5/14/2008 I wanted to personally thank you for doing suchan excellent job representing the 14th District of Ohio. Your honesty, integrity, and abilities as a leader are duly noted. You will continue to receive my support during future elections. As a constituent, I wanted to make you aware of several issues which need to be addressed:
1. The Federal Reserve, although a quasi governmental entity, has excessive control over fiscal policies in the United States . As a historian, I note that the role of the Fed has changed considerably since its original inception during the Washington Administration.
That being said, the concerns are three-fold. (A) It appears that the Fed’s reckless policies are undermining the financial well-being of the United States . Since M3 is no longer reported, it appears that that there is no concern in the devaluation of the U.S. dollar. (B) The Fed has extended a line of credit to Wall Street brokerage firms and banks. While this policy has added short-term stability to financial markets, long-term it is the equivalent of corporate welfare. Companies which make poor financial decisions deserve to go bankrupt. (C) The U.S. government and taxpayer need real collateral in any type of loan situation. We should not be left with the garbage packed in the various SIV’s. Accepting weak collateral is outright poor fiscal responsibility!
2. I appreciate your efforts to address the mortgage crisis in the United States . The government should have a limited responsibility in formulating a bailout for those who became speculators during the housing boom. It is not the responsibility of government in any way shape or form, to subsidize those who were burned in the PONZI SCHEME of three and five year ARMS. To bail this class of “gambler” out would send the wrong message to those who have lived within their means. However, should any group be addressed, I believe it would be displaced workers. Some of these individuals may have fallen upon hard times. Maybe some type of loan re-structuring might be in order.
3. In my recent article entitled “Big Ben’s Credit Card Moves: The Good, The Bad, and The Ugly”, I noted that an industry which was once controlled by organized crime “LOAN SHARKING”, is now a business controlled by banks. While I am a strong advocate for individual responsibility, the fact is that credit card companies and underwriters are the equivalent of Mafia musclemen who literally destroy consumer credit. That being said, there should be a degree of tighter underwriting standards. Secondly, there needs to be a clear path where consumers can eventually pay these ridiculous fees off. It is also duly noted that The NO CHILD LEFT BEHIND ACT fails to address any type of financial training for students who must navigate the treacherous waters of fiscal responsibility once they are out of school. Sure some students may be able to quote Shakespeare, understand Quantum Theory, and maybe even identify the vision of our Founding Fathers in the U.S. Constitution. However, give the average high school graduate a credit card let alone a bank loan, and all HELL will break lose.
In closing, thank you once again for being such an excellent representative for the 14th District. We appreciate all the efforts you have put forth to make this a successful trip for the students and staff from our school.
Respectfully Yours,
Brian A. Davis
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