Urgent call to action!

Now that the Senate has passed a boated and, absent raising the FDIC insurance limit- materially indistinguishable bill from the one that the House voted down on Monday, the ball is in the House of Representative’s court once again.

The failure of the mainstream media to critically examine the details and implications of this particular bill is deeply troubling. Instead of asking why the bill really faces such strong public opposition, the television new media spent the intervening two days between these two votes inciting panic. The end result, whether the result of yellow journalism or sheer incompetence, has resulted in a climate of fear. I think it goes without saying that most Americans, even if they do not have a clear understanding of the ramifications of this legislation- have a deep uneasiness about the tone emanating from Washington at the moment.

Please call/write/fax your senators representatives now!  A consensus of academic economists have arrived at a workable plan, but Congress is ignoring them and the will of the people.  Our representative democracy is fighting for its life because entrenched special interests are now dictating public policy.

Representative’s Contact Info Here

OPPOSE PAULSON BAILOUT

Dear Senator,

As a concerned citizen, I am outraged at the Paulson bailout plan.  I recently watched a panel discussion at Princeton University by some of the nation’s top economists- all are as confused as I am about why the administration is insisting on executing a bailout via the purchase of assets rather than the historically tested methods of bankruptcy and nationalization:

http://www.youtube.com/watch?v=Wj_JNwNbETA

Importantly, they all believe that we have the time necessary to work out a solid plan- the credit markets will not implode overnight.

I watched a House member on CNBC yesterday, Rep. Brad Sherman, talk about how the bailout has been carefully structured to allow for the purchase of bad assets from foreign investors:

http://www.cnbc.com/id/15840232?video=873682522&play=1

I wish I could dismiss Rep. Sherman’s opinions as paranoia, but this is a scenario that we have all seen before from this Administration. We are planning to bailout those who CAN AFFORD to suffer the losses, and importantly, who made investments with the understanding that they were assuming RISK.

NO PAULSON BAILOUT.  We are witnessing another disingenuous and fear driven Bush Administration tactic to ram through dangerous and costly legislation. Please, do not vote for this plan.

WE DO NEED TO ACT. We need to follow the nationalization model, for which we have both ample historical precedence and the institutional knowledge to ge the job done.  This is what was done with AIG, this is what is always done in banking crisis after other alternatives have been exhausted.  Nationalization will be far less expensive, ensure that the taxpayers have sufficient stake in any upside, avoids the moral hazard of rewarding corporate risk, and limits the bailout to failing firms that are facing insolvency.