700 Billion….


An interesting letter a friend provided me…

If you want to pipe in here are some phone numbers:

John McCain:  Main 202.224.2235, FAX 202.228.2862

Gabrielle Giffords:  Main 202.225.2542, FAX 202.225.0378

Jon Kyl: Main 202.224.4521, FAX 202.224.2207

—————————————————————————-
—-

TO:  My US Senators and US Representative

SUBJECT: $700B Bailout Plan

Dear Members of Congress:

1) I write to you to express my absolute opposition to ANY bailout of these
investment-banking firms, which, in collusion with the Federal Reserve Bank
of New York and its satellite branches, are expecting the American People to
pay for their greed and corruption. Do not give in to the usual blackmail
that characterizes the requests of these bailouts, as seen in all previous
ones: “We caused the problem but right now it is time for action, not finger
pointing; if you don’t do this, dire consequences will follow.”

2) We should not reward the blatant and reckless fraudulent activity we have
seen in the last few years. I would rather see $700B used to extend credit
DIRECTLY from the Government to honest businesses that actually produce
useful items and services (unlike investment bankers dealing on paper
assets), which would avoid the “credit collapse” these opportunists speak
of.

3) Based on what I have read so far, the current proposal has no expenditure
ceiling, but simply a $700B limit per occurrence, giving the Treasury
Secretary (in this case Paulson, a “former” investment banker himself)
virtually unlimited discretionary power over these funds, making his
decisions not subject to review by any court of law or any administrative
agency. This is INSANE!! Going along with this ridiculous plan (i.e.,
legalized fraud proposal) will be worse than ANY possible scenario of not
doing the bailout. The dollar would simply collapse under the weight of a
National Debt that could very well DOUBLE (can you spell ‘runaway
inflation’?).

4) We, The People, expect you to uphold your oath of office and look after
the best interests of the nation, not take part on this shameful fleecing of
the American taxpayer and raping of the nation, either by commission or
omission, and demand that the perpetrators be at the very least fired and
investigated in excruciating detail (see my attached page for ideas on where
you could begin looking). How can you even consider such a proposal devised
by the investment bankers themselves, like Secretary Paulson (former CEO of
Goldman Sachs), and the Federal Reserve Bank of NY directors like Dimon (CEO
of JP Morgan) and Fuld (CEO of Lehman Brothers)? Why would you pretend that
these men stand to win nothing from all this?

Sincerely,

—————————————————————————-
——

Encl:

JP Morgan acquired its rival investment-banking firm Bear Stearns, thanks to
a ‘bailout’ engineered by Treasury Secretary Henry Paulson, with quick
approval by the Federal Reserve Bank of New York using 55 billion of the
American People’s money to facilitate this ‘purchase’.

Let us look at the background of some of the players:

Jamie Dimon, CEO and President of JP Morgan, also in the Board of Directors
of the Federal Reserve Bank of New York, owner of almost 3 million shares of
JP Morgan at the time of the takeover Alan Schwartz, CEO of Bear Stearns,
rival firm to JP Morgan, no membership on any Federal Reserve boards.
Henry Paulson, Treasury Secretary, also former CEO of Goldman Sachs

Bear Stearns was not brought down by a liquidity crisis as widely reported
(in fact, JP Morgan was the one having liquidity problems), but by a ‘run on
the bank’ started by rumors from a few analysts and the massive shortselling
of Bear Stearns stock.

To the casual observer it would appear that such blatant conflicts of
interest, as seen in the Bear Stearns bailout (which, in my opinion, should
be more honestly characterized as the Bear Stearns hostile takeover by JP
Morgan) would be the sort of thing found only in the movies; yet it
happened. Bear Stearns is but a minuscule event in the chain reaction that
is about to engulf us, courtesy of the greed and corruption of a few
investment banks. I blame first the Bush administration, for looking the
other way and even supporting the fleecing of the taxpayer. This $700B
bailout, like all others before it, is grossly underestimated and will end
up costing many times more!

I blame Congress second, for paying lip service to the problem but doing
nothing to demand a Department of Justice investigation, and prosecutions
where required, and for looking the other way: YOU ARE SUPPOSED TO BE
LOOKING AFTER THE INTERESTS OF THE AMERICAN PEOPLE !!! The Bear Stearns
take-over should have an army of investigators crawling all over the events
leading up to it, especially given the massive short selling that took place
in the few days prior.

I can almost hear the contempt and the arrogance in the following quote from
Fox News, 23 September 2008, of Treasury Secretary Paulson: “……”You
worry about taxpayers being on the hook?” he replied at one point. “Guess
what – they’re already on the hook.” Paulson suggested that the fallout from
the credit crisis was so dire it would hit people in their pocketbooks
unless forceful action were taken. Moreover, the flawed and outdated
regulatory system, which didn’t catch abuses, needs to be overhauled, he
said.”

LET THEM FAIL!! IT IS FAR BETTER THAN THE ALTERNATIVE. THE CREDIT MARKETS AS
CURRENTLY SET UP WILL COLLAPSE, BUT THE GOVERNMENT (I.E., THE PEOPLE) DOES
NOT HAVE TO GO THROUGH A CENTRAL BANK CONTROLLED BY A BUNCH OF PRIVATE
BANKERS TO EXTEND CREDIT TO ITS ECONOMY, NOT IF YOU TAKE ACTION TO END THE
ABUSE.

Sorry, but I do not like the way this “bailout” feels.  I am sending in my letter.  You can do the same, or not, as you like.

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One Response

  1. hahah this is interesting indeed…

    Thanks for sharing

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