Responce to the President

The Bush/Paulson/Bernanke Recovery Plan has always been too massive and invasive, reminding of the Clinton Medical Plan of 1993. They imagine to take over the financial markets, because there are actually Downside losses which have started to appear. They want to throw the Baby out with the Bathwater. They begin with the implication that Markets cannot regulate themselves, and create Problems impossible to moderate without gutting the entire Concept of free Markets. The Truth states that the Banks are already taking the requisite Steps to clear the Problem already, and the infusion of Government funds at this Point would defeat this Private Sector initiative by inciting over-evaluation of mortgaged assets. We actually need a Pause in the compulsive reactions of Paulson and Bernanke at Treasury and Fed.

I believe that the best Pause would be delay of any Congressional Plan until after the Inauguration of a new President. We can witness what progress has been accomplished in the interim by the financial sector itself; a not dangerous path, as I estimate that Commercial and Investment Banks together are likely to deny only about 3% of the Operating Cash to Business. The greatest majority of this Business will attain finance anyway, through the payment of premium Interest rates. The interim Period would also result in an estimated renegotiation of a probable 50% of the at-Risk Mortgages, with only about 20% of these Mortgages entering foreclosure; remembering about 90% of These would enter foreclosure even with federal intervention. The rest will find method to pay off the Mortgage, or will have Sold the Property for resolution with Bank approval. There is no need to alter Market performance, or set unsavory Precedent, by precipitate Government activity which is bound to cause as much damage as it averts.

Americans may feel they are compelled to witness the obnoxious spectacle of watching Congress waste vast Taxpayer resource, just to present a Congressional image that they are actually worth the exorbitant Salaries we grant them. The fact remains it is a Time for Americans to raise Roadblocks to the proposed actions, as the greater Period before Intervention by the Government is the most desirable. I would exhort Citizens to protest any activity by the Government before the general Congressional and Presidential elections; utilizing the Proposition that Americans would like to choose Who they would have implement any Plan. I would utilize the idea that since the Bush administration proposed the Intervention, it should be left to the incoming Administration to administrate; simply to remove any connotation of Self-Interest in the motivation of the development. The later effort would leave Congressional supervision in place, not a bad Plan when contemplating such a devolvement of Cash to what are Private Equity factors. I hate the Thought that this is intended as a corrupt Cash Cow for the departing Bush administration. lgl