Here is a letter I sent to my elected rep and senators:

Dear Senator XXXX:
I am a registered voter in XX. I have never been motivated to write my elected representatives until now.

I am gravely concerned with the state of our country, particularly our financial system, and the politically correct response emanating from our Federal Government.

The crisis besieging our system was engineered by the banks and Wall Street, brokered by the real estate industry (including home builders) and entered into freely by market participants. Many profited enormously, including Financial firms that paid huge executive bonuses, builders that paid themselves huge profits rather than capitalizing their companies, and homeowners and speculators that bought and sold real estate under the foolish assumption that prices would never go down.

Many, myself included, bought conservatively, lived well within their means, saved for the future and invested wisely knowing that frothy expectations being marketed by these industries were not sustainable. These same folks are getting hammered by taxes, subsidizing baby boomer social security and subject to artificially low rates of interest on investments backed by government securities. Now we are being burdened with commitments already made to Wall Street firms and others being considered by Congress.

First, I question the Constitutional authority under which the Federal Reserve Bank and the US Treasury back stopped the "net" asset value of $29BB of Bear Sterns securities as part of the JP Morgan buyout deal. It is my understanding that the Constitution grants the authority to appropriate funds only to the Congress. As one of your constituents, I would ask for your opinion of the legal authority under which the Fed and Secretary of the Treasury acted. Further, I put "net" in quotes because the actual value and composition of these assets have not been made public. The actual value and subsequent taxpayer risk may in fact be many multiples of the reported $29BB value. Is Congress aware of the total potential liability incurred by the US Treasury, led by the former head of Goldman Sachs? Paul Volker spoke to the Economic Club of NY yesterday and openly questioned whether the Fed has tested the limits of their authority with their recent actions. He called for debate on this very topic. Surely the opinion of the former Fed President who led this country out of a financial crisis of historical proportions is to be taken seriously.

Next, I am appalled that Congress would consider legislation to authorize tax breaks, bailouts or any other taxpayer funded incentives for builders, lenders or market participants (ie. mortgage holders). These entities or individuals need to take accountability for their actions. Government subsidies will create moral hazards for existing market participants and artificially increase pricing for future market participants. Proposed bailout proposals are short term fixes that will delay an inevitable market correction. The long term unintended consequences of government intervention are rarely predictable, and almost always dire.

I would suggest that if Congress is compelled to act, it should invest directly in, or create incentives for those who invest in businesses, jobs and people who actually make things of value, or add substanative contributions to society.

Invest in:
- infrastructure - transportation, energy, agriculture, communications
- teachers
- manufacturing
- education and the youth of this country that will have to pay the massive debt now incurred.

Can't pay for it? How about redirecting GDP currently being spent on:
- financial "engineering" - nationalize banks that fail, eliminate marketing expenses, unwind and outlaw exotic securities and derivatives that are not traded on open, regulated exchanges, eliminate ALL off balance sheet activities once and for all
- drug research and marketing for improved sex life and baldness. 16% of drug companies revenue is now spent on marketing. Revert back to legislation that outlaws drug advertising.
- outsourced wars to corporations aligned with the current administration - how much money is being spent with the Haliburton's of the world? How can this not be a tremendous conflict of interest?
- elections that rely on corporate financing - Nationalize a percentage of the over the air, cable and satellite airwaves to be dedicated for qualified candidates

I believe we are truly at a crossroads and it will take leadership that is willing to make a difference regardless of the prevailing political will / sentiment / practices if we are to persevere through the oncoming crisis.

Are you going to be one of those leaders?

Respectfully yours-
xxxx
xxxx@mac.com

I write my Congressman Isakson and Rep Linder once a month... I will use this modifed somewhat.... NICE.

Emailed them again... slightly modified... I was going to say skull****ed, but did not think they would get it...

Great letter