ThoughtNGine

The Power of Ideas

Letter to Secretary Paulson and Chairman Bernanke

Mr. Henry Paulson

Secretary of the Treasury

1500 Pennsylvania Avenue, N.W.

Washington, D.C. 20220

 

Chairman Ben Bernanke

Chairman

Board of Governors of the Federal Reserve System

Washington, D.C. 20551

 

Dear Secretary Paulson and Chairman Bernanke:

 

Over the years, I have been very conservative in my financial decision-making.  I assiduously avoided incurring debt that I could not repay.  (In fact, I pay off all amounts on credit cards at the end of each month, since the interest rate always exceeds the return on money).  I refused to become involved in the speculative folly of the equity bubble of the late 1990’s.  I also did not put myself in harms way by over-leveraging myself in real estate in recent years.  My approach meant that, in the early stages of these boom-bust cycles I did not participate in the fun.  However, I also avoided the pain and suffering of those caught holding the bag.  At least I thought I avoided the consequences.  Recent events suggest otherwise.

 

Please understand, I do not like seeing people hurt.  But I also do not believe that the solution should unfairly tax those who, because of luck or foresight, managed to avoid the debacle; or those who, because of determination and fortitude, actually managed to navigate through the same minefield. Furthermore, any solution should not allow the possibility that aid recipients end up better positioned than those who did not put themselves in harms way, or those who managed to struggle through on their own.

            

Sincerely,

 

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March 10, 2008 - Posted by | Politics, Writing

2 Comments »

  1. I couldn’t agree more. After living in apartment after apartment saving up my 20% to put down so I could get a decent house without underhanded tactics, the thought that I will be punished for other people who couldn’t wait and sacrifice like I have makes me ill!

    Comment by dsgawrsh | March 10, 2008

  2. I also agree…fact is I’ve been renting too, thinking the housing market is crazy. Because of all the froth in valuation, rents have also been hirer than they otherwise should be… so many, other than flippers or sellers with good timing and not too much greed, have also suffered. Now as the Fed cuts rates to support its banking constituency, savers, including retirees, are suffering too.

    Comment by ABS | March 10, 2008


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