We can complain about lazy government workers, high taxes, and bailing out “whiners, losers, and deadbeats” all day long, but we’re dealing with individual lives, families, and millions of potential job losses if the CAUSE (foreclosures) isn’t halted immediately, which is triggering the EFFECT ($67+Trillion of Unregulated Derivative’s, CDO’s, and CDS’s) which is the real threat to the banks and other financial institutions.

Gretchen Morgensen’s article about AIG in this morning’s NY Times shares how a 377 employee unit in London brought down a stable, 116,000 employee company by diving deep into Derivatives, CDO’s, and CDS’s.

I believe the banks and investors could probably handle the wave of foreclosures, if that’s all that it was. But it’s not. Unfortunately, for every $1,000,000 in loans, there’s $3,000,000 in Derivative products attached (that we know about)that can potentially trigger a “credit event.”

Banks hold lots of Derivatives. Private Equity and Hedge Funds borrowed money from these same banks to buy and sell derivatives as well. Someone’s winning big and someones losing big in these credit events. Banks may never see that Hedge Fund or PE money ever again. More losses, more need to raise capital from somewhere. Undercapitalized banks don’t lend money. They hoard it.

All of this starts with homeowners and ends with homeowners. The more that intentionally default on their upside down mortgage cause more credit events and more losses for banks, who in turn shut off credit to each other, to small, medium, and big business. Jobs are lost and the cycle just spins further and further down the rabbit hole.

Let’s hope Paulson can both capitalize the banks and find a fast and effective solution for 11,000,000 potentially upside down homes. People are hoping for the best and are willing to do whatever it takes to keep their family in their homes and community in tact. Let’s hope the government finds a mutually beneficial program to make this happen.

Right now senior Indiana Congressman Mike Pence (R) and others are at Capitol Hill holding their ground against The Fed, Bush, Paulson, and Bernacke. Time is of the essence because Bush continues to feed the message to the media that our world will melt on Monday if they don’t get their $700+ billion bailout regardless of what America’s taxpayers want. This is not true. America will still be here on Tuesday.

Currently, Congressman Pence is wisely calling for a suspension of the capital gains tax on investments in order to encourage the millions of Americans without debt to invest in the markets. Here is the Congressman’s plan.

Call Congressman Pence from Indiana, tell him America has his back, and ask him to co-sponsor HR 2755, The Act to Abolish the Federal Reserve Bank, the culprits who want to steal our wealth and leave generations in debt to their private consortium of bankers. The Congressman’s office is receptive to your message!

PLEASE FORWARD THE MESSAGE BELOW TO YOUR LISTS:

“We are helping the Indiana tax activists with HOOSIERS FOR FAIR TAXATION in Congressman Mike Pence’s home state of Indiana. They have a solid verifiable track record of successes and political network that includes elected officials on the right side.

Mike Pence, a courageous Senior Congressman from Indiana, was first to stand down the Fed against the bailout. Please call and fax his Indiana Office. Tell him we are grateful for his courage, tell him America has his back, and ask him to co-sponsor HR 2755, the Act to Abolish The Federal Reserve Bank and return America’s wealth to her own Treasury! There is unbelievable ground support and the Congressman is getting calls from high places to co-sponsor the Act to Abolish the Federal Reserve, HR2755.

Be polite, enthusiastic, and be sure to thank him for his courage!

The numbers below are for his campaign office. There will likely be staff in his office this weekend. If no answer, send a fax and leave voicemails with your name, city, state. It doesn’t matter if you are not from Indiana.

REP MIKE PENCE INDIANA OFFICE
PHONE: 765-643-9503
FAX: 765-643-9514

P.s. Then don’t forget to call your own local Congressperson and tell them her or him to stand with Representative Mike Pence and with the American People.”