WE WILL BE HEARD -- Voice of Reason from Main Street

I'm going to go out on a limb and say that for every news reporter, news analysts, politician and Wall Street Pundit [along with those currently whining about short selling bans, commodities brokers, executive compensation, etc] telling the American Public that we just don't under stand - I've got a message to you: There are a bunch of us out there that do understand - we are college educated, know how a few things about investing, understand how to manage our money and a lot of other things that you don't want to know or believe out us.

Here's a link to three "comments" on the Wall Street Journal - read them, they each state a very important idea for our current situation.


Now, I'm going to state two things that our Federal Government should do immediately -- that will change everything for the better....

1. Suspend Mark-to-Market for long term investments [such as real estate loans]. If financial institutions have to continually re-evaluate their portfolio of loans based upon a "perceived" market value of the actual property, then we will continue to see problems in this area. Real Estate is a long term investment - and in the home loan business, the majority of loans are made to people that are going to pay for their homes no matter what. Does it matter that the value of their home is gone down [or up for that matter]? The only time real estate has value is when it's sold - that when things should "recalculate" on value. Mark-to-Market is there to protect people, but it has gone completely sideways - and as within anything, good "ideas" can have bad "consequences" is not properly implements.

2. Get speculators out of the commodities market. If someone does not produce the raw material, or expect to take delivery of the raw material to make something else, they should not be allowed inside the transaction. A commodity market [without the influence of speculators] will balance itself because sellers want to maximize their money and buyers want to minimize their costs. Each is looking out their own "self interest" within the transaction. It's a dance that goes on everyday in business. But, once you allow speculators into the transaction, there only motivation is to FUD [fear, uncertainty, and doubt] - either with supply [Oh no, there's going to be shortage, you better buy now] or demand [Oh no, people are buy less, you better sell now]. They make money either way -- but add no value whatsoever to the transaction. Also, because they only make money by creating FUD, they will find [or manufacturer it] and then tell the world about it.

Two simple things and neither will cost a billion dollars of tax payer money.


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