Call before (or after) you complain about the bailout

If you're as concerned as I am about the prospect of Congress spending $700 billion to bailout the corrupt financial industry (when they could be spending it to reduce the national debt, fund universal health care, beef up education, rebuild roads, end global warming, pick one), please take time out of your ranting against it to call and rant against it to your congressman or woman. I called my Senators Diane Feinstein and Barbara Boxer and my Congresswoman Doris Matsui. Don't take anything for granted. If you're not sure of the name of your Congressmember, use this tool: Find your elected federal, state and local representatives.

Here are two toll free numbers to call Washington and ask for your representative. Just say, I oppose the bailout. They may ask your name or zipcode. They may be too busy to do so. 800-828-0498, 800-473-6711,

Why Not A Leveraged Bailout?

Today's imminent collapse of the secondary loan market and talk of a bailout reminds me of nothing so much as the early 90s when I cut my teeth on public policy in the midst of the savings and loan bailouts. My former boss Michael Waldman (later a POTUS speech writer) literally wrote the book on 'em. I remember his cynical coaching, "the corporate interests hate socialism when it's for the rest of, but love it when it's for them."

So true. One need look no further than the classic red-baiting consistently used to bring down any form of credible proposal for health care reform. How can it be that the same interests that come together through the Chamber of Commerce to bash government so consistently can expect the taxpayers to foot the bill for a multi-billion dollar bailout for their crushingly bad investment decisions?

Of course I oppose a bailout of these interests. Yes, I vaguely understand the ripple effect, the number of potential homeowners that might not get a loan without a "secondary market" to buy it up from their bank, etc. I grok. But I stubbornly believe, however naively, that banks will make loans if they are good business decisions and they won't if they aren't. I don't believe it does consumers any good to pull them into loans they can't afford and will default on. I don't believe propping up the over-inflated housing market is in the short or long-term interests of working people.

Although the Fed's aggressive action may have staved off a bailout for a time, I tend to believe a bailout is probably foreordained because the combined interests of wall street, campaign contributors and the perceived interests of consumers in getting more risky loans, will be enough to create a congressional majority, if not consensus, for taxpayer bailout of the sub prime market.

So given that virtual inevitability, I suggest we prevail upon the liberal Democrats to leverage something major out of the deal, something they've never mustered the will for before: a truce against government. If Capital gets to raid the Treasury, they agree to a moratorium on government bashing for say, the life of a typical home loan: 30 years.

This way, Congress takes out a 30 year mortgage from big business (and it has to be the whole friggin' chamber of commerce and its interlocking directorates that sign off on it, not just the lenders). The interest paid is this: the space for Congress to regulate for the good of the American people in an environment not poisoned by anti-government toxins.

Better yet, the Dems should push for big business to agree to front a major pro government campaign. Start disclosing on all their advertisements the government breaks that make it possible for them to exist and make money.

Picture this:

"It's never too late to refinance your home with Nations Bank--come in for a free consultation tomorrow. We can afford to loan you this money because of your tax dollars."

or

"The relationship between you and your doctor is treasured by Sutter Medical Group and the federal government."

Now that's a bailout.