Just a thought: Instead of throwing money at the credit problem, why don't we first discover what caused the problem? Where are the Congressional hearings? Enron executives went to jail….why don't we send a few congress members and Wall Street bankers to join them!
Causes of this Economic Disaster:
# 1: The US Congress…the guys now in charge of fixing the problem are the ones largely responsible for the problem. Isn't that like having the fox in charge of the hen house! Congress and the Presidency encouraged the subprime market, passed laws that allowed it and supported the two-headed monster of Fannie and Freddie that promoted the political agenda of "everybody should own a house not matter their credit rating or ability to pay"! Our government got involved in the free market mortgage business and destroyed America. Wall Street went along…there was money to be made.
# 2: Mark to Market (the way we value bundled mortgages etc) We owe this change in accounting to the Enron scandal. The Europeans advised us against doing this, but we adopted it anyway.
# 3: The Federal Reserve Bank of New York….this is where most of the problems are located. The other 11 Federal Reserve banks are doing fine. The shady side of "high finance" of corporate America are hiding in the shadows of this bank. All the Wall Street Banks are tied in here.
RESULTS:
# 1: We are certainly heading into what I believe will be a deep recession that will change America.
# 2: The biggest damage done is that we have lost faith in our country. People have lost faith in our monetary system and our government. One of my prospective clients is moving all his money off shore. Others are creating stashes of money at home…there has been a run on home safes and guns! People are angry and scared… more later!
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