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September 29th, 2008 9:12 PM

Dear Friends,

The forces of cognitive dissonance has now infiltrated the psyche of the US Congress and has allowed the loss of 777 points on the Dow. The Keystone Cop leadership of the US Congress has come back to provide an Oscar worthy performance by berating each other in pathetic terms for all of us to witness. The scorecard is being tallied by the media and the ultimate loser is none other than the American taxpayer. While the shindig continues unabated, there may be temporary relief in sight. Hopefully, the Jewish New Year on Tuesday could become a celebration of sorts as a temporary stop gap measure, in the midst of horrific stock market losses totaling billions.

Congress comes back for another attempt at maturity on Thursday. A decision by both Houses is needed to end the hysteria. It is blatantly clear most of this country's leadership lack the courage and foresight required to save our economic system. The petulant politicians of our day have unwittingly provided the entire world a command performance by its refusal to make a decision on our future and supporting efforts to continue the destruction of America's credit and global markets.

The main problem we all face is in regards to the credit markets. Without the ability of companies to secure credit for their respective businesses, this reality will bring about the dissolution of our economy. Massive layoffs, additional foreclosures, bank failures, inadequate funds for government infrastructure projects, the inability of consumers to apply for an auto, student or a mortgage loan, are just several of the consequences we will face if a bipartisan plan is not approved by Congress. A run on money market accounts and a bank panic on deposits are scenarios scheduled to occur next. A total Depression similar to the 1929 crash is on the horizon. During the past several days, we've seen the end of Washington Mutual and Wachovia purchased at firesale prices by competitors. The game is on!

While greed, corruption and incompetence placed us in this awful mess, we need to act with deliberate speed to end this crisis, once and for all. The 700 Billion price tag is enormous. Most Americans are reluctant to have the government control such an amount without independent supervision. That's understandable. However, this plan can be beneficial if it provides provisions to end the foreclosure timeclock.

This can be accomplished by providing an open, transparent ability to modify all mortgages currently in foreclosure or for loans adjusting to a higher rate and mortgage payment. There must be a moratorium or a forbearance on all foreclosure activity for at least a 6 month period so the homeowner and the lender can decide the best way to solve the problem. This 'bail out' of Wall Street does not solve the inherent problem of stabilizing the mortgage market if these recommendations are not taken to heart. 

The US Government needs a refresher course in history. The leadership needs to reacquaint themselves with the factors which led to the Great Depression and the wit & wisdom of the much beloved voice during the era, Will Rogers.

There were numerous quotes attributed to him. There are 3 that stand out and are in need of resurrection.

 "Democrats never agree on anything, that's why they're Democrats. If they agreed with each other, they would be Republicans."

 "Be Thankful we're not getting all the government were paying for!"

 "Chaotic action is preferable to orderly inaction." 

Thanks Again

Posted in:General
Posted by Jesse Dorado on September 29th, 2008 9:12 PMPost a Comment

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