Posted on 09/30/2008 4:33:30 PM PDT by CitizenM
My Friends,
We are in the greatest financial crisis of our lifetimes. Congressional inaction has put every American and the entire economy at the gravest risk. Yesterday the country and the world looked to Washington for leadership, and Congress once again came up empty-handed.
I am disappointed at the lack of resolve and bipartisan good will among members of both parties to fix this problem. Bipartisanship is a tough thing; never more so when you're trying to take necessary but publicly unpopular action. But inaction is not an option.
If we do nothing, many businesses may fail. Sonic Corporation, a drive-in restaurant chain based in Oklahoma, learned on Thursday that one of its lenders, GE Capital, had stopped extending new loans to the chain's franchisees. That will block plans to rebuild restaurants, add equipment and open new locations.
When financing dries up, students can't get loans. In Wisconsin, more than 100 Milwaukee Area Technical College students couldn't access private loans to fund their education. Fortunately the school was able to come up with emergency loans, but this temporary arrangement cannot continue. Markets need to work so that people can get financial help and students can be educated.
Again, inaction is not an option. In light of the House's failure to act, this morning, I spoke to the President about two things that the administration has not done, but should do following the inaction of Congress. First, the Treasury has already used its Exchange Stabilization Fund to back money market accounts. I encourage it to use it this fund as creatively as possible to provide backstop for accounts across our financial system to maintain confidence on the part of savers and investors. And second, the recent housing bill gave the government nearly $1 trillion in authority to purchase mortgages. Housing and mortgages are at the root of this crisis.
The Administration can take these actions with the stroke of the pen to help alleviate the crisis gripping our economy. I urge them to do so.
The FDIC should quickly be granted the authority to increase the deposit insurance cap from $100,000 to $250,000 so that families do not have to worry about their money. We cannot allow a crisis in our financial system to become a crisis in confidence.
I call on everyone in Washington to come together in a bipartisan way to address this crisis. I know that many of the solutions to this problem may be unpopular, but the dire consequences of inaction will be far more damaging to the economic security of American families and the fault will be all ours.
And to my supporters, I assure you I will continue to do whatever I can to aid in a constructive answer to the challenge before us.
Sincerely,
John McCain
P.S. I'm asking you to pass this email along to your friends, family, neighbors and colleagues. We must spread the word that inaction is not an option.
SCREW John McCain, he has lost my vote.
Please refrain from saying I will be electing Obama.
At this point I do not trust that McStupid would act in any issue as a conservative.
I also received this email. I replied right back and told “him” (’cause obviously John is not gonna read an email from me :) he needs to SHUTUP with this bipartsanship crap and spend his time figuring out how to get the conservatives back on the train.
I also suggested they free Sarah. Let her do conservative radio. She’d be gangbusters! But I’m afraid they’ve got a bunch of bushbots trying to program her for the debate w/ Biden. Completely the wrong thing to do.
No need for me to watch Sarah on Thursday night.
John McCain has no convictions that are conservative by nature. He consistently says things that annoy those who would love to vote for him but cannot stomach crap like global warming, carbon credits, addressing the “Clinton Global Initiative”. What the hell is he doing? To save this country from fascism, he must listen to his core base. Obama is more dangerous than the current economic situation. If he truly loves america and I think he does, he must let Palin loose and come to some understanding that the reason he is slipping in the polls is that conservatives have had enough of his wimpy attitude.
You forgot the Barf alert.
SP—I understand how you feel.
But I am voting for McCain to give Sarah a shot at the White House in the future. I humbly ask you to do so as well.
However, I think they figure it was worth the risk and figure it won't be done in the 40 days left to election, and they can blame the Republicans until that time. After that, if Obama is in the WH, and more Dems are elected to Congress, they will be safe again.
The Obama supporters won't believe any finger-pointing at the Dems now anyway...they are like love sick fools, all prepped and ready for the marriage with the narcissist, Obama, to take place and no one will convince them to change their minds. But that doesn't mean it shouldn't be said, and said loudly and clearly!
This email, however, made me irritated that McCain was just spewing out political pap when I wanted him to say he was ready to "man the guns and fire away at the enemy," or at least something more aggressive like the leader I hope he can be. At first, I just wanted it solved, without finger-pointing and hoped that could be done in a bi-partisan manner. But the Democrats won't let that happen, that is obvious.
So, now, where is that fighting spirit, John? Did you leave it in Viet Nam? Or loose it somewhere on the Senate floor after all these years of sparring with your opponents? I want to see you attacking the enemies in the Democrat camp - the real cause of this problem (like Obama, Dodd, Pelosi, Reed, and the others) just like they are trying to do to you and the Republicans.
We don't want you just to pacify us with political platitudes as though we are only an insignificant, anonymous audience somewhere who will leave when this is over and forget this performance. We have paid well for our tickets and want to see a real show where the bad guys get trounced, and the guys in the white hats ride off avenged. And, we have no desire to pay for anyone else claiming a free seat in the theater and getting a pass with "Bailouts buyouts, Rescues," or whatever new title politicians want to name this play.
I sent McCain an email back with those words that just reflect MHO.
Thank you for contacting me regarding the financial crisis facing our country. I appreciate you contacting me regarding this important issue.
I have heard from thousands of Floridians in recent days who are worried about this financial crisis and are concerned about the actions that Congress and the Administration may take in addressing it. I believe that our country is facing a very serious situation, and I share many Floridians’ concerns about the economic consequences to our country if we fail to act appropriately. We need to enact legislation that enables our economy to continue functioning while imposing new regulations and safeguards to ensure that this situation never occurs again.
The exact form that this legislation will take is not yet decided, but I assure you that I am working hard to ensure that your tax dollars will not be wasted on any plan that rewards irresponsible or illegal activities by investment bankers on Wall Street. There must be accountability in any plan approved, and those who have given rise to this crisis need to be investigated and prosecuted to the full extent of the law for any wrong-doing that occurred.
I am enclosing a copy of remarks I made on the floor of the Senate regarding the current crisis and its origins in the housing market. I believe that this problem is far too complex and serious to be handled in the same ultra-partisan fashion that has unfortunately characterized much of the 110th Congress. I assure you that I am committed to working with all of my colleagues to address this crisis and enact meaningful reforms to protect homeowners and ensure the long-term economic prosperity of our country.
Again, thank you for contacting me regarding this important issue. If I may be of assistance to you in the future, please do not hesitate to contact me.
Sincerely,
Mel Martinez United States Senator
Well. There is a better way. Companies should be looking at equity vs debt for funding. This is easy to incent. Just lower capital gains tax rates, shorten the period for treatment, lower corporate taxes, give enormous tax credits for equipment and new hires. Reduce regulations.
The government wants to raise $700B to try to clear trillions of debt and derivatives in the mortgage markets. But today and yesterday we saw trillions of equity fluctuations in the U.S. equity markets.
Also by harvesting our energy resources we change the balance of trade, strengthen the dollars, and lower interest rates. Plus create jobs.
The size of equity markets is so huge that the above suggestions would infuse trillions and trillions of dollars of equity and cash into our economy.
We need a pro growth strategy driven by capital not debt, and to de-lever the whole economy. Right now the tax system is too friendly to debt financing, IMHO.
The fact that this is all gone missing on McCain is truly troubling.
I’m with McCain on this one. This has already hit home for my family :-(
I agree on Sonic. If this is such a good business why does he not go to the capital markets and raise equity capital for expansion.
It is called - or used to be called - capitalism for a reason - not debtism.
Thanks for sharing this. It confirms that my decision not to vote for the traitorous bastard is the correct one.
Just how is this $700B mortgage bailout going to help you?
I've got brokerage accounts that I want to move around large sums from time to time. I have to heed the paltry limit so as not to expose myself to frozen or vanished deposits.
I recently established a second bank account at a small, well rated local bank just to avoid trouble with FDIC & bank failure, and shortly thereafter, my primary bank, Wachovia, vanished into that good night - luckily, as it seems, deposits guarded.
“well rated local bank”
There are plenty of these. One of the great lies is that all banks are in jeopardy. Jim Cramer is spreading this lie.
Can you post that plan/solution proposed by the House Republicans? I'd like to see it point by point.
I called Roy Blunts office and suggested a zero cap gains tax on the sale of these securities...have they adopted anything like that?
I am betting that even if the $700B deal is signed there will still problems in the credit markets. The real problem is we are over levered. I’d love to see the debt go down but the better solution is to increase equity (capital) by letting businesses keep more of the revenue (lower taxes).
“I called Roy Blunts office and suggested a zero cap gains tax on the sale of these securities...have they adopted anything like that?:
I called Martinez and McCain with this very suggestion. It will bring equity capital into the market to offset all the debt that is out there. I just don’t see how the $700B for the mortgage derivatives will help this more basic problem.
McCain could win on this issue. But he is just too stupid.
Fair enough.
I humbly ask you to do so as well.
Notwithstanding, I remain deeply suspicious of the GOP presidential ticket, particularly due to McCain's actions over the past week with regards to the bailout, and, due to Palin's speech where she mentioned "serving the common good" (link) and her recent remarks on climate change in an interview with Katie Couric (link).
(Politicians talking about "the common good" raises red flags just like politicians talking about "comprehensive reform" and "bipartisanship.")
I don't know enough. And, the fact that she has said nothing about the bailout, despite signing her name to a Wall Street Journal piece jointly authored with McCain earlier this month pledging to protect taxpayers from more bailouts...is disturbing.
My absentee ballot arrived today. I will wait until after the debate to decide how to vote.
We will see.
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