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An Open Letter to President Obama
Dear Mr.
President,
You don’t
know me, but I was one of the millions of Americans who voted for you in the
last election. I have since been fairly critical of your Presidency largely
because I, like many others, feel betrayed by the policies you have enacted
upon winning said election.
However,
rather than simply becoming yet another “I voted for Obama and regret it”
commentator who has a lot of complaints but no ideas, I thought it better to do
my duty as a citizen of this country and try to offer a solution to some of the
problems plaguing the US today.
The
following is a plan that I believe would bring about a significant change not
only in the US economy, but in the US mindset. The last 30+ years in this
country have been dominated by an overall regression in moral character and
beliefs.
Somehow, and
I’ll leave the “how” up to the historians, our nation’s moral framework seems
to have shifted from asking ourselves “is this right or wrong?” to “is this
legal or illegal?” Even worse, we now seem to be shifting from “is this legal
or illegal?” to “can I get away with this?”
This is most
obvious in the financial community where a small sliver of our citizenry
continues to make billions, if not trillions, of dollars, through ill-gotten
means. I won’t bother going into details here, because the “ill-gotten means”
have been well documented by others.
For now I
will simply state that it is absolutely OBVIOUS that the market is manipulated,
that insider trading and front-running of investor orders is permitted with
impunity, that Americans got a RAW deal on the bailouts (that’s putting it
mildly), and that the worst thing that happens to those who break the law in
the financial and large corporate sectors is a fine equal to maybe a few days’
worth of profits.
The fact
that this activity continues to be permitted and that those who engage in it
make salaries in the six if not seven or eight figures sends several very clear
signals to Americans, particularly those young ones looking to get ahead in
life. They are:
1) Those
who work for financial institutions and large corporations are above the law.
2) You
should try to make money by any means possible.
3) Look
out for yourself and forget about everyone else.
I ask you,
what do the above observations say about the American economy/ financial
system? Moreover, what kind of mentality are we fostering in our nation’s
character?
Here’s my
proposal to change all of this.
First of
all, I would create a new financial law in the US. It would be the following:
Any
financial gain reaped by insider trading, manipulation, fraud, stealing, etc.
would result in 100% of the gains generated by the action being confiscated by
the Government and the company that committed the action being fined an amount
equal to 10% of its (the company’s) net value.
Today, the
most common punishment for financial or corporate entities that break the law
is a small fine. A perfect example of this is the recent Goldman Sachs lawsuit
in which the firm paid a $550 million settlement on a deal that helped the firm
generate billions in profit. To put this in perspective, Goldman generates $500
million in profits in about a week of trading.
These fines
accomplish little if anything. They are akin to fining someone $5 for running a
stop sign. If that was the worst punishment for running a stop sign, no one
would bother following motor traffic laws at all. So why do we impose similarly
modest sums on those organizations that generate billions of dollars? It’s not
like they DON’T have the money handy to pay off a sizable fine.
A fine of
this size (10% of market capitalization or total assets, or Enterprise Value or
whatever) as well as confiscating 100% of the ill-gotten gains, would act as a MAJOR DETERRANT to corporate
and financial crime. It would, in plain terms, clean up Big Business’s
(well, every business’s) act in no time.
So how do you go about enforcing this
new law?
I
propose the creation of a government agency titled The Bureau for Corporate and Financial Integrity or some such
thing. This agency would be a kind of Department of Homeland Security devoted
solely towards insuring that the money made in the financial and corporate
sectors, is made honestly.
I realize
that we already have several financial regulatory bodies in the US. However, it
is clear from the ongoing fraud, corruption, and theft occurring today that
these organizations are overwhelmed.
On top of
this, the markets and economy today are very, VERY different from those that
existed at the time most of these organizations were created. Changing markets
call for changing mentalities and attitudes. Which is why I propose the
creation of a new organization rather than simply reshuffling the ones already
in place (this organization could work with the pre-existing ones too).
By creating
a new organization you would create new jobs. More importantly, these would be
permanent jobs rather than temporary jobs such as those created by the census
and other temporary programs.
However,
rather than simply offering the usual cushy public position consisting of a
very stable salary and benefits, I would suggest you offer the employees at
this new organization the following deal:
The
employees involved in bringing about a case to fine a corporate entity take
home 1% of the money brought in from the settlement should the case win.
I can tell
you Mr. President, there are MILLIONS of smart, intensely analytical young
Americans who would jump at the chance to stop corporate crime if you offered
this type of compensation package.
For
instance, the guys who took on Goldman Sachs in this recent case would receive
$5.5 million to split up among them. That kind of pay is handsome in any jobs
market… but in one as tough as today’s? Let’s
just say you’d be overwhelmed with applications.
But what
about the rest of the money and the money confiscated (the money the company made via fraud or some other
financial crime)?
I propose
that you use it to:
1)
PAY
OFF THE NATIONAL DEBT
2)
Fund
various public programs (NEW ones, NOT old ones that don’t work)
Doing #1 would send a clear message that
America is an honest, financially prudent country. Rather than lecturing other
countries about finance when we ourselves are running a deficit and debt level
that would take a private organization bankrupt, we would LEAD BY EXAMPLE.
This would
also STRENGTHEN the US Dollar. I know many folks in the various economic
bureaus and our central bank don’t like the idea of a strong Dollar… but I can
assure you that the 300+ million rest of us WOULD LIKE IT VERY MUCH.
Regarding #2, by using the money
fined/confiscated from organizations that break the law, you would find a
large, ample supply of money to fund various governmental programs, which in
turn would allow you to CUT TAXES.
After all,
if the government didn’t have to rely on taxes to fund its programs and budget,
it could lower taxes for its citizenry.
This would not only GUARANTEE you a 2012
re-election win, but would jump start the economy as it would mean MORE money
available for private sector spending and consumption (particularly with a
stronger Dollar) as WELL AS THE PAYING OFF CONSUMER DEBT (mortgages, credit
cards, etc).
Obviously,
there are a lot of details that would need to be worked out in my plan. But its
results would be TREMENDOUS. Among other things, it would do the following:
1) Rein
in the corruption and fraud that is polluting our capital markets and economy
(not to mention our national character on the world stage).
2) Re-instill
a notion of “right and wrong” to our nation’s public conscience.
3) Create
new, potentially high paying jobs for our best and brightest.
4) Teach
Americans, particularly the young, that you don’t need to break the law to get
ahead in life, that you can do right by doing the right thing.
5) Help
with our debt and deficit issues while sending a strong message to the world
that the US doesn’t just talk about prudence and solvency, IT LEADS BY EXAMPLE
(this would also impact our national character as it would re-instill the old
virtue of living a debt free life).
6) Strengthen
the US Dollar.
7) Help
jumpstart the economy by lowering taxes which would permit consumers to pay off
their debts, and spend more if they chose.
8)
And
of course, JUMP START YOUR APPROVAL RATINGS LEADING TO A GUARANTEED 2012 WIN (I
know you’ve got to consider your political career in your policy-making).
I do not
view this plan as a “fix all” remedy to our nation’s ills. The US economy and
political/ financial systems are in dire straits and there are some issues
which will simply require us to “take the medicine” if we do the right thing.
However, I strongly believe this plan would
be the first step towards shifting our country’s course from one of corruption,
greed, immorality, and lawlessness, to one of honesty, integrity, transparency,
financial prudence AND solvency.
In plain
terms, it would re-instill notions of doing the right thing and of making an
honest living. It would also re-instill our confidence as a nation as we become
proud members of a country that is financially prudent, virtuous, and which
leads by example.
I realize there is a small portion of our
population that would STRONGLY oppose this plan. However, I can assure you that
the vast majority of Americans (99% of us) would be ALL FOR IT. If you put this
matter to a public vote, it would likely be the BIGGEST VICTORY IN US HISTORY.
And, finally, I can guarantee you that
introducing this plan would immediately JUMP START your approval ratings AND
almost certainly guarantee you of a 2012 victory (I know this matters to you).
If anything it would be a great start towards a new future in this country, one
of strong national, corporate, and individual moral character.
Yours Respectfully,
Graham Summers
PS. For more scathing critiques of the socio-political structures in this country as well as hard-hitting investment insights revealing the real reasons the market moves as it does, join me atwww.gainspainscapital.com
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Sorry Graham Summers, ain't gonna happen, no way.
It surprises me how so many smart people never looked at Obama closely, when there was SO MUCH out there for so long. Guess you never read much about the Chicago School of Politics either.
Barrons Big Money Poll in 2007 had Obama already picked as the most likely winner in 2008.
I am so glad I have no money with Phoenix Capital Research.
Hey, DCRB. I've read this far in the comments and find it amazing that people are taking this article seriously. A few paragraphs into it I had to look back at the top for the author(s). I was sure that Benjamin Dover was up to his old tricks.
This article is a hoot. No way, no how this is credible. Is it April 1st?
It surprises me how so many smart people never looked at Obama closely, when there was SO MUCH out there for so long.
I couldn't agree more. The man is a know-nothing do-nothing pretty face who reads well from the 'prompter. He therefore makes an absolutely perfect sock-puppet president. He can be the one at whom we direct our anger while the bankers sit back and collect endless free money. The perfect scam. Pleading to this guy is a total waste of time. Pleading to either established party in this completely corrupted political system is a complete waste of time. Soon, being a political independent will be outlawed.
Well said.
SW,
IMHO, too many people are FIXATED on the Banksters, and not on what the Admin, and his agenda is.(the Banksta's are a sideline issue, a place to take your eye off the ball).
He is using the Fed, to push thru an agenda to END this Republic.......
He has PUBLICALLY stated that the Constitution is a bad one.........er', excuse me, did you not take an oath to Uphold and Defend?.
Is he, has he?...............NO.
At this moment, the same admins puppets, are trying to end around the Congress to allow Illegals to stay................and then guess what, VOTE.
Blacks make up 94% of the votes that got him elected, and the VAST majority are still in his corner..........he's alienated the Independents, and likely a lot of women, who also voted for him.
So, notice the trip to Puerto Rico a few weeks back?.We haven't seen the end of that story.( IOW,Pls become a state, pretty pls??)........I NEED YOUR VOTES.
He really could care less about the unemployed, he's merely extending benefits to keep them off his ass........16 million+, 450k a week coming on the rolls, and the previous folks rolling off.....but, not to JOBS.
Just read the book, and his story, he really pulled few punches, and telegraphed what his plans were.............only a FEW really got IT.
How do YOU discern a man's character?..............LOOK at the people they associate with.
Nuff said............be ready for anything.
What I wrote doesn't negate the very real probability that the banksters want us divided and fighting among ourselves, and want a big-government agenda enacted, the better to control us with. Sometimes I think I can see a background agenda to break up the U.S. I myself have speculated, early on, that Obama would go down in history as the second President from Illinois whose election initiated the breakup of the U.S. While he might really want to do it, I don't believe he's calling the shots.
+100
+2
From the Hitchhikers Guide to the Galaxy:
The Book: The purpose of the president of the galaxy is not to exercise power, it is to distract attention from the people who are really exercising power.
.....
Zaphod: Some parts of my character weren't what you'd call presidential.
.....
Ford: What's with the whole two-head thing?
Zaphod: Oh, yeah, apparently you can't be president with a whole brain.
+1
Do,
Just read "Dreams of my Father".........
You will quicky see, that he is not ONE of us...........any fool can see it.
I had no plans to vote anyway, and so didn't read it. But now I'm realizing I absolutely should have, if only to know what to expect.
EDIT - And I sure as shit wasn't going to buy it! He lost me at the "just a little blow" reports in the media. You can tell alot about a politician based on his drug of choice.
Hung pow yow MF. "It surprises me so many smart people never looked at Obama closely"? Did you look at the old guy closely and his retarded sidekick? Remember the " keep Greenspan in his position even if I have to prop him up after he's dead like weekend at bernie's"? God you suck so bad you fucking stupid Gook.
so you were taken in too. so busy hating mccain/palin that you didn't see the rotten apple flying your way. makes do chen right.
There was no way out of getting stoinked in 2008. McCain and Obama are the boys that the banksters chose. Things may have been worse under McCain. We would probably already be attacking Iran, and we may have already had a damn uprising in our own country by now with McCain. As long as people vote for the two big parties, we will be screwed.
Uh, I am 54 yr old white guy Vote.
I buy rolling bearings.
Other than that, I am no expert on anything. Just ask Muir, lol.
My bad hung pung. This boulderdash of acting as if one party is not to blame or that things would be better if the other party were in power is about to cause me to VOTE.
Right on VWB. There are only two parties; you and the government. This democracy thing is a sideshow meant to distract and divide. Pretty successful at that.
Actually, I kind of like the idea of voting with a bullet if they try to take away my gold...
My..., you do have a way with words.
It's less convoluted than most ideas that actually make it to the floor...
Probably the most naive letter I've ever read. The Progressive Movement led by Obama BENEFITS from high levels of corruption. That's why you see a Justice Department that SELECTIVELY prosecutes based on political calculations. All is lost with Obama and Cronies... only electing a President with real charcter in 2012 with can save America.
The kids that wrote this letter are actually "managing" billions of dollars. Wow, baby, just wow.
Um not really. This guy wants to fix the problems of regulation with MORE regulation? More govt programs? Seriously?
DEAR MR FOX
PLZ INSTALL MORE BETTER ALARM ON ChIKEN HAUS
KTHXBYE
By ERNEST S. CHRISTIAN AND GARY A ROBBINS Posted 06:30 PM ET
The Internet is a large-scale version of the "Committees of Correspondence" that led to the first American Revolution — and with Washington's failings now so obvious and awful, it may lead to another.
People are asking, "Is the government doing us more harm than good? Should we change what it does and the way it does it?"
Pruning the power of government begins with the imperial presidency.
Too many overreaching laws give the president too much discretion to make too many open-ended rules controlling too many aspects of our lives. There's no end to the harm an out-of-control president can do.
Bill Clinton lowered the culture, moral tone and strength of the nation — and left America vulnerable to attack. When it came, George W. Bush stood up for America, albeit sometimes clumsily.
Barack Obama, however, has pulled off the ultimate switcheroo: He's diminishing America from within — so far, successfully.
He may soon bankrupt us and replace our big merit-based capitalist economy with a small government-directed one of his own design.
He is undermining our constitutional traditions: The rule of law and our Anglo-Saxon concepts of private property hang in the balance. Obama may be the most "consequential" president ever.
The Wall Street Journal's steadfast Dorothy Rabinowitz wrote that Barack Obama is "an alien in the White House."
His bullying and offenses against the economy and job creation are so outrageous that CEOs in the Business Roundtable finally mustered the courage to call him "anti-business." Veteran Democrat Sen. Max Baucus blurted out that Obama is engineering the biggest government-forced "redistribution of income" in history.
Fear and uncertainty stalk the land. Fed Chairman Ben Bernanke says America's financial future is "unusually uncertain."
A Wall Street "fear gauge" based on predicted market volatility is flashing long-term panic. New data on the federal budget confirm that record-setting deficits in the $1.4 trillion range are now endemic.
Obama is building an imperium of public debt and crushing taxes, contrary to George Washington's wise farewell admonition: "cherish public credit ... use it as sparingly as possible ... avoiding likewise the accumulation of debt ... bear in mind, that towards the payment of debts there must be Revenue, that to have Revenue there must be taxes; that no taxes can be devised, which are not ... inconvenient and unpleasant ... ."
Opinion polls suggest that in the November mid-term elections, voters will replace the present Democratic majority in Congress with opposition Republicans — but that will not necessarily stop Obama.
A President Obama intent on achieving his transformative goals despite the disagreement of the American people has powerful weapons within reach. In one hand, he will have a veto pen to stop a new Republican Congress from repealing ObamaCare and the Dodd-Frank takeover of banks.
In the other, he will have a fistful of executive orders, regulations and Obama-made fiats that have the force of law.
Under ObamaCare, he can issue new rules and regulations so insidiously powerful in their effect that higher-priced, lower-quality and rationed health care will quickly become ingrained, leaving a permanent stain.
Under Dodd-Frank, he and his agents will control all credit and financial transactions, rewarding friends and punishing opponents, discriminating on the basis of race, gender and political affiliation. Credit and liquidity may be choked by bureaucracy and politics — and the economy will suffer.
He and the EPA may try to impose by "regulatory" fiats many parts of the cap-and-trade and other climate legislation that failed in the Congress.
And by executive orders and the in terrorem effect of an industrywide "boot on the neck" policy, he can continue to diminish energy production in the United States.
By the trick of letting current-law tax rates "expire," he can impose a $3.5 trillion 10-year tax increase that damages job-creating capital investment in an economy struggling to recover. And by failing to enforce the law and leaving America's borders open, he can continue to repopulate America with unfortunate illegals whose skill and education levels are low and whose political attitudes are often not congenial to American-style democracy.
A wounded rampaging president can do much damage — and, like Caesar, the evil he does will live long after he leaves office, whenever that may be.
The overgrown, un-pruned power of the presidency to reward, punish and intimidate may now be so overwhelming that his re-election in 2012 is already assured — Chicago-style.
• Christian, an attorney, was a deputy assistant secretary of the Treasury in the Ford administration.
• Robbins, an economist, served at the Treasury Department in the Reagan administration
More or less regulation isn't the problem. The problem is the people that are in charge of enforcing the regulation have no integrity. Put someone like William Black in charge and you will see results. If Obama wanted change he wouldn't have Rahm, Summers, Geithner ect.. working in his cabinet.
This is absolutely true. Law typically only can fill the void where a general sense of morality is lost.
Exactly right Rick64! As soon as Obama appointed Summers and Geithner, I knew he was a sham. The author also makes the assumption that Obama is in charge. I can't think of better evidence that there are powerful interests that even the president answers to, than his financial advisor appointments. Obama will only be re-elected if it serves the purposes of whatever Cabal got him elected in the first place. Two Party system my ass...there's only one party in this country. The monstrously rich and powerful party.
Quit fighting the tape, just hedge your longs, keep a healthy cash position and be ready to profit whichever way the wind blows.
There is simply nothing to fix because from Obama's perspective, nothing is broken.
"There is simply nothing to fix because from Obama's perspective, nothing is broken."
Funny - when I first read that line I thought it said "There is simply nothing to fix because in Obama's presence, nothing is broken."
Obama, from Chicago, is a political machine product. Axelrod is straight from Da Mare'sPR office, Da Mare's brudder being the guy in charge of a MAJOR TELECOMM, which would be Wall Street, inc.
Just ask your neighbor or brother-in-law to loan you $500. If he says yes, go long the market as hope and a brighter day are alive in America. If you get turned down cold, go short. Its that simple.
This conversation would not be necessary if citizens were vigilant in protecting their liberties as writ in the constitution. Small Libertarian Government, for the people (ie supporting and enabling the constitution) by the people (voters are supposed to clean out the house of bought or compromised representatives who do not fulfill their duty to upholding the constitution), will eliminate to a great extent, liaisons between the rich and the powerful. Less government is more, when it comes to individual Liberty. Take your eye off the ball and bigger government begets greater corruption in centralized halls. Voila! Washington and its lobbyists.
Don't, for fuck's sake, give them more rope to hang you with!
You couldn't be more on the money Al.
Welfare states don't have citizens... they have dependents or clients.
As you said it's about a healthy suspicion and even disrespect of government after it grows to intrude in personal affairs at a certain level. But most important, always be the guy holding the noose. We've given over that power.
dude what do you want? the corporations to police themselves? we got that already.
From what I read, he's not merely proposing more regulation, but more effective regulation that creates financial incentives for the regulators to actually enforce the laws.
Not that I necessarily agree...but it's not as mindless as just proposing more.