Don’t hope that much he’ll be the “All-Fixer”

As I wrote to be afraid of in my article “Bail-Out or Pump-Out” got real with bonus payments to AIG managers. And I also mentioned in the past that the Obama administration can’t be seen as the “all-things healer”. Obama needs to reassess a big part of the global economy. And many choices won’t pass easily or at congress or at public surveys. Even his own party is blaming the 1st black President of the US (it smells like revenge to his “against-the-lobby” speech he addressed 2 or 3 weeks ago?) making it not easier for the oval office man to continue on his way to save the country from a recession. “Change!” was his keyword and change will come. But even a holy saint with many superpowers could not fix all the mess of 30-40 years of over liberalized rules in the financial sector that ruined also real economy sectors when the bubble of toxic assets exploded. But media and Republican forces (assisted by some Dem’s as well) now fire against Obama because of the bonus payments he didn’t stop. Why did Rep’s and Dem’s in the past never ruled the markets to impose more tranparency and supervision? Maybe they were directly involved to gain profit? 😉  I think the bonus payment is due to 2 reasons: 1) Obama didn’t take an eyeball on these contracts and their due time as needed; 2) Geithner wasn’t able to check and correct the issue in time. Now folks, opposition forces and media now have new more strings on their bow. People need a sinner to sentence, Rep’s need to inflict damage to Obama’s administration as much as possible and media was and is always the middle-passthrough to mix-up the “real” information people need (no more serious journalism to tell the things they really are = more quantity and sensationalism than quality?). I do not defend Obama when he is making wrong and the AIG bonus payment was “partially” his own failure (or his staff’s), but as I told you at the beginning, humans are no saints and no one can be the “All-fixer” and recover a whole economy like the US is; doing fast, reliable, without mistakes and without deceiving anyone. Tell me one person who would be able to do that… and I’ll give ’em the job!

Andreas Ahlen
mysay@inbox.com

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The Bail-Out or the Pump-Out

Wall Street - World's Financial Center

Wall Street - World

What we’ve seen lately is an tremendous confirmation of what they say “The Big Ones Rule”. Despite the emergency Wall Street plunged in we cannot get friends of this Bail-Out plan under a “blanc cheque” aspect as we (the people) are and we will be the prey of the financial system. But financial need us to run the entire system (as shown on Situation Room at CNN). Ok, the whole system is more complex than shown in the transmission. It’s hard for me to understand why the “prey” of the financial system (the people) need to burn their tax money into the financial system to fix a mess the entire system did know about and shadows casted right since mid-2007?. Did Wall Street invite to share it’s earnings with the people their tax money they now urgently need? Why does the Senate approve not only the bill but also a $100bn tax reduction for financial sectors and businesses? Do the people always have to pay the mess of “bigger ones”? This Bail-Out Plan needs to be rewritten to focus not only on the emergency, but to rewrite the rules of market procedures, especially in the financial sector (transparency). The ones who need help (and earned loads of money on Wall Street, mainly those who contributed in mid/long-term to this dead end situation) must be forced to pay a solidarity tax (as in Germany) to contribute to the salvation of the system. If we fail to re-educate the financial system then future situations will always be charged on the tax payer and government. Without a clear re-regulation from the beginning we hand out “an all-time charge-me-up” card or “blanc cheque” to the business men

Administration lawmakers and their counterparts need to be very careful not to fire up the US citizens anger. The common people won’t easily understand why they have to be not only the “slaves” due to loans and mortgages, and therefore won’t accept why they have to run after the big financial firms to take them out of the mess.

An eventual Bail-Out plan should disburse money in a reasonable matter. I think a plural-step injection should be considered. Step after step after hitting certain conditions. $150bn immediately, with relevant focus on social subsidies to poor ones got stroked by the meltdown. Disbursing should be scrupulously monitored when given to financial firms in trouble. And 20% of the gains these companies would have should return as “Bail-Out”-Revenue tax. $200bn should be hold as a reserve and disbursed in a 2nd phase of the Bail-Out plans. I leave the details to more competent people. But remember: if ww sign to troubled companies to have the full $700bn dollars then they would think about it like a “gift”. But setting up clear points they have to meet to get the 2nd disbursement for their rescue and monitoring the reconstruction of troubled companies would have an additional point to make these CEOs work out real rescue plans.

Don’t make this Bail-Out seem to the people like a taxpayers Pump-Out…

Andreas Ahlen

http://mysay.newsvine.com


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