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Write and call your Congresscritters and Senators to STOP THE BAILOUT
vanity-self | 9/22/08 | johncocktoasten

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


TOPICS: Your Opinion/Questions
KEYWORDS: bailout; nobailout; vanity
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To: gathersnomoss
Corporations now run the country.

Common myth of fascism brought by a misunderstanding of Mussolini's statement that fascism is the 'marriage of the corporate and the state'. Fascism isn't corporations running the country. Fascism is a type of top down socialism where major industry is run by the country, often from direct take over, but mostly through internal controls such as government agents being on boards. It is only one step to the right of Communism in that smaller, individual businesses aren't nationalized.

21 posted on 09/23/2008 9:06:19 AM PDT by mnehring (Maverick/Barracuda 2008)
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To: johncocktoasten
Thanks. I used your letter as a template but personalized my remarks so it would not be seen as a chain letter. I specifically reworded the opening and the ending, plus tweaked the middle so the person opening the email would not say, hmmm, another one of these.

Thank you for inspiring me. I woke up feeling very frustrated. I listened to Sen. Shelby on Bloomberg and he was making sense. We really need some leadership here. Both the presidential candidates are lacking right now.

22 posted on 09/23/2008 9:06:54 AM PDT by Zevonismymuse
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To: nicola_tesla

That’s not a solution, that is a blog rant.


23 posted on 09/23/2008 9:07:08 AM PDT by mnehring (Maverick/Barracuda 2008)
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To: wideawake; Texas_shutterbug
READ THE BILL

Could you provide a link to the bill so that we can take your advice?


It's right here on the Free Republic & has been, in Breaking News, for 3 days now: Text of Draft Proposal for $700 Billion Bailout Plan
24 posted on 09/23/2008 9:07:36 AM PDT by cgk (I don't see myself as a conservative. I see myself as a religious, right-wing, wacko extremist.)
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To: pgkdan; Texas_shutterbug; gathersnomoss
read what bill? It hasn't been crafted yet.

Is pgkdan right, gentlemen?

Have you really asked us to "read" a nonexistent bill?

Did you fraudulently imply to us that you were familiar with the details of a piece of legislation that hasn't even been written?

25 posted on 09/23/2008 9:07:58 AM PDT by wideawake (Why is it that those who like to be called Constitutionalists know the least about the Constitution?)
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To: johncocktoasten
CONGRESS and SENATE E-MAIL

Complete list of e-mail addresses for the House of Representatives and the Senate

E-Mail or Fax YOUR Message to Senators, Congressmen, Governors, and State Legislatures!

Conservative Activist's Giant e-Mail Links Page

Directory of E-Mail addresses for:

Elected representatives
Talk shows
Letter to the Editor
Magazines
Newspapers & Internet News Sites
Major Daily Newspapers
TV Networks, News Shows, and Entertainment Companies

(A public service of The Conservative Caucus)

26 posted on 09/23/2008 9:08:10 AM PDT by Iron Munro (Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself)
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To: wideawake

Here’s a copy of the bill in the WSJ.com forums. Scroll down. Read “Illumined’s” post. He includes the bill, and a short commentary. I “mostly” concur with his opinion.

http://forums.wsj.com/viewtopic.php?t=4062


27 posted on 09/23/2008 9:10:24 AM PDT by Texas_shutterbug
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To: Texas_shutterbug

I trust Glenn Beck. He said this bailout is like controlling a crashing plane rather than letting it fall out of the sky.


28 posted on 09/23/2008 9:11:42 AM PDT by bicyclerepair (Ft. Lauderdale Florida)
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To: cgk; pgkdan
An 800 word draft of a proposal of something that may be used in drafting a bill is a "bill" now?

Hmmm.

That's being a little loose with the language.

Is a book report a book?

29 posted on 09/23/2008 9:12:12 AM PDT by wideawake (Why is it that those who like to be called Constitutionalists know the least about the Constitution?)
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To: wideawake

The bill isn’t in it’s final form, but there is a proposal, and yes it’s f’ing scary the money and power we’re handing over.


30 posted on 09/23/2008 9:13:35 AM PDT by Texas_shutterbug
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To: johncocktoasten
Take Back the Fed
31 posted on 09/23/2008 9:14:14 AM PDT by murphE (I refuse to choose evil, even if it is the lesser of two)
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To: johncocktoasten
I am NOT FOR THE BAILOUT.

I wholeheartedly agree, if they would do an investigation and now......where's the ACCOUNTABILITY, anymore???? I'm tired of seeing institutions like these crash, and Execs on the loose holding on to their loot.....An investigation needs to be done and pushed to be hastily done as they are doing pushing for the bailout?
32 posted on 09/23/2008 9:14:38 AM PDT by knyteflyte3 (Freedom is not for FREE)
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To: mnehrling

ALL OF THIS crap STARTED UNDER FDR... ALL OF IT! It needed to be said loudly... and was not directed at you... sorry.

LLS


33 posted on 09/23/2008 9:16:52 AM PDT by LibLieSlayer (GOD, Country, Family... except when it comes to dims!)
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To: knyteflyte3

These so-called republicans seem to have forgotten that punishment has a DETERRENT effect. Without punitive action, this is only going to happen again and again.


34 posted on 09/23/2008 9:18:44 AM PDT by Texas_shutterbug
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To: johncocktoasten

John, see my post below:
http://www.freerepublic.com/focus/f-news/2088523/posts


35 posted on 09/23/2008 9:20:43 AM PDT by RobertoinAL
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To: tcostell
You do realize that this "bailout" is for the customers of the Wall street firms right? You know that the money isn't going to the employees or shareholder, but to the common citizens that have put their money in accounts and expect it back?

Untrue.

Both shareholders and employees are primary beneficiaries of this plan.

Compare the fate of Lehman (no bailout) with firms that have had the bailout. Compare, for instance, the relative positions of Lehman employees (most of whom are not being paid and are unemployed) and Fannie and Freddie employees (who are being paid and still have their jobs, thanks to the taxpayer takeover).

Compare the share price that Bear Stearns shareholders got ($10 per share) with what Lehman shareholders got (14 cents per share, likely going to zero when they are delisted as part of the bankruptcy proceeding).

36 posted on 09/23/2008 9:20:59 AM PDT by Jack Black (And standing against all this hypnotic power — the power of the mythmakers in Hollywood, the power)
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To: bicyclerepair
trust Glenn Beck. He said this bailout is like controlling a crashing plane rather than letting it fall out of the sky.

Sometimes some of the passengers get to walk away from a plane that's had a controlled crash landing. No one survives when it just falls from the sky.

37 posted on 09/23/2008 9:22:12 AM PDT by pgkdan (Tolerance is the virtue of the man without convictions - G.K. Chesterton)
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To: jpl; All

“the country openly and nakedly pillaged by asmall group of oligarchs”

If the government has to bail out and save these companies, then their CEO’s and employees should be getting government/military level salaries, not the high ones the upper levels now are getting.

I was flamed when I first mentioned this thought two years ago, but the chickens now appear to be coming home to roost. Thirty-five years ago, top CEO’s were paid about 40 times the rate of their lowest level employees. Now, they are paid 400 to 1,000 times that rate. While cell phones and PC’s may have increased their productivity a little, it has hardly increased by 10 to 25 TIMES. Some of the people leaving these failed companies are pulling out millions of $$$. I caught the tail end of one news report that I think said one guy was getting $150,000,000 that we will be paying for.

So my proposal is that if banks and other companies want our government guarantees (as separate from actual bail-outs which I referred to in the first paragraph), then they should agree to receive no more than a 50 to 1 (top level to lowest level) salary ratio.

In addition, it would force top executives to be planful rather than greedy if when they receive stock options as pay or bonuses, that they only be allowed to cash in 1/5 th of these holding each year. Knowing that their actions would affect the next five years of company profits and the value of their own stock would encourage more intelligent (and self-interested) actions.

I hate to have to quote Barney Frank, but he was right when he said that under the current system it is “heads I win, tails I break even”. I don’t want my kids and grandchildren saddled with the debt for these guys totally selfish actions. My son is going to Afghanistan next year, where are these guys going—Las Vegas, Martha’s Vinyard, Malibu?


38 posted on 09/23/2008 9:24:30 AM PDT by gleeaikin
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To: Texas_shutterbug
Without punitive action, this is only going to happen again and again.

I really (hate to say this), but I think that this is all a sinister NWO conspiracy..........(I am not a kook).
39 posted on 09/23/2008 9:24:58 AM PDT by knyteflyte3 (Freedom is not for FREE)
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To: pgkdan

Pdkadan you wrote: “read what bill? It hasn’t been crafted yet.”. Not quite - there is Paulson’s proposed bill which is the bill being debated. It may be modified, but there is something to read and consider. Here it is:

Text of Draft Proposal for Bailout Plan
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Published: September 20, 2008
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY

TO PURCHASE MORTGAGE-RELATED ASSETS

Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.—The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for—

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.—The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.—The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.—The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.—The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.—The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

(2) Secretary.—The term “Secretary” means the Secretary of the Treasury.

(3) United States.—The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.


40 posted on 09/23/2008 9:25:09 AM PDT by Jack Black
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