Omar Dyer
Letters’ Letter to the President:
Dear President,
This journey to help secure the economic standards in America after the crash and fall of Enron has been one of the most troubling achievements that have hampered George W. Bush’s presidency, and is now hampering your presidency. It hasn’t much to do with two un-paid for wars, or the notion that the debt of the nation is growing. Those are controllable problems, that aren’t easy to solve but very controllable from preventing a collapse in the system.
I know you read letters all the time; from experts, to people you trust, and members that volunteer or gave service to your campaigns. And I have written letters to previous presidents, governors and other members of government—giving great details on the future of economics. Even though I am not an expert with the greatest economic credentials, or a manager of a firm that has marketing skills in Washington to lobby for their companies interest! I am not the smartest tool on the block when it comes to finances. Yet, I learn and listen to those that are – and implemented the trail by error and experience clause into this letter.
Morgan Stanley, purchased stocks and assets from Bank of America, where Bank of America then turned around and sold those same assets in exchange for T.A.R.P. funds. After the American People bailed out Bank of America on mortgages – instead of helping their consumers, Bank of America used those assets to mark off that in the market exchange. Called a Mark-to-Market Accounting in order to write-off damaged assets!
What is Mark-to-Market Accounting?
It’s considered fair value accounting refers to accounting for the fair value of an asset or liability based on the current market price of the asset or liability, or for similar assets and liabilities, or based on another objectively assessed "fair" value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early 1990s, and has been used increasingly since then.
Mark-to-market accounting can change values on the balance sheet frequently, as market conditions change. In contrast, historical cost accounting, based on the past transactions, is simpler, more stable, and easier to perform, but does not reflect current fair value at all. It summarizes past transactions instead. Mark-to-market accounting can become inaccurate if market prices change unpredictably. Buyers and sellers may claim a number of specific instances when this is the case, including inability to accurately collectively value the future income and expenses, often due to unreliable information, over-optimistic, and over-pessimistic expectations.
Now this is mostly done with private companies, but when they use public money to value assets that are not really marked off—place them into short-term financial troubles, which will require an endless bailout of these falling banks, until the cause of the mark off is litigated.
The problem is when the Federal Government passed on the federal level: Wall Street Reform – which is a reform of the New Deal. The government forgot to implement that all states must follow federal rules in state county, or municipal courts. And that Judges be educated on the changing terms of the federal system. And that isn’t the case on the state level. Many of these underlining problems have already been addressed on the federal level. And instead of banks going to the federal courts to make justifications – then go to the state courts where the rules are relaxed and unmonitored. Giving a Judge more power to influence the judgment – even though all questions have been answered.
The problems with our financial system are that we have too many bosses that have too many hidden rules, and have too many financial loopholes. Nobody was charged during Bush’s presidency because of the notion of assets being sold off wasn’t a crime, and it isn’t a crime. But to place burdens on consumers, that the government doesn’t place on the merchant whom purchased financial solutions from the government to exchange the same services – while having no risks in the underlining of bilateral contracts, only hampers business. President Barack Obama, people say you have no business experience – yet I have known you to be up to par on how business financing is run. And you must not or can’t allow mark-to-market accounting hamper the economics of consumers. Allowing four to five different companies to sell off their assets, while just to look good for the Standards and Poor’s rating system, or look good for the Down Jones – doesn’t really solve the problem of their assets being in trouble.
Solutions: Allowing small firms that have troubled assets to engage into the Tax Bond Credit System – which will cost $10 billion dollars to implement. And will grant a profit of $6 billion to the reserve over a 10 year period. Even though the government is losing out on $4 billion dollars in advancements for long term solutions – it will help heal wounds caused by this practice of mark-to-market accounting. And there should be sanctions on how many large firms can write off their cost, without really addressing the debt placed on their balance sheets.
Mr. President, if the government is going to allow this type of practice – then the mark off accounting must be separated from debtors, and debt collectors. Meaning, we need to get rid of these collection agencies. As noted in the law, if Bank of America wants to collect a debt from Joe Doe – then they should hire a law firm to litigate the damages. Not send the mark off to a collection agency, and then the collection agency (co-conspires) as both the client and the law firm, to negotiate damages. And those laws are already on the books at the federal level but haven’t been implemented throughout the states. Which is why our debt and jobless numbers continue to rise – why our disparity of the middle class and rich continues to get wider? And it’s the states that have to get up to speed with how the system is change. And debt is now personal property in which is protected by the 14th amendment. Mr. President, I can have a 7 hour discussion with you on the damages mark-to-market accounting has done to the system – and write a 210 paged book on the damages this system can do to future generations, but my time is limited. In this letter and my advice is to hold Banks more accountable for our financial problems and debt problems—and force them to fully display their intentions when working with consumers.
It’s the obligation of the states to create jobs, and enforce federal law – yet, many states have leaders that have pledged to ignore the federal rules and regulations. But it’s the president’s call if such a trouble-some economy is hampering the economic growth. We in this tough time don’t need more regulation – we need smart regulation, stuff that make sence.
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