Monday, January 19, 2009

LTC: Vote NO on TARP Extension

The following went to my congressman today (LTC = Letter to Congressman). Unfortunately, I missed the Senate vote, and I’m not sure I hold out much hope for the House to block the measure.

Dear Sir:

I am writing to you to request that you vote against the upcoming release of the 2nd $350 billion in TARP funding.

The original TARP legislation was wildly unpopular with the American people, yet you voted for it. The first installment of funds was not spent in the manner that was originally planned and it failed to accomplish its objective, yet the same people are now going to oversee a successful spend of the second installment? This is madness!

We were told that we could not sit back and do nothing or the economy would collapse. We were told that again when the Detroit auto companies were bailed out. We certainly shall be told the same thing for this second installment of funding, as well as the upcoming Obama stimulus. The economy has not collapsed yet we are told we must do more. We are told that the cause of the crisis was profligate spending and the overextension of credit, but that the solution to it is for government to commit those same sins.

This economic crisis was caused by government policy, most notably a loose money policy on the part of former FED chairman Alan Greenspan and a zealous desire to overstimulate the economy on the part of the Republican administration. The crisis is not the result of the free market, but rather the result of government interference in the free market. Continued government interference will not resolve the issue. Continued government spending will lead to severe inflation and risk a second Great Depression.

The only way to resolve this crisis is to stop government spending, and facilitate the private restructuring of our banking system. You must vote now to rein in excessive, ineffective government spending.


Kendall Justiniano


Jim said...

Good message.

Unfortunately, I don't think the House is going to have a vote. The Congress could block release of the remaining TARP funds if both the House and the Senate passed a resolution against it.

As the Senate resolution failed, there is no longer a need for the House to vote. Even if the House does vote for propaganda purposes, it does not have any effect on distributing the remaining funds.

Kendall J said...

Thanks Jim. Looks like I'll be turning this letter into an LTE regarding stimulus in general.

My senators are far left and voted for the original TARP bill so I doubt I would have had impact on them.