The Action I Have Taken
I have called my Senator’s(Boxer and Feinstein) and Representative(Susan Davis) and expressed my outrage over Geithner’s latest ‘plan’, encouraging them to offer a Congressional Resolution blocking Treasury from making the low-cost loans it expects to offer the PPIPs, until GAO or the FDIC has conducted an INDEPENDENT EXAMINATION OF THE LOAN TAPES underlying each class of securitized assets. And also written Obama. I encourage others to do the same thing. Here is my letter to Obama as sent via the whitehouse.gov site(I chose ‘other’ as the subject because I wanted to ‘comment and get a response’ which was not a choice offered by the pulldown menu):
"I have a comment about the Summers/Geithner plan announced today and want a response.
Simply stated Mr. President, you ARE ON THE WRONG COURSE and, seemingly, paying back your campaign contributions from the financial industry !!
I have read the plan and various commentaries -which you seem unwilling to address or consider- and you seem to be choosing to cheerlead instead of addressing the real issues, which ARE NOT liquidity but SOLVENCY and a continuation of ‘ponzi scheming’ by Summers and Geithner.
Ms. Romer says it’s ‘unfair’ to critique the plan by saying "“We are trying to help the taxpayer by using the expertise of the market by trying to set the price for these toxic assets…”. BOVINE EXCREMENT !! Do you, Axelrod, Summers, Geithner, et al really think the American public is so out of touch and stupid that we don’t already know what the market is pricing this toxic trash at? It’s the banks who are unwilling to sell at the ‘market price’. They CAN sell but then would be insolvent and the FDIC would have to do the job they are chartered to do and all the execs who mismanaged and were greedy would have to find other jobs; too bad and certainly less than what they deserve to happen to them.
What’s "unfair" is YOUR unwillingness to consider alternatives to Summers/Romer/Geithner’s efforts to rescue their ‘buddies’ at the expense of taxpayers.
MarketWatch sums the situation up clearly: "“Taxpayers are certain to lash out at the terms. They will get a share of the profits, IF THERE ARE ANY. Investors will get a share of the profits, EVEN IF THERE AREN’T ANY. WHERE IS THE ‘FAIRNESS’ IN THAT?
AND, “The details announced Monday would cover purchases of whole loans held by banks. Details about purchasing mortgage-backed securities will be announced later, after further discussions with banks and potential investors.”
FURTHER discussions with banks and potential investors? Who will be privy to such discussions? Where will the ‘transparency’ be for these discussions?
Mr. President, there is only one way to provide the taxpayers/citizen’s ‘confidence’ that you are doing the ‘right thing’ and that is by following James Galbraith’s suggestion, namely "If I were a member of Congress, I would offer a resolution blocking Treasury from making the low-cost loans it expects to offer the PPIPs, until GAO or the FDIC has conducted an INDEPENDENT EXAMINATION OF THE LOAN TAPES underlying each class of securitized assets, and reported on the prevalence of missing documentation, misrepresentation, and signs of fraud. In the absence of a credible rating, this is the minimum due diligence that any private investor would require."
Failure to do so will absolutely show the American public that their concerns/needs take second -if not lower- place in your Administrations goals to that of the financial industries.
If you want to be around for more than 4 years -which you seem to want to do given how you have described the issues facing this country- then you need to start soliciting and acting upon opinions/solutions other than Summers,Geithner, Romer et al.