Wednesday, March 4, 2009

Bailout Nation : "Stay the course"

This is what I wrote to our Congressman - Jerry McNerny - in Oct 2008.

Honorable Sir,

I am writing to express my tremendous disappointment at your decision to vote in favor of the current bill being touted as economic recovery plan.

The bill has been pushed by scaring the American people - exactly the same way the bill related to Iraq war was pushed. Most economists are against the bill and still there were no alternatives discussed. Without interviewing prominent economists why have we decided to trust a proposal by a former Wall Street banker ? Just because we have tagged on a few provisions ?

The idea of buying distressed assets from risk taking banks is fundamentally wrong. It is doomed to fail and put financial security of future generations at unfathomable risk.

If we have to do something, then why not spend these 700B dollars on building alternative energy plants ? It will create jobs and will help the housing crisis. The economy needs to create new jobs, not throw good money at bad. And the alternative energy investment will actually show some return in future. If not that idea, then any idea that invests in infrastructure will do.

In any case, I must express my regret and I will do so when I vote. I will not vote for you or any other person who supports this bill. Ever again. I will never be able to forget this erroneous decision that puts my kids' future at permanent risk.

Your's truly.

- Abhay Avachat.

I still stand by that. We were told that this bailout needs to be done to save the economy ? What has happened ? We are still giving money to failed institutions, their stocks are still almost worthless - actually many have ceased to exist, jobs are still being lost at an alarming rate, stock market keeps making historic lows and ... you get the picture.

So what was the point in giving OUR money to all these banks ??

The Obama administration is doing more of the same. That's not the mandate on which he was elected. The first 100 days are important - and till now have been very disappointing. It just feels that there is simply no will to take hard decisions. What a mess.

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