September 23, 2020
700B Bailout Feedback? Email Your Congressman Here
Now, I'm not one normally given to political causes or activism, but I DID have some feedback for my congressman (Ed Markey in my case) on the topic of the recent $700,000,000,000.00 bailout, and the recent re-categorization of investment houses to "improve their access to the federal funds in the new program". I've posted the easy to use link below to the US Congress "Write Your Representitive" web page that you can use to quickly find and immediately email your own Congressional representative.
Given how fast we are likely to use our national credit card to charge up another trillion dollars THIS WEEK, you need to act fast to get your feedback in, or it will be too late.
Here is the link to get you started:
I actually sent an email last night to my senators & congressman. Here is the link to the senate site. Top of the page you can 'find your senator' and all should have an 'email the senator' type link on their web page. You pick your subject matter, write what you want and submit your personal info.
Don't worry! Communism is going to be great! Everything is FREE!
Thanks for posting this - I've made numerous calls and emails to my senators and as well as those considering philibustering the vote if it comes to that.
Congress needs an enema...
Don't forget to check out section 8 of the proposed bailout: "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."
Just what we need, write yet another blank check during this administration for its' cronies . . .
Ha, you're dreaming if you think there is any difference between Democrats and Republicans here. They are both into this up to their eyes. This is really about big business, government and the press enslaving Americans through monetary policy.
Think of it this way. $700,000,000,000.00 / 154,000,000 people = $4,545.45. That's the bill for every person currently with a job, which is bound to increase as our labor force shrinks.
Seriously, when we go to the polls this November, it's time to vote for almost anybody that doesn't had a D or an R in front of their name.
How is it that we have a (non)choice between McCain and Obama when we could have had Dennis Kucinich on one side and Ron Paul on the other. At least then the debates would have been interesting.
700 BILLION!!!! Thats enough money to make EVERY american citizen a BILLIONARE and still have 400 bill to spend on incidentals such as schools, and healthcare! WTF! iF THEY GAVE EVERY AMERICAN A MILLION DOLLARS TO SPEND WOULDNT THAT INSERT A GREAT AMOUNT OF LIFE INTO OUR ECONOMY?
Might want to check that math again. It works out to a little under $2,000/person, not a million. Plus, the gov't can't give you a dime unless they take it from someone else or somewhen else. If they give everybody in the country 2k, they would have to turn around and collect it right back. TANSTAAFL.
Right now, it doesn't look like Paulson's massive handout is going to come about the way he wanted, so thanks for that, congress. Lots of strings are being attached so the taxpayer isn't the one holding the whole bag. In some strategies, there actually may be very little cash outlay (the insurance based approaches). We'll just have to wait and see how it shakes out.
I've personally given the president and his group of administrators just about every benefit of the doubt possible, but honestly, I think they may have lost their freaking minds if they think we're going to hand them $700B with no consequences. I for one will be glad to see them go.
Mike's math is correct, but he is forgetting about the wonderful (terrible) power of inflation. The government isn't planning on taking this money from anyone - they are going to get the Federal Reserve (which is a private bank mind you, just like Bank of America or WaMu) to create it out of thin air.
This is what is referred to as debasement of a currency, and many countries have tried this as a means to spend their way out of a recession, depression (spoiler alert: none of them worked and they all ended in unmitigated disaster).
So, the administrations stated goal behind this bailout is to prop up housing prices and keep people's pension/retirement accounts steady. They might be able to do that, but only through currency debasement.
And when you debase (inflate) a currency, prices go up. way way up. so you're house might not drop in value, but bread might cost $20 a loaf.
do you feel better now? And you're still paying higher property taxes, income taxes, sales taxes - but you're getting even less bang for your buck (wages never keep up with inflation).
do you feel better now? Thank the private corporation we have as the federal reserve, because this has been their policy since it was created in 1913.
Excellent post Jeff. If anyone wants to learn more about how the Federal Reserve system works, search Google video for "Money as Debt". It's an awesome animated video that starts off a bit slow, but will change your perspective on money forever. Unfortunately, the solutions presented at the end of the video are not good alternatives.
Money as debt is the single best resource to start with. It's quite shocking the first time you learn that money is legally able to be created from thin air, and the process by which banks do it.
As Tech people, many of us don't pay attention to economics of finance - but if you watch that video, I can guarantee you'll be enthralled with both topics for the rest of your life.
Being a political skeptic, I find myself in a difficult position of agreeing with the Administration that something must be done.
The problem extends WAY beyond the loans on houses that people are struggling to pay for those loans. Mortgage backed securities - remember those words! The (potentially worthless) mortgages themselves were used as collateral for other loans, that will come due. No income (from mortgages) and nothing to act as collateral will mean the money that was loaned out will, literally, disappear.
Now, I'm not going to cry about massive financial institutions getting their just desserts for ridiculous business practices, but they won't suffer alone, believe me!
I didn't believe Paulson/Bush when they said "We need the money NOW and we need to spend it anyway we want". I don't believe we're headed for a 1930's recession, but a Japanese style Stagflation would be pretty horrible.
We can't just print the money, we'll need to borrow it, and grow the national debt by about 10%. I'm not hot on that idea, but we're 9 trillion in debt right now, another trillion isn't going to kill us (well, right now, anyway).
I'm not sure the public in general knows whats at stake, or maybe they do. The idea of bailing out fat cats rubs me the wrong way, so I'd propose some extra measures to include in a bailout bill:
1) EVERY executive and every board member of every company that gets bailed out, gets fired. 2) Clamp down on the credit industry - no company should be allowed to get too big to fail. Yeah, this means regulation. 3) A ban on lobbying to change the rules 5+ years down the road.
My rep's response: ========================= Mr. Damon Cooper 5 Lyman Way Framingham, Massachusetts 01701 Dear Mr. Cooper: Thank you for contacting me about the Emergency Economic Stabilization Act signed into law on October 3, 2020. It was good to hear from you. As you know, after the Treasury Department alerted Congress last month of the urgent need for action to avert further severe damage to our economy, Treasury Secretary Henry Paulson submitted a plan to Congress to address the emerging financial crisis. When the Bush Administration presented its plan, I believed it did not contain the safeguards needed to protect taxpayers from billions of dollars in losses that could result from this rescue plan and did not include sufficient relief for homeowners facing foreclosure. Following the submission of the Bush Administration's proposal, congressional leaders began working around the clock to strengthen it. As a result, the final legislation passed by Congress and signed into law by President Bush on October 3rd represents a significant improvement on the initial Bush Administration plan. Specifically, it protects taxpayers by requiring full repayment of all funds used to assist troubled financial firms; helps prevent home foreclosures by granting the government authority to work with loan servicers to change the terms of mortgages to keep Americans in their homes; prevents golden parachutes by limiting excessive compensation for CEOs and executives of firms selling assets to the government as part of the plan; and creates strong, independent oversight and transparency to prevent waste and fraud and protect taxpayers. Because I believe that a failure to act promptly to address the financial crisis would not merely punish Wall Street, but also put hard-working Americans at risk of losing their homes, their jobs and their savings, I voted in favor of the rescue plan after careful consideration of the bill. During my tenure as Chairman of the Energy and Commerce Subcommittee on Telecommunications and Finance, I fought hard for years for tougher oversight and regulation of Wall Street. I successfully increased civil and criminal penalties for insider trading and other financial crimes, enacted laws to establish the first sales practice rules for mortgage-backed securities, and fought for tougher regulations for financial derivatives, hedge funds, and stricter disclosure requirements for mortgage giants Fannie Mae and Freddie Mac. I also fought Wall Street's efforts to curb investor protections and eliminate federal oversight over financial derivatives, including opposition to such deregulatory bills as the Private Securities Litigation Reform Act (which made it harder for defrauded investors to sue the companies who had defrauded them), Gramm-Leach-Bliley Act of 1999 (which allowed banks, securities firms and securities firms to merge with one another and reduced regulation of such firms), and the Commodities Futures Modernization Act of 2000 (which largely exempted derivatives transactions from regulation by the Commodities Futures Trading Commission). The greed and lax controls that drove Wall Street's recklessness are inexcusable. No one wants to be faced with the current financial mess, which was created by an overheated housing market fueled by the pursuit of enormous profits through the purchase and sale of exotic securities backed by millions of mortgages. The risks of these securities either were not appropriately understood or were ignored as fortunes were made by many of the market participants. Nevertheless, failure to take action now would mean considerable risk of serious economic pain for America. The pain would not be limited to Wall Street bankers who made risky bets that didn't pay off. Without relief now, Americans across the country struggling to pay their mortgages would be at greater risk of losing their homes. Responsible companies seeking credit to keep their businesses afloat already have seen financing dry up - if the government failed to intervene now, more companies could close their doors, putting more Americans out of work. Our economy is facing the biggest Wall Street crisis since the Great Depression. While I would have preferred that our nation's financial health had not been placed in the current precarious position, it was imperative for Congress to respond to the extreme weakness in the economy in an attempt to stop further declines that could wipe out savings accounts and hurt everyday Americans around the country if the crisis spreads even further. Now that the legislation has been signed into law, Congress already has begun conducting strict oversight of the rescue plan to ensure that it is implemented in a manner consistent with the law's principles of taxpayer-protection, assistance to struggling homeowners and transparency. Moreover, Congress is now investigating the financial meltdown to get to the root of the crisis and lay the foundation for action on common sense regulation of the financial and home lending industries which affect every aspect of our economy. I look forward to being an active participant in the effort to strengthen regulation of Wall Street so that we are never again confronted with such an economic crisis. Recently, I reintroduced my legislation to give the Securities and Exchange Commission the power needed to better regulate the financial derivatives that helped fuel the current crisis. I believe that this is the type of measure we need to put in place. Thank you for getting in touch with me. If I can be of assistance in the future, please do not hesitate to contact me again.
Ed Markey Member of Congress