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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

345 Comments

RobertH
RobertH - Thursday September 25, 2008 11:37AM EDT

I just hope and pray they come up with a plan to stop all this meltdown - mismanagement - obscene bonus's etc. No more - "Put everyone in a new house" type thinking. Block exec's from walking off the job or staying on the job and pulling down mega, mega salaries doing mediocre work to earn their money. Let them earn their money through Performance !! Are we back to the day's of the "Robber Baron's" ?? I think the company was "Alttel" - one guy just walked out with 119 M..

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:38AM EDT

Yes, something should be done. But lets not jump to conclusion. Evaluate the Bill to make sure it is right for the American tax payers!!

Robert K
Robert K - Thursday September 25, 2008 11:38AM EDT

I can't say anything that hasn't already been said. We must say no to this bailout. We will never be able to pay the money back. Where is the money coming from anyway? Are we printing it out of thin air? Borrowing it from China? It just further enslaves America to someone or something else.

gerhard
gerhard - Thursday September 25, 2008 11:39AM EDT

seems to me we are handing money to the very people who have had their hand in creating this situation.Our government can not be trusted anymore. They are selling out the very values this country was built on. This country needs leadership that acts in the interest of the people not wallstreet banks. They should be going to jail for what they did.

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:39AM EDT

700 BILLION TAX CUT PLEASE!

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:39AM EDT

Why not start our own National Bank run buy the Tax payers with 700 billion dollars and leverage those dollars by lending 10-20 times more. That will keep the economy rocking.

Thomas H
Thomas H - Thursday September 25, 2008 11:40AM EDT

treating the opublic like idiots is not the way to try and push this package thru. the people who created the problem is the same people who will benifit from this bailout. weather or not we want this, they(the congress) will push this off on the american people. even if we are standing up against this, we dont have a voice in what is going on. panic among the same people who created this is true. the panic is that the jobs they have is going to go away. this does panic the people who created the panic. and for good reason. nothing is going to change. against the public wishes, this is going to be cramed down our throats. the time is getting closer to when the american people will revolt against the goverment as we know it now...good luck america.

FRANCESW
FRANCESW - Thursday September 25, 2008 11:41AM EDT

if all else fails screw the tax payer. i have it on good athority that the free market can take care of its self with no gov help.

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:41AM EDT

Bush would of been more effective last night if he was wearing his flight jacket and sign we WON...Paulson is just lining up his next job by getting all the junk cleared out....real issue is the housing ponsi game that most people especially with food and fuel going crazy would not qualify for the payments on there house....that the reality...we will need another 7 trillion or more till payments are in balance to income...this is the billionare bailout...plus Ga jerk says trust T pickens...hes smart...you idiot he wants his money back you fool ...could care less about people

Cherly
Cherly - Thursday September 25, 2008 11:41AM EDT

No Bailout! and if only on a limited scale! Wednesday, September 24, 2008 Dear Friends, Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike. The events of the past week are no exception. The bailout package that is about to be rammed down Congress' throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder. Two weeks ago, financial analyst Jim Rogers said the bailout of Fannie Mae and Freddie Mac made America more communist than China! "This is welfare for the rich," he said. "This is socialism for the rich. It's bailing out the financiers, the banks, the Wall Streeters." That describes the current bailout package to a T. And we're being told it's unavoidable. The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences - predictable, that is, to those who understand sound, Austrian economics - are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess! • The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. That means $700 billion is only the very beginning of what will hit us. • Financial institutions are "designated as financial agents of the Government." This is the New Deal to end all New Deals. • Then there's this: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process. There goes your country. Even some so-called free-market economists are calling all this "sadly necessary." Sad, yes. Necessary? Don't make me laugh. Our one-party system is complicit in yet another crime against the American people. The two major party candidates for president themselves initially indicated their strong support for bailouts of this kind - another example of the big choice we're supposedly presented with this November: yes or yes. Now, with a backlash brewing, they're not quite sure what their views are. A sad display, really. Although the present bailout package is almost certainly not the end of the political atrocities we'll witness in connection with the crisis, time is short. Congress may vote as soon as tomorrow. With a Rasmussen poll finding support for the bailout at an anemic seven percent, some members of Congress are afraid to vote for it. Call them! Let them hear from you! Tell them you will never vote for anyone who supports this atrocity. The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government? Do we care? When the chips are down, will we stand up and fight, even if it means standing up against every stripe of fashionable opinion in politics and the media? Times like these have a way of telling us what kind of a people we are, and what kind of country we shall be. In liberty,

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:41AM EDT

Also calling your Congressman should change to Emailing your Congress Man. Is there a email for Congress. We need to be heard by web mail and text messaging.

george
george - Thursday September 25, 2008 11:42AM EDT

So, the Bush Administration think that giving healthcare to a sick child is socialism, however giving 700 billion for greedy companies and their executives who made the world poorer is not socialism!!! Well folks, call me crazy, but this is the last straw for the ecoomy of this country. The governement is bailing all these greedy companies, but who is going to bail out the United States??!!

thereitisagain
thereitisagain - Thursday September 25, 2008 11:42AM EDT

redmenwr25 has a good plan. great way to resolve problem loan issues.

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:42AM EDT

"the liar in chief" comes on the tube and says the stock markets will fail and you will lose your jobs and 401Ks if you do not cough up 700 billion. ___________ So uh, that explains why the stock markets are positive yesterday and today and no money bailout money at all. PHUCK THOSE GD LIARS!!!!!------------------------------words to he wise:-------------- Delay is preferable to error. ------------------------------------------------------ Every government degenerates when trusted to the rulers of the people alone. The people themselves are its only safe depositories. -------------------------- I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country. --------------------------------------------------------------------------------------------------- The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. Thomas Jefferson ... For a people who are free, and who mean to remain so, a well-organized and armed militia is their best security. ------------------------------------------------------ http://www.brainyquote.com/quotes/authors/t/thomas_jefferson.html ------------------------------------------------------------------------------------------------ When those that are chosen by the people refuse to listen to the people well then there is only one choice left to be made. Bottom line people------------ If you are too limp wristed to "get up in arms" then shut the f**k up and take it up the rear......................

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:43AM EDT

I thought the government never negotiates with the bad guys who are threatening us and never pays a ransom for hostages. Where are the strength and determination now.

Yahoo! Finance User
Yahoo! Finance User - Thursday September 25, 2008 11:43AM EDT

Also Bush's analysis of the root of the problem was very short sighted. High Oil prices definetly played a part. But he maid no mention of this in his speech. Also he made no mention of deficit spending for the wrong War on Terror. How bogus. Don't trust the bail out.

risktkrz
risktkrz - Thursday September 25, 2008 11:44AM EDT

Bail out? More like a bribe, this so called bail out is to stop the American people from knowing the real truth about how the Bush Administration really stuck it to the people. The 1% keep getting rich while the 99% keep getting screwed. When are "We the People" going to say NOMORE. Throw those greedy blood sucking CEO, and all their staff into jail. Let them lose everything, just like they made so many families lose their homes, their lives. Bush and his followers should be thrown in jail along with those animals.

Office Warrior
Office Warrior - Thursday September 25, 2008 11:44AM EDT

I like the "Birk Plan". Now that's what I call "trickle down" !

Paul
Paul - Thursday September 25, 2008 11:45AM EDT

Great interview Aaron. I have seen some demented markets in my time but today's takes the cake. All of the news is either bad or shocking but the market is having a rollicking rally on the basis that a hoplessly indebted America is going to take on as much as $700 billion in additional debt to bail out a bunch of parasitic bankers. mate reality must reign sooner or later and when it does this is going to be very very ugly.

Dennis
Dennis - Thursday September 25, 2008 11:45AM EDT

redmenwr25: Your simple math has a problem. $85B divided by $200million is only $425 per person.

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