Mr. Smith: We Need You!


It is imperative that Americans organize to block the Paulson plan, for it carries a terrible price tag and lasting harm to the public interest. This is our moment to show some "Mr. Smith Goes to Washington" initiative. As Henry Paulson and Ben Bernanke testify before the U.S. Senate today, Americans must rise up to organize protests, marches, and public opinion campaigns against this plan that strikes at America's economic autonomy.

Further Description of Mark-To-Market Alternative Plan

I would like to explain why I recommend the temporary suspension of ‘mark-to-market,' as stated in my previous commentary. Notice that my recommendation for mark-to-market suspension is predicated on three associated regulatory changes: Full disclosure and transparency, proper money supply management, and a new mandate for the FED. Remember, the FED blames voters for the bubbles since it was our U.S. Congress three decades ago that directed the FED to leverage growth (through Wall Street).

The Mark-To-Market Alternative Plan

The Henry Paulson $700 billion bailout plan is a disaster, an outright robbery of America. Paulson is little more than the front man for Wall Street bandits. Some of the NYC firms that are in trouble were paying out 40% or more of total revenues in salary and bonuses. Their business model was unsustainable, immoral and corrupt. It leveraged bad debt and repackaged it into investment securities. This business model allowed massive amounts of illegitimate revenue to be converted into privately held wealth — through salaries and bonuses.

Does Joseph's Life Have Anything To Teach Us?

Do you want a darn good money story on this historic Wall Street day? I’ve got one. But first, a disclaimer. I’m no fan of mindless religion. The church world is sick, like Wall Street. And the Bible gets twisted regularly by Church Street moguls. Nevertheless, whether one thinks the Bible is God-inspired, silly myth or a thing of mystery, there are a few capitalism stories in the book that say a lot by analogy. So, let's see what we can do with the story of Joseph. Remember, the smart guy in the upscale suit?

Mark-To-Market Clarifications And Other Improvements

There has been a terrible amount of crookedness, and financial institutions should not be let off the hook. Let them live miserably with their bad loans and hold their damaged securities to maturity, thus crimping their ability to grow their businesses (as transparency requirements deter new clientele). Let new competition rise in their place. Don’t let these institutions use Chapter 11 blackmail as a means of off-loading their junk into “bad bank”surrogates or the balance sheets of taxpayers.

Government Housing Market Intervention Is Bad Plan

Irwin Kellner is a learned economist, but his recommendation for “braking the fall” is wrongheaded. We don’t need bigger government! And we don’t need the scams that would come with government being the buyer of last (and eventually, first) resort. What our country needs is the prudent and streamlined regulation of financial institutions. Proper regulation can be instituted without growing the government’s role in the economy.

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