I want my chance to help do things correctly. All week long I’ve been
emotionally and intellectually struggling with the near collapse of
the global economy and the admonitions of both former Goldman Sachs
CEO and President Bush about how we had to give them $700b to bail out
the banking system. Immediately. No questions asked.
Why? The American public is correctly asking. Who is bailing out my
family?
So I want more than a bailout I want the American taxpayer to be a
limited partner in the vulture fund that buys up these worthless
assets and re-sells them. I want to be sold my unit with the same
type of careful prospectus I get when I go into any investment. I
want to be told of the risks, even the small print risks. I read those
when I invest, and if the investment goes South, I know I was
responsible. And if the fund makes money, I want a piece of the action
since I am putting up the risk capital.
I’m not, as a taxpayer, going to invest in anything else that I can’t
influence. After all, I don’t do that as an entrepreneur or an angel.
I have invested in a bank that is forming right now to replace all the
banks in Phoenix that are failing because they got on the greed track
rather than on the community track. The bank I am investing in is a
true “community” bank which will raise capital in smaller units, with
great responsibility to the community that puts up the money. It will
be more like the lending communities on social networks than the Wall
Street investment banks.
And it will be regulated. Oh, boy will it be regulated. Our bank,
fortunately, will operate in an environment where the pendulum will
have swung the other way. We will not be in real estate loans, like
every other bank in Phoenix. We will fund true operating businesses.
And it will have a community mission, not just a monetary mission.
Want to hear the irony of all this? We are behind in getting it off
the ground because we need the regulatory approvals and the regulators
don’t have time to see us. Guess why! Because they are too busy
working out the bad stuff from the old banks.
In a Recession, or whatever we are in that nobody will be honest
about, the only way to get yourself out is through innovation. Do I
hear that from Bush, from Paulson, from McCain, or even from Obama?
Only as a cliche, not as a plan.
So I guess that has to come from me and you, the American people.
After all, if we don’t innovate, we don’t survive. We can’t just print money.
{ 6 comments… read them below or add one }
I do not know how you could have gotten that MORE right. It will be the innovation of people like us that is the long term fix to the problem… but our ability to innovate is greatly impacted by the broken capital markets (it is VC’s too… but that is another conversation).
Trying to raise capital right now is a really painful experience – even with a solid business model.
Until/when innovation has access to capital this is a downward spiral with no end in sight.
I am looking at this fast track bailout plan with a great deal of suspicion.
It seems like GW is trying to get one more payout to his cronies before he leaves office and doesn’t want anyone to look under the covers of the financials. It’s almost embarrassing to be registered Republican these days…
I’m more of a mind to let this situation simmer and let some of the banks that are insolvent fail and to see if Congress even THINKs about the consumer in the plan.
You go girl. Although this east coaster must admit it never ceases to amaze me how people in Phoenix continually get it wrong when it comes to banking and real estate. Can anyone say Charles Keating, Lincoln Savings and Loan and the Phoenician? And who was that Senator who got some handsome payoffs along the way?
This is a letter that I have sent to Sen.Obama:
I agree with most of your policies, however I do not agree with any type of bailout for Wall Street because:
1. It will increase our national debt and make it harder to achieve the goals that you want during your term in office.
2. It will weaken the Dollar, cause inflation, and could hurt our credit rating.
3. It will not restore confidence. It will only show people how bad things are.
4. Our tax money should not be used in such a manner.
5. This problem manifested itself in the lower & middle class; and a bailout would be trying to repair it by giving money to the upper class.
I don’t want to just complain without offering a potential solution. I suggest that instead of another stimulus package; that the $700 Billion be spent on GREEN Energy. Fill the empty abandon factories with workers making wind turbines, solar parts, electric cars, etc. This will create jobs; stimulate investments; and curb global warming. Lenders will be more likely to lend to these projects if the U.S. is involved. You could also sell “Energy Bonds” instead of war bonds. A free check from the government is nice, but the money doesn’t go too far. People want to stand on their own two feet; not receive handouts. It would give people a sense of accomplishment; a common united cause. Once workers started making money, credit would once again free up. The problem with the bailout is that if it does not work, we are out of bullets! It could be the straw that broke the camel’s back!
I do not understand what is going on.
Congressman Barney Frank and President Bush, of opposed parties and at opposite ends of the political spectrum agree to it. Obama agrees to it.
Yet the congressional Republicans, shamelessly pro-business and anti-populist conservatives, are saying “no”, John McCain is saying something close to “no”. If it is a looting why are the liberals doing it and the looters aren’t joining in?
The appropriately named John Boehner, House leader of the looters, says it can be done with in effect a national bankruptcy-and-receivership. Without spending taxpayer money. If these were honest, altruistic people on both sides, one would think it is a genuine difference of opinion. I don’t think that for a moment.
I don’t know what is going on, but this looks a lot like the expected October Surprise.
I swear, I’m reading “shock Doctrine” and I can’t believe how it rings true to what is now happening.