Posterous theme by Cory Watilo

Fire Congress Now!

I have lost all faith in Congress.  At time when my retirement savings are losing thousands of dollars in the most recent economic crisis, I put my trust in the advice and recommendations put forth not by Congress or even the White House but in that of Hank Paulson the Treasury Secretary.

Part of the reason is that this is a man from Wall Street who understands the complexity of the issue at hand. For decades, he lived and breathed these financial systems. I also worked for a Wall Street Firm so I also somewhat understand the complexity of the numerous business types at play.

For these reasons, you will have to excuse me for putting the advice of Paulson over some wanky politician in Washington who is more concerned over his/her own popularity in the next election. This week has show a very sickening and dare I say juvenile dance between a still partisan Congress.

Here is what I believe many are struggling to understand. There are two views of the word "economy." the first is the presumed driver of the Republican claim that 90% of their constituents are apposed to bailing out these financial institutions. I do not disagree with this number because the economic view is one of Personal finance. Bank accounts, 401k, Savings etc. Of course no one wants to be left out of the cash giveaway.

The second view is that of the Financial "engine" of the economic markets. Things like Bonds, Stocks, Swaps, Credit Derivatives, Mortgage Backed Securities etc.. Things the average person on Main Street know not much about. This is what is sinking and if not corrected in the short-term will damn us all in the long-term

The only way I could explain this is the difference between the interior/ exterior of a car (your personal finances) vs. The Engine, Transmission or Catalytic Converter. The latter we don't know or care too much about, that is until it breaks.

I am not saying that it is a good thing to have to dump massive amounts of cash into the financial industry. What I am saying is that we need to perform triage now to be able to fix what is truly wrong with the system and Market-movers that put us all I'm this predicament.

Which leads me back to Congress. In stead of posturing or finger pointing across the isle, I would like MY Congress take a leadership role with the American people. I believe more people need to be educated on the whole economic infrastructure above and beyond their personal finances. Only then will the current situation make any sense. I am disheartened that members of Congress clearly do not understand this issue either, if they did, they might actually form an opinion and bring the truth back home to their constituents instead of simply saying "I'm doing what my voters want." Main Street may not have all of the facts to see the bigger picture.

Instead, the urgency of saving people's personal savings is being held hostage by the Political dance that is Congress.  What I witnessed yesterday was both disheartening and to be frank just plain un-professional and self serving.