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30 September 2008 @ 09:04 am
Write to your representative  
Part of the problem getting a bail out passed is that our representatives are getting emails and calls of up to 200-1 against it from their constituents. If you're up for re-election, that can be daunting.

I think the problem was presenting it as a bail out of fat cats in the first place, because that's not exactly what it's meant to do. What it's meant to do is restore the flow of credit--they should have called it the credit rescue bill. They haven't done a good job on TV of explaining how this works. So now the stock market is free-falling because some politicians were afraid to vote yes in an election year.

I suspect most people hear about credit and think, "Well I can wait to buy a car or house so it doesn't affect me."

Here's how it will affect everyone: businesses rely on lines of credit to operate in hard times or any time their cash flow is slow or interrupted--like a slow economy. When I say operate I mean pay employees and buy the stuff they need to do business. They may rely on such credit a few times a year or monthly, depending on the flow of their business.

If they can't get that line of credit or they must pay a lot more in interest, guess what? Layoffs! Reduction of benefits! No raises! Or all three...

This affects all businesses, large and small.

Also, Suze Orman was talking about credit limits being reduced by credit card companies. That will affect your credit rating--part of your FICO score is your amount of credit accessed vs how much you have available. That ratio strongly affects the FICO score.

We will still have some financial problems even with this bill--inflation, a continued mild recession and so on. But we could sink into a depression with up to 20 per cent unemployment without it.

You can find your representative and write to him or her here. Put in your zip to find yours.

The site is getting a lot of traffic so it may take a few moments.

ETA: Volume is so high they can't handle it. Here's an alternate way:

http://www.visi.com/juan/congress/

Once you find your representative and the rep's web site, you can send an email via their site's contact link.

Here's what I said:

I support the bail out--I just wanted to let you know since I've heard how many are against it and are being vocal about that. I think however that there has been a real failure of all political leaders to fully explain it. As long as it is just "we're trying to help Main Street" and "you won't be able to buy a car" and so on, it won't reach voters. They don't all know, as I do, how much businesses regularly rely on credit lines to operate and how this can affect their jobs, benefits, and any potential raises. They think of businesses as always having lots of money. They don't know there's a cyclical nature to business income while expenses remain static. Someone needs to get a flow chart like I saw one night on CNN or MSNBC to explain it to people who don't think about finance--EVER. :)
 
 
 
Angiextremeroswellia on September 30th, 2008 04:25 pm (UTC)
Thanks for that. You're right, the TV and reports have NOT been clear at all. I think I understand it a little more now. :)