Paula Hendricks

Author ~:~ Writer ~:~ Book Designer ~:~ Book Producer

Let’s get it right this time

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Dear politicians – Obama, McCain, Dodd, Frank, Pelosi, Reed, Feinstein, Boxer

 This is an opportunity now to develop our own plan, not just tinker with the administrations. Why don’t we buy preferred shares like Buffet did? Why don’t we set up something that economists all over the world and especially here in the USA have been suggesting for weeks?

 It has always appalled me that we simply accepted two things: the administration’s assessment of the crisis and its timing and the structure of the bailout deal.

 Why should we believe the administration in either of these things?

 Are the markets in trouble? Seems like they are. Should there be a sense of urgency about this? Seems likely. What is the best way, for us, to help fix it? It’s not buying toxic assets and letting Paulson and his hirelings buy something that no one can value. And he will have to hire some of those who created this mess! And why isn’t there a component for the debtor – help them reduce their debt?

 Why not set up some mechanism to buy equity and offer capital and let the companies figure out the valuations. Let them fix their own mess. We can control compensation, get preferred shares, and not get into the business of enabling bad behavior.

 Many of the economists I’ve been reading, like Nouriel Roubini and journalists like Thomas Friedman, have offered more comprehensive, longer term solutions. They don’t even believe that this plan will work. And they do believe there are other plans out there that will and will cost less.

Let’s use this NO vote and get it right this time!

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Written by phwebnet

September 29, 2008 at 7:06 pm

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