SEE What We're Saying?


SEE What We're Saying: Op-Ed from the trenches of the agency. Ranting welcome. Debate encouraged. Brain required.


For those of us that are building our lives and careers during this time, I feel it imperative that we pay attention to the world around us outside of the fashion and entertainment industries. Since all of us will suffer from the effects of TARP both immediately and down the road, I wanted to take a moment to voice my opinion that TARP is a massive failure. Yes, it may have instilled some initial confidence on Wall Street, but look at the stock prices of those banks today. All time lows and why? Because of "toxic assets" that cannot be sold as they have no apparent value. Our government is giving billions to these corrupt bankers to bolster their coffers in hopes of loosening their credit to customers. Has anyone seen this happen yet? Absolutely not. The banks are not being held accountable and hence are using our tax money to rebuild their capital base rather than lend to businesses that would pay a premium for credit extended to them. Those businesses would then buy supplies, hire employees and invest in marketing, travel, you name it. Business spending would add jobs and throw money into our stagnate economy. However, it is clear TARP will not create this scenario.

I would like to suggest an alternative to our politicians who represent the American people. Bail out those individuals who compose the bulk of Americans responsible for creating those "toxic" mortgage backed securities by taking over their unaffordable mortgages and refinancing them through HUD. These individuals would be required to stay in their homes a minimum of five years and share the profits of sale to HUD thereafter if they sell. This is not an original idea, but one which I subscribe to strongly. By removing the flood of defaults on mortgages and relieving the financial pressures on those overextended individuals, the government would be turning those "toxic" assets into quantifiable ones that while being less valuable than originally purchased would finally be a commodity that had a basis of security behind them. The banks would then see their books increase in value as their mortgaged back securities finally regained a real value. Banks would then be able to trust that their futures were secure if a bit weakened
by their former greed. Finally, credit would again flow from this policy as banks would be on sound footing. With credit finally loosened, American businesses would finally be back on track as would the American people.

Remember, Obama can't do this without us. Read everything. Voice your opinions. Be active in your world.

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