Lawmakers - No to Paulson Bailout - Consider Alternatives

[concerned citizen23]

PLEASE! Do not rush into this bailout because Paulson and Bernanke say you Must!

We are in a recession already, with or without this bailout!

I implore you to seek out advice from others that will not benefit from the bailout!

Let’s call this bailout for what it is; a massive national loan consolidation with a perk, the liabilities are transferred to the taxpayer and a new line of credit made accessible to the original debtors to start all over again. As the government - taxpayers - become the dumpster for falling assets these assets will fall further in value. To date the Fed and Treasury have treated the symptom of this crisis – liquidity – but not its cause – insolvency on a massive scale from overextended consumers, to state and local governments, and many corporations some of which are leveraged 30 to 40 times over assets.

Does anyone have a clue as to what the taxpayer has already been committed to by the actions of Fed and Treasury to date? With this bailout we stand at about $1.8 Trillion. A partial listing are, AIG ($85 Billion), Fannie and Freddie ($200 Billion), at least $200 Billion in loans via the Fed’s Term Auction Facility, Bear Stearns bailout, ($29 Billion) and more. See here:
http://globaleconomicanalysis.blogspot.com/2008/09/how-congress-intends-to-waste-18.html

The administration is either clueless or counting on Congress and the public to be. I suspect it is the latter. This bailout is only the tip of the iceberg. Pandora was let out of the box when Banking was deregulated in 1999 through bipartisan efforts of a Republican Congress and a Democratic President who signed it into law. (McCain voted for deregulation and his current economic adviser Phil Gramm wrote the legislation. Current economic adviser to Obama - Robert Rubin a current executive Chairman with Citigroup - was Treasury Secretary in Clinton Administration signed off on the legislation).We need fiscal sensibility now.

Paulson tells us his proposal is better than the alternative. But what other alternative is Congress considering? The first thing Congress should ask is how would Paulson and Bernanke know?

There are alternatives:

Why the $700 Billion Bailout is not enough -Weiss Research
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=2295

Mish's Letter to Congress $700 Billion Paulson Bailout Plan
http://globaleconomicanalysis.blogspot.com/2008/09/open-letter-to-congress-on-700-billion.html

Hussman's Letter to Congress Regarding the Current Financial Crisis
http://www.hussmanfunds.com/wmc/wmc080922.htm

[The Wielding Truth]

1. If they are so big they their demise can hurt us< break them up.

Let parts of them fail and the national economy will absorb the losses.

[concerned citizen23]

2. Good advice:

"The stockholders and bondholders of the company itself should be the first to bear losses, not the public. That is the essence of what a free and fair market, and a responsible government would enforce. The investors in the companies that produced the losses should be accountable for them, and the customers and counterparties should be protected".

Hussman's Open Letter to the U.S. Congress Regarding the Current Financial Crisis
http://www.hussmanfunds.com/wmc/wmc080922.htm

[concerned citizen23]

3. Bernanke's Recession warning a new mushroom cloud?

[concerned citizen23]

4. kick

[concerned citizen23]

5. kick

[concerned citizen23]

6. kick