9-23-08, 9:48 am

Online activist communities have mobilized nationwide opposition to the federal government's $700 billion blank check to bail out Wall Street. After the collapse of several major banks, lending institutions, and investment firms and with at least two more major Wall Street banks on the chopping block, the Bush administration is trying to rush the handout through Congress without much public discussion, with no strings attached, and at a huge cost to taxpayers.

After more than a year of repeating the phrase 'the fundamentals of the economy are strong,' the Bush administration is now saying the emergency requires massive spending and unchecked power by Treasury Secretary Henry Paulson.

As business journalist Ed Paisley noted in an a recent commentary for the Center for American Progress, the Bush administration 'enabled the housing crisis by ignoring widespread irresponsible mortgage lending and irrational financial market practices.' When it became apparent earlier this year that a serious crisis had developed, 'the administration insisted only on 'voluntary steps' to address the underlying cause of the crisis.'

Opponents of the no-strings-attached bailout say the collapse of Wall Street has been years in the making. Banking deregulation in the late 1990s allowed mortgage lenders to adopt predatory lending practices, invent things like the sub-prime loan and the mortgage-backed security. Lenders went out of their way to lend money to people desperate to get their piece of the 'American dream' of owning a home.

Lenders decided to package bad loans as securities and sell them to other investors, and because of deregulation, no watchdog was their to look over their shoulder and say stop it. This missing piece is what the Republicans have touted as the source of economic growth and prosperity. Let business do what it wants without government interference and everyone prospers, they insisted.

But now it all has fallen apart, and business wants a free handout.

Barack Obama has led on calling for a response to the Wall Street crisis, which, instead of pretending the 'fundamentals of the economy are strong,' seeks to address the underlying problems that plague the economy. Expressing support for a comprehensive response from the federal government to prevent a deepening crisis, Obama added in a statement over the weekend, 'We need a more institutional response to create a system that can manage some of the underlying problems with bad mortgages, help homeowners stay in their homes, protect the retirement and savings of working Americans.'

'For too long, this administration has been willing to hit the fast-forward button in helping distressed Wall Street firms while pressing pause when it comes to saving jobs or keeping people in their homes,' he stated. 'Now that American taxpayers are being called on to share in this new burden, we must take equally swift and serious action to help lift the burdens they face every day.'

Online activist communities such as , , , among others joined in this call for a more comprehensive solution. In a slew of e-mail alerts calling on their members to demand that Congress rethink the Bush administration's bailout proposal, the various organizations are rejecting any bailout without preconditions.

This rejection of a no-string-attached bailout is being heard in Congress. Politico.com quoted Rep. Steve LaTourette (R-OH) as saying, 'I'm getting a lot of calls from my district, with people saying, why are you bailing out the big guys and not us?” Other members of Congress have made similar comments. Unfortunately, LaTourette turned around and insisted that this demand be ignored in favor of helping the 'big guys' with no strings attached.

Other Republicans echoed that sentiment. Congress should pass the Bush administration's bailout plan without preconditions, debate, or consideration for the needs of working families, Sen. Lamar Alexander (R-TN) told Politico.com “We must act responsibly and consider only what is in the nation's best interest,' he said The 'nation's interests' are equal to and only to the interests of Wall Street, and those interests trump Main Street, the Republicans echoed in near unison.

One Senate Republican appeared not conform to his party's consensus on the matter. In a statement yesterday, Sen. Richard Shelby (R-Alab.), who sits on the Senate Banking Committee, seemed to agree with Barack Obama's assessment by saying, 'I am concerned that Treasury's proposal is neither workable nor comprehensive. In my judgment, it would be foolish to waste massive sums of taxpayer funds testing an idea that has been hastily crafted, and may actually cause the government to revert to an inadequate strategy of ad hoc bailouts.'

The Obama campaign also called for bipartisan unity, but on a responsible plan that gives no blank check and protects taxpayers from the irresponsibility of the CEOs and Washington players who created the mess. The Wall Street rescue plan has to contain 'independent accountability and oversight,' the campaign reiterated.

Businesses and organization that benefit from the bailout must return the favor to American homeowners who face similar problems. Additionally, the federal government's assistance to Wall Street should be structured as an investment for taxpayers on which they can realize benefits down the road, and the corporations who benefit should shoulder most of the cost.

Any bailout proposal must address the economic crisis on Main Street, the Obama insisted. Struggling homeowners should be able to renegotiate mortgages to help them stay in their homes. Investments in infrastructure rebuilding and repair designed to promote job growth and halt rising unemployment should be part of the package. Also, federal aid to states should be expanded to help them avoid further budget cuts and tax increases.

Above all, Obama rejected the 'on your own – anything goes' philosophy in Washington that has reigned over the past eight years. From tax cuts for big corporations and wealthy CEOs to gutting regulatory protections, the Bush-Republican ideology has proven a failure and now 'ordinary Americans are paying the price,' Obama emphasized.