From: Andrew Pernicano <sunsurfh2o@...>
Subject: [KRV-MTB] Sweetened Bailout on it's way to the House!
To: NoBailout@...
Date: Thursday, October 2, 2008, 10:17 AM

The Senate passed their "sweetened" version of the bailout and it's on its way to the House. In my opinion, we are in grave danger of it
passing this time around now that members can point to pros for the individual tax payers and the pressure is most definitely upon them

by party heads, the president and incumbents.

 

If you haven't already emailed your representative, please, please do so now! They are listening, they're
worried about re-election! It is, after all, the House of Representatives, they should be acting on behalf of their constituents, not their party
leaders. http://www.house. gov/house/ MemStateSearch. shtml

 

Postulate what you want about the right or wrong of this bailout, you cannot deny the very real possibility that once the banks purge their books

of the toxic securities the credit freeze will still persist! What will they do with the money? There are no provisions attached to the money that

requires them to turn around and start lending again. A bailout does not guarantee an immediate, even eventual, thawing of the credit freeze

(anytime soon).

I had several contacts email me in response to my forwarded message. One shared their personal letter with me, others shared links and info.
Below are some of their inputs.

Some Links:

http://www.youtube. com/watch? v=S27yitK32ds&eurl  (Great satirical evaluation of the bailout, proposed solution follows)

http://www.youtube. com/watch? v=dv6rQ0U01Yc&feature=related (Ron Paul challenges on lessons NOT LEARNED Bernanke)

Exerpt

 

"Conflict of interest???  Corruption?? ???      AIG's number 1 trading partner was Goldman Sachs, they got bailed out (while Lehman brothers did not), by Henry Paulson (X-Goldman Sachs CEO worth 700 million - most probably in goldman sachs stock), and the only other  economist on the deal was another goldman sachs exec (also highly invested) (and both guys responsible for this mess).  

And a few days ago Warren Buffet invests 5 billion in Goldman Sachs.  Yesterday he freaked out on Congress and said that if they dont pass the bailout plan , they will cause the worse financial disaster in nations history. (once they pass it, he gets waaaay richer).  There is a huge transfer of wealth going on, and power grab going to the ultra elite. 

And the middle class taxpayer will have to pay for this.  and in more ways than taxes....the Federal Reserve is printing money like crazy right now (inflation). ..which makes the middle class much much poorer."

 

Another

 

"Apparently , Japan's recession was prolonged by the government subsidizing their banks."

And a letter:

> RE:     Please stop this bailout!
>
>    The current credit freeze is likely due to Wall Street's hope of a
>    bailout; bankers will not sell their lousy assets for 20 cents on
>    the dollar if the government might pay 30, 50, or 80 cents.
>
>    Please send them the message that the Bailout is not going to
>    happen so they will find market-based solutions.
>
>    Talk of Armageddon, is simply ridiculous scare-mongering. If
>    financial institutions cannot make productive loans, a profit
>    opportunity exists for someone else. This might not happen
>    instantly, but it will happen.
>
>    The obvious alternative to a bailout is letting troubled financial
>    institutions declare bankruptcy. Bankruptcy means that
>    shareholders typically get wiped out and the creditors own the
>    company.
>
>    Bankruptcy does not mean the company disappears; it is just owned
>    by someone new (as has occurred with several airlines). Bankruptcy
>    punishes those who took excessive risks while preserving those
>    aspects of a businesses that remain profitable.
>
>    In contrast, a bailout transfers enormous wealth from taxpayers to
>    those who knowingly engaged in risky subprime lending. Thus, the
>    bailout encourages companies to take large, imprudent risks and
>    count on getting bailed out by government. This "moral hazard"
>    generates enormous distortions in an economy's allocation of its
>    financial resources.
>
>    If the bailout goes thru it will send a message to the markets to
>    take unreasonable risk because the govt will be there to bail them
>    out to socialize the losses if they fail.  Not allowing poor run
>    companies to fail will make our overall markets weak.
>
>    PLEASE STOP THIS BAILOUT!
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