Larry Ishmael weighs in on proposed Wall Street Bail Out
Bill Goes Down to Defeat by 228 to 205!
Larry Ishmael is a candidate for the US House of Representatives in the 1st Congressional District of Washington. A developmental economist by education and trade, Larry has followed the Wall Street Fiasco closely with an eye to a solution.
The economic disaster we are facing has its root cause in our inability to live within our means whether it is deficit spending by the US Government or individuals attempting to buy a house they could not afford. Either way, we are still faced with this calamity, and if we do not come up with a responsible fix this week, we will see a lot more damage done to our economy. The loss on Wall Street today alone is over $1.4 trillion dollars!
Larry's suggestion is that we work diligently across the aisle to purchase preferred shares in these Wall Street institutions rather than buying faulty loans or selling insurance guarantees on them. This will allow private enterprise to continue running these companies with considerable additional oversight and regulation. The CEOs will be anxious to get control of their companies back as they work out of these difficult loans, and as the shareholder first in line to be paid we are nearly guaranteed to have the money repaid to the American people in spades. In the meanwhile, CEO compensation should be capped as proposed in today's bill, and mortgages need to be mitigated with homeowners about to be foreclosed upon in the near term.
It is time to establish new regulations on Wall Street that stop the high risk business of creating worthless securities from risky loans. A 21st Century regulatory system is required for today's markets.
Larry urges all of the Washington delegation to develop a serious proposal similar to this that assures the American people will be repaid and that similar schemes are not perpetrated on the American people again. This needs to be done this week because the longer we wait the further the market will fall.
Interestingly enough, Larry's opponent, Jay Inslee, voted "no" on today's bill. Larry applauds his courage in standing up to the very people who have put him in office and kept him there. Jay Inslee has taken a total of $368,450 dollars from Wall Street firms and their lobbyists to date, including Freddie Mac, Fannie Mae and Countrywide. In fact, his campaign depends mainly on special interest groups and lobbyists, taking 57% from these groups. It is time to work across the aisle and start solving problems for the American people, Jay, so get to work!