

November 13, 2008 Volume 4, Number 45
In This Issue Auto Industry Bailout Banking Industry Update A Little Bit of Humor… Contact Me *Representative* *Cynthia Davis* 19^th District *Majority Floor Whip* Missouri State Capitol Room 112 201 W. Capitol Ave. Jefferson City, MO 65101 Phone: 573-751-9768 Website http://www.cynthiadavis.net/ E-Mail cynthia.davis@house.mo.gov Committees Interim Committee on Poverty *Chair* Health Care Policy *Vice Chair* Family Services *Vice Chair* Elections State Links State of Missouri *Official Homepage for Missouri State Government* Missouri General Assembly *Official Government Homepage for your Missouri Senator and Representative* House of Representatives *Look up Missouri House Bills – View Entire Text, Summary, and Last Action* Missouri State Senate *Look up Missouri Senate Bills* Attorney General's Office *Consumer Complaints & Fraudulent Activity, No-Call List* Local Links St. Charles County Government City of O'Fallon City of Dardenne Prairie City of St. Peters City of Wentzville City of St. Charles Lake Saint Louis Federal Links Congressman Todd Akin Congressman Kenny Hulshof Senator Kit Bond Senator Claire McCaskill Other Links Missouri State Constitution Missouri State Jobs			Auto Industry Bailout? We all owe General Motors, Ford and Chrysler a great deal of gratitude for creating great jobs and great cars for decades. Most of my relatives and many of my friends have been employed by General Motors. The General Motors plant in Wentzville employs many people who live in our district. This American industry was built from the ground up with American labor, without government handouts, and with the pride that comes from leading the world in automobile transportation. However, this industry is not what is used to be. A question is looming over whether the federal government should provide an infusion of money into this industry from the taxpayers. Who will be the beneficiaries, us or foreign countries? I disagree with the principle of wealth redistribution. However, even if Congress wants to do this, shouldn’t there be some ethical obligation to make sure the money stays in this country? A constituent sent me this comment: “A great reason to not bailout General Motors: GM is, according to a recent CNN article, pouring some $300 million into the plant near St. Petersburg, Russia. Coming from a company that reported 2007 pre-tax earnings of $55 million on revenue of $37.4 billion (details here), that seems to prove GM capable of making money. So let them make it the old-fashioned way.” *Your thoughts are important to me, so please let me know what you think about the auto industry bailout. You can send me your opinion by clicking here: Cynthia Davis. Banking Industry Update While many of us may be pessimistic about the economy, information about the banking industry in Missouri appears to be pretty good. For years, I have been a proponent of reducing our bills by getting out of debt. Often I have felt like a voice in the wilderness. For the entire time I have been in government on any level (14 years), it has been a struggle to convince others to diminish our level of indebtedness while the economy has been so prosperous. It concerns me that any government in existence over 20 years should be in debt with proper fiscal management. The concept is simple; just think of what you could do with all that interest you are giving to your bank. I consider myself a friend of the banking industry and wish them well, but the principle of getting out of debt fits this economy well. The message to everybody is to live within our means. The banking industry “bailout” left some of us wondering if the banks will fall apart in our country. Many of the news outlets made it sound as if, unless the national government gave the banks an infusion of new money, the economy would be devastated. However, if you were wondering about the health of Missouri’s banks, I have some information from the Chairman of our House Special Committee on Financial Institutions, Rep. Mike Cunningham who reports: Missouri community banks remain strong and sound. We are sixth in the nation with 335 total banks and 297 state-chartered banks, which the Missouri Division of Finance audits and controls. The reason we have so many banks is because of their success in Missouri. During the previous twelve months, the number of state-chartered banks and trust companies decreased by five from 302 to 297. Very few Missouri banks, if any, were involved in the subprime housing crisis. Most Missouri banks did not make this type of loan and, if they did, they were sold off immediately. Customer deposits are now insured for up to $250,000 per account. If depositors have any concerns whatsoever, they should contact their bank. They can maximize the FDIC coverage to amounts well over $250,000 by purchasing additional insurance. Our banks are still making loans to credit-worthy customers; that’s how they make their money. Actually, Missouri banks are loaning more money than the national average. By all accounts, Missouri is a great place to keep your money. A Little Bit of Humor… For those of you who have never had the pleasure of owning a British car, but want to know what it's like:* Next big rainstorm, wait till dark, roll down all windows, leave off the lights, heater and wipers and go for a drive. Stop at every intersection and throw out a twenty dollar bill. It's not exactly the same, but it's real close. - Mike Nash This Capitol Report is a weekly newsletter by Representative Cynthia Davis, from the 19^th District, covering events in the Missouri Legislature and district-wide issues. J If you know of anyone else who would like to receive my Capitol Report, please send an e-mail to Cynthia.Davis@house.mo.gov with the person’s name and e-mail address. We’ll add them to the list. L If you would like to stop receiving the Capitol Report, email us at Cynthia.Davis@house.mo.gov with “unsubscribe” in the subject line.