September 22, 2008

**Republicans Should Oppose the Bailout Plan**

*"Nationalizing Every Bad Mortgage in America Is Not the Answer"*

Dear Republican Colleague:

Our financial markets are in turmoil and the Administration was right to
call for decisive action to prevent further harm to our economy, but
nationalizing every bad mortgage in America is not the answer.\
\
As **Bill Kristol** wrote in "A Fine Mess" in today\'s *New York Times*:

> And I acknowledge that there are serious people who think the
> situation too urgent and the day too late to allow for a real public
> and Congressional debate on what should be done. But --- based on
> conversations with economists, Wall Street types, businessmen and
> public officials --- I'm doubtful that the only thing standing between
> us and a financial panic is for Congress to sign this week, on behalf
> of the American taxpayer, a \$700 billion check over to the Treasury.

The Administration\'s request amounts to the largest corporate bailout
in American history. Congress should act, but should act in a way that
protects the integrity of our free market and protects the American
taxpayer from more debt and higher taxes. Congress must not hastily
embrace a cure that may do more harm to our economy than the disease of
bad debt.\
\
And the stakes for our free market could not be higher.\
\
As **George Will** observed on *ABC\'s This Week with George
Stephanopoulos* program yesterday,

> When the British Labour Party was socialist, it defined socialism as
> government control of the commanding heights of the economy.  And in
> Britain, at that time, it was coal, steel, and railroads.  The
> commanding heights of the American economy are financial services, and
> they are now controlled by the government.

To avoid a slide into socialism for our financial sector, Congress must
consider all available options to put our nation\'s economy back on its
feet. There are no easy answers but there are alternatives to massive
government spending.\
\
As was observed in an editorial titled "A Bad Bank Rescue" by
**Sebastian Mallaby** published in *The Washington Post* on Sunday,
September 21, 2008:

> Within hours of the Treasury announcement Friday, economists had
> proposed preferable alternatives. Their core insight is that it is
> better to boost the banking system by increasing its capital than by
> reducing its loans. Given a fatter capital cushion, banks would have
> time to dispose of the bad loans in an orderly fashion. Taxpayers
> would be spared the experience of wandering into a bad-loan bazaar and
> being ripped off by every merchant.

Alternatives to a massive federal bailout must be fully considered and
debated before Congress acts.\
\
Finally, any new expenditure of taxpayer dollars should be paid for with
fiscal discipline and reform. If Congress decides to spend nearly 1
trillion dollars on a corporate bailout, it must find budget savings to
prevent that cost from being passed along to the American people. \
\
As our distinguished former Republican Speaker of the House, **Newt
Gingrich**, wrote in a post titled "Before D.C. Gets Our Money, It Owes
Us Some Answers" on *The Corner on National Review Online* yesterday and
prominently displayed today on the homepage under the headline "Newt:
Wait One Minute":

> Congress has an obligation to protect the taxpayer. Congress has an
> obligation to limit the executive branch to the rule of law. Congress
> has an obligation to perform oversight. Congress was designed by the
> Founding Fathers to move slowly, precisely to avoid the sudden panic
> of a one-week solution that becomes a 20-year mess.

I have attached Speaker Gingrich\'s entire NRO essay for your review.

I urge you to join me and other conservative voices in opposing the
bailout plan. Republicans should demand that Congress take time in
deliberating the merits of any legislation until the facts and competing
solutions can be fully debated. We should demand consideration of free
market alternatives to massive government spending and we should fight
to pay for the solution through budget cuts and reform instead of more
debt or taxes.

> Sincerely,
>
> Mike Pence\
> Member of Congress