--- In FairfieldLife@yahoogroups.com, new.morning <[EMAIL PROTECTED]> wrote: > > --- In FairfieldLife@yahoogroups.com, "raunchydog" <raunchydog@> wrote: > > > > > > > OTOH we are in a shitstorm so going with whoever you think has the > > > brainpower and perspective to lead us through it makes sense. > > > > Compare Solutions to Financial Crisis: Warm and Fuzzy Non-Specific > > Obama: http://preview.tinyurl.com/43dolg Strong and Specific Hillary: > > http://tinyurl.com/4ervw5 "Hillary took to the floor of the Senate > > today to lay out her plan for halting the economic meltdown, and her > > Senate staff has the video of her speech up online. She's speaking > > about what needs to be done NOW to address the economic meltdown > > taking place up on Wall Street this week. She talks in detail for over > > 20 minutes and dammit, it just breaks my heart that someone this > > capable and brilliant isn't headed to the White House this fall." > > Alegre http://tinyurl.com/4cy7ur on Hillary's statements. > > Sorry, I don't get it. Clinton's proposals, while good intended, > simply put band-aids on gaping wounds. And actually support and fuel > the core problem -- phantom asset valuation. They don't solve it -- > they simply delay an inevitable future, expanded, crisis, IMO. > > Clinton's proposals: > > * Create a new entity to buy up and quarantine toxic mortgage > securities that are dragging down the markets which would allow the > markets to stabilize. Last spring Senator Clinton was among the first > to call for a new entity modeled after the successful Depression-era > Home Owners' Loan Corporation (HOLC) or the Resolution Trust > Corporation (RTC) created after the Savings and Loan crisis. > > --- > Buy them up with non-existent government funds, by a gov't already 10 > trillion in debt. Popping another 2 trillion debt, the gov't may > actually sink. The dollar may go down the toilet. Strong inflation > leading to hyperinflation may follow as the government pumps more > phantom dollars into the market to pump up pahntom real estate prices. > > All to pump up housing prices, or sustain them at over-inflated, > speculative bubble values. This is not a solution, its a continuation > of the problem. > > Prices which by the way, lock 10's of millions of citizens and > families out of the housing market. Clinton's proposals perpetuate > housing at inflated prices for the elite "haves". Leading perhaps, > eventually, to real class-warfare. > > > * Place a temporary moratorium on the most abusive stock > transactions, many of which involve the "short-selling" of stocks. > Yesterday, Senator Clinton wrote to the Securities and Exchange > Commission urging such a moratorium, saying it would provide breathing > room for the markets to recover, for investors to make accurate > assessments of companies and for regulators to assess what trading > practices should be permanently banned. > > --------- > This is idiotic populism. Banning short-selling is the equivalent to > banning the sale of stocks. "Sorry, we can't let you sell that stock > in that poorly run, worthless asset swamped firm, because, hey it will > lower the price of their stock and put in more in line with the actual > value of the company." This is lunacy. And populist pandering. And > displays a shocking ignorance of financial markets. > > However, if she only means full disclosure of short sales, limits on x > % of short sales by any one "fund", and elimination of naked shorts > 9already illegal -- just enforce the law -- then her proposal is one > of common sense. > > > * Convene an emergency economic summit to show the American people > their government is working together. Bringing together leaders in the > administration and Congress with lenders, consumer advocates, non > profits, financial institutions, and all stakeholders will allow a > coordinated response to the crisis. > ------- > Talk is good. To a point. But summits are often pandering and > positioning. Formation of a coherent strategy in abundant consultation > with all stakeholders is better. > > > * Aggressively pursue and encourage mortgage modifications. > Senator Clinton has introduced legislation to remove barriers to > mortgage modification and to encourage lenders to voluntarily work > with borrowers to keep them current on payments and in their homes. > -------- > What is "mortgage modification" code for? > > This sounds like a a bailout of Wall Street who foolishly bought > packages of sophisticated yet high risk loans, aggressive -- bordering > on fraudulent -- lending practices, and new or trading-up homeowners > who made a risky big bet, trying to make a bundle in the real estate > market. They all bet wrong. Being a mommy and daddy to all the kids > who made foolish decisions -- or calculated ones motivated by quick > profits -- is not a solution. > > The only sustainable solution is to let these complex financial > instruments, and housing valuations, to unwind and reach true value. > There will be disruptions. The 2 trillion of bailout funds would be > far better used as a direct safety net for those who go belly-up due > to bad decisions, or lose jobs as the economy unwinds. the safety net > in the form of aggresive education grants and loans (with living > expenses, health insurance) for retraining -- and redirection to a > NewEnergy economy. > > > * Restore competent federal oversight of the increasingly > complicated financial markets. The rapid evolution of the securities > and banking industry overwhelmed the current regulatory framework, > resulting in a "shadow banking system" that operates outside of > oversight and without accountability. > ----- > Full disclosure by hedge funds, short sales and complex financial > instruments. But having a congress and whitehouse, largely ignorant of > these complex transactions, trying to structure and manage these > industries is a laughable proposition -- if this is the resulting > direction. > > > * Require transparency and accountability on executive pay. > Senator Clinton has proposed the Corporate Executive Compensation > Accountability and Transparency Act to impose new transparency rules > on executive pay, end the accounting techniques that hide > compensation, and provide shareholders a say in executive compensation > packages. > ------ > um, all 10-ks already have salaries and comp packages for executives. > Transparency is good. The gov't should not get into the business of > imposing salary caps. if 3-5 million plus comp packages are "too much' > from a social equity perspective, fine tax the shit out of them. But > not below that level. > > > > * Ensure the accountability of financial institutions borrowing > money from the Federal Reserve's new lending facilities. Taxpayers > deserve to know that the companies they are bailing out are on the > road to recovery and aren't throwing more good money after bad. > ------ > > NO. Taxpayers deserve not to be stuck with funding bailouts. Focus on > a safety net and transition to an New Energy Economy -- and let the > markets unwinds all of its massively bad bets and phantom asset > valuations. >
ON the face of it, your proposal makes at least some sense. Howsabout you post it on your TPM blog (ts free to sign up) and ask someone with connections to forward the link to Obama so he could read it for himself? TPM is read by a very large and diverse group of people, includign liberal presidential candidates, policy advisors, etc. At least some of them would be in a better position to offer valid feedback to this than those of us on FL, most of whom do NOT have the economic background to argue your points sensibly. At least I don't. Lawson
