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Wednesday, September 24, 2008 3:33 AM

Senator Sanders' Petition Against Paulson

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Inquiring minds are reading Vermont Senator Bernie Sanders' Petition Against Paulson.

Dear Secretary Paulson:

As a representative of the Bush Administration, you have proposed a financial bailout program of $700 billion – over $2,000 for every man, woman, and child in the country. We are appalled that your proposal puts the cost of this bailout on average Americans; that it contains no provisions reversing failed deregulatory policies; that it allows executives at these failed institutions to continue to make exorbitant salaries and bonuses, and that your proposal contains no help for average Americans who themselves are facing severe economic hardships.

While the Administration has quickly rallied to help Wall Street, it has ignored the needs of the declining middle class. Since President Bush has been in office the wealthiest people in this country have made out like bandits and have not had it so good since the 1920s. The top one-tenth of one percent now earn more income than the bottom 50 percent of Americans and the top one percent own more wealth than the bottom 90 percent. Incredibly, the richest 400 people in our country saw their wealth increase by $670 billion during the Bush presidency.

Having mismanaged the economy for 8 years while continually insisting that, “The fundamentals of our economy are strong,” the Bush Administration, six weeks before an election, wants the middle class of this country to bail out Wall Street to the tune of one trillion dollars. Meanwhile the wealthiest people, those who have benefited most from Bush’s policies and are in the best position to pay, are being asked for no sacrifice at all. This is absurd. ...

Click the above link to sign Senator Sanders' petition.

I certainly do not agree with all of Sanders' points. However, if a bailout must take place, then I can agree with this point:

"Wall Street must ensure that assets purchased from banks are realistically discounted so companies are not rewarded for their risky behavior and taxpayers can recover the amount they paid for them."

Perhaps you can agree with more of them than I can. If you agree with any of them, this is what you can do.

Fax Bernie Sanders

Fax Title: Senator, Don't Give In: Remember Your Own Petition
Dear Senator Sanders

I applaud your petition that assets purchased from banks must be realistically discounted so that companies are not rewarded for their risky behavior and taxpayers can recover the amount they paid for them.

Mad Rush To Financial Judgment

Today President Bush and Treasury Secretary Paulson are preaching the same story.

  • There can be no delay.
  • Sweeping new Powers for the Fed are needed.
  • The Treasury needs $700 billion dollars.
  • There is no time to study alternatives.

Senator, in your heart you know all of the above are lies.

Who Benefits?

Today Bank of America's top credit strategy analyst says Paulson Debt Plan May Benefit Mostly Goldman Sachs and Morgan Stanley.

Here is the exact quote: "Benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment" said Jeffrey Rosenberg, Bank of America's head of credit strategy research.

William Poole Former St. Louis Federal Reserve Bank Weighs In

"The Treasury will be stuck with the least-attractive paper, and that means taxpayer losses will be large."

Senator, in this mad rush to financial judgment the taxpayer is last in line. The taxpayer should be first in line. Banks and brokers should be the last in line.

Many alternatives are surfacing.

Those alternatives need to be considered.

It's time to take a deep breath, step back and admit the United States of America does not need to grant new powers to the Fed and Treasury to survive this fiscal crisis.

Rushing into a solution that puts more pressure on already overburdened taxpayers is exactly the wrong thing to do. The taxpayer knows it and so should Paulson and so should you.

What Others Are Saying

Tom Schlesinger, head of the nonprofit research group Financial Markets Center: "It fails the most basic test of democratic accountability." It boils down to "give me the money and trust me," Schlesinger said.

James Angel, a professor of finance at Georgetown University, said the White House appears to be "flying by the seat of their pants."

Alternatives Must Be Considered

That the White House is flying by the seat of its pants is no excuse for Congress to do the same.

The proposal as it stands is totally unworkable. It cannot be modified with simple changes. The proper conclusion is the existing proposal should be scrapped completely and started from scratch with an open mind towards all alternatives.

Senator, Will You Stand Behind Your Own Petition?

Senator, I applaud your stance.

The question I have is this: Do you have the courage of your conviction to stand up for what is right and block this legislation unless and until it is modified accordingly?

America's eyes are on you Senator. We pray you have the courage of your petition and are willing to block a vote if necessary. We have heard your voice, we now need to see your vote.

your name
Fax: Senator Bernie Sanders 202-228-0776

You can use www.faxzero.com to send a fax from your computer for free.

I went with MetroFax. 1000 pages at a very cheap price.

Please send this email to 10 others and have them do the same.

We CAN make a difference

If you have not yet acted on U.S. Government: The World's Largest Homeowner and Fate May Rest With Shelby and Another Mad Rush To Judgment please do so.


Mike "Mish" Shedlock
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