Kill the Bill: ‘No’ To The Bailout – Call (202) 224-3121 *UPDATED*

The Washington Times (h/t Michelle Malkin) reports that, over the weekend, language was snuck into the federal bailout legislation to include student loans, car loans, and credit cards.

In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other “troubled” assets held by banks.

The changes, which were included in draft language that also opened the bailout program to foreign banks with extensive loan operations in the United States, potentially added tens of billions of dollars to the cost of the program.

Although it was a major addition to what was already the nation’s largest-ever bailout, it did not become part of the debate between Democrats and the Treasury over details of the program.

Apparently, no one feels this is important news as neither the media, the Congress, or Bush administration officials have discussed this. In addition, they have also failed to discuss whether this would increase the $700 billion price tag. Most speculate the real cost of this bailout is not being discussed and that it could top $2 trillion before it is all said and done.

In addition, Chairman Bernanke finally identified how they planned to value these illiquid assets before buying. Remember, we’re in this mess partly because of the ‘mark to market’ rule. Essentially, if the value of these assets cannot be determined, it is listed as worth $0.00. Bernanke said they would purchase these assets at “a price close to the hold-to-maturity price.”

Stop.

Short answer? We’re throwing away our chance to break-even on our deal to rescue Wall Street that we did not create. The U.S. Government (we) would be purchasing these assets at values far higher than they are currently worth, essentially ‘bailing out’ these financial firms in the most literal sense.

This is completely against free-market principles, it is morally questionable to reward poor conduct, and the additional debt obligations of the government will only hurt our economy later as we struggle to pay back this debt. We’re going to “puff up” the economy at our expense.

This is inexcusable. I pay my bills on time every month to my creditors and never need a bailout. Yet all my creditors need help paying their bills? Give me a break.

And before some of you get excited over the prospect of your additional loans falling under the bailout legislation, it only applies to the firms packaging your debt and selling them on the market. That’s right, we all still have to pay our bills while we take on the bills of our worthless creditors.

Everyone gets off the hook, except us. But we own the hook. It is time to put those responsible on it… before it’s too late.

Call the Capitol switchboard and ask for your Representative or Senator – (202) 224-3121.

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3 Responses

  1. I don’t like the idea of a bailout. I understand that this is “needed” but where is the accountability? I’m just really uncomfortable with these lending institutions being bailed out because of mistakes they made. I mean whats next communism? It sounds an awful lot like making the government bigger than it already is. We need less government in our life and more accountability for those that are in high up positions in these companies

  2. Indeed…

    scary the public might be sold out…

  3. I agree.
    Yes you read that right, I do agree.

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