Senator Kip Bond (R-MO) Responds

Posted by on October 27, 2008 1:36 pm
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The letter below from Senator Kip Bond actually makes me more concerned about the people we have in Washington, and the supposed CONSERVATIVES that are elected by the Republican party.

Let me point out the things I take issue with up front, and then let you read the letter in full.

First, “…There is a real danger that many people will not get their next paycheck if we do not end this credit gridlock.” This is one of the talking points pushed out by the entire Senate to push us into accepting a bad deal, based on Fear (and remember what I wrote earlier “they just don’t understand”). The Credit gridlock was more aimed at questionable companies than at companies with a solid balance sheet. Our company had no problem meeting payroll, nor using the line of credit we have for inventory purchases. All the banks want is to be paid on time, and for you to meet your covenants with the bank. If you can’t do that, then it’s not the Credit Gridlock, it’s poor business management coming back to haunt you.

Second, “…But, I also know the cost of inaction – a severe recession that puts all families and workers in jeopardy.” With all due respect Senator, you don’t “KNOW” the cost of inaction, you suspect that there will be consequences, your party and your congressional leaders are saying that, but you don’t know it because there has never been such a widespread financial debacle as this one. Has it occurred to you, Senator, that perhaps there isn’t enough money in the country to pay for the cost of this, and the impact across the globe where we see China, Japan, Korea, London, France and all the major stock markets still (on October 27, 2008) having problems with the bailout’s capability.

Third, “…Small businesses are unable to get funding to meet payroll, states and localities are struggling to obtain financing for critical road and building projects, seniors are seeing their retirement savings fall in value, and students cannot obtain loans for tuition…” Sir, again with due respect, this is a complete fabrication aimed at scaring the voters of this great country. Pull the numbers Senator, and look into the balance sheets of those companies and tell me that the problem is the credit crunch, or is it that they just have a bad balance sheet where they are over extended and are a poorly managed business like so many of the car dealers who will lend money to anyone, and now have such a poor record that they cannot get credit for their customers? I think, Sir you’ll find that it is the latter.

Fourth, “…Responsible action must be taken to ensure that savings, retirement, and college funds are protected; …” The reports this last week show clearly Senator that non of the above is true. Representative Barney Franks is reviewing options that include the removal of the tax incentives around the 401(k) programs. Further left leaning ideas are that the Government will take over the Retirement accounts and put them in Bonds that will yield a wonderful 3% and thus nationalize the banks and the pension plans (are we taking a look at Argentina Sir, is that what we want to become? I left Argentina in 1970 to avoid the idiocy of the government of my native Argentina and became a proud Citizen of the United States)
Senator, you are a Conservative and a Republican, how can you not see how terrible the bailout plan was, and how little has been done in the 3 weeks since it passed to stabilize the economy. Yes, President Bush said it took time to get into this mess and it will take time to get out; but Sir we passed a bill in record time, for a record amount of money and people still have no idea, exactly what the bill will do and not do. Shame on us for passing such a bill Sir.

October 7, 2008, Via e-mail

Thank you for contacting me to share your views on the current financial credit crisis. I believe we must act quickly and boldly, but we must also act responsibly to resolve this crisis. If we do not act, the credit crisis will spread throughout our greater economy and hurt individuals, families, and small businesses throughout Missouri and the Nation. There is a real danger that many people will not get their next paycheck if we do not end this credit gridlock.

I have heard from folks in Missouri who are angry about this financial emergency. I share their anger over having to use tax dollars to address this crisis. But, I also know the cost of inaction – a severe recession that puts all families and workers in jeopardy. We are already seeing the impact of the credit crunch on Main Street America. Small businesses are unable to get funding to meet payroll, states and localities are struggling to obtain financing for critical road and building projects, seniors are seeing their retirement savings fall in value, and students cannot obtain loans for tuition.

Recently, the Missouri Department of Transportation had to give up on a plan to upgrade 800 of our State’s bridges, which are in much need of repair. At least two St. Louis-area auto dealerships closed and one filed for bankruptcy and several more are expected fail as well. Across the state, tighter credit is being felt by farmers who need operating loans to buy fertilizer and seeds. In Kansas City, the local government could not find anyone to buy $200 million in bonds for water and sewer improvements. Unfortunately, no credit means no investment, and no investment means no jobs.

The compromise financial rescue bill the Senate and House recently passed will help address these problems and keep them from spreading. Importantly, it includes a host of taxpayer protections that reflect Missouri values. I called for changes to the Paulson plan and the bill now includes increased accountability for bad actors, no golden parachutes and salary limits for failed Wall Street executives, equity stakes for taxpayers to share in possible future profits, increased oversight to protect taxpayer dollars, increased transparency so that you know your money is spent properly and greater protections for your savings and checking accounts. While not perfect, I fought to improve the bill to protect taxpayers and keep the current financial crisis from spreading to Main Street.

Responsible action must be taken to ensure that savings, retirement, and college funds are protected; jobs are not lost; and small businesses and farms are able to operate. Further, it is imperative that we all work to ensure the financial credit crisis does not happen again by reforming our regulatory system that provides accountability, oversight, transparency, and protection.

Again, thank you for sharing your thoughts with me on this economic crisis. It is with deep regret that we must contend with a dilemma of this magnitude. This is not the final word or action managing this legislation and I urge you to continue to monitor events in the weeks and month ahead as conditions evolve and remain in touch.

Sincerely,

Christopher S. Bond

United States Senator

CSB:bl