Here’s the text of what I’ve been mailing and faxing to my Senators and Representatives in Congress.  Feel free to co-opt all or part of this message for yourselves.

OPPOSE THE BAILOUT

America can literally NOT AFFORD the cost of the Bush Administration’s proposed bailout. The unfortunate reality is that residential real estate prices are still too high in many areas, and that other collateralized debt such as credit card, auto loan and commercial real estate securities will turn out to be as problematic as residential mortgage securities have been thus far.  The eventual scope of losses in the credit markets will be beyond the ability of the government to guarantee.  Please do not let our Federal Government continue the same risky leveraging gamble that has already bankrupt Countrywide, Bear Stearns, Lehman, AIG and so many others.

If treasury pays unrealistic prices for these assets, the consequences for the credit worthiness of our nation will be severe, yet this is exactly what FED Chairman Bernanke and Treasury Secretary Paulson have pledged to do. Taxpayer losses, a devalued dollar and inflation appear to be the likely result. This risk to the taxpayers is unacceptable.

Bailout or no, asset depreciation, an insolvency crisis and a prolonged recession are now the unavoidable consequences of a decade of reckless Congressional deregulation and a failure by the FED to maintain prudent fiscal policy.  The sooner we recognize these inevitable truths, the sooner we can put the current crisis behind us.

The proposed bailout, insofar as it delays the realistic pricing of these troubled assets, will only serve to prolong our present circumstance, and threatens to hasten the larger federal debt crisis by undermining our nation’s creditworthiness, and therefore must be opposed.

 

Tags: bailout, debt, FED, Paulson, Bernanke, JP+Oliva

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