Thread: RED ALERT!!! TAKE ACTION NOW!!!!

Susan Collins Reply Maine




Dear XXXXXX



Thank you for contacting me about the current financial crisis. I understand your concerns and appreciate hearing from you.



America faces a financial crisis that threatens homeowners with sub-prime mortgages, those trying to save and invest for retirement, and small businesses that need credit to grow, as well as our national banking and investment system. The Administration and Congressional leaders of both parties agree that effective emergency action is necessary to reopen access to credit and forestall a collapse that could spread havoc throughout the economy, but there is substantial disagreement on how to address the crisis.



The Administration has prepared an estimated $700 billion Treasury plan of unprecedented sweep. It would authorize the Secretary of the Treasury to buy troubled or currently unmarketable assets from financial institutions, thereby easing the credit squeeze. These troubled assets are constricting the ability of institutions to offer new loans and are restricting the flow of credit throughout the financial system.



I have called for Congress to stay in session and not adjourn until we have reviewed and approved a financial stabilization plan that includes effective safeguards and additional protections for taxpayers. Congress should not simply "rubber-stamp" the Administration's plan. I also have written directly to Secretary Paulson to ask what specific safeguards the plan would include to protect taxpayers if the Administration were to be granted the expansive authority it seeks to buy troubled mortgage-related assets. I have provided a link to that letter for your review http://collins.senate.gov/public/_files ... letter.pdf.



While exchanging Treasury funds for currently depressed or unmarketable mortgage-related assets would obviously be a powerful tool for freeing the channels of credit and investment, many questions remain about how the government would ensure that mortgages and mortgage-backed securities are carefully appraised so that taxpayers do not overpay or, worse yet, stand liable for debts used to purchase currently unmarketable assets; that the purchased assets are carefully managed; and that taxpayers have additional protections such as warrants or contingent equity interests in return for their financial exposure.


I have never favored using taxpayers' money to cover losses for abusive lenders, real-estate speculators, or careless investors. More detail is needed on the Treasury proposal, and on how assets would be appraised for purchase so that taxpayers' aren't left holding bag for properties or securities that ultimately turn out to be worth little. The plan should include regulatory reforms and accountability measures as well as protections for taxpayers. In addition, executives who made high-risk decisions should not be rewarded with multi-million dollar "golden parachutes."



As a former Maine financial services regulator, I understand that this is a very complex problem. Its roots lie in the past decade of the real-estate bubble, relaxed lending standards, and the creation of complicated securities tied to mortgages that were no longer held by the lenders and brokers that originated them.



This is a far-reaching problem affecting Main Street families and businesses, not just big banks and Wall Street firms. Banks serving ordinary towns in Maine have been forced to write off capital to reflect federal regulators' suspension of dividends on Freddie Mac securities that they purchased in good faith. That doesn't change the fact that the banks' deposits are still federally insured, but does limit their ability to write loans for homes, cars, new businesses, and other purposes for Americans not directly linked to Wall Street firms.



There certainly is plenty of blame for this crisis to go around. Some lenders and brokers pressured or misled people into mortgages that looked like great deals until low-interest or interest-free periods expired and payments jumped. Some borrowers exaggerated their income and assets while making little or no down-payment commitment to the home. Some speculators bought multiple homes to "flip" for quick profits, thinking real-estate prices would rise forever. Some investors and institutions bought mortgage-backed securities whose quality was overrated and whose risks were poorly disclosed and not fully understood. The government-sponsored mortgage-finance companies, Fannie Mae and Freddie Mac, bought or guaranteed hundreds of billions of dollars in mortgages and securities while maintaining very low reserves against losses. The bottom line, however, is that failure to act would have broad consequences on not just Wall Street, but also Main Street.



Nevertheless, Congress must not let the seriousness of the developing crisis override its Constitutional responsibilities or its duty to taxpayers. What the Treasury Department has developed and proposed in the past few days would be the most massive federal intervention in the U.S. economy since the Great Depression or the resource-mobilization days of World War II. The impacts could be huge and long-lasting, the costs of misjudgment immense.



The current upheaval in the financial markets certainly has created great strain on the lives of families throughout the country as well as our financial markets. I will continue to insist that any financial stabilization plan must protect American taxpayers.



Again, thank you for contacting me. I appreciate having the benefit of your views.



Sincerely,




Susan M. Collins

United States Senator

I just called Senator Boxer's office. I had to be on hold for a little while. It's definately not as busy as yesterday. I have to get ready for work soon so I will call Feinstein's office in a minute. I spoke with a woman staffer and I said that I heard that the Democrats were siding with Bush on the bailout. She said absolutely NOT and that it is the other way around. She said that Senator Boxer is very skeptical about this bailout and does not want to reward bad business practices. I said I was reading on the net that some democrat politicians might be scared because they forced the banks to loan money for homes to low income minorities and illegal aliens. I said they need to investigate why this happened and that maybe some people might have to go to jail. I also mentioned HUD. I then said that it is unacceptable for CEO's to get bonuses for a failure of a company. She was quiet the whole time and did not know what to say. Hmmmm. Maybe I hit on something they are trying to hide. They are ALL such snakes!

Dear XXXX





Thank you for writing to me about the recent troubling activity on Wall Street. I understand your concern and appreciate your taking the time to contact me.



The U.S. economy began facing challenges last year due in large part to problems in the subprime mortgage market. The severity of the problems became quite apparent in March 2008, when Bear Stearns, a financial services firm, collapsed. At the beginning of September 2008, the federal government took control of the two housing government sponsored enterprises, Fannie Mae and Freddie Mac. Unfortunately, the difficulties that began in the subprime mortgage market had spread to other market sectors, causing Lehman Brothers to file for bankruptcy and Merrill Lynch to be bought out by Bank of America. The Federal Reserve and Treasury intervened to prevent a bankruptcy filing by AIG and took over the company. Additional firms showed weakening under market pressures.



These events touched off a significant crisis of confidence in our financial markets. Without capital flowing freely, illiquidity left them virtually frozen. The frozen capital markets represent a threat not only to the financial sector, but the business sector and entire economy as well. Our economy was at a perilous junction.



To prevent a financial crisis, Treasury Secretary Paulson and Federal Reserve Chairman Bernanke released a proposal to allow the federal government to purchase up to $700 billion of the troubled, illiquid assets that had seized up the markets. These assets would be held by the government for some period of time, after which they would be sold, potentially for a profit. The Treasury Department believes this will promote market stability and help protect American families and the U.S. economy by fundamentally and comprehensively addressing the root cause of our financial system's current distress. It is clear that our economy is facing a critical moment. Both Secretary Paulson and Chairman Bernanke have offered sobering testimony about the potential consequences of a failure to act, including that our nation could face severe strains, such as during the Great Depression. Such a scenario would have serious consequences not only for those with investments and retirement accounts, but for everyone.



While Congress should act quickly but carefully to restore trust and confidence in the American economy and financial markets, I do not take the potential commitment of $700 billion in taxpayer dollars lightly. In fact, protecting taxpayer interests has been one of my main goals during my time in the Senate. While it is reasonable for the federal government to take steps to mitigate widespread damage to the economy, the free market involves both risk and reward. It is not the job of the government or taxpayers to simply absorb all the risk in the market.



In assuring the world market that the American financial system is safe and sound, we must find ways to protect the taxpayers as much as possible. In particular, I believe that any proceeds realized as the government held assets are sold in the future should be used to pay down the debt. That way some or all of the money borrowed now to buy the troubled assets will be repaid, rather than being used simply to fund additional government spending on unrelated programs.



In considering legislation Congress should act to preserve our free-market tradition. We have never propped up failed businesses on Main Street; we should not prop up failure and malfeasance on Wall Street. We must prevent panic in the market, but we must resist the temptation to overreact. Overreaction will in the long run be worse for our freedom and our economy. Finally, in considering the stresses in our financial markets, we must make sure that the possible solutions actually work and address the underlying problems. Congress must move promptly, but quick legislation should not come at the expense of good legislation. We need a plan that is timely, but not hasty, prudent but bold.



As a senior member of the Senate Banking Committee, I am working closely with Secretary Paulson, Chairman Bernanke, and my colleagues on this matter. Clearly, this is a complicated matter, and there are many details. Some questions have been answered, but many questions still need to be answered. I can assure you that taxpayers will be my primary consideration in this matter: I will be weighing carefully the potential cost to taxpayers of a bailout as compared to the potential cost to taxpayers and the rest of Americans if we don't enact a plan and the economy falters. Rest assured, I value your opinion greatly and feel tremendous responsibility to ensure the best possible outcome for Colorado and the nation.



Again, thank you for writing to express your concerns. If you would like more information regarding this and other issues important to Colorado, please visit my website at http://allard.senate.gov;.







Sincerely,

A

Wayne Allard

United States Senator

LETS continue the good work PATRIOTS!!! We need to fill voicemails this weekend and keep the pressure on!!! NO HANDS IN OUR POCKETS!!! FIND ANOTHER WAY TO BAIL OUT YOUR BUDDIES!!

Well it's 4:18 here and I just got back from a lot of errands. I figure by now that their lines are closed.

What is the latest that any of you have heard?

They are still stalled. Lou Dobbs says that they are going to work through the night to get something together to agree on by Sunday.

THEY ARE STALLED BUT THEY NEED TO BE STOPPED!!! WE ARE MAKING PROGRESS BUT IT IS NOT OVER YET!! WE MUST KEEP THE PRESSURE ON!!

Originally Posted by April

They are still stalled. Lou Dobbs says that they are going to work through the night to get something together to agree on by Sunday.

THEY ARE STALLED BUT THEY NEED TO BE STOPPED..!!! WE ARE MAKING PROGRESS BUT IT IS NOT OVER YET!! WE MUST KEEP THE PRESSURE ON..!!

Thanks for the update April..!

Originally Posted by iQuestionEverything

Originally Posted by April

They are still stalled. Lou Dobbs says that they are going to work through the night to get something together to agree on by Sunday.

THEY ARE STALLED BUT THEY NEED TO BE STOPPED..!!! WE ARE MAKING PROGRESS BUT IT IS NOT OVER YET!! WE MUST KEEP THE PRESSURE ON..!!

Thanks for the update April..!

You're welcome!! Thanks PATRIOTS FOR YOUR DEDICATION! LETS KEEP ROARING!

Originally Posted by April

They are still stalled. Lou Dobbs says that they are going to work through the night to get something together to agree on by Sunday.

THEY ARE STALLED BUT THEY NEED TO BE STOPPED!!! WE ARE MAKING PROGRESS BUT IT IS NOT OVER YET!! WE MUST KEEP THE PRESSURE ON!!

We will be working on this thru the weekend!!!!! Never give up never give in,,,,,this is our Anerica!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Originally Posted by working4change

Originally Posted by April

They are still stalled. Lou Dobbs says that they are going to work through the night to get something together to agree on by Sunday.

THEY ARE STALLED BUT THEY NEED TO BE STOPPED!!! WE ARE MAKING PROGRESS BUT IT IS NOT OVER YET!! WE MUST KEEP THE PRESSURE ON!!

We will be working on this thru the weekend!!!!! Never give up never give in,,,,,this is our Anerica!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks for your dedication Working!