IVA Action Alert: Urge "No" vote on bailout

The Idaho Affiliate of the American Family Association

Wednesday, October 1, 2008

Bryan Fischer, Executive Director

IVA ACTION ALERT: CALL SENATORS CRAIG, CRAPO: NO ON BAILOUT

The U.S. Senate today will vote on what it is now calling a “rescue” bill rather than what it is, a “bailout” bill.

It is not, I repeat, not different in any significant way from the bailout bill voted down by the House on Monday. In fact, if anything, it c

reates additional exposure for taxpayers by proposing increasing FDIC insurance for bank deposits of $250,000, up from today’s $100,000.

The exposure is minimized here due to the fact that banks pay premiums for this insurance, but if the day comes when that insurance must be collected, and there’s not enough in the kitty, taxpayers will be on the hook.

There are apparently some other minor “sweeteners” in the bill – one of which may involve putting money back into the scandal-ridden ACORN organization - none of which change the fundamental nature of this bill, which is still a $700 billion taxpayer funded bailout, forcing ordinary Americans to buy up loans that are so toxic that no private investor will touch them.

I think “expert” observers may have things exactly backward. They’ve been saying the market rebounded yesterday because word filtered out that “Son of Paulson” was being formulated. But why did the stock market shoot up yesterday by about 500 points, after the boondoggle bailout was defeated, and why is it down today, as I write, after news that the bailout plan is being resurrected?

Perhaps investors are smart enough to figure that the bailout in the end is going to be bad for the economy by rewarding irresponsible behavior and increasing the federal debt to a staggering $11 trillion.

It is not as if fiscal conservatives are just saying “No.” They have offered an alternative which involves insuring bad loans rather than purcha

sing them (at a cost to taxpayers of less than $50 billion rather than the $700 billion plus in the bailout bill), changing the mark-to-market accounting rule (which currently forces lenders to mark down performing loans on their books below their true value), and eliminating the capital gains tax which, if done, would likely flood the market with private money within 24 hours.

The motive of the IVA in this issue is simple: compassion for ordinary Idaho families, who should not be forced to pay for the financial irresponsibility mandated by Congress. It’s altogether appropriate for us to ask that our senators protect Idaho families – and the debt burden which will fall on their children and grandchildren - by voting “No” on this noxious bill.

I have not received a return call from Sen. Crapo’s office, and was not able to reach Sen. Craig’s office this morning. The latest word is that the Senate will vote on this bill late this afternoon our time, so please call right away, and keep calling until you get through.

Please call the offices of Sen. Larry Craig and Sen. Mike Crapo and urge them to vote “No” on the bailout bill.

They can be reached at 202-224-3121.

If you would like to read financial guru Dave Ramsey’s one-page “Common Sense Fix,” you may do so here:

Dave Ramsey: Common Sense Fix

If you value the work of the IVA in sending out these timely and informative Action Alerts, please consider a donation to our work. Information on how to donate, including online, may be found here. Together we can make Idaho the friendliest place in the world to raise a family! Thank you!