Arrogance, Incompetent Congressmen, and Greedy Financiers

I am confused, peeved, decimated, and I am not going to take it anymore. If the Robber Barons were despicable by their reputations as documented in our early history, Wall Street and Corporate America are the Global Pirates of the twenty-first century. It takes a unique individual to systematically fleece America's financial services to the point of total annihilation of the system – my thoughts are that the closest comparison is a ‘pimp and his whore’. Graft in the form of campaign donations to Congress has been the other contributing factor that becomes more apparent as we uncover more of what Congress has done with the cognizance of the last two presidents, and finally; it could not have been accomplished without the exclusive participation of Wall Street’s financiers.

Initially, I was confused. It was apparent to me that Real Estate investments were the hottest thing in the late nineties; our point of contact at our banking company was so caught up in mix that he moved money from our banking accounts into a real estate mutual fund without consulting us. What I didn’t understand at the time is how deep the financial center of our universe was involved; how the safeguards that were normally in place had been circumvented, and how the resultant would affect me.

Congress has not been involved with protecting the interest of the American public. The most significant factor was Clinton’s signing of legislation that sowed the seeds of deregulation with the Commodities Market Futures Act - thanks to Mr. Phil Gramm. The next president seemed to not want to care or show any interest in what Wall Street was doing. We all remember... "Wall Street got drunk". For Bush, the main indicator for the inference that the economy was ‘fundamentally sound’ – the level of the DOW Index – was all that he needed to see on a daily basis. Those that understood what the Federal Reserve was doing, in the form of rate adjustments to keep the real estate market cooking, simply said nothing. It became apparent to me that we were about to see behind the curtain when Mr. Greenspan decided abruptly to retire. I whispered to my wife… well, the other shoe is about to drop.

Wall Street, the other piece of the pie, is being forced to take money from government officials in hopes that the banking system will dutifully apply these resources in the best interest of the banking system and our financial institutions. Bad mistake! Greed from within the banking system is the root cause of our predicament. Corporate greed, to be more specific, is so irresponsible that it borders on the bizarre. Ten years ago I worked for a major telecommunications company as a cable splicer – a top pay job within the hierarchy of that major telecommunications company. The CEO of that major telecommunications company was making twenty-two hundred times my base pay of one thousand fifty dollars per week, or two million, three hundred ten thousand dollars annually. The inequity of that example can be applied throughout Corporate America when you consider that was just his base pay; we are not counting his stock options and other compensations – this was a yearly thing!

The middle-class, those making between fifty to seventy thousand dollars annually – union protected jobs – were systematically destroyed by the Republican Party. Reagan’s example with the Air Controllers was the blueprint used by first Newt Gingrich, and then Carl Rove and company to rip the heart out of collective bargaining and the American way. Considering that cash flow within the financial system is imperative to the growth of jobs, middle-class wage-earners were the fuel in the economic equation that kept this country going during the last eight years. When it became apparent that out-sourcing and union busting had taken their toll, Greenspan saw the handwriting on the wall and exited stage left.

The efforts of Congress, the Treasury Department, and Wall Street have thus far been less than adequate in solving this problem. Congress needs to legislate (regulate) the financial centers of America – Banking institutions, Credit Cards institutions, and Mortgage Bankers need to be reined in with force. The Treasury Department has to step up to the plate and hit nothing less than a homerun in solving the critical situation regarding the ‘toxic assets’. Wall Street has to demonstrate accountability by realizing that without truthfulness there is no bottom to the market as currently configured.

Finally, it should be understood that one of the good things about the two party system of America is the possibility of presenting an alternative point of view for consideration. This has not been the case in the days since Obama became President. I would urge the GOP to get with the program and earn their keep, less they be associated with the likes of Hooverism in this day and age. You simply can't just say 'no' and be considered a thinking person. For sure, the current actions, or should I say inactions by the GOP simply doesn't bring credit to that party.

In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control.

How To Rescue The Economy

I want to share with you my thoughts on this bailout situation. We don't need seven hundred billion dollars to repair this problem. In fact, we don't need any money at all. This is why...

1. We should renegotiate all of the loans that are sub-prime and get rid of the ARM forever. All of the loans that are delinquent, or borderline should be extended so that the borrower can meet the payments. In other words, if it takes more than thirty years to repay a loan at three hundred dollars a month, as oppose a fixed thirty year loan with payments of nine hundred, then restructure the loan so that the person can make the payments.

2. Identify all loans and the circumstances that are presently making the borrower delinquent in payments - resolve it by one of two ways. Re-finance the loan terms in such a way that the borrower can make payments, or place that loan at high risk for further evaluation and resolvement.

3. Those mortgage lenders that stretched the parameters for making loans to borrowers that were marginally qualified should be prosecuted for fraud.

4. No golden parachutes for CEOs and administrative officers that were at the helm of companies that failed - retroactive. In other words, if the culprit is gone, go get him! Limit the retirement package for all CEOs.

5. No money to investment banks that are going under.

6. Re-instate the regulations that were withdrawn with the Commodity Futures Market Act of 2000. Increase the transparency of all markets wherein there is the possibility for speculation - oil, electricity, etc. Severe penalties for violators.

7. Institute national projects that would create jobs (bridge and road repair, technical skills) Setup centers dedicated to the re-tooling of the job market so that individuals can make themselves employable. Make it a goal to reduce the pollutions of automobile by setting the bar for carbon reduction and using the money that was accepted by the auto industry to retool that industry.

8. Re-structure the tax code so that the taxes for those making less than fifty thousand are not taxed as much as those making between fifty thousand to one hundred fifty thousand, and those making more than one hundred fifty thousand will pay a little less than those making more than one hundred fifty thousand. Let's rebuild the tax structure in the shape of a vase - small at the bottom, fat in the middle, and somewhat bigger than the bottom at the top.

9. Increase Social Security taxes by raising the taxable group to those making two hundred seventy thousand.

Those in a position to set policy should began to understand that this economy is not trickle down, it is trickle up. The reason that you don't have cash flow is because the work force is reduced and can't spend enough money to support a substantial cash flow. With a reduction of the people that were making fifty to sixty thousand dollars a year, we lost cash flow.

We should, all as one, resist the notion that if we don't do something tomorrow, the world will cease to exist as we know it. The Bush administration has used 'fear' tactics more than enough times to let me know that it 'ain't so' folks. Bush lied about WMDs in Iraq. Bush lied about Al Qaeda in Iraq. He has not kept his promise to get Osama Bin Laden. The Bush administration cannot be trusted with seven hundred billion dollars just before they walk out of the door. Personally, I think Bush and Cheney and the rest of the gang are seeking their severance pay (golden parachute) before bailing out.

Here is your cue... the banking system was supposed to have crashed last weekend - it didn't. It was supposed to crashed on last Monday - it didn't. Now it is supposed to crash on this coming Monday (September 29, 2008); my prediction - it won't!

Don't believe the hype; we don't need a bailout! If you agree with me, send this letter to your Congressional representatives in both houses asap!