Class, Today's Assignment Is...

I am just thinking that this bail out may determine the direction of the next Presidency. So I am attaching a letter I have written for my Senators and Congresswoman anyone can copy, crib off of or whatever. The links above are the contact your Senator and Representatives.

Have fun.

September 25, 2008

It is very apparent that the manner in which we, as a country, handle the current economic crisis will determine the ability of the next President to govern our country. If there is too high of a debt, there will be no flexibility in the manner in which he or she will be able to make long-term policy decisions based upon need and not economics.

I feel that there does need to be a bailout package, but the bailout package needs specific provisions. They are:

1) Give a specific amount of money for a quick fix. This may be $100,000,000,000 or $150,000,000,000. This can be reapplied for by the Executive Branch through the Treasury Department and approved by Congress. I would hope this amount may be enough to keep the economy moving until the next president can start to make policy determinations and place specific limits into a coherent long-term economic plan.

2) Give aggrieved homeowners who may be facing foreclosure a hearing with a judge to see if their home loan can be restructured, or perhaps their property revalued to keep it off of the foreclosure lists. Then let banks show the revalued assets so that some may be written off as “goodwill”. This may lower the actual property values as they are reassessed, but should keep the properties off of foreclosure lists, where the property will really plummet. It will also lower the desperation of those who are in this condition and increase consumer confidence.

3) Place limits on the salary and bonuses of CEOs that may be involved in the bailout. Also, place limitations on the amount of dividends that financial institutions may pay out to their shareholders unless they hit specific agreed-upon benchmarks. It is partially their responsibility that the economy has been so overvalued in the first place. Prospective homeowners could not have purchased homes unless some one said they had enough credit to buy them. Due diligence really is a function of the investor.

Thank you for your time and service in these difficult situations.

Respectfully,

rojo