NOTE: BRAD MARSTON is the Leader of McCain Victory08, Lets Get This Right.com, & McCain Now!Congressman Shadegg,
I have to assume that when you asked for the opinion of people you meant your consituents (I live in Boston) but I have been working with Jeff Vath of Arizona for well over a year in support of Senator McCain for President and he forwarded your message on to me.
I come to this issue with some degree of understanding if not expertise. Aside from a degrees in Government and Economics from Georgetown University, my father was a former Senior VP of Washington Mutual (back when it was a sleepy little thrift institution) and then a member of the Federal Home Loan Bank Board and later Chairman under Presidents Nixon, Ford and Carter. (My dad was sworn into office by long time family friend Senator Barry Goldwater.)
I spent 13 years on Wall Street as a Mortgage Backed Securities salesman, trader and ultimately Senior VP and Managing Director of a major regional firm. (I can't tell you how delighted I am to be out of the business today. Back then losing a Million dollars in a day was big deal. Now that is pocket change.)
Yes. Something must be done and quickly because yes, we face an economic crisis but this bill is a lawyers and lobbyists wet dream.
I disagree with John McCain when he says this problem was caused by "greed and corruption on Wall Street." With all due respect, the dumbest Wall Street Bond Trader is smarter than the brightest government regulator, congressman or senator.
This problem was caused by government regulation and government social engineering. The government through Regulation Q told banks and thrifts how much they could pay for deposits. Unfortunately they didn't tell money market funds how much they could pay. Smart people took their money out of banks and thrifts and invested in Fidelity and Vangard and thrifts ended up paying 18% to finance 30 year mortages at 6%.
This problem was caused by government regulation and won't be solved by more government regulation. The source of the problem is that the US government decreed under then President Carter and then expanded under President Clinton that banks and thrifts had to make more loans to minorities or face legal penalties. The only way they could meet those quotas was by relaxing credit requirements.
So here is my advice.
Vote against the bill because the free market is ALWAYS better than the governmental alternative even given how bad the free market can be at times.
Don't vote for a bill that allows the Government to buy illiquid asets. Vote for a bill that suspends mark to maket rules on illiquid assets.
Instruct the Fed to flood the market with liquidity that allows these institutions to finance their assets and forces them to lend.
Vote for a bill that suspends CRA requirements and allows banks and thrifts to only grant loans to people who can afford them
Vote for a bill that forces lenders to adjust loans so that prople who tok them out can afforf them.
Government caused this problem.
Restrict executive salaries but vote for a resolution that says no Senator or congressman can take a salary above the median income until TARP is abolished.
Just my thoughts,
Brad Marston
Support John McCain Online
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