RE: $700 Billion Dollar Bailout - My letter to Senators and Reps

Today, I found myself in a position that I should write to my Senators and Rep with respect to this bailout.

I'm going to post what I sent them here, and ask that you guys give me some feedback. Right? Wrong? Good? Bad? Is it meaningful in any way do you think?

I really value each of your opinions and would like to hear back!


Mr. Menendez,

With respect to the current Economic crisis, I would like to weigh in with the following:

I wholly do NOT support the current "bailout" without some serious economic introspection, and a defined set of resolutions.

For one, as soon as Wall Street has the $700 billion, and they can "relax", our Government has suddenly lost its leverage to enforce any type of meaningful change within the financial system. Once business as usual returns in Washington and the lobbyists writing their own governing laws. I mean, seriously, how is it that derivatives were exempt from regulation in the first place?

Secondly, Secretary Paulson is demanding that our COURTS waive all authoritative right to review any decisions made by the Treasury during this time? Are you kidding me? When Any of the Wall Street CEO's can lie to the TREASURY by inflating the prices of their holdings, fraudulently misrepresent what the taxpayers are buying, then have the Treasury "look the other way" in an effort to stabilize the markets?! This should NEVER be acceptable by ANY means!

Thirdly,
To have the same drivers in the drivers seat that caused this accident? Last week AIG sent 2 letters to the SEC taking contradictory positions on whether or not the taxpayers would get equity in the company and whether the 85 billion dollar LOAN required approval from the company's shareholders. If this can be the level of detail that escapes the Treasury department AND the Fed on an $85 billion deal (crafted with MUCH haste) we should entrust them with $700 Billion?! Surely we cant be serious! This CANNOT, I underscore CANNOT be done in haste. I am more than willing to take my bumps and bruises within an economy that stutters built upon DUE DILIGENCE, as opposed to one built on sand!

Thank you for your Time and understanding,


XXXXXXXXXXXXXXXXXXXXXXXX



One of my Senators here in NJ, Senator Bob Menendez was the last to receive this letter I sent.

I hope just this ONCE, someone reads.


AB1

We need solutions. Period.

This is my letter to my senators and all othe relected officials;

Dear Senator Nelson

I commend you on the comments you have posted on your website and applaud you for standing up for the people.

This mess can be fixed and at little or no cost to the taxpayer. This is what I would like to see happen.

1. Have the goverment buy the mortgages at some discount to the appraised value of the property. Since they are in tranches then come up with some value for the entire tranche. Require mandatory conversion for all holders of the tranche.

2. Turn around and offer every homeowner in the tranche a refinace at appraised value. They take it great. if not you can sell the property for what was paid. The ones who take it will keep their homes and be in a situation where they can continue to benefit the economy.

3. Goverment holds new loans for a few years and then resells them when it is obvious that they are now sound, thus getting full value and their money back. Intrest paid to goverment would cover most of the administration costs of the program.

Absent this type of widespread approach to refinancing, I would oppose any action, as it would only serve the irresponsible corporate interest and leave the American consumer even worse off, than if no action was taken.

Save millions of consumers and the American economy will come roaring back and at no cost to the goverment. The only cost comes at the expense of vulture investors (Warren Buffett?) who will be precluded from making a future windfall on this bailout.

Thanks for listening and keep fighting the good fight.

Very nice letter and very truthful, They are very nice actually better than the ones I have been sending for the last 5 days.

My tend to be short and angry.

So, is the general opinion that they should just let the whole thing fold up?
Too bad for those retired folks who will lose their life savings that they have in those annuities?

Maybe you will support a multi - billion dollar wefare package for us?

The economy wont "just fold up" because of a failure to react to this taxpayer loan to Wall Street.

Wall street would LIKE us to believe it would, but I am thoroughly convinced it will not by any stretch of the imagination.

Look at Wall Street right now. Yes, it has been flat over the day. But FLAT, not a serious decline. And why is that? There's no bailout in the Credit Engine, and yet, there's credit. So, yes it WILL survive, with or without the package.

BTW, $700 billion buys up a LOT of Annuities, and a lot of 401k's and quite a lot of welfare, so yea, I'll pay for it. With the $700 billion I would have given to Wall Street for their respective executive lifestyles.


AB1

reply to post by marg6043


Well Marg, I revised it a few times just to ensure that I wouldnt sound TOO mean lol.

AB1

Originally posted by disgustedbyhumanity
We need solutions. Period.

Agreed, absolutely.

Originally posted by disgustedbyhumanity
1. Have the goverment buy the mortgages at some discount to the appraised value of the property. Since they are in tranches then come up with some value for the entire tranche. Require mandatory conversion for all holders of the tranche.

Well, as far as this point is concerned it's VERY valid, however I think part of Paulson's argument is that WITHOUT this bailout it's impossible to place values on this paper. They couldn't simply go door to door, appraise, assign a discount value, THEN hope they get that. Wall Street (allegedly) just isn't willing to wait.

Originally posted by disgustedbyhumanity
2. Turn around and offer every homeowner in the tranche a refinace at appraised value. They take it great. if not you can sell the property for what was paid. The ones who take it will keep their homes and be in a situation where they can continue to benefit the economy.

Unfortunately I think the same applies here. Although I WISH it could happen this way for sure.

Originally posted by disgustedbyhumanity
3. Goverment holds new loans for a few years and then resells them when it is obvious that they are now sound, thus getting full value and their money back. Intrest paid to goverment would cover most of the administration costs of the program.

Which is exactly why I wrote what I did...without accountability, what's to stop all these guys who ALREADY made a fortune at our expense, who are now CAUSING us the grief we are experiencing, to over-inflate the value of these assets and make yet MORE money at our expense and NOW without us having any possible recourse by which to claim any restitution.

In a perfect world, I agree with everything you said, and expecting that no entity intends to defraud US, would be great. But honestly, can you trust that they wont? I sure cant and wont.

AB1