If I was Mr Paulson…. I’d declare Martial Law on Wall Street

I am so annoyed by all these people who said they did not realize what was happening and are now providing expert opinions on how to fix the credit crisis.

Greenspan says he did not expect Wall Street to take advantage. He actively encouraged Congress to support sub prime loans.

“In 2004 Business Week Magazine criticized his keeping of low interest levels too long and his concurrent praise of sub-prime lending vehicles such as ARMs as leading to a housing bubble.”

Wall Street manage risk, that’s what they do and are paid well to do it. They got billions of risky mortgages to manage. Initially they did their job. Then they cashed in on the lucrative sub prime mortgage business. The model was fine until the sub prime problems just got too big.

Mr Paulson has not been tested at Goldman Sachs in severe adverse financial conditions like the one we are facing now. I understand he got $38M as his last paycheck at Goldman Sachs before becoming Treasury Secretary.

So far he has managed to get the okay to spend $700Bn of taxpayers money to shore up Wall Street  and the big Banks and trade out of this mess.

Even while he is doing all of this his mates are budgeting to pay our billions of dollars in bonuses this year. Are they serious? They are still out of control. What is Mr Paulson doing about it?

The guys on Wall Street need to be made to sort out this mess. If they didn’t see it coming 😉 then they should be prepared to work to fix the problem.

What he should be doing is;

  • Immediately declare martial law on Wall Street and the major Banks including Fannie and Freddie.
  • He should then enlist all employees, managers, CEO’s, CFO’s, Directors and Chairmen in the armed forces for the next three years.
  • He should freeze all senior manager and above financial assets.
  • He should set pay according to military rank pay scales.
  • Colin Powell should be appointed to head up the military operation to ensure these people behave themselves.
  • Wall Street, the Banks and other institutions under martial law should be made aware that not showing up for work will be in contravention of military standing orders. Absent without official leave AWOL, is a court-martial offence.
  • Military police should be posted at the offices of these institutions to book in and out the employees and chase down any that go AWOL.
  • All planned bonuses should be put back into the company’s to help re-finance them.
  • The Congressmen on the Financial Services Committee should also be replaced immediately.
  • It should be legislated that committee members can only serve two terms on such committees.

It sounds extreme doesn’t? We are all civilized aren’t we? Well that is just not true or we would not be in this mess. These people have knowingly destroyed the financial system of the world, not just America.

No one working in the financial industry that has studied economics and finance can claim to be innocent. If they do they are either lying, incompetent or decided not to say anything.

Despite Congress forcing the banks to offer sub prime loans, in the land of free speech someone should have spoken out about the potential problems and done something about it.

There have been several times in US history where martial law has been declared. it was declared in New Orleans in 2005 in the wake of Hurricane Katrina. My only addition is to enlist the employees in the armed forces to ensure Mr Paulson has control over what they do.

Nothing focuses the mind like freezing your financial assets, paying you a military salary and making you subject to court-martial if you don’t to your job properly.

If you think this is extreme, then take a look at your retirement nest egg which has suffered extreme and unnecessary losses. Send an email to your congressman and tell them to make it happen or you won’t vote for them.

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