Posted by
Mike Silverman on Friday, September 19, 2008 11:14:49 AM
To our Representatives and Senators, our Treasury Secretary Henry Paulson, our President, and to all US citizens, please... step back and take a breath, stay calm, don't panic. Let's not make a bad situation worse. Take a look at what happened on wall street overnight. News, not actual passage of legislation, but the news that the government intends to form a new 400 billion dollar regulatory agency to oversee bad debt and buy up that bad debt and bad loans. Markets have rallied, the DOW is up, wall street is celebrating, and nothing has actually happened yet to build this monstrosity of a new bureaucracy that will mortgage the future of our country's children. What does it tell you, when markets rally only on news..., it means that the markets are effected by something as simple as a few ideas being thrown around in DC. This also means that markets can be effected by leaders harping on bad news and depressing investors and consumers. We don't need this 400 billion dollar gorilla sitting on the backs of the public. Secretary Paulson, men and women of the Legislature, back off... sit down..., let this rally that has happened on the news of a monster bailout boost the confidence of the public and the world markets, and let the idea of a new government entity to buy bad loans, die a quiet death. We don't need it. If you want to do something noble , go bailout Galveston TX , where lives have been horribly destroyed by Hurricane IKE. We need to be far more afraid of what the government will do to our economy than what will happen from the market's credit fallout. This is OUR government and we need to remind those legislators that they are not kings and queens who can proclaim from on high that they will now become rulers our financial industries by using our own tax money against us. If you are a bank and you grant a large loan to a business, or an individual, and then you find that the business failed or the individual never had the ability to repay it, you don’t have to sweat. If this new government entity is created, the government will knock on your bank door, buy that bad loan off your books, and as a bank owner you can go merrily down the road making more bad loans knowing that the US government will be using tax money to keep you solvent no matter what bad loan decisions you make. It's party time for bank owners everywhere. For the rest of us it's time to watch more and more our hard earned money fly off to the pockets of these banks making those bad decisions. Do you have any better use for that money? I know I do.
- Mike Silverman, Milford MA