This letter was created by 9 members of No blank check for Wall Street using the democratic, collaborative writing tools at MixedInk.com. For more about how it was created, and other drafts, see http://mixedink.com/letter_to_congress/no_blank_check_for_wallstreet/. It can be republished only if accompanied by this note. Note that several other drafts were prepared, and this letter does not necessarily reflect the opinions of all the participants. If you agree with this letter, please sign either on the signature thread here or on our Facebook page. Next week, after the house vote, we'll be working on another open letter, this one to the presidential candidates in preparation for the debate on domestic policy. Stay tuned! Jon Pincus, October 3 Note: I also posted this on Nancy Pelosi's discussion board and John Boehner's wall.

Instead of buying assets, why not provide direct credit to those who need it?

As we understand it, the purpose of buying $700 billion in distressed assets is to relieve the inability of the financial services industry to extend credit which businesses and citizens need in order to purchase assets, carry out improvements, pursue education, and aid short-term adjustments to a changing financial landscape.

Such a buyout puts us in the position of buying questionable assets at an inflated price. It also links the US economy to these declining assets which have already caused the bankruptcy of numerous large financial institutions. For this plan to succeed, the housing market would have to improve in short order, but given the realities that most Americans still cannot afford to purchase property even at today's prices, the only likely chance for property values to increase would be for rampant inflation to take hold, and we all recognize that would hurt our economy. Therefore, the buyout is a bad idea; however, we must find some way to resolve the liquidity crisis.

Here's a possible solution: use the 700 billion to provide direct credit, perhaps building on the existing Federal Direct Lending program, and cutting out the banks, which have proven themselves untrustworthy. That way, our citizens would receive the support they need to prosper without the added burden of carrying along the charlatans and rogues that have for so long plagued our financial sector.

Since the Clinton administration's rollbacks of regulation, and abetted by the current Bush administration's tax-cuts, only the top 1% of Americans have enjoyed substantial real economic growth over the last decade, and those who could least afford it actually lost ground financially. It's time to redirect money for the growth of our nation's long-terms tax-base rather than allowing the hyper-wealthy to duck responsibility now that the bill has come due.