My Congressman's response to my letter objecting to the 'bailout'.Submitted by docholladay on Fri, 09/26/2008 - 17:24
Here is my Congressman's response to my letter which strongly objected to the bailout. I won't comment, I'll just put it out here and let the D.P. crew dissect it. Have fun.
"Dear Dr. Holladay:
Thank you for contacting me with your concerns about Treasury Secretary Henry Paulson's proposal to bring stability to our financial system. I have heard from hundreds of people just like you on this issue, and I share your concerns. I hate the thought of paying ransom to Wall Street, especially when Main Street is struggling. I am furious that our financial situation has been allowed to get this point, and that Treasury is considering bailing out the lenders who helped caused this to occur. We now face a situation where our economy is being held hostage. Allowing the collapse of our banking system would cripple our already weak economy. Credit card rates would skyrocket, new small business loans and mortgages would be nearly impossible to obtain, and jobs would be lost. We cannot let this happen. Simply put, we must consider all potential solutions to the current crisis. As you know, I have earned a reputation as a budget hawk, and have dedicated my time in Congress to strengthening our nation's financial future. I have authored, along with Republican Representative Frank Wolf of Virginia, H.R. 3654, the SAFE Commission Act as an effort to rein in our record-setting deficits. This week, Roll Call, the Capitol Hill newspaper, published an editorial on this very piece of legislation and its importance for our financial future - once we get past this immediate crisis. Below you will find the text of that article. In the coming days Congress will consider a series of revisions to Treasury's proposal and I will keep in touch with you as this situation unfolds. Thank you again for getting in touch with me to share your concerns.
and then he sent this:
It Takes a CrisisSeptember 24, 2008
We have confidence Congress, faced with collapse of the nation's financial system, will come to terms with the Bush administration and the Federal Reserve on a bailout package that will rescue the national economy from impending crisis. But why, for heaven's sake, does it take impending doom for Congress to act to fix problems that, left untended, will result in crisis? And, coming out of this crisis, can Congressional leaders of both parties resolve to deal with those problems, preferably on a bipartisan basis? We trust - because the problem is so obvious - that Congress will create what Treasury Secretary Henry Paulson calls a "21st century regulatory system" to oversee the increasingly complex financial system. This should have been done when the system was deregulated in 1999. It could have and should have been done anytime during the past nine years. But Congress failed to do it - for seven years while the GOP was in charge and over the past two years under the Democrats. Will Congress also fail to avert what countless experts have warned are certain fiscal crises, short term and long term, because the government is plunging deeper and deeper into debt? What will it take? For credit-rating agencies Moody's and Standard & Poor's to downgrade the U.S. government's credit rating from AAA? Or for the dollar's value to plunge to the point where foreign lenders stop financing U.S. borrowing? Short term, this year's federal deficit is estimated at $400 billion. Accurate accounting would put it at $600 billion because $200 billion is borrowed from the Social Security trust fund. The nearly $1 trillion it will cost to rescue the financial system - including Fannie Mae and Freddie Mac, American International Group and Bear Stearns - should be added to that. Some of the money may be returned to the Treasury, but not immediately. Medium term, the national debt has risen from $5 trillion when President Bush took office to $9 trillion, and now Congress is acting to raise the debt limit to $11.3 trillion. The Congressional Budget Office estimates the debt will rise an additional $2.5 trillion by 2013 even if Bush's tax cuts expire - though both presidential candidates want to extend some or all of them and add lots of spending. And then, long term, there's the $53 trillion in entitlement obligations promised to future retirees that everyone knows is unsustainable. According to the Peter G. Peterson Foundation, by 2027, just four budget obligations - interest on the federal debt, Social Security, Medicare and Medicaid - will eat up all federal revenues and account for 18.3 percent of the gross domestic product. Congress knows this. In the House, Reps. Jim Cooper (D-Tenn.) and Frank Wolf (R-Va.) have proposed legislation establishing a commission to recommend entitlement reform. Sens. Kent Conrad (D-N.D.) and Judd Gregg (R-N.H.) have a similar proposal in the Senate. They've gone nowhere. This legislation may not be the final answer to the entitlement dilemma, but one must be found. The question is: What crisis does it take? Once again, I will continue to monitor this situation closely and will update you with further developments."
Member of Congress
Update: My Response
Thank you for your response. I was hoping for something a little more concise and less ambiguous, however, and was astonished when a friend of mine showed me his 'response' from Senator Obama. The similarities are striking, and lead me to believe that there is some sort of 'canned' response prepared to help handle the deluge of objection from the American people.
The government has NO business intervening in this matter. The chips should fall where they may. If our government is thinking about giving away 700 Billion, why not divide it among the American taxpayers, get rid of the FED, get rid of the IRS, and return to a monetary system based on the 'gold standard'. The ecomony would recover quickly, and we'd see a unprecedented boom in prosperity, here and around the world. You sent me an "article" to read, so I'll send you one in return, from the only straight talking man in Washington, and the only one who knows how to actually fix this mess rather than putting off the inevitable. Here it is..... I suggest you read it if you care about the future of America.
(here I inserted Ron Paul's response to the President...LOL)
Dr. William Holladay