Frankly, the most appalling revelation during this economic crises is the abysmal lack of knowledge of capital markets displayed by our elected leaders in Washington (i.e. Congressmen and Senators). Clearly, most of the elected officials in Congress who were questioning Paulson and Bernanke positively have no understanding of the relationship of "main street" to "wall street" through the capital markets. They have little understanding of finance or even money. Yet WE elected them. And, they sure can talk - that is babble. Sadly, these will be the very people who will vote on the only plan that will save our ability to obtain our children's college loans and our next car loan. Yep, cash in the ATM, our credit cards, and every loan we try to obtain - or already have - are ALL created from the capital markets that are currently in dire straits. Do we want to lose our homes, our cars, our credit?
Folks, it's NOT a bailout in any manner. This is an investment in the United States of America and in our continued financial leadership in the world. The capital markets are in total disarray right now. That means our own money is also in disarray. That's the way capital markets work. It's a fact of life. As painful as it is, let's worry about blame later - there are far more pressing issues right now - most notably, economic survival.
Our future rides on the passage of the Paulson plan. This is a plan that simply provides the time for natural market forces to re-establish a fair value to all those complex financial terms (CDO, CDS, MBS, etc) that few, if any, really completely understand. All of the money we use to live on is "created" from those financial instruments - the capital markets. Truth is, in the end, our Government is likely to make lots of money in the Paulson plan.
Nope, not a wall street bailout, it's a main street savior. The Paulson plan is our "of this world" savior.
And please, let's NOT pork it up! Congress, let's stick to the root issue, not the politics - I know, it'll be hard for you - it's times like these to show your leadership resolve not your political prowess.
Presidential Candidates – Show us your leadership skills, not your debate team skills.
We are all watching, I certainly am. My vote this fall will be based on
demonstrated leadership, not
spoken leadership.
I hope that we all take some time to learn a little about how money really works. We have plenty of time to polish our rhetoric later.
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OK, so now it's a couple days later. The day Congress first votes on the Paulson Plan - now known as TARP - Troubled Asset Relief Program.
So, what profoundly egregious behaviors our elected leaders in Congress
presented to the world today - Monday, 29Sept2008 - during the failure
of the House to either ratify or offer an alternative to our economic
crises.
He said, she said, he did it, they did it, how do I
look, is my hair combed, oh heck with the patient, the doctors are
going to take their holiday tonight. No offense to those elected
leaders bowing out to celebrate Rosh Hashana, but what if your surgeon
decided to take a holiday while YOU were on the operating table?
Listen
to what our representatives had to say today – shameful children. Look
at how the GOP played politics "in order to get re-elected" at the
expense of the entire global economy. Businesses already are unable to
get credit to meet payroll. It's just a matter of time – a week or two
– before everyone of us feel the fall out directly, if you haven't
already. And our Washington LEADERS did not LEAD – they COWERED. Where
are our representatives in trying to educate us on exactly what is
going on? No offense folks, but this situation is exceedingly COMPLEX.
It is NOT in any way "main street" vs "wall street." Let's be frank,
the average person DOES NOT understand what is really happening. Heck,
I have an MIT and Sloan School master's degree and I barely grasp but a
sliver of the complexity. Make NO MISTAKE this crises is very REAL. You and I lost $1TRILLION dollars - many of our retirement 401k accounts - in the market today alone. Thank you Congress.
This Plan is NOT a Wall Street bailout, it is NOT a fat cat
bailout. It is all about MAIN STREET. Main Street is fueled, fed, and
enabled by these credit and capital markets – not the other way around.
The Plan is all about freeing up money in these credit markets so WE on
main street can get PAID, so WE can use our charge cards, so WE can get
money out of the ATM machine. After main street is re-fueled with the
capital that this plan frees up, everything else FOLLOWS,
automatically. Folks it is NOT A BAILOUT. It is a mechanism to free up
the capital markets that make the entire world work. Study it. Learn
about it. It is frighteningly real.
OUR duty is to learn and not
complain until we UNDERSTAND. OUR duty is also to elect LEADERS not
children. This stalwart Republican cannot vote the elephant any longer
after their abdication of their responsibility to protect we, the
citizens who elected them. And they did it solely along party lines.
I
am ashamed for the United States of America and profoundly embarrassed
for the actions and frankly, inaction, of those we elected.
I will do
my part to change that.