There are currently two bills being worked on in the House as alternatives to the Paulson-Obama bill. The first is the DeFazio bill, which is intended to fix the banking system by providing, not a bailout, but insolvency relief. The second is being put together by Rep. David Scott and Rep. Doggett, with the aid of economist James K. Galbraith, and is intended to help ordinary people by creating a modern version of the Home Owner’s Loan Corporation (HOLC) to take over mortgages and keep people in their homes with reasonable serviceable mortgages.
Each bill by itself is incomplete, together with some work they could make a good, complete, humane solution to financial and economic meltdown which is also acceptable to enough Republicans to pass.
In my opinion, the Paulson bill won’t solve the problem, but will only push it back 6 months or so, at great cost to ordinary taxpayers. If the Paulson bill isn’t defeated we’re going to be back here again, a lot poorer, trying to do this right.
What I would ask is that if you are opposed to the Paulson bill, you pick up the phone and tell your Rep that you are still opposed and it’s still a bad idea. And while you’re on the call please ask them to join with Doggett, Scott, DeFazio, Cummings and Edwards in crafting the House’s own bill as an alternative.