Where's My Bailout

I wrote the following letter back in January, 2009. It was tongue-in-cheek and intended to convey the audacity of the bailouts; more importantly, the lack of help to the middle class American. I did not expect anything from this letter (nor did I get anything) and we sold our house about 3 weeks after I sent the letter, although we did have to lower the price significantly.

I submitted this letter to the two Senators from Washington State, Maria Cantwell and Patty Murray, as well as the Representative in my congressional district, Rick Larsen.

Mr./Mrs. Cantwell, Murray, Larsen (I used only the name of the individual in the actual submittal),

I am a home owner in Marysville, Washington where I lived with my wife and 3 children for 8 years before moving to Colorado on October 3, 2008. Our beautiful home in Marysville remains unsold despite price reductions, 2 brokers’ opens, 5 open houses, and many varieties of marketing. In a few short months we will no longer be able to pay our mortgage on the home and will join hundreds of thousands of similarly plighted homeowners facing foreclosure (in reality, we would have rented the home long before we were in financial trouble, but I thought this would sound consistent with all the other "victims of capitalism" crying for a bailout). For this reason, I am respectfully requesting a government purchase of my “troubled asset.”

Unlike many of my fellow citizens imperiled by foreclosure, we were not lured into creative financing. We sold our previous home high and bought our current home below market prices in 2005. Because the home was in mild disrepair we slowly made improvements using contractors where necessary and doing it ourselves when possible to save money. Instead of spending into excess, we paid off our car loans, avoided any revolving debt, and contributed to savings and a 401K. Despite our fiscal responsibility, we are now ravaged by the Government’s unabashed directive to Fannie Mae and Freddie Mac to lend to risky borrowers, the fallout from predatory lenders, and the short-sightedness of irresponsible mortgagors. Additionally, our home value has dropped from a high of $405,000 in 2007, to $360,000 during a Spring 2008 appraisal, to $300,000 in today’s market.

While provisions now exist for troubled banks, businesses, and homeowners, there is nothing but the promise of higher taxes and inflation for those of us who acted responsibly. Conscientious homeowners like us cannot compete with the rash of foreclosure and short sale properties on the market, yet there is hope only for the latter. Instead of rewarding and emphasizing strong financial stewardship our government is reinforcing risky, haphazard practices.

For these reasons, I request a government purchase of my home at its current list price. While an expense to the American taxpayer, it is a valuable asset that can be resold to an investor or a new homeowner at a profit when the market recovers. The alternative is yet another foreclosure, another property depressing the current market, and a responsible citizen’s track record of stellar responsibility in ruin. We win, our home is sold; the bank wins, no foreclosure; taxpayers win, profit on the house; other homeowners win, one less short-sale on the market depressing home values; and the government wins, reinforcing positive behavior. (You'd think this would be something a rational politician would want, but therein lies the failed assumption - rational.)

Best Regards,

Letters to Leaders

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About a week after I sent the letter I received the following response from Maria Cantwell's office. While I appreciated the response, its form-letter origin was highly evident. Moreover, this same sales line was used to later pass the massive Obama Stimulus plan, but I still haven't seen a dime. I could write a lengthy dissertation for my doctorate in economics on the perils and failings of the "stimulus" package that did pass, but that's beyond the scope of this blog.

Dear Letters to Leaders,

Thank you for contacting me with your thoughts about the need to help American taxpayers as our economy continues to sour. I appreciate hearing from you on this issue, and regret the delayed response.

I understand that American families are struggling as our economy weakens, and the nation's economic plight is one of the most important issues facing this country right now. Homeowners, whether they are current on their mortgage payments or not, are seeing their home values plummet. Workers as well as seniors are seeing savings they have invested in the stock market dwindle. Some school districts and utilities are having trouble selling the bonds they need to operate. Small businesses that used their lines of credit to meet payroll or to buy supplies have been telling me of the difficulties they face, particularly in getting the capital they need to operate.

This continued economic deterioration has prompted the U.S. Congress to begin discussing work on a second stimulus package, to follow the package that passed in February 2008. Congress has considered a host of potential policy options, but to date, no legislation has been formally proposed.

A key component of any further stimulus legislation is a set of policies that will provide long-term economic benefits, like creating jobs, as well as having a rapid and positive short-term impact, like a stimulus check provided by the recovery bill. Long-term economic growth, will put us back on the path towards a strong and vibrant economy. One of the best ways to keep people in their homes is to ensure that they have stable jobs that allow them to pay their mortgages.

While there are currently no concrete plans regarding the timing or contents of a potential stimulus package, Congress will continue to seriously evaluate a number of proposals in our search for an effective plan. It is imperative that we act to turn our economy in a new direction, and I will continue to use my seat on the Senate Finance Committee to pursue policies that foster conditions to encourage economic growth and higher standards of living for our working middle-class families. Please be assured that I will keep your views in mind as Congress considers legislation to ease the burdens you are enduring.

Thank you so much for contacting me to share your thoughts on this matter. Finally, I would like to keep you informed of what is happening in D.C. Every Monday, I provide a brief outline about my work in the Senate and issues of importance to Washington state. If you are interested in getting this update, please visit my website at http://cantwell.senate.gov. Please do not hesitate to contact me in the future if I can be of further assistance.

Sincerely,
Maria Cantwell
United States Senator

For future correspondence with my office, please visit my website at
http://cantwell.senate.gov/contact/index.html

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Only last week did I hear from Rick Larsen's office. It was an invitation to his Community Forum in Marysville. Apparently, three months isn't too much time for a person in economic peril to wait for a chance to sit around and talk about things we already know won't happen. Is it any wonder American's feel their politicians are out of touch?

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I have never heard from Patty Murray's office. Perhaps the tone of personal responsibility didn't sit well with her. Or could it be that the little people (you know, you and I) don't count in American Politics? Maybe she looked me up and realized I hadn't contributed to her campaign like the big banks and trial attorneys. Then again, she might have realized I was espousing conservative values and wanted to stay as far away from me and my ideals as possible. I guess I will never know.