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Hate the Bailout? Speak Now or Forever Hold Your Peace

Posted Sep 25, 2008 11:13am EDT by Aaron Task in Newsmakers, Recession, Banking

Stocks jumped early Thursday as momentum appears to be building for bipartisan support of a $700 billion bailout plan that President Bush and other policymakers say is urgently needed but the majority of Americans oppose, judging by formal polls and our comment pages.

If you're among those who oppose the $700 billion proposal, time is running short but it's not too late to act, says Joshua Rosner, managing director of Graham Fisher & Co., who was one of the first analysts to warn of a looming crisis in the credit markets (not just subprime), going back to at least February 2007.

"People should be calling your Congressman to say 'slow down. We understand something needs to be done but want to understand the details'," Rosner says. "The process has been perverted."

Rosner believes the "pushback" Paulson and Bernanke got on Capitol Hill this week (most notably during the Senate hearings on Tuesday) was mainly for the cameras and the so-called concessions Paulson has made, including on executive compensation, lack teeth.

"We want to see meat on the bones not 'just trust me' as to how the government is planning to use this unprecedented authority with our money," says Rosner. "None of the details are there" regarding issues like how the assets will be price and managed.

Among Rosner's chief concerns: the same people who denied there were problems until very recently are now trying to rush through a plan that has no assurance of working and without sufficient debate.

Again, Rosner believes the problems in the financial markets and the threats to our economy are real. Stay tuned for upcoming segments where we discuss some alternatives to what's being proposed.

In the interim, I encourage you to contact your elected representatives -- whether you oppose the bailout plan or support it -- because this legislation is too important to be left to the politicians:

  • Congress switchboard: (202) 224-3121
  • White House: (202) 456-1414
  • Blast email to senators here

347 Comments

you
Rayster - Thursday September 25, 2008 11:24AM EDT

American's. So our fearless leader said "it's our fault for the collapse" by adjusted mortgages, which who, was setup by the "inventor" CEO's. "There was a loss of confidence around the world"...no kidding! Bush also said there should be an immediate responce from congress... why? So they dont read the fine details...were the CEO's of these bloodless companies get mutli-million dollar bonuses?? Theses are the people who started it/ And anoughter thing, Bush didn't even look the american's in the eye during his speech...just the teleprompter.

you
A. H. - Thursday September 25, 2008 11:24AM EDT

Rosner ...... how would you fix the problem to stop more problems from becoming worse????

you
thenips2@verizon.net - Thursday September 25, 2008 11:26AM EDT

The thought of "Big Government" and Socialism is scary and this bailout is one more grab by the government to totally control our lives. I do agree that something needs to be done but that is due to very poor management by the financial industry and their greed in past mistakes. I don't have a positive idea as to what needs to be done, but that is why we have elected people in congress.

you
redmenwr25 - Thursday September 25, 2008 11:26AM EDT

Subject: The Birk Economic Recovery Plan Hi Pals, I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend. To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billion that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage - housing crisis solved. Repay college loans - what a great boost to new grads Put away money for college - it'll be there Save in a bank - create money to loan to entrepreneurs. Buy a new car - create jobs Invest in the market - capital drives growth Pay for your parent's medical insurance - health care improves Enable Deadbeat Dads to come clean - or else Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President. If we're goi ng to do an $85 billion bailout, let's bail out every adult U S Citizen 18+! As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can "never work." But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC . And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Ahhh...I feel so much better getting that off my chest. Kindest personal regards, Birk

you
dkraus52 - Thursday September 25, 2008 11:27AM EDT

The old anti drug slogan seems appropriate here. JUST SAY NO!!!

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:27AM EDT

No bailout! Call your representatives today!

pisceschief
pisceschief - Thursday September 25, 2008 11:29AM EDT

The vast majority of the public just doesn't get it. They are stuck on punishing the guilty and blind to the fact that this is not a BAILOUT, it is an ECONOMIC RESCUE PLAN and if the cooler heads in Congress can't get it together, we are all doomed to a fate far more threatening than THE GREAT DEPRESSION! Think, people, think. We have plenty of time to punish the guilty later, but let's not punish ourselves by failing to allow the only safety line left in our economy to act- the government! Otherwise, say hello to the nightmares of socialism!!

eNewss
eNewss - Thursday September 25, 2008 11:29AM EDT

I am against the bailout. Instead i would like use $700 Bilion to create jobs in other sectors like manufacturing and defense and help people retain their jobs and pay the mortgages. Let the dollar value crash and make our exports affordable to third world countries.

Chuck
Chuck - Thursday September 25, 2008 11:29AM EDT

Bush is an idiot.

you
Hal - Thursday September 25, 2008 11:30AM EDT

The Political Donors trump the Citizen/Voter.

Rick
Rick - Thursday September 25, 2008 11:30AM EDT

This is the ultimate insane blank check from the bush administration to big banks... The blame is always on bad loans and credit decisions. WHEN is everyone going to wake-up and realize that JOBS moved over seas and American job losses is why people can't make their mortage payments. The fix to the last big recession was to CREATE jobs and put people BACK to work so they can make their mortage payments.

you
Eric F - Thursday September 25, 2008 11:31AM EDT

If businesses will have trouble getting credit, how about a big infusion of cash to the Small Business Agency instead of Wall Street? Or cash to local government to buy foreclosed property. That would get it off the lenders' books and give them cash that way, with local governments free to do as they see fit with foreclosed properties.

you
j.rizzello - Thursday September 25, 2008 11:33AM EDT

All these morons got us into this mess in the first place...And we are supposed to be confident in that fact they have a plan to bail us out...Who is accountable for these failures? Just print money out of thin air, that's the solution. Maybe, it would be wise to implement a "functional" mathematics course into our education system, so the people of this country can have a clue to how loans, credit everything else we run into on daily basis operate. Instead we learn Trigonometry and Calculus, good thing too, because we never ever use it. Once people wake up, and relize that currency is just a collective idea that people believe in, and amounts to abosolutely nothing...Maybe then we will no longer be slaves to this ridiculous concept of society!

david j
david j - Thursday September 25, 2008 11:33AM EDT

I say if this thing passes come November 4th elect all new congress and house of Representatives because this is nothing more than welfare for the rich did the rich give us any help when we lost our jobs no so let them fall just like middle class america has

you
Mike - Thursday September 25, 2008 11:35AM EDT

Get the mess cleaned up NOW, vigorously go after the law breakers who gamed the system and get America's financial markets back on track as quickly as possible.

you
Doug C - Thursday September 25, 2008 11:36AM EDT

McCain and Obama now selling us out! (News Break) Sell your babies and children down the river! Uncle Sam is about to spend another Trillion dollars of our kids future earnings because we do not want to be uncomfortable! Politics is broken in this country. MY god, how on earth can they be debating borrowing another 700 BILLION to bail out banks? We all know that number will be over 1 Trillion, just for the simple fact that congress is involved. All this hysteria because someone said the sky is falling! My god, if it is and if it does, lets spend on the money on the taxpayers. This will be the LARGEST swindle on the American taxpayer in history. Already William Buffet is buying billions of dollars of bank stocks because the public is about to spend 700 billion to bail the banks out and he knows the bank stocks will take off for the sky! Wake up people! Either get your congressman to vote this thing down or buy bank stocks because we are going to dump 100's of billions into them!

you
name1000 - Thursday September 25, 2008 11:36AM EDT

This is just to protect a few mega investors from getting wiped out all on the backs of the middle class working people again. Raise interest rates to bring value back to the dollar and crush oil prices.

dudzcom
dudzcom - Thursday September 25, 2008 11:36AM EDT

let the markets crash.... we need a good 50% correction in the dow. It used to happen once a decade. Greespanomics did away with the 'culling' year each decade, and now a tumor has grown in the financial sector. we need a 1-2 yr recession to flush out the disease in this industry and others.

you
Yahoo! Finance User - Thursday September 25, 2008 11:37AM EDT

You can be sure that the Master's of the Universe that made tons of money on the way up will make just as much on the way down. It's all just another scam to line their pockets.

you
Yahoo! Finance User - Thursday September 25, 2008 11:37AM EDT

Slow the Bail out down. We look like fools to the rest of the world. How could that build confidence in anything. This is a Republican ploy to gain control over a lot of fees and assets.

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