Whether you are a Democrat, a Republican, or an Independent, odds are that you oppose the recent $750 billion bailout of the banking industry. This is a pretty easy prediction to make because the overwhelming majority of Americans (and more than a few folks from abroad) oppose the Treasury using their tax dollars to pay for the risks taken by big banks and the greed/ignorance of homeborrowers. That our politicians chose to vote against the will of the people is a sad example of how knee-jerk populism can blunt the mind.

        As we predicted as clearly and loudly as possible, the bailout has had worse than no effect -- its has sent the markets into a tailspin. This financial freefall was caused in large part by a crisis of confidence, and a huge lurch toward Socialism by a heretofore rabidly capitalistic government does not restore confidence. Who could of predicted that? (Answer: anyone who actually thought about it.)

       Which brings us to the critical point at this critical juncture in American history: politicians need to start making economic policy decisions with their brains (or brainpower rented from advisers) rather than with their knees. The bailout law passed via HR 1424 is a painful example of what can happen when politicians simply fail to think, critically or otherwise. The bailout gives the Treasury Secretary unfettered control to distribute $750 billion of taxpayers' money in any way he (or she) sees fit. Congress did not specify how the money must be spent, dictate how the money must be used by aided institutions (e.g., not to pay CEO bonuses), or impose any system of checks and balances. Predictably, banks are using the bailout money to advance their own self-interest (they are, after all, for profit entities) rather than to thaw the credit freeze.

       And now more ostensibly private industries are seeking taxpayer assistance (e.g., auto industry, credit card industry, etc.). Stated simply, Congress -- in its rush to judgment -- failed to think through the bases and effects of its actions and, as a result, the law has had unintended (but easily predictable) consequences!

        Of course we all want every American to own a home. But if anything has become clear over the past few years, it is that every American is simply not financially prepared to do so. The reality is that some folks must wait and save to purchase a house -- and that is not necessarily a bad thing. Congress, if its members were actually thinking, would impose strict, nationwide, iron-clad 'loan to value' ratios that would require a minimum down payment of 10% on all home loans. This requirement alone would have prevented the housing crisis.

        Politicians need to take off their populist blinders and recognize that they are not doing Americans or America any favors by bailing out banks, homeowners, or other industries. Bailouts beget more bailouts; they do not solve the underlying problems. Homeborrowers need to learn that you can't treat your house like a piggy bank and not pay for it in the end. Banks need to learn that their private gains are not subsidized by socialized losses. And the auto industry -- and any other private business seeking government assistance -- needs to learn that taxpayers cannot and should not be paying for your mistakes.

        We honestly believe that our President-elect is a brilliant man. Hopefully, his decisions while in office will be guided by that intellect!!!

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Originally about the housing bailout that unfairly forced taxpayers to pay the mortgages of people who could not afford the homes that they tried to purchase, this site morphed in late Summer of 2008 into a rallying point against the Wall Street bailout, which unfairly forced taxpayers to pay for bad bets by Wall Street. Even though only a short time has passed since the $850 billion bailout bill was enacted, it is clear that Secretary Paulson's great experiment to save his friends has failed; the credit markets remain frozen and the stock market is down almost 15% since the bailout passed.

        Now, at least one presidential candidate wants the government to buy mortgages that it knows are bad from home-borrowers who can't make their payments. This is the ultimate slap in the face to the 99% of Americans out there who either pay their mortgages, rent, or own their homes. It will improperly freeze home prices at their current inflated prices, which are disproportionately high relative to folks' incomes, thereby making it impossible for hard working Americans to afford a home.

       Taxpayer outrage at the Wall Street bailout is still a festering wound across America, and now these shameless politicians want you to pay for other people's greed and ignorance.

        When you strip away all the BS that the media and the politicians throw at you, it really comes down to one basic fact: it is fundamentally unfair to force responsible Americans to pay for the acts of others who either knew better and took risks anyway, or should have known better and ignored the risks.

        Unfortunately, it has become painfully clear that your elected representatives do not care what you think. Accordingly, we urge you -- no, we beg you -- to vote this November (and each November after that) -- against the politicians who voted against your very clearly stated will!!!

        Our great country is being held hostage by greedy politicians and their appointees (e.g., Secretary Paulson, Chairman Bernanke) who refuse to listen to the collective voice of the American people.

       Because we believe in law, justice, and fairness, we call upon you -- the American voter -- to make your voice heard this November. VOTE THEM OUT!!!

This site is dedicated to stopping the government's planned bailout of the housing market.   A bailout requires responsible Americans to pay for the acts of greedy bankers, mortgage brokers, flippers, and over-extended home-borrowers. In other words, the government wants you to pay for the blunders of others who knew, or should have known, better.

         Equally as important, a bailout would permanently price out of the housing market all those responsible Americans who have been patiently saving to buy a house that they can actually afford. The current housing correction is necessary to remedy the historic run up in housing prices over the past decade. By bailing out the housing market, the government will prevent housing prices from returning to affordable levels, thereby ensuring that renters will not be able to buy a home and current homeowners will not be able to upgrade.

        A government bailout of the housing market is both fiscally and morally irresponsible;  it is an unfair subsidy being paid to the wealthy (bankers), the greedy (mortgage brokers, flippers, and yes some homeowners), and the incautious (some homeowners), with little or no benefit to those paying the bill (taxpayers).

Why should responsible Americans be
forced to pay for the mistakes of others?

       A bailout is morally irresponsible because it encourages reckless and irrational behavior. Here is a short list of the many "moral hazards" that a bailout enables:

• A bailout sends the wrong message about personal responsibility.  It tells Americans in no uncertain terms that their financial decisions have no consequences; the government will pick up the tab.


• A bailout tells responsible Americans that they are suckers.  If responsible American had been smart, they would have overextended themselves, purchased homes they could not afford, and taken out home equity loans based on the paper value of their property. Then, when the bill came due, they could just pass it to the government.


• A bailout allows banks, mortgage brokers, speculators, and refinancers to benefit from their abuse of the system.  By doing so, it encourages these people to act irresponsibly in the future.


• A bailout will force Americans who acted responsibly to pay for those who did not.  The average American -- who saved and scrimped for years to buy a house, but could not because speculators and over-extenders boosted home prices beyond affordability -- will now be forced to pay for the homes of those who were less scrupulous.


• A bailout will have a disproportionately negative affect on the minorities and the youth.   Minorities and Americans under 35 (scroll down the link for 2007 data) are disproportionately underrepresented among homeowners.   While non-hispanic whites enjoy a 75% homeownership rate, less than 50% of blacks and hispanics own homes. Similarly, only 42% of Americans under 35 own homes, compared to 80% for Americans 55 and older.   A government bailout will perpetuate this race and generation gap by propping-up inflated house prices, thereby permanently pricing minorities and a generation of youth out of the market. And in a Kafkaesque irony, these folks will actually have to pay to prevent themselves from buying homes (i.e., taxes).

       A bailout is also fiscally irresponsible:

• A bailout props up over-inflated housing prices, thereby putting homeownership out of reach for young families and responsible Americans who recognized that there was a bubble. The housing market needs the correction that the bailout seeks to prevent because the average American cannot afford to purchase a home. "You cannot be both in favor of affordable housing and in favor of propping up home prices!"


• A bailout creates perverse incentives.  Rather than punishing their behavior, it encourages fiscal irresponsibility among bankers, mortgage brokers, speculators, and refinancers. These folks made money hand over fist in the past nine years (remember, homeborrowers who tapped their home equity received cash money to pay for Escalades, vacations, and stainless steel appliances; now they want you to pay for it!). Why change your behavior when you benefit from it?


• A bailout shifts the risks of falling market prices from financially secure banks to the American taxpayer.  As a result, either taxes or the federal deficit will skyrocket! This is a government handout that we simply cannot afford and, moreover, it is wrong!


• A bailout is contrary to the free market principles upon which our economy is based.   It jams a huge wrench into the market correction, with negative effects that will be both severe and long-term.

        It will truly be a sad day in America when our politicians vote to bail out the few from their irresponsibility to the detriment of the many who were responsible.

We, the American people, deserve better.

Make a stand.  Take action!

Use the links on this website to:

• Contact your Representatives and Senators. We strongly encourage this; it works!
  
  Here is another way to contact the politicians.
• Vote against the bailout.
• Pledge not to contribute to the campaigns of politicians that support the bailout.
• Show your support by wearing our t-shirts or displaying our bumper-stickers: Bailout Backlash!! or Stop the Mortgage Bailout.**

**These items are not marked up by STHB, those are the prices charged by CafePress.