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April 26, 2010

URGENT: Financial “Reform” Vote Could Be Today

The Senate may vote on Chris Dodd’s unconstitutional financial “reform” bill TODAY!

We have mentioned some of the dangers of this bill before . . .

* There is no audit of the Federal Reserve 
* It creates new armies of unelected lawmakers, in violation of the Constitution 
* It creates a bailout fund for the creditors of large, failing firms 
* And does nothing to halt the boom-and-bust cycle  
There are many more reasons to oppose the bill. A good summary is provided by James Gattuso of the Heritage Foundation.

At its heart, this bill . . .

* puts the government in control of the financial industry, and potentially the entire economy,
* and stacks the deck in favor of the largest corporations against smaller competitors
* but won’t address the root causes of the 2008 collapse – the Fed’s inflationary policies and the housing bubble it created

And so we’re asking you to tell Congress to oppose Chris Dodd’s financial “reform” bill using’s Reduce Regulations campaign. 

You may borrow from or copy this letter . . .

I demand you oppose Chris Dodd’s so-called financial “reform” bill. This bill . . .

* strips from the House bill the requirement to audit the Federal Reserve
* creates new armies of regulators with conflicting goals, which will create confusion in the market
* does nothing to end the inflationary boom-and-bust cycle (support Ron Paul’s Free Competition in Currency Act if you want real reform)
* doesn’t even address the failure of vast numbers of subprime and other nonprime loans, which precipitated the 2008 collapse 
* restricts freedom of choice of individual borrowers and lenders, making credit more expensive and harder to get
* contains vague language that could lead to government takeovers of Wal-Mart, IBM, and other companies that had nothing to do with the crash
* favors lining the pockets of trial lawyers over arbitration

I could give you another dozen reasons to oppose the bill, but the most important is explained by Peter J. Wallison:

* by authorizing the Fed to regulate large, non-bank financial institutions
* and by authorizing the FDIC to take over failing institutions outside the normal bankruptcy process and to bail out their creditors
* the government will signal to the financial markets that these firms are too big to fail.

This means . . .

* large companies would be favored over smaller ones,
* the U.S. financial-services industry would morph from a competitive and innovative system–with many large and small competitors–into a system dominated by large institutions that are virtual wards of the government, and
* successful financial firms would prosper through effective representation in the power corridors of Washington rather than competition in the marketplace

I support reform of our financial system. But what we need is MORE freedom of choice, MORE personal responsibility, MORE competition, and MORE innovation. Chris Dodd’s bill gives us LESS of these things.



You can send your letter using’s Educate the Powerful System

We also urge you to call your Senators. Their phone numbers are listed when you are logged-in to the campaign.

Thank you for being part of the Downsize DC Army.

James Wilson
Assistant Communications Director

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