While a federal bailout is never welcome news to taxpayers, the takeover of Fannie Mae and Freddie Mac -- institutions pivotal to middle class home ownership – was clearly necessary. Henry Paulson, Ben Bernanke, and Rep. Barney Frank should be commended for their leadership.

However, we are concerned about press reports of executive severance packages totaling over $21 million. All payments to departing executives should be frozen pending a full review of their conduct. These institutions play an important public role and need to be managed and regulated with that responsibility in mind. The Treasury's short term plan to increase their activity is wise. However, the long term plan to shrink their role in the mortgage markets will put us right where we started, with a shaky structure easily abused and more deregulation. It should be changed by the next Administration.

Our nation got into a full-blown housing crisis because of years of deregulation and privatization in the financial industries - - no one was watching the hen house. The evidence is clear that conservative economic theory, championed by Bush and McCain, has utterly failed working families.

Now, our leaders must be just as aggressive in enacting a stimulus package that will quickly stabilize and spur our nation’s entire sinking economy. Friday’s announcement that 6.1 percent of Americans are now unemployed makes crystal clear the need to jump-start our economy quickly and deliberately.

Congress must pass a stimulus package that focuses on fiscal relief for states and cities and extends unemployment benefits for those still without work. It should include funding for food stamps to make sure that all Americans can provide for their families. Finally, it must provide funding for ready-to-go construction to repair schools, roads and bridges -- construction that will to help create good, family-supporting jobs in many communities where there are currently none.

Fundamental economic change is necessary to reverse the decades-long decline of the middle class and to shore up an economy built like a house of cards. In the long term, we should move to reform our financial institutions and ineffective regulations to ensure the integrity of our capital markets. And we must address the huge economic imbalance between workers and corporations by passing the Employee Free Choice Act, legislation that will give workers the freedom to form unions and bargain collectively.

Contact: Alison Omens (202) 637-5018