Senate Majority Leader Harry Reid Responds to BiggerPockets Article About National GO Zone


On Monday, January 12, 2009,’s own Richard Warren wrote a compelling piece here on the Real Estate Dispatch called A National GO Zone?, proposing a solution to the nations housing crisis.

At a time when housing is one of the most critical issues in the national debate, I’m excited to let our readers know that the top politicians are also keeping their fingers on the pulse of what is going on in real estate by reading

As proof of this, we wanted to share with you a letter from the Senate Majority Leader, Harry Reid, in response to the article above.

February 12, 2009

Dear Mr. Warren:

Thank you for contacting me regarding our nation’s current housing crisis. I appreciate you bringing your article The Real Estate Dispatch to my attention.

In my view, the housing market plays a vital role in the financial sector and stabilizing this industry is a key component of our economic recovery. That is why I worked hard to keep this problem from growing as it has. Recognizing that mortgage defaults and declining home values were the root cause of the current crisis, and that Nevada was ground zero for this phenomenon, I worked hard to pass the Housing and Economic Recovery Act of 2008 (P.L. 110-289) that President Bush signed into law on July 31, 2008. Additionally, while Congress worked with the Administration to pass the Emergency Economic Stabilization Act of 2008 (P.L. 110-343) that provided broad flexibility to the Treasury Department to respond to the deteriorating financial system, I pushed for language that requires the Treasury Secretary to ease the number of foreclosures.

As my colleagues and I seek ways to address the economic downturn and the housing crisis, I greatly appreciate you taking the time to share your thoughts and ideas on how best to confront these challenges. I took note of your suggestion to provide tax incentive to stimulate the housing market similar to those imposed in the Gulf Coast following Hurricane Katrina. As Nevada’s senior senator and the Senate Majority Leader, I am committed to doing all I can to strengthen our nation’s economy and provide millions of hardworking Americans with the relief they deserve.

Again, thank you for taking the time to share your thoughts with me. For more information about my work for Nevada, my role in the United States Senate Leadership, or to subscribe to regular e-mail updates on the issues that interest you, please visit my Web site at I look forward to hearing from you in the near future.

My best wishes to you.



United States Senator


About Author

Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.


  1. John Gullickson on

    Keep up the great work Rich! It has to be very gratifying to see your suggestions and comments being read and getting the attention of the real movers and shakers in this country. Whats next, a meeting with the president? 🙂 Again keep up the great work and looking forward to your next article!

  2. I have been an Entrepreneur ever since I got out of the US Marines in 1986. US Entrepreneurs will hire new employees when the 2 million or so get “downsized” over the next 12 months. Trouble is, many US employees are difficult for small business owners as they want alot for a little. But there are great ones too.

    If Congress and the Senate could do just one thing: RE-WRITE ALL CURRENT MORTGAGES WITH NEW CURRENT APPRAISALS, FIXED RATE say at 5% 30 years.

    If , after the mortgage is re written, and you have trouble paying that PITI, then contact a local Real Estate Investor to buy it sub2, and then market the house on seller financing. It is time to rent and not own, at least right now.

    IMHO, the ARMs caused this fiscal mess more than anything else. If the ARMs for residential “owner occupied” borrowers did not exist, this problem would be a lot smaller. The “teaser” rate is an analogy with the credit card’s 6% teaser rate, then jumping to 21% in 6 months. Its just stupid.

    As a REI for the last 25 years, I have taken out 2 – 5 yr “n.o.o.” interest only because I need that kind of investment grade financing. I know what am doing.

    And I’ve never had a foreclosure or a bankruptcy. Heck, I’ve been late on a Private 1st Mortgage Note. But I’ve lived simply and had cash reserves.

    Rich, you got my vote for Finance Committee Senator! Hope to see you in Wash DC!


  3. Congrats Richard. Its great to see that the big-whigs out there are reading the site. If only they’d listen to some of the great ideas here, maybe we wouldn’t be in as big a mess?

  4. Joshua,

    Great to see that Senator Reid is on top of this mortgage and real estate mess, and the entire economy for that matter. Being from Las Vegas and Searchlight he must know very intimately how the slumping housing market can affect a local economy. Whenever he comes back here, to Las Vegas, NV, he probably gets an earful about it, and then some.

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here