By Cody Willard
So what’s the alternative to extorting a trillion dollars from middle America for the sole direct benefit of rich bankers and NYC?
1. Suspend FASB 157 which earlier this year, because it requires ibanks to value their mortgage junk that’s being puked at 6 cents on the dollar at places like Merrill Lynch, contributed to the virtuous cycles now turned vicious.
2. Bring back the uptick rule. Shortselling a company is fine and dandy…but pounding down on a stock in an illiquid market by relentless shorting into whatever bids are out there has been a big factor in how quickly Lehman and others failed.
3. Let the billions of brilliant people on this planet take advantage of the concepts of private ownership and the ability to profit therein as this vicious cycle creates huge opportunities for everybody. That’s really the single biggest issue I’ve got with all these fear-mongering socialists who seem to see this economy and the people in it as a static blip on a chart. Take Bill Gross at PIMCO (please take him — I’m talking to you, Communist China, he’ll fit right in with you guys now that he’s a huge advocate of central allocation of capital and all with this bailout bill) has about a trillion dollars under management. He wrote in an editorial that he thought the government would make a ton of money if they’d give the insolvent banks 60 cents on the dollar for that stuff that’s trading at 6 cents on the dollar right now. If he truly thinks that, then I’m pretty sure he could figure out a way to sell enough Treasuries and government bonds back to the government and raise enough capital from private investors that he could make that 60 cents on the dollar bet himself. Privately, without extorting capital from middle America.
4. Moreover, how about we let the little geniuses out there create small businesses that can take advantage of the opportunities now being created in the financial industry instead of expecting the guys with absolutely wild conflicts of interest who are in utter panic mode (Paulson, Bernanke, Bush, Pelosi, Hilary et al) to be productive at fixing the system.
I mean, after speaking for about half an hour offline with true-freedom lover and former Treasury Secretary, Paul O’Neil, discussing this stuff the other day, I heard several of the former-freedom-loving rich white dudes you see on TV who have taken to begging you for your tax dollars actually start to discuss some ways they could privately profit off this Wall Street Crisis of 2008.
I personally am thinking about starting a website called “MyUnderWaterMortgage.com” where people can privately pool their underwater mortgages — perhaps by vintage or location or state or something if there’s enough critical mass — and then those underwater mortgages could be packaged and sold to private investors who then pay off the banks who will simply be thrilled to get some cash that’s not 6 cents on the dollar for this mortgages. And I’m just one cowboy who came up with that one idea in just one night. Hey you fear mongering commies who keep telling us that if you don’t have complete control of the industry that we’re going into a Great Depression: LEAVE US ALONE. LEAVE THE SYSTEM ALONE. LET US GET BACK TO WORK!
PS. Here’s an article from my local newspaper with more of my take on this stuff.
You can watch Cody at 5:00 PM (est) on Fox Business Channel’s “Happy Hour”.
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