Staying Fit
Elizabeth Warren is angry—angry for you, as she has always been.
Warren chairs the special congressional panel monitoring the $700 billion banking bailout. And her anger is for the $5 trillion lost in 401(k) and other retirement accounts, losses that scrambled the nest eggs of millions of hard-working taxpayers, consumers and homeowners. It’s directed at mortgage and credit card lenders who for decades, she says, knowingly tricked and trapped consumers with bad debt—earning themselves millions in bonus money in the process. It’s at the government for not doing more to protect its citizens before the economic fallout of last fall and, since then, for failing to require more disclosure and accountability of those companies that got your tax money for their mistakes.
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A tenured Harvard law school professor, Warren has long been a champion for consumers. In 2005, for example, she found that nearly half of all U.S. bankruptcies were filed by working families in the aftermath of a major illness or injury, even though three out of four had health insurance at the onset of their physically—and financially—debilitating condition. “That should not be happening,” she says.
In a study for AARP released in June 2008, months before the Wall Street meltdown, she reported that those age 55 and older were the fastest-growing group to declare bankruptcy in 2007—nearly one of every four cases, and with bankruptcy rates increasing significantly with age (including a sixfold increase since 1991 among those 75-plus).
“Again, medical problems were a big reason,” she told the AARP Bulletin, “but so were their attempts in trying to just maintain their homes—such as having to charge emergency repairs to credit cards because their expenses outstripped their incomes for months or years.”
Warren was appointed to the panel overseeing the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) in November by Senate Majority Leader Harry Reid, D-Nev. “He was very much impressed by her advocacy on behalf of middle-class families and consumers,” says Reid spokesman Jim Manley.
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