The San Francisco Chronicle is reporting Many vulnerable lawmakers said ‘no’ to bailout.

Two-thirds of Congress’ most vulnerable members — Republicans and Democrats alike — chose to protect their seats on Election Day rather than follow their party leaders and vote for an unpopular economic bailout plan.

Their votes helped doom the plan President Bush, congressional leaders and top economic officials said was critical.

“We’re all worried about losing our jobs,” Rep. Paul Ryan, R-Wis., said, endorsing the bill and voting for it after leading a rebellion against an earlier version last week. “Most of us say, ‘I want this thing to pass, but I want you to vote for it, not me,'” he said, speaking for colleagues who have tougher re-election fights than his own.

The three vulnerable Republicans who voted “yes” were Reps. Christopher Shays of Connecticut, Mark Kirk of Illinois and Jon Porter of Nevada.

The three vulnerable Democrats voting “yes” were Tim Mahoney of Florida, Paul E. Kanjorski of Pennsylvania and Jerry McNerney of California.

Metrofax Most Vulnerable Target List

Note: The fax list is to every office of targeted reps. Please fax every office.

Congress,Paul Ryan,Congress,2022253393,2022253393
Congress,Paul Ryan,Congress,6087524711,6087524711
Congress,Paul Ryan,Congress,2626542156,2626542156
Congress,Paul Ryan,Congress,2626375689,2626375689
Congress,Christopher Shays,Congress,2022259629,2022259629
Congress,Christopher Shays,Congress,2035790771,2035790771
Congress,Christopher Shays,Congress,2022259629,2033571050
Congress,Mark S. Kirk,Congress,2022250837,2022250837
Congress,Mark S. Kirk,Congress,8479407143,8479407143
Congress,John C. Porter,Congress,2022252185,2022252185
Congress,John C. Porter,Congress,7024341378,7024341378
Congress,Timothy Mahoney,Congress,2022253132,2022253132
Congress,Timothy Mahoney,Congress,9416279101,9416279101
Congress,Timothy Mahoney,Congress,7728710651 ,7728710651
Congress,Paul E. Kanjorski,Congress,2022250764,2022250764
Congress,Paul E. Kanjorski,Congress,5708258685,5708258685
Congress,Paul E. Kanjorski,Congress,5704966439,5704966439
Congress,Gerald McNerney,Congress,2022260861,2022260861
Congress,Gerald McNerney,Congress,9257370734,9257370734
Congress,Gerald McNerney,Congress,2094768587,2094768587

Phone Numbers

Please phone every office.

Paul Ryan, Phone: (202) 225-3031 Fax: (202) 225-3393
Janesville, WI Phone: (608) 752-4050 Fax: (608) 752-4711
Kenosha, WI Phone: (262) 654-1901 Fax: (262) 654-2156
Racine, WI Phone: (262) 637-0510 Fax: (262) 637-5689

Christopher Shays, Phone: 202-225-5541 Fax:202-225-9629
Bridgeport Phone: 203-579-5870 Fax: 203-579-0771
Stamford Phone: 203-357-8277 Fax: 203-357-1050
Norwalk Phone: 203-866-6469 No Fax
Ridgefield Phone: 203-438-5953 No Fax
Shelton Phone 203-402-0426 No Fax

Mark S. Kirk, Phone: 202-225-4835 Fax: 202-225-0837
Northbrook, IL Phone: 847-940-0202 Fax: 847-940-7143

John C. Porter,Phone: 202-225-3252 Fax: 202-225-2185
Henderson Office Phone: 702-387-4941 Fax: 702-434-1378

Timothy Mahoney, Phone: (202) 225-5792 Fax: (202) 225-3132
Port Charlotte, Phone: (941) 627-9100 Fax: (941) 627-9101
Stuart, FL Phone: (772) 878-3181 Fax: (772) 871-0651

Paul E. Kanjorski, ph: 202-225-6511 fx: 202-225-0764
Wilkes-Barre, PA ph: 570-825-2200 fx: 570-825-8685
Scranton, PA ph: 570-496-1011 fx: 570-496-6439

Gerald McNerney, (202) 225-1947 Fax: (202) 225-4060
Pleasanton, CA (925) phone: 737-0727 Fax: (925) 737-0734
Stockton, CA 95207 phone: (209) 476-8552 Fax: (209) 476-8587

Fax Title: Scrap The Paulson Plan, Instead Try This

Today the Irish government announced a surprise decision to safeguard the Irish banking system for two years, guaranteeing all deposits, covered bonds, senior debt and dated subordinated debt of the four main banks.

The Result

Investors welcomed the news. By 0755 GMT, Allied Irish Banks PLC (AIB) rose 14%, Anglo Irish Bank PLC (ANGL.DB) rose 22%, Bank of Ireland PLC (IRE) rose6.7% , and Irish Life & Permanent PLC (IPM.DB) rose 22%.

Why Ireland’s Plan Works

What Ireland is fighting is the same thing that the Fed is trying to fight here (outflows from banks and money market funds into short term government debt.)

The problem is NOT mom and pop pulling bank deposits, it is corporate treasurers and state treasurers whose jobs are on the line pulling deposits from weak banks and putting them into stronger ones.

The fastest way for the US and other governments to solve this is to raise deposit insurance ceilings. This is a far better option than ballooning the Fed’s balance sheet more.

Furthermore, I would highlight that fully guaranteed deposits would put the US government even more at the top of the capital structure of banks. Existing senior debt is all of a sudden now fully subordinated to a potentially unlimited amount of insured deposit debt.

Why the Paulson Plan Fails

The Paulson plan fails because it does not stop mistrust between banks or mistrust by depositors. All it does is throw $700 billion in taxpayer money down a black hole.

The Paulson plan is also unconstitutional. There is no constitutional authority for the US Government or the Federal Reserve to use public (taxpayer) money for what is definitely a private purpose (bailing out Wall Street).

Finally, the Paulson plan takes time to implement fairly, and there are many holes in the oversight process.

How To Stop The Run On Banks

Temporarily guarantee all deposits at US Banks. Implement rules to ensure weak banks do not misuse this privilege by adopting risky lending practices. Conduct an orderly shut down all undercapitalized banks.

Modified Paulson Proposal Is A Disgrace

The modified Paulson bill is so full of holes and toothless provisions it is a disgrace to suggest it is close to being ready for a vote. Most importantly, the bill will not create a single job, nor will it solve the underlying economic problems. Over 190 major economists agree.

Fox Oversees Henhouse

The bill sets up an oversight board, which is directed to “ensure that the policies implemented” by Mr. Paulson are proper. Mr. Paulson is to be one of the five members of the board watching over his own actions. He is joined by the chairman of the Federal Reserve, the chairman of the Securities and Exchange Commission, the Housing Secretary and the director of the Federal Home Finance Agency.

The oversight committee is a complete joke.

New Proposal Cedes Congressional Authority To The Administration

Paulson, or whoever the next Treasury Secretary is, can buy whatever he wants, at whatever price he wants. Why should Congress give such authority to anyone at any time?

If you vote for this Bailout Bill I will vote against you.

I will do more than that, I will work actively for your opponent, no matter who that person is, doing everything in my power to contribute to your defeat.

If you vote for this bill I will contribute my time, energy and money to your opponent, whoever that may be.

I will talk to my friends, my family and my co-workers and urge them to do the same. I have already contacted many friends and have asked them to do the same.

Please scrap the Paulson proposal in entirety and try something that might work, that is constitutional, and does not put taxpayer money at risk. I have submitted such an alternative to consider. The Paulson proposal must be scrapped in entirety.

Your Name
Your Email Address

If you live in their district, please add your address and phone number.

Our goal is to not lose a single rep, but to gain some that are on the edge.
Your help is appreciated.

Also see How To Stop A Run On The Banks

Make sure you contact every senator as well, details are in the above link.

Mike “Mish” Shedlock
Click Here To Scroll Thru My Recent Post List