Writing a guest column in the Seattle Post-Intelligencer seattlepi.nwsource.com, financial adviser Roger Tilton warns against bailing out Wall Street with taxpayer dollars.
No bailout money to Wall Street
By Roger H. Tilton
Guest Columnist
Last month I began my 20th year as a registered financial adviser at a large, well-known Wall Street investment bank. Now, only two such banks remain in the United States, and both recently morphed into bank "holding companies."
Exactly two weeks ago, I woke up in Seattle, where I started in this business, wondering if my firm still existed. I came here to meet with clients, a practice I started when I began my career, because I believe in face-to-face meetings.
Then, as now, I felt prospective clients deserved to get a look at me, to read my body language, to assess my skills and my knowledge of the investment world.
I wanted to teach what I could, to help new investors feel secure, to help them invest wisely enough to outperform inflation and taxes. Nothing exorbitant, just a safe, comfortable return consistent with their ability to tolerate risk, to tolerate market swings. A relationship and investment plan cemented with trust.
Even in rough times, and we've been through many, the fittest firms would always survive and the riskiest firms would fail. The markets react, adjust and move on.
The other night during a prime-time address, President Bush warned us that catastrophic consequences (another Great Depression) await if we don't do what he says and do it now. That sounds a lot to me like that "mushroom cloud" or "the sky is falling." Problem is, I don't believe him this time. Let's see if the sky really does fall. And if it does, we'll deal with it then, and know who to blame.
The Bush administration track record should not push us to support this bailout. Let's wait another month and let the voters decide which direction we should take.
Moreover, since I've worked on the inside on Wall Street for 19-plus years, I'm here to say, "Don't trust."
In fact, I'm here to scream: "DO NOT TRUST!"
Don't give bailout money to Wall Street! They (we) will only do what they (we) have always done. We'll say thanks for the money, and that this won't happen again. Then a few years (or months) from now, all will be forgotten and we'll remove the oversights, and guess what?
Same problem, only different derivatives, and much, much worse.
In real capitalism, institutions fail, survivors pick up the pieces. (Note Washington Mutual, Wachovia, Lehman Brothers and Merrill Lynch, all acquired by survivors.)
As for that $700 billion? If we as taxpayers really want to appropriate that much money, I say let's rebuild trust with the American consumer. Let's send $7,000 to each of the 100 million families affected by all these mortgages. Let's this time change course. Let's this time err on the side of the consumer, not the Wall Street institutions. Make the bad mortgages whole; absolve the consumer.
Let Wall Street figure out its own way out of its and Bush's mess. Congress, please do not offer a handout to the Bush administration, Treasury Secretary Henry Paulson and their Wall Street friends. They knew the risk; let them pay the consequences. Do not fall for their "trick" and "treat" them to a Halloween and Election Day "bailout."
http://seattlepi.nwsource.com/opinion/381362_tilton02.html
Contact your Congressman and urge them to oppose the Wall Street bailout.
(sample letter)
Dear Representative:
The people of this country have spoken. The bailout legislation has been defeated. They oppose the bankers' bailout. Backroom arm-twisting is an unacceptable hijacking of democracy. I will not accept any vote change in favor of the bailout.
Signed,
http://www.votenobailout.org/
No comments:
Post a Comment