Ten Reasons NOT To Bail Out Wall Street (A RED HOT MUST READ)

Dear Friends
On September 24rd when President Bush and Treasury Secretary Hank Paulson introduced the bail out proposal it was 3 pages long. On those three pages were over a dozen proposals that were outside of what the Constitution authorizes. The most egregious was making the Treasury Department the 4th branch of government without oversight. His law would be law and would trump both Congress and the Supreme Court. This IS the most important illegal power grab in my lifetime. And "Please" remember that when it was first proposed to us we were told that it was the only way our countries economic freedom would continue. By the time the House of Representatives voted on the measure it was expanded from 3 pages to 103 pages. Thankfully good citizens like you from all across the nation reminded the members of the House that they work for us and courageously defeated this grossly illegal bill.

Late last night our US Senate voted on it's own version of the bail out. This measure is a thick as a Taylor Caldwell novel. Horror of all horrors it passed. The House will now be asked to vote again, with everyone of those illegal measures plus more in this new bill.

PLEASE KNOW, there is STILL time to call you House of Representatives and tell them NO. Remind them that they work for you. If they refuse to take orders, inform them that you will bring them home to stay in November.

One of my favorite economist has written an outstanding essay on why our nation will be greatly damaged by voting yes to the bail out. I know that all of you are most busy. But let me encourage you to take the time to read this essay and then call your Congressman. I can't think of a better time in my lifetime to call my Congressman and give him your order.

I hope all of you are well.

For the Constitution and to the freedom of our Grandchildren.
Mike Ray

Ten Reasons Not To Bail Out Wall Street
October 1, 2008 at 6:10 pm
by Catherine Austin Fitts and Carolyn Betts,

(1) Crime that pays is crime that stays.
There is reason to believe that Wall Street and those they represent are holding loans without collateral, multiple loans secured by the same properties, and other fraudulent instruments among the "troubled assets." Based on the secret "Treasury Conference Call" with 800 Wall Street insiders, we know the deal proposed to be passed by Congress isn't the real deal promised to Wall Street.

(2) This smells like obstruction of justice.
Bail-out without due diligence of so called "troubled assets" is a perfect way to hide documentation of financial crimes. It is also a perfect means to launder both the past ill-gotten gains and new federal money spent recklessly and without necessary safeguards and oversight mechanisms. Be very suspicious when they tell you "we just can't tell what's in these troubled assets." We can assure you that the federal government has field offices all across the country that deal with significant amounts of real estate and mortgage assets on a dailyl basis. If Treasury refuses for more than a decade to comply with the laws, with approximately $4 trillion missing (and counting), it is not competent to manage $700 billion of taxpayer money while its arm is twisted by Wall Street.

(3) Wall Street owes the federal government money.

We need to get stolen money back from the banks that served as depositories for the US government (including trillions for which the Pentagon and HUD could not account) and punish them, not create another opportunity for them to game the system and engage in criminal enterprises to rob consumers. To the extent there has been regulatory wrong-doing, let's not let the miscreants leave town with the evidence.

(4) Good guys are shut out.
A bail-out provides no way for honest leaders to come to the fore and use their creativity and expertise to restore balance and integrity to the system or for unproductive and poorly-managed banks that contribute to current over-capacity in the banking system to die a dignified death.

(5) This results in more investment in the "bubble economy."
Spending massive amounts on non-productive uses ("buying" worthless credit default swaps, mortgages with no collateral and derivatives, which could even include the derivatives used to manipulate the precious metals markets) as opposed to productive uses (repairing infrastructure, creating alternative energy systems, supporting inventing and production of "green" products) is inflationary.
This bail-out will drive prices of food, water and energy up for the people who can least afford it.

(6) Bail-out does not result in capital circulating in healthy ways.
The bail-out of Wall Street and too-big-to-fail banks and insurance companies that are getting bigger by the minute by swallowing up other failing financial institutions (and creating more institutions that are "too big to fail") does not result in trickle-down to those whose money was stolen in recent swindles (S&L, dot.com, current housing crisis), i.e., the taxpayers/middle class and working poor.

(7) These arrangements will result in more corruption.
Centralized "fixes" are sure to result in black holes, no-bid contracts and other scandals.

(8) The bail-out drains the real economy, rather than invests in the real economy.
The US economy can't be productive or grow if consumers don't have jobs and can't afford to purchase goods and services. Real stimulation of Main Street is accomplished through productive investment, not bail-outs that shift money to unproductive sectors. We should use all of our precious resources to reinvest in our people in the real economy.

(9) It props up sectors that need to downsize and consolidate.
There is significant overcapacity in the financial and banking sectors. Brainpower and talent needs to stop blowing financial bubbles and shift to economic activities that create real value.

(10) It is a temporary "fix" to keep Wall Street afloat until after the election.
Our resources are better invested in permanent, long-term solutions. This bail-out will not fix anything. Rather, it will help the perpetrators get away and ensure that the ultimate day of reckoning is worse.
The Administration wants to drain the real economy to bail out Wall Street. It seems to us that the more appropriate plan would be to require Wall Street to return the $4 trillion plus that is missing and use that to rebuild the real economy.
We think the time has come to reverse the flow. Go to any business school in the country. That is what they teach. Money should move out of unproductive sectors into productive sectors. The bail-out does just the opposite.
"Just say NO!"

--
Mike Ray
"Always vote for principle, though you may vote alone, and you may cherish the sweetest reflection that your vote is never lost." -- John Quincy Adams