Letter to Administration

Today, I wrote a letter to the President, our Congressman and Senators expressing my concern over the planned $700 billion bailout and how it should not happen. Below is the text of that letter. I hope it will be used by others to contact their representatives letting them know this is not something that is good for America or the American taxpayers!

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I am very concerned about the current bailout proposal as well as all the other bailouts that the government and federal reserve has implemented. Where is all the money coming from? How much of this money is going to have to be covered by the American taxpayers? Why in the world would we want to add more money to the national debt that is already at record levels? I recently read information on the United States Credit Rating. It is currently sitting at AAA, which is the highest it can be. As the U.S. takes on more debt, it is my understanding that this credit rating could be in jeopardy of being lowered. This could have a huge impact on the government's ability to borrow money. All these bailouts are weakening the fiscal profile of the United States. This is very concerning to me. It is my understanding that the best way to show that you are fiscally responsible to never get into debt and to pay everything in cash, not on a payment plan. If this is something that individuals, families, and businesses should live by, why not the government.

The other concern I have is the ability the federal reserve has to just print more money when they need it. I'm not an economist but I have done enough reading to know that the easiest way to increase inflation is to print more money. It is my understanding that is what will have to be done in order to cover the exorbitant amount of money the government will be using to bailout all of these companies.

The government created the current problems on Wall Street and the American taxpayers should not be responsible for fixing a problem they didn't create. It is only common sense to not give loans to people who do not have the means to pay those loans back. Owning a house is not a right and should absolutely not be an entitlement for every American. It should be a goal of every American to work towards owning a house but every American needs to prove themselves that they are fiscally responsible enough. If they are not, they should not be given a loan. It is that simple. In regards to the companies that decided to give loans to people without checking their credit, their income, or anything else that shows they are ready for a loan, they should go under. Because of what they did, people are losing their houses, expecting that would be able to afford the house at some point. These practices by these mortgage companies are unconscionable but they were pushed and sometimes threatened by the government to do so in the name of getting more minorities into a home or getting more Americans into a home. This has also had a huge impact on other areas of the financial market that were just doing their job. AIG had to insure all those bad loans. What were they supposed to do when all those loans defaulted. This will continue to rollover into other areas: more banks will fail (as we see with Washington Mutual today) and more people will lose their jobs. Is this something the U.S. government wanted on their heads? I don't think so. I do not blame this administration, they are just the one's that have to deal with the messed caused by laws and regulations enacted in 1977, 1995 as well as others.

I'm very disturbed by the current trend of the U.S. government to drag this country further and further towards and into socialism. That is NOT the way to fix this country's problems. The market will correct itself, it always has and it always will as long as the government STAYS OUT OF THE WAY. That is the way it was designed. It may be hard to get through and people may loose money, jobs, homes, etc but just as with the Great Depression, the American people made it through and were stronger because of it.