I have been listening to lots of coverage of the Tresury Secretary's financial bail-out program proposed 09-18-2008. From my understanding, our government would be responsible for over 1 trillion dollars of bad mortgages. This increases our deficit by 25%. Right now, with just AIG, Bear Stearns and Fannie and Freddie loans under our control, treasury bill yields are nearly 0%. If we take this extra $500 billion in bad debt, the yields will be negative - people will be paying the government to borrow money from us. Our dollar will tank and inflation will go through the roof.
I know that not taking action will cause many more financial institutions to fail. I know that stock markets will continue to fall. This is a risk that the investors knew they were taking on. These financial institutions knew that they didn't really understand the securities they were creating. They willingly took on the risk and gambled with our future. We cannot have the federal government take away all that risk and tell these companies that they were right to take on this risk. It will tell these institutions that they are too important to fail, so if they make further mistakes or take on more bad risks, they will be protected from this risk by the tax payers. This can not happen, and I ask, as a strong supporter of you and an Obama volunteer, that you vote against any such bail out that leaves banks and executives involved in this without penalties.
Thank you for your time