Posted on 09/23/2008 8:49:22 AM PDT by johncocktoasten
Senators Isakson/Chambliss,
I am writing to express my hope that you will oppose ANY federal bailout of wall street, including government purchase of private mortgage loans and asset backed securities.
The implementation of this plan would result in the immediate insolvency of numerous banks and financial institutions across the country as the marking to market of these assets would create a massive hole in the capital base of these banks.
Under the alternative of not bailing out these institutions, many will still fold. However, allowing them to fold on their own will allow PRIVATE industry to come in and buy the liquidated assets at a real market price. Additionally, FDIC will be able to re-work loans for borrowers that these banks have failed to resolve.
Bolstering the FDIC insurance fund, as well as backing up the money market funds is the way to handle this problem. As far as the derivatives investors, they are responsible for knowing the risks of trading in illiquid securities with no actual commodity or instrument supporting them. It just like an option trade, the option written is only as good as the entity that writes the option.
I am in the mortgage industry, and can report to you that home prices are beginning to stabilize. This bailout will jeopardize the beginning of this recovery as moral hazard, with forced writedowns on mortgages and bankruptcy judges re writing loans, will erode any financial incentive for private industry to lend where the government will not.
If the credit default swaps market and the commodity market are properly regulated, and participants in those markets are required to have a stake in those markets, there would be a stabilizing effect. This stability would come thru in food and energy prices and consumers could begin to re-align their budgets to reflect the new economic reality.
YES- Bolster FDIC Insurance Fund YES- Bolster Money Market Funds YES- Require commodity and derivative market participants to have open interests in those markets
NO- Federal Purchase of Bad Assets NO- Federal Ownership stakes in Corporations NO- Allowing Judges to Rewrite Private Contracts (mortgages) NO- Do Not Hand Over this kind of power to the next chief executive of the United States
They’re actually talking about including auto and credit card bad debt in this package. Start the Revolution!
What we need is Senators and/or Congressmen in DC with a firm grasp on the economy to draft an alternative legislation, and quickly. Maybe get folks with a firm grasp on business and the Economy (such as Steve Forbes) behind the writing.
Stalling will be just as bad as acting the wrong way. Just saying ‘this is bad’ isn’t good enough.
Yes, I agree. I say we need to control the bailout not stop it. A minor correction but 700 billion is less then two farm bills giving money to farmers not to grow something.
We dodged the bullet on full-fledged socialism, and now we're getting fascism.
Corporations now run the country.
We're being blackmailed into accepting this. READ THE BILL. It's BAT SHIT SCARY the power and money we're handing over.
Could you provide a link to the bill so that we can take your advice?
Thanks in advance.
Also, could you tell us which specific provisions in the bill (section, paragraph number) are the ones that you find most distressing?
I'll grant you that the plan could be better, but there has been an awful lot of confusion about who this money is going to.
Never in my life have I seen the country openly and nakedly pillaged by a small group of oligarchs to an extent such as this.
Uncle Sugar to the rescue. Hey, I want my kids college education paid in full by Uncle Sugar.
IT IS TIME FOR REVOLUTION!!! Anyone up for a trip to DC?
The challenge is inaction or the action of letting it crash, makes us economically vulnerable. Wars are no longer fought just on a battlefield. Major crashes (as we’ve seen from history) also bring about more major liberalization, possibly far worse than the bailout is bringing. It causes wider spread crisis that the government, of course, wants to step in and fix each one...
We need a better solution, fast, not just complaining.
Say It Again.....
It’s over.
We dodged the bullet on full-fledged socialism, and now we’re getting fascism.
Corporations now run the country.
We’re being blackmailed into accepting this. READ THE BILL. It’s BAT SHIT SCARY the power and money we’re handing over.
This is BULLSHIT!
BTW, what did Patton "have right", specifically?
www.fedupusa.com
The only way you will stop this is to clean out Congress. I am not kidding. This is a done deal. Our leaders are coving their butts.
www.fedupusa.com
read what bill? It hasn't been crafted yet.
Since you reposted Texas_shutterbug's request that we read the bill, can you provide us with a link?
Since both of you apparently have read it and are concerned about it, please share so we can all be on the same page.
http://market-ticker.denninger.net/archives/587-The-Mother-Of-All-Frauds.html
Read it and weep - then call your CONgresscritters
IF someone else could post a copy of the bill from another site, I’d be grateful.
www.fedupusa.com
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