Wednesday, October 1, 2008

Civic Action NOW - Bail out information

(Here is a copy of an e-mail I sent to friends. Here it is, posted)

Feel free to forward this e-mail around.


I send this e-mail as a followup to my e-mail informing you of Rep. Adam Smith's vote "Yea" despite 1000-to-1 calls and e-mails against the measure (completely disregarding the feelings of those in his district - source)

Tonight the Senate approved a modified version of the bill I e-mailed about yesterday. Both of our Senators, Cantwell and Murray, voted. Neither are up for re-election.

Cantwell voted "No" and Murray voted "Yea".

If the Presidential election is of interest to you, Senator McCain, Senator Obama, and Senator Biden all voted "Yea" on the senate bill.

Mrs. Murry has an explaination of her views here (http://murray.senate.gov/news.cfm?id=303965).

If you aren't familiar with the why the bail out is being proposed, I suggest you begin with references available through wikipedia on the status here as well as information about the sub-prime crisis here.

In short, government drove the interest rates down, encouraging lending. People borrowed more than they could own, and began to default. Mortages specifically are bundled into packages and sold to investment banks. Large number of defaults caused these securities to be at risk and caused some banks who purchased large amounts of these to be a huge risk, causing some banks to fail.

I suggest everyone get up on this topic. Whether the bill passes or not, the impact of the bill will affect all of us for most likely a decade or possibly more. Those of you who are 50 or older need to pay the most attention as it is your retirement or pensions at risk if they are involved in the stock market. Let me know if you've got questions or want more information. I've been following this entire "crisis" for the past three years and have literally invested hundreds of hours on research, as it is a of interest to me.

Let your senators and representatives know how you feel. To contact them, you can use the following forms:


Patty Murry - US Senator (D-WA) http://murray.senate.gov/email/index.cfm
Maria Cantwell - US Senator (D-WA) http://cantwell.senate.gov/contact/index.cfm
Adam Smith - Representative 9th District (D-WA) http://www.house.gov/adamsmith/contact/contact.html

If you're outside of the 9th district, you can look up information for who your rep. is at either www.congress.org (look in the top right) or at http://www.house.gov/writerep/


If you are needing money soon (less than 10 years) I suggest you listen to financial experts. Suze Orman is a great source of information and has a show on CNBC every Saturday night at 6 PM Pacific that repeats at 9PM Pacific. Many books are available as well.

Best regards,

Preston

No comments: