Just sent this in via www.house.gov, which is very slow tonite. Dr. Weldon voted for the bill Monday, saying it was a poor bill but he felt pressured to do something.
Please vote no on this bailout. I agree with you that it is a poor bill. But “doing something to just do something” is no reason to support it. As a doctor, you know how situations have to be analyzed and courses of treatment evaluated. You just cannot pick the first approach just because the doctor who invented it recommends it. Rather, you take time to evaluate alternatives.
Another analogy: You don’t buy the first house your realtor shows you (the he is also listing) just because the realtor says you cannot afford to pass it up. Rather, you take time to evaluate alternatives.
There are better ways to free up credit markets. Having the government float 800,000 million $$ of debt will just suck capital from the marketplace. Without ways to increase the supply of capital, nothing is gained. Reducing Mark-to-Market rules, lowering the cost of capital by reducing taxes, and providing insurance for the mortgages (with deductibles) are examples of measures to get the patient ambulatory while further analysis is performed.
Looking toward the future, I don’t want Uncle Sam to own and manage 300,000 foreclosed houses in the country, much less the ones on my block. Absentee slumlords will be preferable to Uncle Sam owning the houses in your, and my, neightborhoods.
I realize that asking you to vote “no” is asking you to vote the same way as our Senator Nelson did today, an action I would not recommend without much analysis. But this time, what the heck, be a maverick! It seems to be a popular movement.
In retrospect, I would add, in the medical tone:
As with any disease, post-operative therapy is required. For this case, repealing the Community Reinvestment Act, HUD quotas for income levels on FNMA mortgages, and quite possible the complete eradication of FNMA and Freddi Mac (the nuclear option) would be a starting point in the plan.