Statement by Hillary Clinton on Credit and Bankruptcy Concerns

Senator Hillary Clinton issued the following statement regarding today's Des Moines Register story about growing credit and bankruptcy concerns among Iowans.

"The cover story in today's Des Moines Register is another stark reminder that the economy is not working for middle class Americans. President Bush has created a trapdoor economy and too many Iowans are falling through it and landing in debt. The typical family's income has fallen since President Bush has been in office, while the cost of things like gas, college tuition, and health care have skyrocketed. Americans are working harder than ever (labor productivity rose 18% in 6 years), but the average family has gotten nothing for its efforts. The housing boom masked the pain families were feeling because they could draw on their home equity to pay bills. But with house prices now falling, that cash source is rapidly disappearing.

"As President, I will act quickly to ensure that families saddled with high debt do not lose their most important asset to foreclosure. In the last 3 months, there have been 1,500 foreclosure filings in Iowa. I have proposed to dramatically expand federal support for state and community groups that help families manage their day-to-day expenses and avoid foreclosure. I have also called on the President to immediately convene a 'crisis conference' that brings together housing stakeholders—mortgage lenders, mortgage servicers, representatives of homeowners, regulators, and others—to end the foreclosure crisis.

"I have announced the American Retirement Accounts Plan that will help middle class Americans save and build wealth for their future.

"I will put an end to abusive practices by credit card companies that impose enormous fees and astronomical interest rates on unsuspecting borrowers. I will improve oversight of credit card lending policies, and vigorously enforce our laws against unfair and deceptive practices. I will change the bankruptcy rules that unfairly squeeze middle-class homeowners who have seen the value of their homes fall as their mortgage payments skyrocket.

"I will ensure that never again will a family go bankrupt because of medical costs. Today, 270,000 people in Iowa do not have health insurance. My health care plan will cover every single American. I do not believe that a plan that leaves 15 million Americans uncovered is right for our country.

"As President, I will restore fairness to the economy and restore the basic bargain that if you work hard you will get ahead. The middle class built the American economy; it is time for the American economy to work for the middle class again."