Have you ever considered that a person generally expects a marriage proposal to include an engagement ring made of a precious metal like gold? Rarely is a spoken or paper promise sufficient to purchase an option to marry your lover.

Engagement is a marriage call-option purchased from your lover (sell-write) and purchased with a specified quantity of gold (buy-write). At any time the proposer is free to abandon his call option, including on the wedding date, but by doing so he loses his gold (hence why it is an option).

This also acts as a form of protection for the proposer: the proposed must either return the ring of precious metal to exit the contract (buy-to-close) or execute the marriage on the call date (execute option).

Why haven’t federal reserve notes replaced this gold-based institution? Because fiat money comes and goes but gold is, was and always will remain money.

Congressman Dave Reichert represents people in Washington state’s 8th district. Reichert voted against the bailout on Monday and again on Friday. Reichert explains his no vote:

There’s a better way to get this done than to rush to authorize an unprecedented sum of taxpayer dollars for which we have little assurance that it addresses the real illness in our financial system, and not just a symptom of it. This proposed remedy could be more harmful than the illness.

Very true.

An organic and environmentally-friendly way to clean your feet involves allowing tiny fish to eat your dead skin cells. This is a popular treatment in Japan:

The fish pedicure trend has reached this side of the pacific. Salons across the United States now offer the service.

Or maybe not. The Sound Business Journal reports that the Department of Licensing banned the treatment:

A King County salon had offered the service, in which tiny fish eat dead skin cells, but no longer. State officials require all tools and implements used in a pedicure to be sanitized, disinfected or disposed of after using.

Why does the Washington State Department of Licensing need to force salons to use harsh, abiotic chemicals that harm the environment?

A customer has the moral right to request an organic treatment and the salon has the moral right to provide it.

A few years ago JP Morgan Chase talked about buying Washington Mutual:

Dimon expects the New York powerhouse to be able to make a major purchase in mid-2006. He stops short of saying that’s what he is shooting for.

Dimon likes the West Coast and Southeast banking markets. WaMu is one of the few banks in both areas.

“The only way to get the West Coast is WaMu, unless you think Bank of America or Wells Fargo is for sale,” said Frederick Cannon, an analyst at Keefe, Bruyette & Woods in San Francisco.

Those banks are not for sale, and JPMorgan could not afford them if they were.

Neither is WaMu, Killinger said, but the company’s relatively low value on the stock market — $43.8 billion — indicates it could be within reach of the New York financial giant.

If JPMorgan cannot persuade WaMu to sell, other possible acquisition targets include Golden West, U.S. Bancorp and Wachovia

Apparently JPMorgan had a better plan to access the west coast market than spending $40b to purchase Washington Mutual’s assets.

Instead they sent an employee, Steve Rotella, to become president of Washington Mutual in 2005. Rotella went to work and quickly destroyed the company. A mere 3 years after joining, the firm is worthless.

This week, JPMorgan bought WaMu’s branches and assets for 95% less than they could in 2005, a mere $2b. Rotella lost everything for Washington Mutual shareholders. $2b does not even cover their debts. Thousands of WaMu employees will lose their jobs and possibly their promised pensions.

What does Steve Rotella receive for his hard work? A 20 million dollar golden parachute from JPMorgan Chase; thanks for a job well done:

Washington Mutual President Steve Rotella — who joined the bank from JPMorgan Chase — has been ousted as a result of his former company’s acquisition of the Seattle bank.

Rotella, who is eligible for a $19 million cash severance, is part of an executive shuffle announced by JPMorgan Chase & Co.
[...]
Rotella, who could receive millions more in noncash severance, joined WaMu in early 2005 from JPMorgan, where he worked from 1998 until the end of 2004.

Instead of purchasing WaMu for $40 billion they paid one of their employees $0.02 billion after he reduced the price by $38 billion.

I wish I knew how Washington state Senator Patty Murray explains her pro-bailout vote after reading this.

The Puget Sound business journal is reporting some bad news for Seattle and Washington Mutual employees:

Washington Mutual employees will not find out for another two months whether they have a job.
[...]
WaMu employs about 43,000 employees nationwide — including 3,500 in downtown Seattle.
[...]
[JPMorgan Chase’s Retail Financial Services head, Charlie Scharf] said employees’ pension plans are part of WaMu’s business that’s held up in Chapter 11 bankruptcy, so it’s not JPMorgan’s responsibility to honor them.

Thousands of people losing their retirement and job in downtown Seattle will put a lot of downward pressure on the housing market.

Based on the terms of their purchase, JPMorgan estimates that home prices have another 20% to fall:

JPMorgan Chase says it will pay $1.9 billion to the FDIC to acquire WaMu’s deposits, branches and a loan portfolio valued at $176 billion. JP Morgan anticipates write-downs of about $34 billion on the loans. The leftover assets and liabilities, including subordinated debt, corporate debt and shares, along with the $1.9 billion payment from JP Morgan, will remain in the holding company, Seattle-based Washington Mutual Inc.

More info about JPMorgan’s home price projections at Calculated Risk.

JP Morgan will be the biggest beneficiary of President Bush spending tax dollars to inflate Seattle home prices. The more JP Morgan writes down the cost of their mortgages the less you will spend to purchase your next gallon of gas, bag of groceries or home.

The more we support JP Morgan, the harder it will be for WaMu employees to find a new job. Resources a software, industrial or agricultural company spends supporting JP Morgan are resources that firm cannot spend expanding its payroll and business.

It makes no sense for Seattle to support bailing out JP Morgan.

Remember that just like WaMu, Bear Stearns was a bailout of JP Morgan:

the bailout is financed by the Federal Reserve. JP Morgan Chase is buying Bear Stearns’ assets and debts, but they are taking *ZERO* downside risk. If the assets turn out to be worthless, the Federal Reserve will take the loss. When inflation runs its course and JP Morgan Chase profits, all the upside accrues to JP Morgan Chase.
[...]
JP Morgan Chase’s profits aren’t free. They’re paid by everyone else as inflation.

That is not free-market capitalism. It is fascism, the worst kind of socialism: private gain and social loss.

On Monday, Jim McDermott said that his friendship with Nancy Pelosi was more important than protecting the interests of his constituents in Seattle.

By Friday, Jim McDermott changed his mind:

There is no question that we need a rescue plan, but the Senate has just made matters worse – and that is pretty hard to do in this economy. Government has a role to play in calming the markets and addressing the economic crisis, but the more we learn, the more convinced I am the latest Senate plan is taking us in the wrong direction.

McDermott voted against the bailout Friday.

This is exactly why the Bush administration pushed to rush this bill through the house and senate.

The more people reflect on the consequences of this bailout, the more unanswered questions people have; the less people support the plan.

Why are people so confident this plan will work? How do they think this plan will stop the price of homes from falling? How will this plan make more credit available to consumers and businesses? How can more debt solve the problems of debt?

The fact is people make irrational decisions when they are afraid and rushed. This includes Senators and Congressmen. Bush used this irrationality to gain authority to start the Iraq War.

I am sure our complaints, Senator Maria Cantwell’s speech and resolve to vote no helped give McDermott the courage to stand up to this corruption and fear mongering.

If you contacted any of your Senators or Representatives this past couple weeks congratulate yourself. Continue to do so in the future.

In this time of crisis for our constitutional republic, Senator Patty Murray gave the Bush administration’s Treasury Secretary imperial power in exchange for a tax break on companies that make wooden arrows for children. She was not alone.

Senate Republicans supported the bill. Senate Democrats supported the bill. House Democrats supported the bill. House Republican leadership supported the bill.

Unfortunately I am sad to say the bailout bill passed in the House today, 263-171.

Apparently Congress learned nothing from the run up to the Iraq war. Fear and pork kowtowed them into supporting another one of Bush’s half-baked plans.

Let us hope this plan will be less disastrous. I am not holding my breath.

The bailout bill passed today in the House by a vote of 263 for and 171 against.

Who is my Representative?
You can find out your representative by entering you zip code on this page:
http://www.house.gov/zip/ZIP2Rep.html

How did my Congressional Representative vote on the bailout?
You can see how each member voted on the bill here:
http://clerk.house.gov/evs/2008/roll681.xml

Why is this bill a disaster?

Nothing in this bailout bill requires banks to increase their lending to businesses and consumers. Banks can hoard any cash they receive from the Treasury Secretary.

The bailout gives Bush’s Treasury Secretary imperial power. Congress can only constrain the way the ex-CEO of Goldman Sachs uses $700B to support companies like Goldman Sachs if they override a presidential veto with a 2/3s super-majority. That is not congressional oversight.

Vote the bill’s supporters out of office

This bill is a disgrace. The congressmen and senators who failed to vote against it mock our constitutional republic and representative democracy. Replace your pro-bailout Congressmen and pro-bailout Senators.

On Monday Congressman Jim McDermott decided that his friendship with Nancy Pelosi and Barney Frank was more important than the concerns of the constituents in Seattle he represents:

Speaker Nancy Pelosi and Rep. Barney Frank are two people I trust immeasurably; they tried as hard as they could to put together H.R. 3997 to protect the American people, and in so doing they earned my support.

He voted for the bailout on Monday. Seattle did not hide its anger from him:

He said the thousands of emails and telephone calls he has received in the last week have convinced him that people see the bailout as a Wall Street handout.

While it is disappointing that his change of heart seems more motivated by fear than conscious, he can redeem himself by voting against the bailout on Friday.

Does McDermott have the courage to stand up to the Bush administration, congressional leadership and their 20% approval rating? We will find out soon enough.

If you live in Seattle, contact McDermott and let him know how you feel.

Find out how your Senator voted on the bailout.

Send your senators a very clear message that you do not support them jeopardizing your financial security any further than Wall street has already. Vote Senators who opposed the bailout out of office November 4th.

Alternatives for Senators up for 2008 re-election in competitive elections who voted for the bailout are as follows:

Alaska

Senator Ted Stevens voted for the bailout. Vote to replace him with Mark Begich, Bob Bird, Ted Gianoutsos, Fredrick David Haase or your favorite alternative.

Georgia

Senator Saxby Chambliss voted for the bailout. Vote to replace him with Allen Buckley, Jim Martin or your favorite alternative.

Kansas

Senator Pat Roberts voted for the bailout. Vote to replace him with Joseph Martin, Randall Hodgkinson, Jim Slattery or your favorite alternative.

As Walter notes, Senator Roberts voted against the bailout.

Kentucky

Senator Mitch McConnell voted for the bailout. Vote to replace him with Bruce Lunsford or your favorite alternative.

Maine

Senator Susan Collins voted for the bailout. Vote to replace her with Herb Hoffman, Thomas Allen or your favorite alternative.

Minnesota

Senator Norm Coleman voted for the bailout. Vote to replace him with James Niemackl, Al Franken, Charles Aldrich, Dean Barkley or your favorite alternative.

New Hampshire

Senator John Sununu voted for the bailout. Vote to replace him with Jeanne Shaheen, Kenneth Blevens or your favorite alternative.

New Jersey

Senator Frank Lautenberg voted for the bailout. Vote to replace him with Jason Scheurer, Daryl Brooks, Jeffrey Boss, J.M. Carter, Dick Zimmer or your favorite alternative.

Oklahoma

Senator James Inhofe voted for the bailout. Vote to replace him with Stephen Wallace, Andrew Rice or your favorite alternative.

Oregon

Senator Gordon Smith voted for the bailout. Vote to replace him with David Brownlow, Jeff Merkley or your favorite alternative.

Tennessee

Senator Lamar Alexander voted for the bailout. Vote to replace him with Ed Lawhorn, Daniel Lewis, David Gatchell, Edward Buck, Chris Lugo, Bob Tuke, Christopher Fenner or your favorite alternative.

Texas

Senator John Cornyn voted for the bailout. Vote to replace him with Yvonne Schick, Rick Noriega or your favorite alternative.

Other Senators

How did my Senator vote on the bailout? Unfortunately not all of your Senators are up for reelection this November. Others face little competition. All of the following Senators supported the bailout:

Akaka (D-HI)
Alexander (R-TN)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Biden (D-DE)
Bingaman (D-NM)
Bond (R-MO)
Boxer (D-CA)
Brown (D-OH)
Burr (R-NC)
Byrd (D-WV)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Chambliss (R-GA)
Clinton (D-NY)
Coburn (R-OK)
Coleman (R-MN)
Collins (R-ME)
Conrad (D-ND)
Corker (R-TN)
Cornyn (R-TX)
Craig (R-ID)
Dodd (D-CT)
Domenici (R-NM)
Durbin (D-IL)
Ensign (R-NV)
Feinstein (D-CA)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hagel (R-NE)
Harkin (D-IA)
Hatch (R-UT)
Hutchison (R-TX)
Inouye (D-HI)
Isakson (R-GA)
Kerry (D-MA)
Klobuchar (D-MN)
Kohl (D-WI)
Kyl (R-AZ)
Lautenberg (D-NJ)
Leahy (D-VT)
Levin (D-MI)
Lieberman (ID-CT)
Lincoln (D-AR)
Lugar (R-IN)
Martinez (R-FL)
McCain (R-AZ)
McCaskill (D-MO)
McConnell (R-KY)
Menendez (D-NJ)
Mikulski (D-MD)
Murkowski (R-AK)
Murray (D-WA)
Nelson (D-NE)
Obama (D-IL)
Pryor (D-AR)
Reed (D-RI)
Reid (D-NV)
Rockefeller (D-WV)
Salazar (D-CO)
Schumer (D-NY)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)
Stevens (R-AK)
Sununu (R-NH)
Thune (R-SD)
Voinovich (R-OH)
Warner (R-VA)
Webb (D-VA)
Whitehouse (D-RI)

Senator Kennedy did not vote. All others voted against the bailout.

Remember: unlike Senators, all your congressmen are up for reelection. Find out which congressmen and congresswomen to vote against here.

Want to send a message to your district’s congressional Representative for supporting the bailout? Vote him or her out of office November 4th.

First determine your congressional representative district here and look below for some alternatives.

The following are 20 congressmen and congresswomen who voted for the bailout and face a tough reelection battle based on their CQ status:

California District 11
Jerry McNerney voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace McNerney with Dean Andal or your favorite candidate.

Connecticut District 4
Christopher Shays voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Shays with Richard Duffee, Michael Carrano, Jim Himes or your favorite candidate.

Connecticut District 5
Christopher Murphy voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Murphy with Tom Winn, David Cappiello, Harold Burbank or your favorite candidate.

Florida District 16
Tim Mahoney voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Mahoney with Tom Rooney or your favorite candidate.

Florida District 22
Tim Mahoney voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Mahoney with Piotr Blass, Allen West or your favorite alternative.

Georgia District 8
Jim Marshall voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Marshall with Rick Goddard or your favorite alternative.

Illinois District 10
Mark Kirk voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Kirk with Daniel Seals or your favorite alternative.

Illinois District 14
Bill Foster voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Foster with James Oberweis or your favorite alternative.

Illinois District 18
Melissa Bean voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Bean with Steve Greenberg or your favorite alternative.

Indiana District 2
Joe Donnelly voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Donnelly with Luke Puckett, Mark Vogel or your favorite alternative.

Indiana District 8
Brad Ellsworth voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Ellsworth with Greg Goode or your favorite alternative.

Kansas District 3
Dennis Moore voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Moore with Joe Bellis, Roger Tucker, Nick Jordan or your favorite alternative.

Minnesota District 2
John Kline voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Kline with Kevin Masrud, Steve Sarvi or your favorite alternative.

Nevada District 3
Jon Porter voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Porter with Floyd Fitzgibbons, Bob Giaquinta, Jeffrey Reeves, Dina Titus, Joseph Silvestri or your favorite alternative.

New York District 19
John Hall voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Hall with Kieran Lalor or your favorite alternative.

New York District 24
Michael Arcuri voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Arcuri with Richard Hanna or your favorite alternative.

Ohio District 18
Zack Space voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Space with Fred Dailey or your favorite alternative.

Pennsylvania District 8
Patrick Murphy voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Murphy with Tom Lingenfelter, Tom Manion or your favorite alternative.

Pennsylvania District 8
Paul Kanjorski voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Kanjorski with Louis Barletta or your favorite alternative.

Virginia District 10
Frank Wolf voted to bailout Wall street and give Bush’s Treasury Secretary imperial power to use taxpayer money.

Vote to replace Wolf with Neeraj Nigam, Judy Feder or your favorite alternative.