Good morning! I received some great comments by email during the weekend regarding the government’s bailout plan. I wanted to share some of them with you here and if you want to read more, I’ll publish them in this weekend’s Cabot Wealth Advisory.
“Why would anyone ever think that congress would come up with anything at all! They have no interest in running this country. They have seen to it that they get raises when we have a recession, ie. they vote their own raises. They have made sure of their own retirements at our expense.
Congress has no reason to do anything that is not in their best interest!
Here’s to a happy day 
” D.B.
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“Since the government is having to “buy” the mortgages, why not create a housing agency to manage the properties, rent them to the previous owners, with a term limit for the eventual purchase of the house they are renting.” E.R.
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Investors Business Daily in a series of 5 front page articles says that the conditions leading up to the present situation has been well known for several years and they say it could have been prevented. Since we have the same cast of characters is now wanting to “help us” I would prefer not to ask them to concern themselves any further on my behalf but rather let the economy work its way unaided. It might be draconian but with appropriations to stimulate repairing the infrastructure, aid local governments
to some degree, increase funding for medical care, education especially for returning veterans, and other charitable causes, etc., all with the same money now requested we could live through what may happen,
Your report on the man J. P. Morgan was interesting. I think J.P. Morgan Chase, Bank of America, and a few others will be survivors and will be of help in keeping a reasonable amount of fluidity in the economy.
It is best that we do not ask for the governments further meddling.” W.W.
Hello.
I like your site and wanted to know if you would be interested in exchanging blogroll links.
Thanks in advance
I also think that the 700 billion would be better spent on purchasing the houses that are going into foreclosure. Having those as a hard asset, which can be rented or have their loans restructured ( 45 years is possible ) so that the monthly payments closely match those that the original home buyers can afford. This will remove the excess inventory from the housing market, stabalizing pricing.
The equity in the homes will be the guaranty of the lost equity in these bad loans or insurance on these bad. The housing could form the financial platform for many of our struggling social programs in the future. Let the financial markets deal with the remaining bad debt as best they can with minimal government funding. The banks need to get back to sound banking practices not fantastic financial schemes aimed at instant obscene profits.
The people who attained these loans on marginal credit at best for the most part are Americans who are following the Dream, and if handled properly can be changed from a liability to a long term asset to the nation.
Finally the nation and the world needs to reassured as to the overall stability of our system, every year we watch the Jimmy Stewart movie, It’s a Wonderful Life. The worlds money is not sitting in Banks, it is in the bricks and mortar of our homes and industry in the cars and goods, commodities we have purchased. If at this time in our evolution the best we can do is panic we have no future as we have known. The lives we lead are far richer and diverse than our parents and grand parents could even dream of. We have created this reality through our dreams and imagination and together we can continue the dream. This can not be achieved through fearful reactions to the situation of the moment.
All this said there is one final component to this most amazing of times. The course we have set is fraught with uncertainty at the environmental level, not just global warming but the very life forms that we have taken for granted for millenium after millenium, Fishing stocks are depleted, forest have vanished from some countries and are vanishing from others. We need a global conservatiship of all earths natural resources. How can we put a monetary value to this process how can we quantify all of these varied life forms? Thsi is work for the mathmaticioan and biologists, but an interseting starting point would be to consider The Redwood. How much would it cost to grow a 200′ Redwood in space, we are building our ark, the stepping stone to the planets and beyond, taking life away from our planet. As we sell our forests for some times as little as a dollar a tree what is the true value of the planet that we have. Establish a true value and the asset value of the planet and then we can fund and finance the most amazing renaissance of the human story.
All the best BR