September 27, 2008 Newsletter

In this issue:

Minnesota's Crucial Role

Putting Fear Back Into the Equation: Thoughts from Congressman Oberstar on the current financial crisis

Candidate Spotlight: Roger Reinert, House District 7b

Minnesota's Crucial Role

This election year, Minnesota has the opportunity to play a pivotal role in not only choosing the next President, but also helping Democrats expand their majority in the U.S. Senate.

As our supporters know, Congressman Jim Oberstar has a vision of a 21st Century transportation infrastructure for America. As Chair of the House Transportation Committee, he has been at the forefront of the effort to modernize the way we move goods and people across our country. His calls for more investments in high-speed rail, public transportation, and cleaner, more efficient energy sources come at a time when Americans are demanding sensible solutions to our dependence on expensive foreign oil.

Unfortunately, not everyone in Washington shares Jim’s vision. That’s why it is important that Jim has allies in the U.S. Senate and White House who support his forward-looking agenda. It’s important that we elect Barack Obama and Al Franken in November.

During his time as ranking member of the Transportation Committee, Jim called for increased automobile efficiency standards and more investment in alternative forms of transportation when gas prices weren’t yet $4.00 a gallon, but some of his Republican colleagues in Congress continually blocked his ideas and legislation.

It’s time for a change. It’s time for a strong Democratic majority in the U.S. Senate and a Democrat in the White House who will help Jim advance his agenda to create a more efficient transportation system to reduce our dependence on foreign fossil fuels and create good-paying jobs right here in Minnesota.

In November, we strongly encourage Minnesotans to support Al Franken for the U.S. Senate and Barack Obama for President. Together, we will move America towards the future.

Putting Fear Back Into the Equation: Thoughts from Congressman Oberstar on the current fianncial crisis

It has often been said that Wall Street runs on “greed and fear.”  Despite all of the analysis of markets and industries, those two emotions tend to keep our financial institutions operating.  Keeping that principle in mind it becomes obvious that our financial system is in crisis because we have lost an essential piece of the equation: fear.

For 12 years, the Republican-led Congress pushed a failed policy of deregulation, a policy embraced wholeheartedly by the Bush Administration.  Deregulation has allowed Wall Street to make loans and engage in investment practices that have led to quick fortunes and short-term profits.  It has created an immense financial bubble, inflated by a huge portfolio of irresponsible loans.

Now, that bubble has burst and we are left facing a frustrating reality.  If an individual owes a bank, $100,000 and cannot pay, that person has a problem.  If he owes a bank $100 million and cannot pay, the bank has a problem.  But if a lot of individuals owe a few big banks $700 billion and cannot pay, it seems the entire nation has a problem. This week, Congress will move decisively to pass a bipartisan bill to address the extraordinary crisis in our financial markets.  At stake is the ability of our nation’s major financial institutions to continue operating in a manner that allows for growth in our economy.  Without a rescue package, economic activity will slow to a crawl, and every American will be affected.

However, the urgency of this situation does not abrogate the duty of Congress to protect the interests of taxpayers.  Treasury Secretary Henry Paulson has delivered a three-page request to Congress asking for the authority to spend $700 billion to purchase bad loans from Wall Street investment banks.   Most Americans have to submit more paperwork to qualify for a home loan.  The Bush Administration’s proposal gives too much spending authority to the Treasury Secretary without enough transparency and accountability.

I am committed to work with the administration and my colleagues in the House and Senate to make this proposal stronger.  We need to make certain that none of the bailout money is used to pay for multi-million-dollar golden parachutes for the Wall Street CEO’s that got us into this mess.  The rescue package must also include independent oversight, and protection for homeowners.

You could say that we have to put fear back into the equation.  Financial institutions that would act recklessly, endangering our economy, must fear that government regulators will hold them accountable.  Wall Street executives must share in the financial failure of the institutions they lead, instead of being rewarded with millions of stockholders’ and taxpayers’ dollars. In the world of capitalism, fear can be a good thing.

Candidate Spotlight: Roger Reinert, House District 7b

Next in our series of 8th District DFL candidate profiles is Roger Reinert, running in an open seat in Duluth due to the retirement of Rep. Mike Jaros.

Candidate: Roger Reinert
House District 7b, City: Central and West Duluth.
--Not sure what district you're in? Just visit the Minnesota District Finder on the State Legislature's official website.

After a contested primary which included five candidates at one point, Duluth City Councilor Roger Reinert emerged from this month’s Democratic primary as the candidate who will face Republican Alan Kehr in the November election.

Running on his record of twice-president of the Duluth City Council, Reinert is the only candidate for 7b with experience in elected office. He uses his prior experience in a legislative body as one reason to elect him to represent Duluth.

“This election gives us the opportunity to send someone with experience to St. Paul, and a proven record of legislative success and leadership,” Reinert said.

Asked about issues he will tackle if he wins the seat, he takes aim at the issues he has dealt with on the Council - issues Duluthians have heard a lot about recently.

"First I would deal with the sanitary overflow issue," he says, an environmental hazard for Lake Superior caused by an inadequate sanitary system. "It's reasonable to think that the state would want to get involved with an issue that deals with the health of its residents."

State money would make the estimated $12.1 million price tag on improvement of the city’s sanitary system an easier pill for the City of Duluth to swallow.

Next, Reinert brings up Duluth's Great Lakes Aquarium, a popular tourist attraction but one that relies on a steady source of funding.

"I'm a big fan of the aquarium, but there is just not a sustainable funding option for the City of Duluth."

Reinert proposes a partnership with the University of Minnesota, Duluth, in order to assure necessary funds are available to keep the aquarium open for visitors.

Asked about his plan for the November general election, Reinert said he hasn't let his guard down yet.

"The primary was hard-fought, but we have a Republican candidate who is working hard as well and I'm not taking anything for granted. I need help from our supporters to make sure his district has a strong advocate for Duluth.”

Reinert would fill the seat of Mike Jaros, a long-serving legislator who has become an icon in Duluth politics and has worked his way up in House seniority.

"We're losing forty years of seniority with Mike [Jaros] retiring, and it's important that whoever takes his place can hit the ground running to fight for Duluth."

Reinert believes his experience on the City Council gives him the necessary tools to be an advocate for Duluth at the Capitol.

"We need someone to remind the legislators that there's more to Minnesota than the metro area; we need passionate leadership for Duluth,” Reinert said.

For more information about Roger Reinert’s campaign, visit www.rogerforduluth.com.