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October 24, 2008
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Sen. XXXDear Senator XXX:I take this opportunity to write you regarding the current financial crisis andthe Bush administration’s $700 billion proposal to buy bad debt from privatecompanies. Moreover, I take this opportunity to urge you to
REJECT
theproposal in its current form for the reasons which follow.
1.The Current Proposal Gives the Bush Administration YetAnother “Blank Check”
George Bush’s administration has taken lying to the American people - andto Congress - to new heights. Indeed, it has turned it into an art form. Theadministration has effectively used fear to manipulate foreign powers, allies,enemies, Congress and American citizens. It used fears and lies to garnersupport - from allies, Congress and Americans - for the 2002 invasion of Iraq.It seems with each passing month we learn of another White House “fact”that has been refuted. Most recently, we learned that, according to formersenior Republican majority leader Richard Armey, Vice President Cheney, in aone-on-one meeting at the White House, told Armey that Iraq had the “abilityto miniaturize weapons of mass destruction, particularly nuclear,” which hadbeen “substantially refined since the first Gulf War,” and would soon result in“packages that could be moved even by ground personnel.” In addition,Cheney linked that threat to Saddam’s alleged personal ties to al Qaeda,explaining that “we now know they have the ability to develop theseweapons in a very portable fashion, and they have a delivery system in theirrelationship with organizations such as al Qaeda.” Armey believes that theVice President’s statements were lies. Armey credits this meeting withchanging the sentiment of Congress from an anti-war position to a pro-warposition.
This is just the latest example of important misrepresentationsmade by the current administration.Six years later, the Bush administration continues to spew these lies toAmericans in an effort to recoup support for the war and for exorbitantspending. Certainly, at a cost of $10 billion per month, the Bushadministration has already received a “blank check” for the Iraq war.Likewise, with an increase in the federal deficit of 40% under the Bushadministration
, he has failed to show any financial restraint. He has alreadyreceived a foreign blank check.
1
See
,
e.g.
,http://www.washingtonpost.com/wp-dyn/content/article/2008/09/15/AR2008091503064_pf.html(accessed September 24, 2008).
2
See
http://thinkprogress.org/wonkroom/2008/09/09/bush-mccain-deficit/ (accessed
September 24, 2008).
_____________________________________________________________________________
ADDRESS
Sen.September 24, 2008Page 2
Do not let the Bush administration use fear again for another domestic blankcheck. It has not demonstrated the necessary restraint to warrant aspending grant without oversight or restrictions.
2.The Proposed Plan Puts Control of $700 Billion in the Hands of a Single Person
As I understand the current plan, Treasury Secretary Paulson would controlthose funds. Secretary Paulson is not even an elected official. SecretaryPaulson shares significant responsibility for the present state of the financialmarket. His failure to keep the system sound (through appropriateregulation and monitoring) should not be rewarded with $700 billion intaxpayer money to fix his own mistakes. His job was to prevent this.While one presumes that the Bush administration would exercise significantcontrol over the spending of the money, the Bush administration, as alreadydiscussed, is no more deserving to remedy this problem than SecretaryPaulson is individually. Worse, the administration wants $700 billion to buy
bad debt
. This is not a wise way to spend Americans’ hard-earned money.
3.Continued Lax Practices Will Not Solve the Problem
It is clear that the failure of the federal government to enforce laws andregulations against these large financial and insurance companies has led tothe current crisis. The federal government has already demonstrated a clearfailure to enforce laws - not to mention the Bush administration’s ownflagrant willingness to disregard federal law. If any administration requiresoversight it is this one. It would be insane to give this administration $700billion without any strings. This administration’s failure to exercise meaningful oversight over thesefinancial institutions evidences that it is not sufficiently fiscally responsible tomanage the $700 billion it is seeking to remedy the situation.Without any guarantee of proper management, this plan simply wastesnearly a trillion dollars in taxpayer money.
4.The Proposal is Eminently Unfair
These failing financial institutions - and their officers and directors - haveprofited from Americans. They have failed in their responsibilities to theircustomers. Likewise, AIG cannot seem to remain solvent despite thenotorious profits made by insurance carriers at the expense of their insureds.Despite resisting valid claims for reimbursement, insurance companies likeAIG cannot seem to manage their assets to remain solvent.
Sen.September 24, 2008Page 3
These are the same companies who charge credit card customers $29.00 ormore for a late credit card payment. These are the same companies whocharge consumers over 21% to finance credit card balances. These are thesame companies who will report a 30+ day late payment to credit reportingagencies without blinking an eye. Why should we have any compassion forthem when they have none for their customers? Why should we treat themas anything more than a failed company when they treat their customers asnumbers? These companies have profited from - one might even say ripped off -Americans. Why should American taxpayer dollars be used to rescue theailing companies? It is simply unfair. Taxpayers’ money is going to be usedto revive these companies so they can continue to rip off Americans.
5.When Did America Become a Socialist Country?
The proposed plan amounts to financial socialism. Marxism. Along withcapitalism and profits comes responsibility. The proposed bailout rewardscompanies for failing. That is not capitalism. They should be allowed to failso that new (hopefully better companies who learn from the past mistakes of their predecessors) can succeed where others have failed. These are the same companies who charge credit card customers $29.00 ormore for a late credit card payment. These are the same companies whocharge consumers over 21% to finance credit card balances. These are thesame companies who will report a 30+ day late payment to credit reportingagencies without blinking an eye. Why should we have any compassion forthem when they have none for their customers? Why should we treat themas anything more than a failed company when they treat their customers asnumbers?
To bail out these companies would be to become a socialist country forcorporate America only. Let them fail. It is corporations who loatheregulation and government interference – unless, of course, they want to bebailed out. They believe that they are above individual Americans. Whyshould individual Americans save these companies? The answer: theyshould not.
6.The Proposal Lacks Any Punishment
There must be some punishment for these companies. At the very least,they must be subject to new and better regulation. However, it is unfair forthe American public to fork over nearly a trillion dollars when mostAmericans did nothing wrong. American taxpayers are being punished for
3
I know this point has been repeated. It warrants repetition.
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