House Speaker Nancy Pelosi Sells Out on Bailout Plan

By: Mike_Shedlock

MarketWatch is reporting House Speaker Pelosi reassures market on rescue plan .

Speaker of the House Nancy Pelosi said Thursday that financial markets can rest assured that Congress will act on the White House plan to buy up to $700 billion in toxic debt. Pelosi said the exact timing of the House vote would depend on the outcome of closed-door meetings currently underway on Capitol Hill. House Speaker Nancy Pelosi reassured financial markets that a rescue plan would come to the House floor soon. "Please be assured that we will have a package that will speak to the issue in a very substantial way to send a message to the markets of our seriousness," Pelosi said at a press conference. The plan of throwing $700 billion at a problem cannot possibly work. What's worse is the structured $700 billion is a mere down payment.

Fax Title: House Speaker Pelosi Sells Out, Don't Follow

Senator/Congressman

The Paulson Plan cannot possibly work, and secret deals behind back doors will not make it any better. Throwing money at any problem never works. All it will do is create other problems elsewhere.

If the Treasury buys $700 billion in toxic mortgages from banks, the government would be setting itself up to be the world's largest homeowner.

The US government will own every house that is foreclosed on as well as those where people simply decide to walk away.

• Exactly what will the Government do with those houses?
• What will the losses be?
• How much would it cost to prevent foreclosures?
• What about walk-aways?

Questions like these are why Treasury Secretary Paulson and Chairman Ben Bernanke want you to rush passage of this bill. Both want you to pass Paulson's bill before you have time to think.

Please stop and think about the ramifications of quickly passing this bill. If you do, you will quickly see that $700 billion is a mere down payment on problems down the road.

If you are thinking, you will not let this bill pass.

$700 billion could provide a lot of jobs. Bailing out Wall Street will not create a single job, not one. Instead it will cheapen the US dollar causing mortgage rates to rise.

Mortgage rates tied to the 10-year treasury are already up a half point since talk of this ill emerged. Further increases will come if the bill passes.

This bill is already increasing mortgage rates!

It's time to kill this bill and start all over with proposals that will not cost taxpayers a dime. Alternatives from a number of qualified citizens have been presented.

Just because others are willing to sell out to Wall Street in secret back room deals does not mean you have to follow.

I cannot and will not vote for any member of Congress who votes for this bill in its current form or anything remotely close to the current form.

Your Name
Your Phone Number

The phone-in is working. Congress is spooked. We are swamping them with emails and faxes. Bush gave that speech because he is spooked.

Congressional aids have told me they have never seen so many call in.

Check out the New York Times article Lawmakers' Constituents Make Their Bailout Views Loud and Clear .

Americans' anger is in full bloom, jumping off the screen in capital letters and exclamation points, in the e-mail in-boxes of elected representatives in the nation's capital.

Senator Barbara Boxer, Democrat of California, has received nearly 17,000 e-mail messages, nearly all opposed to the bailout, her office said. More than 2,000 constituents called Ms. Boxer's California office on Tuesday alone; just 40 favored the bailout. Her Washington office received 918 calls. Just one supported the rescue plan.

Senator Sherrod Brown, Democrat of Ohio, said he had been getting 2,000 e-mail messages and telephone calls a day, roughly 95 percent opposed. When Senator Bernard Sanders, the Vermont independent who votes with Democrats, posted a petition on his Web site asking Mr. Paulson to require that taxpayers receive an equity stake in the bailed-out companies, more than 20,000 people signed.

“We certainly have never brought in 20,000 names in a day and a half,” Mr. Sanders said, sounding astonished. “For us, that's off the wall.”

It is much the same on the Republican side. Aides to Senator Jim Bunning, a Kentucky Republican who has called the bailout plan “un-American,” said the senator had received more constituent reaction to the bailout plan than to any issue since the immigration debate.

Representative Ray LaHood, Republican of Illinois, said he had not seen such an outpouring since President Bill Clinton's impeachment trial in 1999.

The Battle Is Not Over Yet.

This battle is not over yet, rank and file is not impressed, and the Senate has not yet acted.

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.
If you are reading this most likely you can afford $12.
Sign up today and fax to your heart's content.

Fax Now!

Contact The House

THIS IS CRITICAL: Please fax AND phone your congressman . Do not bother with any members of Congress except for Nancy Pelosi. Tell them "No Deal Start Over" and if they vote passage they lose your vote.

Make sure you change every occurrence of "senator" in the above draft when faxing or emailing Congress.

Everyone should Email Nancy Pelosi: Email Nancy Pelosi .

Click Here To Contact Congress

The above link can put you in touch with your Congressman, simply click on your state.

Do It. Contact them. Ask for a private meeting. They may grant it. Several people have told me their Congressman was happy to meet with them.

Senate Fax List

Please fax everyone on this list.

Sen. Richard Shelby (R) 202-224-3416 or 202-224-5137 (try both not sure which is correct)
Sen. Harry Reid (D) 202-224-7327
Sen. John Ensign (R) 202-228-2193
Sen. Jim Bunning (R) 202-228-1373
Sen. Chuck Grassley (R) 202-224-6020
Sen John McCain (R) 202-228-2862

Sen. Barack Obama 202-228-4260
Sen. John D. Rockefeller 202-224-7665
Sen. Dianne Feinstein 202-228-3954
Sen. Ron Wyden 202-228-2717
Sen. Evan Bayh 202-228-1377
Sen. Barbara Mikulski 202-224-8858
Sen. Bill Nelson 202-228-2183
Sen. John Kerry 202-224-8525
Sen. Daniel Inouye 202-224-6747
Sen. Hillary Clinton 202-228-0282

Those inclined should also fax their own senators as well.

Please see Phone And Fax Numbers For All US Senators; More On What To Do for more numbers .

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

We CAN make a difference

Ongoing Campaigns

Please act on ALL of the following.

Every Fax Counts! Do your share!

Fate May Rest With Shelby

Another Mad Rush To Judgment

Senator Sanders' Petition Against Paulson

If You Tried Before, Please Click The link And Try Again . Every Fax Counts!

Fax Now!

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2008 Mike Shedlock, All Rights Reserved

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