Wednesday, October 8, 2008

The Voice of Reason...

October 7, 2008

Dear Mr. Davis:

Thank you for contacting me regarding the economic "bailout" bill. I appreciate you taking the time to share your position and thoughts with me on the current economic crisis we are facing.

As you know, the Emergency Economic Stabilization Act of 2008, H.R. 1424, passed both the House and Senate and was signed into law. I was not able to support this measure because I believe the bill was far too expensive, there was not a factual basis for the $700 billion dollar price tag, the bill did not offer enough help to directly assist average Americans, and pork and pet projects were added to the bill unnecessarily. I was also disheartened by the House leadership not allowing alternative plans and ideas from being debated, or allowing any changes to the existing bill. I know that something needed to be done, however, we had an opportunity to do a better bill that was not as costly to taxpayers, but that opportunity was not allowed to be realized.

The vote I cast was not one that I took lightly. I felt we were given a horrible choice - give the Secretary of the Treasury $700 Billion for a plan that is not guaranteed to work or face the possibility of the American people losing their life savings, 401Ks, investments and/or pensions. I understood that no matter how I voted that I was going to make some people unhappy, but I truly believe the vote I cast was the right course of action, and it was also representative of most of my constituency. There is no question that we are facing serious economic times and since the bailout bill passed, I would like nothing more than to see the plan succeed and for our country to have a bright economic future.

Once again, thank you for contacting me. Should you have any questions or wish to discuss the issue further, please do not hesitate to contact me again.

Very truly yours,

Steven C. LaTourette

Member of Congress

The Congressman from the Great State of Ohio has earned my vote on Election Day!!! It is my belief that Congressman LaTourette represents the creative energy that will be instrumental in helping solve the financial crisis. More importantly, he is interested in addressing the heart of the the matter, namely the housing crisis. I will actually place a campaign sign in my front yard if I can find one! During last night's Presidential Debate I noted McCain's plan to "buy" foreclosed properties with government money. I think that could be one of the worst ideas I have ever heard. Maybe... since FNE and FME are now government sponsored entities , a more logical decision would be to sponsor loans at 2% interest... which turn to 5% after 10 years. There are reasonable buyers out there, it is just a matter of creating a situation they cannot refuse...


Teh cost of shorting the market has gone up tremendously! Specifically, the price between bid and ask prices have demonstrate market volatility on steroids. China dropped close to 9 % today...Hang Seng 15,288.00 -1,432.00 -8.56.
There will be an attempt to coordinate credit markets at this point... The G-8 will meet this weekend. Look for a series of cuts which will attempt to thaw credit markets. More importantly, central banks will put the printing presses in over-drive. While I still hold puts on XLI, XLY, STI, and COF, I believe there is tremendous downside potential in FXI, WYNN, VMC, CLF, and SKS. Do not forget the short ban expires on 10/17/2008... The question is, will there be anything left to short? BIDU, RPLNS, and Petro China are on the board as well.

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