Fighting the Housing Bailout Bill

If you feel like being involved in protesting the housing bill bailout I’ve created the letter at the bottom of this post and I am attaching the relevant fax numbers if you want to fax these Senators.  It takes about 5 minutes tops.

Additionally, you can e-mail them by going to their web form and sending them an e-mail.  You may want to search out your Senators as well and contact them even if they are not on this list.  Fax and phone calls work better than e-mail.

Pass it around to anyone you want.  I’ve called, faxed and e-mailed all of these Senators, my Senators and my House reps too.  At first I figured it was futile, but it seems like Congress is fighting now so maybe it is working.

Mish has been running point for internet people on gathering information and keeping up to date on what’s happening.

Shelby, Richard C.- (R – AL)
(202) 224-5744

Bunning, Jim- (R – KY)
(202) 224-4343
Web Form:

Grassley, Chuck- (R – IA)
(202) 224-3744
Web Form:

Kyl, Jon- (R – AZ)
(202) 224-4521
Web Form:

Ensign, John- (R – NV)
Washington D.C. Office
119 Russell Senate Building
Washington, D.C. 20510
Phone: (202) 224-6244
Fax: (202) 228-2193
Web Form:

Congressman Mike Pence (R – IN)
Washington DC
1317 Longworth HOB
Washington, DC 20515
(202) 225-3021 office
(202) 225-3382 fax
Web Form:

Please change this however you want.  One time I pleaded with them not to saddle my children and grandchildren.  I told them it’s time to get a handle on spending more than they take in.

Dear Senator–

For the good of the United States of America, I am asking the Senate to stand up to justice and protect the taxpayer. Instead, please consider solid alternatives offered by Hussman and Mish to recapitalize banks in a way that protects the taxpayer.

Mish Letter

Hussman Letter

Summary points of the Hussman letter:
In summary, the Treasury proposal to address current financial difficulties places corporate bondholders ahead of the public, rewards irresponsible risk-taking, and sets a precedent for future bailouts. Moreover, we know from a long history of economic experience across countries that a major expansion of government liabilities is invariably followed by multi-year periods of extremely high inflation, particularly when it is not matched by a similar expansion of economic production. Such inflation would initially be modest because of the current weakness in the economy, but could pose unusual challenges to the United States in the coming years.

Congress can benefit the American public by maintaining a focus on responsibly assisting homeowners in distress rather than defending the stockholders and bondholders of overleveraged financial companies. It is essential to recognize that the failure of these companies need not result in “financial meltdown” provided that the “good bank” representing the vast majority of assets and liabilities is cut away, protecting customers and counterparties, so that the losses are properly borne out of the capital base of the companies that incurred them.

Again, everyone knows that a policy of bailouts will increase their number. By choosing who bears the losses for irresponsible decisions at these companies, Congress will also choose the scope of the bailouts that follow.


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4 responses to “Fighting the Housing Bailout Bill

  1. helps you build citizen coalitions to influence policy. individuals can join this initiative and recruit others to do the same.

  2. funny how the first people to complain about moral hazard when it comes to bailouts to the less fortunate are the first to put out their hands to bail out the most fortunate.

    Thank you I have sent letters to my senators (clinton and schumer)

  3. sorry for the cut and paste comment, but:

    I’m sure you guys are smart enough to be pissed about this housing bailout crap rather than just doing the sheep to the slaughter thing that most of this country is doing. Dave and some others have put together a plan to keep us from eating this 700 billion worth of other peoples mistakes. The only way it is going to work though is if enough people email congressmen, senators, reps, and anybody else you can think of. It’ll only take a second to keep our grandchildren out of an ocean of debt not to mention it will be helping this country take a hard right away from socialism. Don’t be lazy, take a second to do this. Not many people realize the implications of the housing bailout beyond the immediate economic views. The country won’t crash without this bailout, this plan can work but only if Congress truly believes that we’re going to take them down a notch if they don’t get on the ball.

    You can read and hear about it here:

    Seriously, take a second to send an email, and forward this along.

  4. I heard Dave mention this last night on his radio program. I’m not sure it’s the answer either. It seems to me that this would simply push out the eventual due date. The assets backing this paper (houses) have no value, and will have no value in the future. Our country has tens of million more houses than we really need, most of them extremely high end homes that will never see prices back where they were, simply because interest rates and free flowing money won’t be available like that again.

    Low interest rates and easy money caused the price increases. Until house prices get back to a normal stable price level the paper in these loans and bonds will continue to lose value. I think we’ll see home prices drop in the neighborhood of 60-70% from their peak by the time this is done. Regardless of the accounting rule this will kill these banks. We need to flush it through and not hold it up.

    Luckily commercial banks value things differently and they only report losses on their loans as they are incurred not as the market changes, so most commercial banks will be OK, as long as they stay solvent and have cash on hand to fund operations. Most of the larger ones have this cash at this point.

    Unfortunately I hear Dave give out poor advice that the markets will correct and return to their steady growth in the future. Our energy constrained future won’t allow this to happen. I feel for the people who follow along with him on this. But he’s not different from most people in that regard.

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