Sunday, September 7, 2008
Open Letter to the Representatvies from Ohio... Other Comments... College Football
Dear Rep. LaTourette, Senator Voinovich, and Senator Brown,
The deed is done. The U.S. government has finally taken over Fannie and Freddie. The tax payer is now on the hook for billions if not a trillion dollars. Most of those who write to you about this subject, will have had little or nothing to do with the collapse of Fannie and Freddie. Yet, we are now on the hook for financial obligations. I will pay this debt for the rest of my life. My children will pay this debt for the rest of their lives. And there is a strong chance that our grandchildren will inherit these debts as well.
Come Monday morning, my American History students will ask what is going on with the financial system. Most of them come from upper middle class to lower middle class families. I will do my best to let these students know that this bailout was necessary… that our government has the flexibility to address major financial turmoil, especially if it will disrupt our entire economy...the Elastic Clause in the Constitution covers that much. But, students will want to know how it happened… why it happened… and where did all of that money go? How will it effect the value of the U.S. dollar? Why are the tax payers paying the tab? Does this type of stuff impact the American Dream? Those will be the tricky questions!
I hope, at the bare minimum there is an investigation into the crooks who are robbing this country blind! These characters make Jesse James and Billy the Kid look like amatures. The FDIC is now in the midst of seeking a line of credit from the Department of Treasury… hopefully they are not anticipating a rash of bank failures. The discount window has been opened to a number of banks where the Federal government is receiving suspect collateral. Ben “Bailout” Bernanke refuses to do anything except fire up the printing press and print more money. Facing a period where hyper-inflation, or worse deflation can literally wipe out the savings of millions of Americans, Bernanke should be raising interest rates. I’ll be curious to see how SEC Chairman Cox decides to handle his new requirements on equity trading. It is my concern that the oligarchic forces have more of an influence than anyone really knows. Remember, the Bank of America actually wrote the Housing Bailout legislation! That’s just CRAZY!
Rep. LaTourette, it is my sincere hope that formal investigations and hearings are brought forth on these issues. If and when criminal wrong doing is found, then it should be prosecuted to the fullest extent of the law. Furthermore, as in Enron… World Com, and Tyco, monies should be returned from the vicious predators that prey on our citizenry. The aforementioned names maybe dime store robberies in relation to the theft that is taking place right now. Many of these characters do not know, or do not care about the perceived social contract that exists in the United States.
Thank you for taking the time to read this letter. It is written in the best interests of the American people, and the citizenry from the Great State of Ohio.
Your Respectful Constituent,
Brian A. Davis
If we are to have faith in the Federal government, then it is important to maintain a degree of transparency. It is Congress' job to appropriate, regulate, and when needed tax the citizenry. The government then needs complete faith in the U.S. dollar, our institutions, and our debts. The market will react wildly to the news of the bailout... at least at first. However, there will be a higher degree of soul-searching on this one. This will lead to DOW 13,000 or DOW 9,000. The overt efforts to solve a financial crisis may in the en be the roots of a more systemic issue. We'll know by the end of the week!
Ole Miss was the only winner this weekend as Pitt. and Navy came up just short of the point spreads. This puts the current season record at 4-2 v. the Las Vegas Line.
Posted by at 10:41 AM