Sometimes it is tough to see the forest through the trees.
Here we go again. It is six weeks before a presidential election. Last time it was fear of terrorism. It was fear stoked by emergency alert after emergency alert from Homeland Security and stoked by breathless mentions in the media about this and that terrorist found and killed.
Just make the battlefield Wall Street and substitute the various players around and you have the same kind of fear mentality driving the public government machine to push the citizens to the point of being so scared – that tomorrow the floor will fall out, your ATM card won’t work and that’s the last car you ever will drive. Now the breathless mentions in the media are of companies collapsing, markets cringing and people running scared.
The United States of America, it’s governmental leadership, and the citizens must all take a collective breath, and slow this down. It is time to think long and hard about the consequences of each decision, and to ensure that the money will be spent in ways that we will benefit. We cannot allow this decision to be taken lightly or without rigourous consent and counsel from us and the rest of the Government. We must demand that we all become owners of these companies, and that the Government’s investment is one that will show a return, not bring us into an even larger hole.
There is a model believe it or not. When Mexico had a currency crisis about 12 years ago, the United States stepped in with several central bank stabilization programs. We not only got paid back quickly, the US Government made a several billion dollar profit off the transaction(s). If we do it right this time, each of us should become partial owners through stock or bonds issued to all of us of any company being bailed out. The formula could be one simply of number of companies being bailed out x amount of money / number of citizens in country. But this way all of us could benefit when these companies that are temporarily in the down cycle go the other way and turn back into the up cycle.
Alan W. Silberberg
September 24, 2008