In order to solve this problem, the American people deserve to know the truth and the facts as to what lead us here. They also deserve a say in the solution.

How did we get here?

Let’s get something straight. NEITHER political party is 100% at fault, or to blame. Politicians and Business Managers of both party affiliations are to blame. The important thing is to understand the actions taken to put America into this situation.

Freddie and Fanny are the root cause of the problems. This is how it works. Bank of Sherri (that is me) is in the business of making loans. Making loans is a risky business. I don’t make loans that I don’t think will be paid back. However, Bank of Sherri has found a really neat trick. I can make loans to folks that probably can’t afford the loans, make money at it, and leave someone else with the fallout. This is also referred to in the business as making your money on the front end and on the back end.

This is how it works. I make my money on the original loan. Real Estate Agents make their money, brokers make their cut, and the list goes on. All of these folks are paid their cut because we just add their commissions and costs into the loan. I don’t want any money down, even if they have a down payment. I want them to keep that money because it helps me know that they will make the first three payments. When I make a loan to single mother, or another risky victim, I only have one concern; can they make the first three payments? Once they make the first three payments, I can sell the loan to Freddie or Fannie. This is where I make my money in the back. When the loan is not able to be paid, Freddie and Fannie are stuck holding the bag.

Freddie and Fannie don’t need to worry about if the loan is payable, because they are insured by us, the tax payer. There is no boss losing his shirt on the loan to fire me for buying these bad loans. Oh wait. That was what Congress was supposed to be “overseeing.” The folks at Freddie and Fannie cooked the books to make sure they got their bonuses, Congress turned a blind eye, accepted “donations,” and together they defrauded the American tax payer.

What is the Real Crisis?

According to the AP, there are 26 companies under investigation by the FBI. “Cooking the Books” has become a favorite past time on Wall Street. No one seems to trust anyone else on Wall Street anymore, so credit locks up. What does that mean? No one is giving credit because they don’t trust that other companies can pay up. Bankruptcy and government bailouts have been abused.

Paulson sees the credit lock and panics. He runs to Congress and says, “Quick, right me a check.” Congress asks, “What if we don’t?” Paulson replies, “Then, God help us all.” Bernanke offers a tad more information to us. If we don’t write a check for $700 Billion dollars, we won’t be able to get car loans, small businesses will not grow and create jobs, and the economy will stop growing.

Why do they need the $700 Billion? They need it to “bailout” the companies who have gotten us into this mess. Americans let out a very loud roar, “NO WAY!” The phones in DC were getting calls on this “bailout” at a rate of 100 to 1 with the 100 being NO! So what do they do? They start to change the “language” they use, most of us refer to this as “spin.” It is no longer a “bailout,” it is a “rescue.” Americans are still not moved to take it up the shorts. Lo and behold, the rhetoric and spin gets even better. This morning, some brilliant fool from Washington, DC tells us, “We used the wrong word. It is not really a “bailout,” it is an “investment.”

Are you insulted enough yet?

Solution

Let’s review. The pending crisis is that none of the companies on Wall Street are trusted with credit anymore, so credit has been LOCKED. They (Wall Street) need $700 BILLION raked from the pocket of the American worker to save them from the credit Lock. Paulson and gang admit that this may not even work. It sounds to me as if this credit lock is going to happen no matter what. The $700 Billion is just a delay. If companies don’t trust each other for credit, how is a bailout going to prove anyone trustworthy?

The folks in DC are saying that we are in big trouble if we can’t get credit. No wonder. We have proven we cannot handle credit.

Okay, you win Washington, DC. You want an “investment?” I say YES. But I am not interested in investing $700 Billion. I want to up that to ONE TRILLION DOLLARS! Oh, but wait, there is a catch.

The first thing you need to do is solve the trust problem. We want a list. Yes, a big list of all 26 companies under investigation. Included in that list, we want the names of all the high level executives associated with those companies for the past 10 years. This will help solve the problem of others not knowing who they should be doing business with, and who they might want to take a closer look at before engaging in any business deals.

No excuses about the list. If we are in a real crisis, then let’s be grown ups and work for a real solution. We all deserve to know who we can trust.

We will invest, but not one copper penny goes to ANY of the 26 companies under investigation. Instead, I say, let the credit lock go forth and give the $1 Trillion to those companies who have showed they can handle credit. Yes, you got it. Give the $1 trillion dollars to the companies who have showed they can handle credit and who offer credit to small businesses and American folks who deserve credit.

This way, when the credit lock occurs, these deserving companies and Americans will have a safety net of $1 trillion dollars to help float us through this crisis. No matter what we do, innocent people will be hit and hurt by the mess created by crooked politicians and CEO’s.
But to ask the American people to “invest” money in the same people who abused the system is beyond insulting. Ask the American people to invest in the people who have made good decisions and who can manage money wisely. Don’t ask us to invest in the folks who did everything wrong. Ask us to invest in the folks who have done things the right way.

THEN, you will have the support of the American people. Only then, can we be willing to make a sacrifice to get through this crisis, and fight to keep our economy alive. Let us reward the folks who deserve and who have earned our trust. For once, DC, let our “investments” work for the best interests of ALL Americans, not your chosen few.

Lastly, do not ever use another dime of tax payer money to bailout a business or industry. We have had our fill of your abuse, fraud, and insults.