Responding to the Financial Crisis: Top Ten Questions

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Responding to the Financial CrisisTop Ten
Questions
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What happened?
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I have an account with a business that failed.
What Now?
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Are my current stock investments okay?

• Most stocks have dropped a lot
• Dont panic!
• You only lock in a loss if you sell
• Long term outlook not changed much, if you have
  at least five years to work

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What should I do about my 401k/503b/457 account?

• Dont just act - think it through first
• Go to http//invested.afscme.org for free
  Investment Education resources from the Union
• If you invest regularly, most experts recommend
  you should keep doing so.
• Times like this can often lead to great deals

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Is my pension fund in jeopardy?

• Traditional Pensions are
• designed to manage risk
• highly diversified
• able to withstand big short-term losses and still
  be secure

Your TRADITIONAL PENSION is secure
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Is my pension fund in jeopardy?

• AFSCME fights for traditional pension plans
  (defined benefit) so we can be protected in times
  like these
• Make sure your state/employer DOES NOT use this
  as an excuse to avoid proper funding

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How did we get into this mess in the first place?
Bush deregulated the financial industry.

• No financial oversight for Wall Street
• Unchecked free markets
• CEO greed promoted risk taking

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Who did this to our economy?

• Sen. Phil Gramm, the architect of financial
  deregulation under Bush, recently said that
  American workers are in a mental recession and
  that we are a country of whiners.

Senator Phil Gramm, former economic adviser and
close friend to John McCain.
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What is AFSCME doing?

• Fighting for Federal fiscal relief for States and
  Localities to protect public services and those
  who provide them
• Fighting for transparency
• Holding corporate boards accountable
• Fighting excessive executive compensation

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What about the Bailout?

• Gives unprecedented power to U.S. Treasury to buy
  troubled assets
• Includes some oversight provisions, such as
  limits on CEO Pay
• Increases FDIC Deposit Insurance on most banks

The bailout alone is not enough!
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How is this affecting public services and AFSCME
members?

• Fiscal Crisis has gripped many State and Local
  Governments
• More States and Local Government are facing
  deficits and calling for cutbacks in vital public
  services
• More Than 90,000 full time state employees
  nationwide have been laid off

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What can I do?

• Contact your Senators and Representative now by
  calling 1-888-460-0813.
• Tell them we need a new economic stimulus plan
  for working families that includes aid for states
  and cities.
• The best way to help is additional Medicaid money
  and a flexible grant program.
• Sign up for AFSCMEs e-activist
  network http//www.afscme.org/join

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What Do The PresidentialCandidates Think About
This?

• Barack Obama proposed new regulations more than a
  year ago that would have prevented the mortgage
  crisis.

• John McCain has shown no foresight and taken no
  direct action on the sub-prime mortgage industry
  failure.

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What Do The PresidentialCandidates Think About
This?

• Opposed Bushs plan to privatize Social Security
  Its a safety net the American people can count
  on today, tomorrow and forever.

• Supported Bushs plan to privatize Social
  Security I campaigned in support of President
  Bushs proposal.

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What Do The PresidentialCandidates Think About
This?

• Has committed to a 75 billion economic stimulus
  plan to create new jobs and strengthen benefits
  for the unemployed.

• Will freeze almost all federal domestic spending
  and cut spending on Medicare, Medicaid,
  education, and Social Security.

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Who Does Our Union Support?

• We support Senator Barack Obama because he
  supports the values and policies that matter to
  AFSCME members andother working Americans.

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How can I learn more about investment?