Opposing the Trillion Dollar Bailout - A Call to Action

The fate of our nation's economy rests in the hands of those who don't understand it, and those who think they can control it. It is in my sincere belief that the safest thing to do is nothing at all. Attempting to manipulate the market in this way is downright dangerous. It's a desperate act to reinject liquidity in the market in a futile effort to inflate an already deflating bubble.

Please contact your congressperson and voice your opposition - people like you and me stand to lose the most. Do so here: Write Your Congressperson

Here's the letter I sent to my local Congressperson:

Dear Congresswoman McCarthy -

I am writing you to voice my strong opposition to the bailout being proposed. I just want to make clear to you whats at stake here - and what Ben Bernanke and Secretary Paulson are trying to do since they speak in code few can understand.

An attempt is being made to keep house prices at their current level in order to avert further foreclosures. To do this, Mr. Bernanke plans on purchasing mortgages from banks - and in return providing them with cash to loan out - again. The added liquidity unnaturally fuels demand for housing if banks were to extend credit to new homeowners. Essentially, the cause of the crisis - a lax extension of credit - is being put forward as the cure.

It's not going to work, and it puts the nations taxpayers at risk. What it does do is defer the problem to a later date. There's no solution other than allowing the market to correct itself and acheive equilibrium.

For persons such as myself, I stand the most to lose. No only does it perpetuate the problem of the high cost of living and homeownership, but it steals from my taxpayer dollars to fund those who took out mortgages and couldn't afford them. I am left both subsidizing those who overextended themselves and unable to afford a home of my own. All the while, the people who extended the credit wontonly (and benefited from the bonuses thereto) walk away scott free. In addition, the money does not necessarily come from Taxpayer dolllars - the money is simply created out of thin air - or "borrowed" from the nations' treasury. The result is an increase in monetary supply and devaluation in the US Dollar. This represents a hidden tax on the American people - it's inflation and it will cost us more money to buy the things we live on.

I urge you not to listen to the rhetoric, and let the market take its course and private industry to sort out their own problems.

Thank you.

Here's $700 Billion, Go Play

I've never feared the government more than I do now. The actions undertaken by Congress and the Federal Reserve threaten the underpinning of the US Dollar - it's a fraud.

We all come to know of the difficulties the subprime mortgage crisis has brought upon us. In a nutshell - Banks lost money because they handed out money to unqualified people and unnaturally lifted the demand on housing. When the money ran out, coupled with home defaults and subsequent loss of equity, Banks were not able to lend any more (or as much). So since they gave out too many loans in an effort to make as much money as possible, we find ourselves in the situation today.

So what's being proposed? A $700 Billion Taxpayer bailout? What people don't realize is where the $700 Billion comes from. No - the taxpayers don't have $700 Billion to spare, so its not coming from your income taxes - that's already spoken for - it funds various unnecessary departments in Washington, the war in Iraq, propping up foreign governments, etc. No, the $700 Billion simply will be created by the Federal Reserve. Yes, you heard it right - the money did not exist before, so they're simply going to create it out of thin air. The idea is that the Fed creates the money, gives it to the banks in exchange for the mortgage assets - and the Fed then attempts to sell off these mortgage assets to retire its newly created money or "return to the treasury."

"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson

Essentially, to solve all our problems - The government is going to give money to banks to go loan out and get themselves into trouble all over again. The Cause is being offered up as the cure... In an attempt to retain current home values, money is being injected to artificially stimulate demand. A drop in home prices would further threaten to destablize the system - if people default in mass and banks are left to dry (which already is happening) - it leads to an economic death spiral.