The curriculum includes more than 250 courses and runs the gamut from understanding feng shui and poetry writing to discussions on moral, ethical and philosophical issues and a discourse on women of the progressive era. Informational classes on money management, Internet surfing and medicine also are available.

Kathy Leeds, a 79-year old widow with multiple sclerosis living in Manhattan has been taking courses for 12 years. "It gets me out emotionally. It releases me from the four walls around me," she says. The program not only aims to educate others, but to simply allow seniors who may not be able to get out often to stimulate their minds. Check out their website for more info, it seems like a really interesting program.

Lost in all the talk of our current economic crisis is the huge hike in the price of energy that we are facing. Major increases in prices for things like heating oil have a dramatic impact on people's budgets, particularly older Americans that are living on fixed incomes. With everyone's attention focused on the real estate and investment banking collapse, many older Americans feel that the government isn't doing enough to address energy costs. Winter is around the corner and with fuel oil prices so high, there is a serious danger that people won't be able to afford to heat there homes during freezing weather. One town's solution has been to pool its resources and invite several oil companies to sell large quantities of oil to the town at a discounted rate. The plan could save the town's citizens between $100 and $200 dollars over the winter.