Himes Says Norwalk Well Positioned to Weather Recession, But Housing Struggling
BUSINESS
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 17, 2009
WASHINGTON – Though the Norwalk economy is strong enough to survive a recession, the declining housing market presents a long-term threat, according to Rep. Jim Himes, D-4.
In addition to the $787 billion stimulus bill, which President Barack Obama signed on Tuesday, Himes said in a series of recent interviews, a foreclosure prevention plan is needed to help Fairfield County residents stay in their homes. He said in a phone interview that as long as people are in fear of losing their homes and real estate values are plummeting it will be hard to get the economy back on track.
“We can stimulate till the cows come home, but it won’t work if people are worried about losing their houses,” Himes said.
According to Himes, Norwalk’s community strengths put it in good position to face tough economic times ahead. He said the people of Fairfield County are resilient and will get through this recession better prepared to be competitive in the future.
Nonetheless, Himes said, a weak housing market could put a damper on efforts to improve other aspects of the county’s economy.
Last week Treasury Secretary Timothy Geithner announced a plan to distribute the remaining $350 billion in Troubled Assets Relief Program funds that Congress originally approved in October. A nationwide foreclosure prevention plan will be included in the redesigned program.
Though Geithner said specifics were still being worked out, he expected to announce more-concrete plans in the next few weeks. According to the Treasury Department, every day more than 10,000 families lose their homes to foreclosure nationwide.
Mayor Richard Moccia said in an interview Tuesday that though the coming months will not be easy, the city is in a position to move forward. He reiterated Himes’s view that fixing the problems in the housing market are an important part of fixing the rest of the economy and added that it was essential that stimulus funds be directed through municipalities as much as possible.
“We are in good shape,” Moccia said. “Beyond that, a lot of it depends on what happens with the state. As best we can judge, we are in safe haven; should things get worse, then I think we are all going to be in the same boat.”
Moccia said Norwalk may be in a better position than other cities because it still has a strong bond rating. He also said he there is a potential for business investments in the near future by a film production company and a knife manufacturer.
Fairfield County is home to many Fortune 500 companies and a number of growing businesses. It is also a transportation and information corridor that plays a role in both the area’s economy and in homeland security.
Himes said that the stimulus law and the remaining bailout funds are not the end-alls and that continued investment in infrastructure is also needed. He applauded Obama’s creation of a public oversight Web site to show how stimulus funds are being spent and said several projects in Norwalk, including investments in transportation, are vital to the overall state economy
“I am confident Gov. [M. Jodi] Rell understands the importance of the I-95 corridor to Connecticut’s economy,” Himes said. “I look forward to breaking ground on projects in Norwalk and throughout the 4th District very soon.”
Himes also was recently named co-chair of a Democratic task force to lead an investigation into financial regulatory reform. He said he will be working throughout the year to monitor efficient money distribution.
“We are making sure we don’t put taxpayers’ dollars on the table for private benefit,” he said. “Most of my time in the next year will be about stabilizing the economy so we can produce jobs.”
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