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Here is a short letter from my friend Lisa that she sent to her representative and senators that will help you understand this current financial mess. I have her permission to post this. The more I read about the bailout the more I agree with Lisa. One line really stands out in her letter: "these measures cannot be done at the expense of community banks". Its always the little guy or independent business that gets hurt.
CKM
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A letter to State Rep. Philip S. English and Senator's Bob Casey and Arlin Spector


I am a community banker who is irate about the recent developments on Wall Street and the recent bailouts that our government has undertaken. The great, great majority of banks in this country never made one subprime loan, and ninety-eight percent are well-capitalized. We are working every day to serve our communities and provide loans to consumers and small businesses. Banks have paid tens of billions of premiums to fund the FDIC insurance fund, and we know we are going to have significantly increased premiums for years to come. We accept that, and we don’t ask for or need a bailout.
Bear Stearns, Fannie Mae, Freddie Mac, and AIG are not banks. Yet we hear constant talk about “bank problems” and “bank bailouts.” Now Congress is going to vote on legislation to consider a fund with billions of dollars in it to buy distressed assets and some want to add amendments that will hurt my bank – such as changes in the bankruptcy laws and new regulatory burdens. Such changes will only damage community banks like mine that have been an asset to your district.
My bank is trying to serve its community and make loans, but it cannot do that when policy-makers are adopting policies that may make it hard to lend, and increase regulatory costs. While a stable financial system is essential, these measures cannot be done at the expense of community banks like mine. I implore you to please consider the impact of these proposals and to oppose any effort to include bankruptcy provisions or to impose additional regulatory burdens or costs on community banks.

Lisa Zamierowski
Assistant VP & Assistant Secretary
Marquette Savings Bank