Letter to Congress: Stop The Bailouts

Dear Congress Member

I've been very close to the markets for some time now. I'm very aware of the things that are going down now. I am also aware of many of the potential consequences as some of these institutions like AIG, Bear Stearns and others fail.

I submit to you however that these institutions must fail. By propping up housing prices, and the markets, prudent investors like myself, and better, functional institutions, are being robbed of actual cash by the less cautious, and more reckless market players.

Keeping these failing institutions is hurting market transparency, creating greater moral hazard in the marketplace, preventing new functional institutions from reinvigorating the markets.

I am one that believes very much in market policing, and I believe just as with FEMA and Hurricane Katrina, the bush administration has stripped the markets of much of the effective enforcement that could have mitigated some of the disaster we're facing now. But now, the current government intervention amounts much more toward Corporate Welfare, and a corporate run government. These actions do not represent the best interests of the markets or the people.

These actions seek to prop up institutions that have proven they are failures.

Please prevent tax money from going to these institutions. There are much better ways to let this economy adjust.

Thank you for your time and consideration.

AIG Stuck on Mortgages

Amidst the news of WAMU, Lehman, and rumors of Merrill failing, the insurer AIG is seeking to raise $20,000,000,000 to cover it's own shortfalls. UK Times Via Nakedcapitalism.

The company has been taking major losses in large part because of its mortgage and security insurance businesses. The losses are likely to continue to grow.

Here's what's odd. Business News Americas this week reports that AIG is hoping to inure 140,000 Mexican mortgages by 2013. The Mexican housing market, while not in the same position as the U.S. is currently showing signs of weakening. One can only hope the company learns from past experiences, so far that doesn't look likely.

Of course it doesn't look likely the company will be around by 2013.