Save and Conquer

I sent emails today (Sept 25) to both the Senate and the House. I do not normally write to Congress, but I wanted to give my two cents on the impending federal bailout of the credit market.

I asked my senators and congressman to please be fiscally responsible and not rubber stamp a bailout with no strings attached. I do not want to see anywhere near $700 billion handed to Treasury Secretary Paulson with no strings attached.

I realize that the credit market almost completely seized up last week, and that a credit market seizure is a big problem for American businesses, but I do not think the Economy will immediately crash if it doesn’t get the huge cash infusion that Secretary Paulson is recommending. It seems to me that a much smaller infusion could be made to work.

On Monday, I heard Senator Charles Schumer ask Fed Chairman Ben Bernanke just that question. He asked why $700 billion now, as opposed to something like a smaller enormous sum of $150 billion, followed later by more enormous amounts of money if necessary. Chairman Bernanke’s answer was that he was not a psychologist, but that he thought the market needed a larger emotional boost to get it moving again.

To that I say, NO WAY! I do not want to see more than half a trillion dollars go into anything to assuage anyone’s emotions. (I also have not forgotten the bailout of Fannie Mae, Freddie Mac, and AIG.)

I would like to see incremental funding of this monetary strategy. After all, the end cost is unknown. Let’s fund only to the amount necessary.

I want to see an accounting for any money spent, along with what is being bought, and what is being accomplished. I would also like to see more proof of how this plan may not lose money in the end. And I want to see full Congressional and Office of Management and Budget oversight.

Spending money in a panic is not a good idea. Spending hundreds of billions of dollars in a panic is plain foolish.

I told my Congressional representatives as much. You can too. Their addresses are Senate and House.

Stumble it!