Congressman Ron Paul lectures Bernanke on the flaws of the bailout plan and the hazard of the attempt to fix prices versus letting them correct naturally in the free market at the Congressional Hearing today.
Ron also questions Bernanke's authority and constitutionality of using the printing press to generate all this extra money needed for the bailout.
Messages to Congress as high as 300 to 1 against the bailout
Quote of the Day:
"Party is the madness of many for the gain of a few."
-- Alexander Pope
First the Republicans were for it (the Big Bailout), and then they were against it. What happened?
What happened is YOU, and others like you, pounding on Congress to NOT pass the Big Bailout.
There were constant reports on CNBC yesterday, and in other places, that calls and messages to Congress were running roughly 300 to 1 against the Big Bailout. This is what made the Republicans reverse course.
Your messages and calls to Congress do make a difference!
But pressure from powerful special interests also has an impact, so we must maintain OUR pressure.
It would also help to provide Congress with an alternative plan that is better than the Big Bailout. Fortunately, we can do that. All Congress has to do is remove the mark-to-market accounting rule, and replace it with a "discounted cash flow" accounting rule. Doing so would . . .
* Enable firms to record a more realistic value for their assets
* Boost balance sheets and restore credit ratings
* Provide useful information that would serve to create a liquid market for these assets
In short, this one simple regulatory change would accomplish everything the Big Bailout is supposed to achieve, with NO expenditure of federal funds!
If you want to learn more about mark-to-market accounting vs. discounted-cash-flow there's a good write-up of it here.
Please send another message to Congress right now. The message for the campaign we're using for this purpose reads: "Please cut federal spending." Use your personal comments to add something like the following . . .
"The Big Bailout moves in the wrong direction, toward more spending and more debt. Oppose the bailout! Instead, remove the mark-to-market accounting regulation, and replace it with a discounted-cash-flow accounting rule. This will free up the markets at no cost to the taxpayer."
You can send your message here.
Thank you for being a part of the growing Downsize DC army.