To my U.S. Government representative:
Please DECLARE VICTORY with your Save America Plan for the American economy! Please STOP the lunacy that is The Great Bailout, the $700 billion bailout proposed by Paulnankebush (Paulson/Bernanke/Bush) and tweaked by Congress!
You have a choice.
You had the foresight to insure the stability of the U.S. financial system, and to insure the safety of deposit and investment accounts in banks, savings and loans, credit unions, and brokerages up to reasonable levels by establishing the FDIC (Federal Deposit Insurance Corporation), NCUA (National Credit Union Administration), and SIPC (Securities Investor Protection Corporation). You gave the FDIC and NCUA the power to use the full faith and credit of the U.S. Government to do this for banks, savings and loans, and credit unions.
You also have allowed the Federal Reserve to grease the wheels of the credit markets by accepting high risk debt as collateral for short term loans.
Please declare victory via your Save America Plan and focus your efforts on enabling the FDIC, NCUA, SIPC, and Federal Reserve to do what they do even better, instead of focusing your efforts on the duplicative, excessive, and THIEVING Great Bailout.
Your Save America Plan is a much better solution than the proposed The Great Bailout because:
- Your Save America Plan injects cash into the financial system through multiple vehicles, reestablishing the flow of credit.
- Your Save America Plan insures the market value of deposit and investment accounts up to reasonable levels.
- Your Save America Plan takes MUCH less money from American taxpayers than the thieving Great Bailout.
- Your Save America Plan keeps inflation manageable. You would create runaway inflation if you support the excessive Great Bailout, making Americans poorer on Day 1 as the prices skyrocket for gas, food, and all goods and services that are imported, have any imported component, or use oil and gas in their creation or distribution.
- Your Save America PlanGUARANTEES repayment of deposit account insurance claims to American taxpayers whereas the thieving Great Bailout does not. Financial institutions will repay FDIC/NCUA insurance claims through increased risk-based insurance premiums, whereas your support for The Great Bailout would be a gamble on a new U.S. government agency buying low and selling high. If (more likely when) when you lose that gamble, you will force the American taxpayers to foot the cost of The Great Bailout forever.
- Your Save America Plan moves deposit and investment accounts to financial institutions whose management teams are so STRONG that they didn't cause themselves to fail by taking too much risk. We desperately need these kinds of better managed next-generation financial companies in the American economy. If you support The Great Bailout, you will leave deposit and investment accounts in financial institutions whose management teams are so WEAK that they caused themselves to fail by taking too much risk.
- Your Save America Plan prices and disposes of the toxic wastes that are the bad loans/debt and their derivatives. The FDIC/NCUA/SIPC have been successfully selling bad loans/debt and their derivatives for years, whereas you would entrust a new and inexperienced (at least in working together) team to do this with The Great Bailout.
- Your Save America Planenables housing prices to fall to sustainable levels. Homeowners in trouble can sign their house over to the mortgage holder, rent for a while, and then buy a new home when housing prices fall to sustainable levels. Yes, they lost their current gamble on owning a home that they FREELY CHOSE to buy and often refinance at inflated prices via mortgage and home equity loans/lines, but they are much more likely to be in a winning gamble when they buy a new home at a much lower price. Your support for The Great Bailout would just make homeowners wait longer for housing prices to fall to the same sustainable level, at which point they could buy a new home.
- Your Save America Planputs the losses where they belong...with the people, funds, and companies -- U.S. and FOREIGN -- that FREELY CHOSE to invest in, and/or work for, financial companies. The same thing happened with the dot com bust and other burst bubbles where nobody bailed out the investors and employees. This is the way it should be. The investors and employees made the gamble in anticipation of making huge profits and/or enormous wages; they deserve to take the profit when the gamble succeeds…and the loss when the gamble fails. On the contrary, the losers in The Great Bailout are the American taxpayers who you -- acting as THIEVES -- would force to transfer their wealth to the people, funds, and companies -- U.S. and foreign -- that FREELY CHOSE to invest in, and/or work for, financial companies.
- Your Save America plan keeps the responsibility and accountability where it has a successful track record, with the FDIC, NCUA, SIPC, and Federal Reserve. Your support for The Great Bailout would place the blame on your shoulders, and unchecked power in the hands of a Treasury with strong ties to Wall Street and much less experience resolving such a crisis.
Instead of focusing your efforts on the thieving Great Bailout, please focus your efforts on improving your Save America Plan by taking these actions:
- Nationalize the SIPC so that like the FDIC and NCUA it's backed by the full faith and credit of the U.S. Government, with financial companies paying risk-based premiums so that it too has a net cost of $0 to American taxpayers over medium term time horizons.
- Nationalize and make permanent the one year money market insurance plan so that like the FDIC and NCUA it's backed by the full faith and credit of the U.S. Government, with financial companies paying risk-based premiums so that it too has a net cost of $0 to American taxpayers over medium term time horizons. Make it a responsibility of FDIC or NCUA, rather than creating a new government agency.
- Establish controls over the Federal Reserve so that it does not sneak The Great Bailout past the rest of the U.S. Government by making short term loans that are too large relative to the low value of the high risk debt it accepts as collateral.
- Ensure the FDIC, NCUA, SIPC, money market insurance plan, and Federal Reserve are able to obtain the temporary peak resources they need to handle the crisis.
- Encourage financial companies to cut their dividends to preserve capital, and raise the interest rates they offer to attract capital.
- To reduce panic, educate -- through a single unified campaign -- deposit and investment account holders about their FDIC, NCUA, SIPC, and money market insurance rights.
- To increase Americans' wealth, educate homeowners who are in trouble to 1) renegotiate their mortgages and home equity loans/lines and 2) if the mortgage holders are unwilling to renegotiate, to sign their house over to the mortgage holder, rent for a while, and then buy a new home when housing prices fall to sustainable levels.
- To increase Americans' wealth, educate investors in poorly managed financial companies to sell their holdings, take their losses, and reinvest what they have left...diversified across some combination of deposit accounts, money market funds, bonds, stocks, real estate, small businesses, etc.
You have an historic CHOICE now.
- You can SUPPORT and strengthen the Save America Plan you've already created. You'll go down in history as one of the WISE people who had the foresight mitigate a crisis nearing the scope of the Great Depression WITHOUT stealing from the American taxpayers to give to the people, funds, and companies -- U.S. and foreign -- that freely chose to invest in, and/or work for, financial companies.
- You can UNDERMINE the Save America Plan you've already created and instead support The Great Bailout. You'll go down in history as a THIEF made the crisis worse by stealing from the American taxpayers -- who can ill afford it -- to give to the people, funds, and companies -- U.S. and foreign -- that freely chose to invest in, and/or work for, financial companies. You'll also go down in history as one of the people who made the crisis worse by crippling American taxpayers financially at the very moment the American economy could least afford it.
I understand that I will suffer pain from this crisis, just like almost everyone else living in the U.S. It's inevitable. I freely chose to own a home via a mortgage. I freely chose to invest some money in financial companies. I freely chose to be part of the American economy. I am accountable for my decisions and their consequences.
However, I am NOT accountable for the decisions and consequences made by investors and employees of financial companies, who made their own free choices. They are!
Now, you have a choice. I will hold you accountable for your choice and its consequences. If you support the thieving Great Bailout, I will vote against you and your party in the November election and I will similarly work to have you fired if you are an appointed, rather than elected, official.
I am urging my family, friends, colleagues, and fellow citizens across the nation to do the same.
It's your choice.
Warm regards,
- David Martin, Atherton, CA
- {Please add your name, city, and state here to show support}
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