Q&A: Two Minutes (Literally) With Rep. Pete Stark

EAST BAY CONGRESSMEN WINS HIS 17TH TERM IN OFFICE

After defeating his Republican opponent with 74 percent of the vote, Rep. Pete Stark thanked his constituency Tuesday night at the Hayward Democratic headquarter wearing a fuschia tie dotted with peace signs. He spoke with the Lunatic Fringe Report:

LFR: Congratulations on returning to another term in office. What are some of the things you will be working on in the next two years?

Rep. Pete Stark: Health care. We're just going to be trying to get health care for everybody. Universal health care is my goal.

LFR:I'm not sure the Senate will get a filibuster-proof 60, but you'll have more in the House and now you have the president. What are the chances of something happening with health care?

Stark: They're good. I think they're great. I think it's one of the most important things right now with the economy turned down more people are losing their health care. It's very irritating. Probably one of the most urgent domestic issues.

LFR: Last question, Barack Obama is now the president-elect. What are you thoughts about the night?

Stark: It's a new beginning and a change in the direction of this country. I'm excited to go back to work with him.

LFR Endorsement: No On Prop. 8

NATIONAL
President of the United States: Sen. Barack Obama

ALAMEDA COUNTY
U.S. Representative (13th): Rep. Pete Stark
Calif. State Assembly (18th): Mary Hayashi

CALIF. STATE PROPOSITIONS
1A: Yes
2: Yes
3: Yes
4: No
5: Yes
6: No
7: No
8: No
9: No
10: Yes
11: No
12: Yes

Stark Nearly Pushes The Panic Button

CONGRESSMAN URGES CONSTITUENTS TO SEEK FINANCIAL ADVICE

BY STEVEN TAVARES
The Pioneer

Coming precariously close to ringing the financial panic button, Congressman Pete Stark told a group of San Leandro residents to secure their bank accounts as the nation falls closer to an economic meltdown.

“I'm going to urge each of you to seek advice over the next week from someone who isn't selling anything, not from a broker or a financial adviser, but from someone who you think has good financial understanding about whatever you might do,” said Stark.

He acknowledged the current financial crisis is the greatest threat to the pocketbooks of regular Americans since the Great Depression.

“We're in deep trouble,” said Stark, “Perhaps the most serious crisis since the 30's—probably worse. In the 30's we were not interdependent on other countries economies. Today is a different world. We are effectively owned by other countries.”

Stark, who founded Security National Bank in 1963 and parlayed it into a congressional career that has seen him re-elected 16 times to Washington, gave the group a bit of financial advice.
He called individual savings accounts, which are secured up to $100,000, “as sure a bet as you're going to get.”

He went further, advising those with money market accounts to think about switching them to FDIC-secured savings accounts.

We're going to have to pay for this thing. I've looked and I've looked and there is no tax fairy who's going to put that money under my pillow. - Stark

Money market accounts, which typically have higher yields also include some financial risk in return, have been hit hard by the downturn in the economy, despite an infusion of $50 billion by the Treasury last Friday.

The advice conjured up ominous images of Depression-era borrowers standing in long lines to withdraw their life savings from banks.

Transferring such accounts usually comes with penalties that Stark believes should not deter bank customers from looking at the bigger financial picture.

“I would give up a little income to make sure my cash is safe.”

Stark says a vast majority of the $700 billion bailout proposed by the U.S. Treasury will be borrowed from overseas institutions such as China, Japan and Europe while cautioning that “taxpayers will foot the bill for this.”

The bailout urged upon lawmakers in Washington was formalized last Saturday while Stark was en route to three scheduled town hall meetings in the East Bay.

Like many Democrats, he vowed not to support the bill that fails to aid borrowers struggling to make monthly mortgage payments and taxpayers soon to be burdened with a large increase in debt resulting from a financial crisis simmering on the edge of boiling over for much of the past year.

“All of it goes to large Wall Street firms, there's nothing about protecting the taxpayers or homeowners or even renters whose apartments may be foreclosed,” said Stark, “I certainly couldn't vote for it in its present form. I have no interest in bailing out Bank of America or Wachovia.”

The fallout resulting from the government takeovers of mortgage lenders Fannie Mae and Freddie Mac, the bankruptcy of Lehman Brothers and the $85 billion loan to insurance giant American Insurance Group will effect people of Main Street, said Stark.

He foresees people having trouble paying their Medicare premiums and having difficulty paying for higher education.

Seniors, he believes, will be hit hardest as their monthly Social Security checks will lose spending power, in addition to the shrinking of their nest egg, if they are fortunate to have one in place.
While calling Social Security “secure”, Stark did mock the idea of the Republican's dream of privatizing the New Deal-era benefit as dead in the water.

“The idea of privatizing Social Security is gone. I think we've put that one to rest,” Stark told the gathering of mostly seniors at City Hall, “If anyone want to invest in Merrill Lynch—it isn't there”

Those grossing a half million dollars a year stand to face higher taxes as a result of the recent financial jitters and bailouts, Stark believes.

“We're going to have to pay for this thing,” said Stark, “I've looked and I've looked and there is no tax fairy who's going to put that money under my pillow.”

Stark Pitches Stimulus Bill To Help Failing Economy

CHECK COULD BE IN THE MAIL FOR MILLIONS OF AMERICANS

SAN LEANDRO, Calif. - Rep. Pete Stark advocated a stimulus bill for the ailing U.S. economy Saturday in San Leandro that would put more money into the hands of people willing to immediately spend it.

A stimulus package that it “timely, targeted and temporary” will pushed through Congress within the next two months, according to Stark..

Last week, President Bush unveiled a $145 billion that illustrated his desire to avoid a prolonged recession during an election year that could further erode the Republican’s power in the legislative and executive branches come November.

Bush’s plan differs from previous ones that sought to make tax cuts for the richest Americans permanent, by focusing on one-time rebates for individuals and allowing businesses to quickly write-off certain expenses.

The bill that Stark is supporting includes extending unemployment insurance, bolstering programs for food stamps and possibly sending a check similar to what Bush attempted in 2001 to quickly inject money into the economy.

Stark, who is chairman of the Ways and Means Health subcommittee, admits his plan is one of many in Congress.

“There’s 535 members and 535 plans,” said Stark, “We hope we can narrow it down to one plan in the next month or so and proceed.”

Stark cited the opinion of many economists who believe the path out of this recession, whether the economy is in the midst of one or whether it’s impending, is through an immediate infusion of consumer spending.

To do that, he says one way is extend unemployment insurance to an extra 26 week and increase the amount of food stamps low-income families receive.

“They will spend that money. They will spend it for rent. They will spend it on clothes for their kids. They will spend it for food and that gets into the economy quicker,” said Stark.

The other idea would be simply sending a check directly to the people in the range of $200-$500 through the tax code, but Stark disagrees with that method.

“The problem I see with that is a lot of low-income people don’t file taxes, so they won’t get a refund,” said Stark.

Instead, by sending checks to those on the lowest end of Social Security payouts the benefits will be available to more people who need it most, according to Stark.

Any plan that is debated before Congress will likely need bipartisan support.

The combination of lame duck president already willing to reignite the economy and vulnerable Republicans in an election year means they may be in the mood to deal with Democrats.

One compromise could be allowing small business owners who invest in equipment to increase the amount of the tax dollars that are deferred over five years, said Stark.

The quickly expanding subprime mortgage problem, that in some ways, triggered the current recession fears, continues to grow as institutions like Citigroup, Merrill Lynch and other overseas banks report record losses and increases the fears of many Bay Area borrowers who received the shaky loans.

A former banker, himself, Stark says that “much depends on banks doing the right thing.”

Banks will save money by not foreclosing and letting borrowers maintain their own homes, instead of allowing a bad asset hurt their bottom line, said Stark.

“If you’re looking for work and you’re paying your taxes and insurance; stay in the house and we’ll add the missed payments to your mortgage. When you get a job, we’ll reset it,” said Stark.