We need to fix our economy

January 30, 2009

President Obama and his administration are trying to address this serious economic crisis at home.

It takes the entire nation to get involved in the rescue operation.

Let us come together and do everything possible to revive the economy.

Please standby for some important guidelines and suggestions for economic recovery on www.padminiarhant.com.

Also, focus on resolving California’s budget crisis will be presented on the website shortly.

Meanwhile, please follow through the request from President Obama’s administration to create awareness and collective effort required to survive the crisis.

Thank you.

Padmini Arhant

———————————————————————————–

Last year, America lost 2.6 million jobs. This week, some of our biggest companies announced plans to cut tens of thousands more.

The economic crisis is deepening, but President Obama and members of Congress have proposed a recovery plan that will put more than 3 million Americans back to work.

You can learn more about how the plan will help your community by organizing an Economic Recovery House Meeting.

Join thousands of people across the country who are coming together to watch a special video about the recovery plan. Invite your friends and neighbors to watch the video with you and have a conversation about your community’s economic situation.

The economic crisis can seem overwhelming and complex, but you can help the people you know connect the recovery plan to their lives and learn more about why it’s so important.

Sign up to host an Economic Recovery House Meeting the weekend of Friday, February 6th.

The President’s plan passed the House of Representatives on Wednesday. But if it’s going to move forward, we need to avoid the usual partisan games.

That’s why supporters are opening their homes to talk with neighbors and friends about how the plan will work — and what it means for their community.

The video will outline the basics of the plan and how it will impact working families. It will also include answers to questions from folks across the country. Invite your friends and family to watch the video, discuss the plan, and help build support for it.

Don’t worry if you’ve never hosted a house meeting before — we’ll make sure you have everything you need to make it a success.

Take the first step right now by signing up to host an Economic Recovery House Meeting:

http://my.barackobama.com/recoveryhost

Time and again, you’ve demonstrated your commitment to change. Now you can help America move in an important new direction.

Please forward this email to your friends and family, and encourage them to get involved as well.

Thank you for your hard work,

Mitch

Mitch Stewart
Director
Organizing for America

Written by Padmini Arhant · Filed Under Business, Economy | Leave a Comment 

Radio Show Update

January 24, 2009

Schedule Update:

January 24, 2009, Air time – 8.00 – 10.00 P.M(PST)

Category: Current Events

Topic: Wall Street Bailout

Discussion:

What should financial institutions do with taxpayers’ bailout?

Why haven’t the financial institutions invested funds to stimulate economy?

What is public demand from them and the legislators?

——————————————————————————————————————-

January 25, 2009,  Air Time 2.00 – 4.00P.M (PST) – (5.00 – 7.00P.M EST)

Topic: Free Palestine

Discussion:

1. How can we help to expedite independent state for Palestinians free of Israeli blockade, occupation and aggression?

2. What should the new administration do to be a trustworthy partner and unbiased peace broker in the Middle East conflict?

3. How can we help Israeli population elect a moderate government in early February favoring peace and diplomacy over military action for their national security and sovereignty?

——————————————————————————————————————

January 30, 2009, 120 minutes 2.00P.M – 4.00P.M – Cancelled due to restrictions on segments at frequent intervals.

Category: Current Events

Topic: Economy and Health Care – Please refer to blog post on www.padminiarhant.com for details and I invite you to post comments.

What should the new administration do for you and the economy?

How do we fix the Health Care system?

———————————————————————————-

Podcast live : http://www.blogtalkradio.com/Padmini-A

Guest Call-in-number: (646) 727 -3778

I invite you all to participate in the public forum and share your concerns, ideas and knowledge.

Your comments and thoughts are welcome in the political discourse.

Let us keep democracy alive and help our new President Barack Obama and Vice President Joe Biden in rebuilding our nation.

Your participation is a huge encouragement and always appreciated – Thank you again.

Look forward to the session.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

Radio Show Schedule

January 22, 2009

I will be doing a live radio show for 120 minutes from 2.00P.M to 4.00P.M. (PST) on the following days:

January 23, 2009 Friday from 2.00 – 4.00 P.M (PST) to accommodate listeners from all time zones.

Category: Current Events

Topic: Corporate Bailout

Discussion:

What should financial institutions do with the taxpayers’ bailout?

Why have they not utilized those funds to stimulate economy?

What is public demand from them and the legislators?

———————————————————————

January 30, 2009, 120 minutes 2.00P.M – 4.00P.M

Category: Current Events

Topic: Economy and Health Care

What should the new administration do for you and the economy?

How do we fix the Health Care system?

———————————————————————————-

Podcast live : http://www.blogtalkradio.com/Padmini-A

Guest Call-in-number: (646) 727 -3778

I invite you all to participate in the public forum and share your concerns, ideas and knowledge.

Your comments and thoughts are welcome in the political discourse.

Let us keep democracy alive and help our new President Barack Obama and Vice President Joe Biden in rebuilding our nation.

Look forward to the session.

Thank you.

Padmini Arhant

P.S. My apologies for not being able to schedule a convenient time on January 21, 2009. I am aiming to provide as much time as possible through whatever avenues available in getting us back on our feet.

Your participation is a huge encouragement and always appreciated – Thank you again.

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

Banks Bailout – Accountability

January 11, 2009

It’s been a quarter since the banks bailout. The purpose of the bailout was to stimulate the economy by relieving the financial markets from liquidity crisis.

At least, that was the explanation offered by the Treasury Department and the Federal Reserve at the time of request.

They demanded that Congress approve the bailout to a tune of $700 billion as an emergency measure to avert the collapse of the financial market.

There were few stipulations to the approval of the bailout. The general expectation was to revive the housing market with a moratorium on foreclosures and overhauling of the existing loan programs to assist homeowners with affordable payments and ease the decline of the housing prices nationwide.

The other alternative to the housing market crisis was to utilize the bailout drawdown towards restructuring of the mortgage backed securities by allowing default homeowners dealing with foreclosures to refinance at the existing lowest market rate for a fixed period of two years, substituting the amount in the new economic stimulus package by President-elect Obama.

Despite financial bailout by taxpayers, the economic situation is deteriorating with the current unemployment soaring to 7.2 percent exceeding the Depression era. The criticism entirely directed towards government intervention in the revival process.

However, it is worth remembering that lack of oversight and accountability led the financial institutions to a dire state in the free market economy. The corporate executives as the beneficiaries have been responsible for the dysfunctional financial system even though none of them held accountable thus far.

The current administration assured taxpayers that financial bailout targets liquidity in the credit market, housing market decline particularly foreclosures, buy-back mortgage securities held as major liabilities on the banks’ financial reports and ease their burden to facilitate lending to homeowners and small businesses.

If the strategy followed through, it could have reduced the heat on the economy and set the pace for recovery.

In the absence of commitment by the banks, it would be appropriate for taxpayers to demand that the financial institutions release the funds towards lending and contribute to the economic stimulation as agreed to by them.

Failure to adhere to the agreement will result in the blockade of the remaining $350 billion that would be appropriated towards economic stimulus proposal by President-elect Obama.

In addition, the taxpayers’ also reserve the right to demand that the beneficiaries of the bailout return the earlier withdrawal currently hoarded for their undisclosed agenda with interest higher than the market rate.

It is time for checks and balances on the drawdown of $350 billion to various financial institutions.

Checks and Balances:

Have the objectives been achieved?

Is there an oversight committee on the financial bailout as agreed to the taxpayers?

Did the banks provide details of the secured amount to the taxpayers or the oversight committee?

Please be sure to read the articles presented below as they confirm the reality.

Thank you.

Padmini Arhant

————————————————————————————————————

First and foremost, the beneficiaries of the bailout are:

As per http://moneynews.newsmax.com/streettalk/bailout_half_gone/2008/11/12/150364.html

Street Talk – Thank you.

Who Got Bailout Money So Far?

Wednesday, November 12, 2008 9:09 AM

"The Treasury Department’s $700 billion bailout plan, also known as the Troubled Asset Relief Program (TARP), is one of the main U.S. tools to address the financial crisis.

The Treasury Department on October 14 set aside $250 billion of the program to buy senior preferred shares and warrants in banks, thrifts and other financial institutions.

Half that money was allocated to nine big banks, the Treasury Department has said.

Another $38 billion has since been earmarked for regional or small banks, according to statements from individual banks.

On Monday, the department announced its single-biggest TARP investment — $40 billion in American International Group — which the government said would not come from the $250 billion bank capital program.

———————————————-
The TARP has so far committed the following funding:

AIG $40 billion

JPMorgan $25 billion

Citigroup $25 billion

Wells Fargo $25 billion

Bank of America $15 billion

Merrill Lynch $10 billion

Goldman Sachs $10 billion

Morgan Stanley $10 billion

PNC Financial Services $7.7 billion

Bank of New York Mellon $3 billion

State Street Corp $2 billion

Capital One Financial $3.55 billion

Fifth Third Bancorp $3.45 billion

Regions Financial $3.5 billion

SunTrust Banks $3.5 billion

BB&T Corp $3.1 billion

KeyCorp $2.5 billion

Comerica $2.25 billion

Marshall & Ilsley Corp $1.7 billion

Northern Trust Corp $1.5 billion

Huntington Bancshares $1.4 billion

Zions Bancorp $1.4 billion

First Horizon National $866 million

City National Corp $395 million

Valley National Bancorp $330 million

UCBH Holdings Inc $298 million

Umpqua Holdings Corp $214 million

Washington Federal $200 million

First Niagara Financial $186 million

HF Financial Corp $25 million

Bank of Commerce $17 million

TOTAL: $203.08 billion

—————————————-
INSURANCE COMPANIES

In addition to the TARP program’s $40 billion capital injection into AIG, the Federal Reserve is providing the company with up to $112.5 billion in separate loans and funds for asset purchases.
Aid to the huge insurance company came after counterparties and rating downgrades forced AIG to post large amounts of collateral for its credit derivatives positions.
Some other insurers are interested in cash infusions, but must own a thrift or bank in order to qualify under the terms of Treasury’s current capital injection program.

—————————————————————————–
BANKS, LENDERS

The TARP program set a November 14 deadline for smaller banks to apply for capital injection funds remaining in the pool of $250 billion. The deadline will be extended for non-publicly traded banks.

The government’s preferred shares will pay dividends of 5 percent annually for the first five years and 9 percent after that until the institution repurchases them. Participating banks must comply with Treasury restrictions on executive compensation, which limit tax deductibility of senior executive pay to $500,000.

They require bonuses to be "clawed back" if earnings statements or gains are later proven to be materially inaccurate and prohibit "golden parachute" payments to senior executives.”

—————————————————————–

The following article has the response for all of the above issues:

December 23, 2008.

Economy in Crisis: By Matt Apuzzo, Associated Press, Washington – Thank you

Banks mum on bailout spending – They Refuse to provide Accounting

Elizabeth Warren, the congressional watchdog, appointed by Democrats—

“It takes a lot of nerve for banks not to give answers, she says.”

Think you could borrow money from a bank without saying what you were going to do with it?

Well, apparently when banks borrow from you they don’t feel the same need to say how the money is spent.

After receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending it. Some won’t even talk about it.

“We’re choosing not to disclose that,” said Kevin Heine, spokesman for Bank of New York Melon, which received about $3 billion.

Thomas Kelly, a spokesman for JPMORGAN Chase, which received $25 billion in emergency bailout money, said that while some of the money was lent, some was not, and the bank has not given any accounting of exactly how the money is being used.

“We have not disclosed that to the public. We’re declining to,” Kelly said.

The Associated Press contacted 21 banks that received at least $1billion in government money and asked four questions:

How much has been spent?

What was it spent on?

How much is being held in savings? And,

What ‘s the plan for the rest?

None of the banks provided specific answers.

“We ‘re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks, which got $3.5billion in taxpayer dollars.

Some banks said they simply didn’t know where the money was going.

“We manage our capital in its aggregate,” said Regions Financial spokesman Tim Deighton, who said the Birmingham, Ala.- based company is not tracking how it is spending the $3.5billion it received as part of the financial bailout.

The answers highlight the secrecy surrounding the Troubled Asset Relief Program, which earmarked $700 billion – about the size of the Netherlands’ economy – to help rescue the financial industry.

The Treasury Department has been using the money to buy stock in U.S. banks, hoping that the sudden inflow of cash will get banks to start lending money.

There has been no accounting of how banks spend that money.

Lawmakers summoned bank executives to Capitol Hill last month i.e. November 2008, and implored them to lend the money – not to hoard it or spend it on corporate bonuses or junkets or to buy other banks.

But there is no process in place to make sure that’s happening, and there are no consequences for banks that don’t comply.

“It is entirely appropriate for the American people to know how their taxpayer dollars are being spent in private industry,” said Elizabeth Warren, the top congressional watchdog overseeing the financial bailout.

But, at least for now, there’s no way for taxpayers to find that out.

Pressured by the Bush administration to approve the money quickly, Congress attached nearly no strings to the $700 billion bailout in October, 2008.

And the Treasury Department, which doles out the money, never asked banks how it would be spent.

“Those are legitimate questions that should have been asked on Day One,” said Rep. Scott Garrett, R-N.J., a House Financial Services Committee member who opposed the bailout as it was rushed through Congress.

“Where is the money going to go to?

How is it going to be spent?

When are we going to get a record on it?”

Nearly every bank the AP questioned – including Citibank and Bank of America, two of the largest recipients of bailout money —– responded with generic public relations statements explaining that the money was being used to strengthen balance sheets and continue making loans to ease the credit crisis.

A few banks described company-specific programs, such as JPMorgan Chase’s plan to lend $5 billion to nonprofit and health care companies next year.

Richard Becker, senior vice president of Wisconsin-based Marshall & Ilsley, said the $1.75 billion in bailout money allowed the bank to temporarily stop foreclosing on homes.

But no bank provided even the most basic accounting for the federal money.

Some said the money couldn’t be tracked.

Bob Denham, a spokesman for North Carolina-based BB&T, said the bailout money “doesn’t have its own bucket.”

But he said taxpayer money wasn’t used in the bank’s recent purchase of a Florida insurance company.

Asked how he could be sure, since the money wasn’t being tracked, Denham said the bank would have made that deal regardless.

Others, such as Morgan Stanley spokeswoman Carissa Ramirez, offered to discuss the matter with reporters on condition of anonymity.

When the AP refused, Ramirez sent an e-mail saying:

“We are going to decline to comment on your story.”

Most banks wouldn’t say why they were keeping the details secret.

“We’re not sharing any other details. We’re just not at this time,” said Wendy Walker, a spokeswoman for Dallas-based Comerica, which received $2.25 billion from the government.

Lawmakers say they want to tighten restrictions on the remaining, yet-to-be-released $350 billion block of bailout money before more cash is handed out.

Treasury Secretary Henry Paulson said the department is trying to step up its monitoring of bank spending.

Warren, the congressional watchdog, appointed by Democrats, said her oversight panel will try to force the banks to say where they’ve spent the money.

“It would take a lot of nerve not to give answers,” she said.

But Warren said she’s surprised she even has to ask.

“If the appropriate restrictions were put on the money to begin with, if the appropriate transparency was in place, then we wouldn’t be in a position where you’re trying to call every recipient and get the basic information that should already be in public documents,” she said.
——————————————————————————————

Written by Padmini Arhant · Filed Under Business | Leave a Comment 

Auto Rescue Plan – $17.4 Billion

December 22, 2008

The White House decision to honor and acknowledge the plight of American workforce is praiseworthy.

During tough economic times, important decisions made to protect national interest is the best action for a nation dealing with crisis in all fronts.

Failure to avert the collapse of the huge manufacturing sector would have led to dire consequences with ripple effect on national and subsequently global markets.

For all those concerned about the erosion of free market system,

They must realize that the free market system with no oversight or regulations was heading towards a free fall denting the economic infrastructure with respect to financial and manufacturing sector.

The revival of sluggish economy is dependent on stabilizing the commercial sector providing millions of jobs that are in steady decline due to mismanagement, lack of accountability and corporate greed in many instances.

Therefore, the recent governmental intervention is necessary to restore investor and consumer confidence at all levels which in turn would contribute to the anticipated economic stimulus.

However, it is disappointing to note that the White House has unfairly targeted the United Auto workers (UAW) union with disproportionate demands such as,

Ref: Various news reports…

1.“The UAW union asked to rework contracts to make wages and work rules comparable with those at nonunion plants in the United States owned by foreign automakers by December 31, 2009.

2. The UAW asked to accept stock rather than cash for the billions of dollars of pension and retiree health care liabilities shifted from the companies to the union.”

The success and failure of any organization lies with management of capital and resources available to the head of the company responsible for the entire workforce.

Stock performance is dependent on the viability of the company based on executive decisions leading productivity to profitability.

Hence, shifting the entire burden of liabilities to labor rather than management reflects cohesion with the corporate executives primarily responsible for the precipitous losses suffered by the manufacturing sector.

With the loan granted to GM and Chrysler, it is imperative for not only these two automakers but also the entire auto industry to move towards energy efficient preferably environment friendly automobiles to free the nation from energy dependence and environmental hazards.

Overall, the rescue plan is the step in the right direction to protect nearly a million jobs in the auto industry.

Such action to salvage the American workforce will pay off through consumer spending, an essential catalyst for economic recovery.

As for the bailout precedence, it is noteworthy that the grim reality of accelerating unemployment and liquidity freeze in the credit market prompted similar action.

Finally, it is incumbent on the financial institutions to respond to the urgency of the economic revival by reinstating responsible lending practices to businesses with sound management focused on profitable ventures.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business | 1 Comment 

Foreclosures

October 7, 2008

The stock market performance particularly on October 6 and 7, 2008 is a strong indication of the lack of effective measures to address the problems that triggered the financial crisis and subsequently the economic meltdown. The tumbling of the stocks due to aggressive selling day after day is from panic and deep concern among investors across the globe.

The “Treasury” has secured the financial package for the “rescue” plan as an instant relief to the current crisis. However, in preparation to relieve the financial institutions from “bad debts” and “toxic assets”, it has failed to look beyond the “Corporate” horizon. The immediate priority is to lift the nation from the burgeoning “housing market” crisis i.e. “foreclosures” and provide relief to the “homeowners”.

The Congress must act now on bipartisan basis to implement “Moratorium” on the “foreclosures”, and vigorously re-enact the “Bankruptcy provision” to relieve homeowners across the nation. It should not be at the discretion of the financial institutions that are primarily responsible for the mortgage crisis to resolve on their own terms and conditions. As stated earlier, the “foreclosures” are the result of the multi-tiered structures in the financial and real estate industry engaging in unethical practices and reckless conduct with no oversight.

If the “rescue” package does not involve the solutions to the problems of the current economic and stock market turbulence, the entire effort by the Congress is futile. Therefore, it is necessary for government intervention to relieve all homeowners dealing with “foreclosures” and delinquency on their mortgage payments due to the sudden increase in interest rates initially offered as “teaser” rates on the subprime mortgage loans.

The urgent and direct focus on the “housing market” is the only prudent economic strategy available to revive the “housing sector”, one of the structural foundations of the economy. The consistent decline of “home values” is a major factor for the “economic stress” with a ripple effect on the entire financial and commercial sectors.

The “housing” and “energy” industry are fundamental components of the economic infrastructure. Hence, the rescue plan must address the “cause” of the current financial crisis i.e. the “foreclosures” besides facilitating financial liquidity in the commercial sector to stimulate economic growth and development. In terms of the economic stimulus package under consideration, the “energy” subsidies would highly benefit the economy and ease the burden on the “main street” anticipating high “energy” costs in winter.

The impending purchase of the mortgage-backed securities under the “rescue” plan must follow the guidelines to benefit the investor i.e. the taxpayers in both the short and long run. It is important to address effectively any concern by experts such as “The HOPE for Homeowners Act needs to pay less than 36.5 % of the face value of the subprime mortgage backed securities. If more is paid the government loses money in the long run and owners of the securities profit now” and any loopholes that might hamper the deal in the investor i.e. taxpayer’s favor must be eliminated as a safety measure.

The consensus on the legislation of the bill “HOPE” for The Homeowners Act, 2008 is promising and expected to provide relief to an estimated 400,000 families. It is important to follow through the process and ensure transformation of “HOPE” into reality for “homeowners” severely hit in the “housing” market crisis due to massive “foreclosures”.

“Congress” and the financial institutions could reverse the current stock market decline through diligence and prudent economic strategy combined with robust fiscal policy and financial measures to boost investor confidence. Meanwhile, domestic and foreign investors must restrain short selling in the wake of current crisis that is contributing to the pandemonium in the stock market.

The stock market turmoil will cease upon following all of the above measures with no further procrastination to protect the interests of all i.e. the “main street”, the “wall street” and the global market.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Business, Economy, Featured | Leave a Comment 

Ethical View

October 5, 2008

This is one of my favorite topics.

The major challenge in the contemporary society is the diminishing “ethical standards” or the lack thereof. Unfortunately, ethics is not the priority in any environment. The subprime mortgage failure and credit crunch contributing to the recent global financial crisis is fundamentally due to lack of “ethics” at every level of transaction.

The “Corporate world” motto is “profiteering” at the expense of “ordinary citizens” struggling to meet ends, in the “Capitalist” economy. That being the norm the importance of ethics is hardly an issue for the “Corporations” focused on “stock value” and “shareholder’s interest” rather than the “employees or the work force” who are also the retail customers of their products and services.

The latest “rescue” plan of the financial institutions by the government is a result of the lack of any oversight in lending practices carried out for more than a decade. Again, when the Corporations run the government through constant flow of funds at every level of election campaign i.e. from congressional through “Presidential” what hope does the average citizen have in restoring fair employment, trade and environmental practices in the highly competitive global economy.

Even the judicial system, is infiltrated by the “Special Interests” and “Lobbyists” directly or indirectly as they essentially pick the “President” during the general election. Ironically, both parties have some legislators with strange “bedfellows” and therefore compromising “ethics” which otherwise could serve well for their respective constituents.

It is a known fact that ethics is “oxymoron” to “Politics”, business and the entire franchise. This is particularly evident during “War and Election”. I can personally relate to the political aspect of it as a “volunteer blogger” for the Presidential Candidate, Senator Barack Obama especially during the “Democratic Primary election”. It all started with me pledging my support for his campaign with a token $25 accompanied by a simple message. Then the instructions/requests followed similarly:

——————————————————————

These are some original transcripts from the Senator Barack Obama’s Campaign:

“Who’s out there”

Michelle Obama <info@barackobama.com>

Add Friday, January 18, 2008 9:06:02 AM

To:Padmini Arhant

Padmini,

In 24 hours, folks here in Nevada will head into their caucuses for their turn in this process.
But right now, all across the country, thousands of Americans are taking their seat at the table and shaping the outcome of this election.

Donors like you are making a promise to match the gift of someone who has not given this year — or ever before. By doubling the impact of another supporter’s gift, you can help us reach our goal of 125,000 donors for the year by tomorrow.

Make your matching donation now, and encourage someone to own a piece of this campaign:
https://donate.barackobama.com/promise

When you make a matching donation, you’ll get to meet the person whose impact you doubled. You’ll be matched with a real person, and you’ll be able to exchange notes as part of the process.

The stories of real people I’ve met across the country keep me inspired and energized throughout this process. I had a great day yesterday, traveling across the state with Senator John Kerry and talking to folks in community centers and church basements about the issues that are important to them.
It’s those personal stories that motivate Barack and all of us to work as hard as we can to bring about change. We got into this race to bring people back into the process, to help reconnect politics with people’s real lives, and it’s inspiring to feel that happening.

Here are some of the stories people shared when they had their donations doubled by supporters like you:

“Wow, thank you for matching my donation. It was a big impetus to my getting out my debit card — knowing I was giving “double” thanks to you. … I am a 22 year teaching veteran in New Mexico who is looking to get involved locally.”
— Kimberly in New Mexico

“In 1961, I was selected to the first group of Peace Corps Volunteers, and I served four years in Latin America. I was inspired by President Kennedy in 1960 to serve my country, and I believe Senator Obama represents the vision and ability to inspire our country which most parallels what President Kennedy did for me and many others of my generation.”
— Gerald in California

“Hello Holly, Thank you for matching my contribution. This is the first time that I have ever contributed to a political campaign, and November will mark the first time I have voted for a president. Based on the way the country has been run for the last eight years, I now see the extreme importance of participating in the political process.”
— Kehinde in New York

They’re writing to people like you.

Right now you could inspire someone to give for the first time in 2008 and help us reach 125,000 donors for the year by tomorrow. Make your matching donation now:

https://donate.barackobama.com/promise

Our future is in our own hands, so we need to do some dreaming.

Together we can send a message to our children about who they are, who they can become, and who we want to be as a nation. And that message will be heard around the world.

The stakes couldn’t be higher — for our party, for our country, and for the hopes and dreams of all our families.

We are ready for a better, stronger day. Please act now.

Michelle

—————————————————————–
I was initially quite puzzled by this message as I didn’t know what to make out of the manner I was approached to get involved in the campaign. In my view, there are etiquettes with respect to delegating tasks to people especially if they are being asked to “volunteer” for anything.

I responded with the following message.

Re: Who’s out there

Padmini Arhant

Add Friday, January 18, 2008 3:05:34 PM

To:info@barackobama.com

Hi Michelle,

It is nice to hear from you!

I remember our goal and will do everything I can.

I am sure there are millions of people waiting to be part of this historic movement.

Best Regards

Padmini

I had no response to the above message even though I had several email exchanges with the campaign at the top level.

——————————————————————-

“Spun out”

“David Plouffe, BarackObama.com” <info@barackobama.com>

AddWednesday, March 12, 2008 1:53:36 PM

To:Padmini Arhant

Dear Padmini,

When we won Iowa, the Clinton campaign said it’s not the number of states you win, it’s “a contest for delegates.”

When we won a significant lead in delegates, they said it’s really about which states you win.

When we won South Carolina, they discounted the votes of African-Americans.

When we won predominantly white, rural states like Idaho, Utah, and Nebraska, they said those didn’t count because they won’t be competitive in the general election.

When we won in Washington State, Wisconsin, and Missouri — general election battlegrounds where polls show Barack is a stronger candidate against John McCain — the Clinton campaign attacked those voters as “latte-sipping” elitists.

And now that we’ve won more than twice as many states, the Clinton spin is that only certain states really count.

But the facts are clear.

For all their attempts to discount, distract, and distort, we have won more delegates, more states, and more votes.

Meanwhile, more than half of the votes that Senator Clinton has won so far have come from just five states. And in four of these five states, polls show that Barack would be a stronger general election candidate against McCain than Clinton.

We’re ready to take on John McCain. But we also need to build operations in places like Pennsylvania, Indiana, North Carolina, and Oregon that will hold their primaries in April and May.
Barack Obama needs your support to fight this two-front battle. Please make a donation of $25 right now:

https://donate.barackobama.com/math

With our overwhelming victory in the Mississippi primary yesterday, our lead in earned delegates is now wider than it was on March 3rd, before the contests in Ohio and Texas.

And thanks to your help, we have dramatically increased our support among so-called “superdelegates” — Governors, Members of Congress, and party officials who have a vote at the Democratic National Convention in August.

As the number of remaining delegates dwindles, Hillary Clinton’s path to the nomination seems less and less plausible.

Now that Mississippi is behind us, we move on to the next ten contests. The Clinton campaign would like to focus your attention only on Pennsylvania — a state in which they have already declared that they are “unbeatable.”

But Pennsylvania is only one of those 10 remaining contests, each important in terms of allocating delegates and ultimately deciding who our nominee will be.

We have activated our volunteer networks in each of these upcoming battlegrounds. We’re putting staff on the ground and building our organization everywhere.

The key to victory is not who wins the states that the Clinton campaign thinks are important. The key to victory is realizing that every vote and every voter matters.

Throughout this entire process, the Clinton campaign has cherry-picked states, diminished caucuses, and moved the goal posts to create a shifting, twisted rationale for why they should win the nomination despite winning fewer primaries, fewer states, fewer delegates, and fewer votes.

We must stand up to the same-old Washington politics. Barack has won twice as many states, large and small, in every region of the country — many by landslide margins. And this movement is expanding the base of the Democratic Party by attracting new voters in record numbers and bringing those who had lost hope back into the political process.

Push back against the spin and help build the operation to win more delegates in these upcoming contests:

https://donate.barackobama.com/math

Thank you for your support and for everything you’ve done to build a movement that is engaging voters and winning contests in every part of this country.

David

David Plouffe
Campaign Manager
Obama for America

————————————————————–

The following email struck me the most as it clearly indicated the campaign intensity.

Dinner with Barack?

“David Plouffe, BarackObama.com” <info@barackobama.com>

Add Tuesday, March 25, 2008 6:04:25 AM

To: Padmini Arhant

Padmini —

You’ve heard about all of these political fundraising dinners, hosted by Washington lobbyists and filled with representatives of special interests.

Contributions like these are at the root of what’s wrong with politics. And John McCain and Hillary Clinton have built campaigns fueled by them.

But our campaign is different.

In February alone, more than 94% of our donors gave in amounts of $200 or less. Meanwhile, campaign finance reports show that donations of $200 or less make up just 13% of Senator McCain’s total campaign funds, and only 26% of Senator Clinton’s.

Our funding comes from a movement of more than one million people giving whatever they can afford.
And in the next week, four supporters will be selected for a new kind of fundraising dinner.

Make a donation in any amount between now and 11:59 pm EDT on Monday, March 31st, and you could join Barack and three other supporters for an intimate dinner for five.

We’re reserving two of those seats for previous donors like you. Make your donation now:

https://donate.barackobama.com/dinner

This movement is changing the way campaigns are funded.

More than one million individual donors have demonstrated that this election is about more than a candidate — it’s about each of us having a personal stake in the future of American politics.
Meanwhile, Senator McCain has raised more than 70% of his total campaign funds from high-dollar donors giving $1,000 or more. Senator Clinton has raised 60% of her funds from $1,000-and-up donors. And both Senator McCain and Senator Clinton have accepted millions of dollars from Washington lobbyists and special interest PACs.

Refusing to accept donations from lobbyists and special interests has allowed this campaign to answer only to ordinary Americans like you. And this dinner will be an opportunity for you to sit down with Barack and your fellow supporters and talk about the issues that matter in your life and in your community.

Get the kind of treatment that John McCain and Hillary Clinton reserve for special interests — make a donation in the next week, and you could share your story and your ideas with Barack in person:
https://donate.barackobama.com/dinner

With every single donation, we’re building a movement to change American politics. Help the movement grow, and own a piece of this campaign today.

Thanks for your support,

David

David Plouffe
Campaign Manager
Obama for America

——————————————————————-

I obliged to the request and made the “legal” maximum donation to the campaign i.e. $2300.
I requested the venue details for the above event and surprisingly received the following error messages each time.

“This is an automatically generated Delivery Status Notification.

Delivery to the following recipients failed”.

Since, I was not successful in reaching the campaign for a response to my request on the venue details. I posted a blog on the campaign website.

Communication Error
By “Voice behind the movement” – Mar 29th, 2008 at 11:30 am EDT

Comments | Mail to a Friend | Report Objectionable Content
Attention: David Plouffe, Obama Campaign Manager

There appears to be a serious communication error as the incoming mail to you is diverted to non-designated recipient. Please verify details and ensure proper functioning of the incoming server at your end to avoid communication disruption and any misunderstandings.

Your immediate attention is required in this matter.

Thank you.

Padmini Arhant

Barack Obama Supporter

I had no luck with response on the dinner invitation but I received this message from the Campaign manager.

——————————————————————–

“Your voice can make the difference”

“David Plouffe, BarackObama.com” <info@barackobama.com>

Add Saturday, April 5, 2008 8:39:20 AM

To:Padmini Arhant

Dear Padmini,

Right now, you can help build a base of support for Barack in Indiana and bring more voices into the political process.

To participate in Indiana’s primary, voters must be registered by this Monday, April 7th.
Tens of thousands of Obama supporters may not be registered yet, and we need to act quickly to reach out to as many of them as possible.

Each call you make could be another vote for Barack in an area where we need your help the most.
Use our online phonebanking tool, and start calling Indiana supporters now:

http://my.barackobama.com/call

Registering voters is more than just an important part of our campaign strategy — it’s what our movement is all about.

From the beginning, Barack has set out to bring more people and more voices into the political process. And if we can reach more people in Indiana, we can make a lasting impact and win victories for the Democratic Party up and down the ballot in November.

All across the country, volunteers will be making calls into Indiana to tell potential supporters about the deadline and encourage them to register.

No previous experience is necessary. All you need is a hunger for change and a willingness to turn your enthusiasm into action.

Our team has put together a list of the most important calls you can make into Indiana right now:
http://my.barackobama.com/call

Here’s how it works:
1. Log into My.BarackObama.com and get a list of 20 names that only you will receive. (If you don’t have a My.BarackObama account, creating one is fast and easy.)
2. Click on a name, and you’ll be led through a simple script, question by question.
3. Start making calls.

Personal contact is the best way to grow this movement, and you can make these connections right from your own home.

It’s easy — start by making five calls, and I know you’ll want to make five more:
http://my.barackobama.com/call

Thank you for making this happen,

David
David Plouffe
Campaign Manager
Obama for America
———————————————————
I obliged again and posted a highly inspirational message like the earlier ones for voter registration.
Finally, soon after I posted the “Indiana” voter registration message, I had a response from the Campaign manager, David Plouffe to my request on the venue details having paid $2300 for the dinner inivitation.

—– Original Message —-
From: David Plouffe <info@barackobama.com>
To: Padmini Arhant
Sent: Monday, April 7, 2008 4:06:35 PM
Subject: Meet Barack’s dinner guests

Padmini —

Thank you so much for your donation to Dinner with Barack.

The response to Barack’s invitation was so strong that we decided to increase the total number of guests to five.

Meet the lucky supporters who will be having dinner with Barack this week, and visit our blog to share a question you think they should ask:

http://my.barackobama.com/dinnerguests

Here are Barack’s dinner guests:

Ben Cherry is a retired school superintendent and commercial fisherman now living in Albuquerque, New Mexico. Ben served as a Peace Corps volunteer in Latin America and supported schools that served the native populations of Northern Alaska. He’d like to talk to Barack about how understanding other nations and cultures can inform our foreign policy.

Alisha Cordell is an information technology project coordinator in Raleigh, North Carolina. Alisha is a single mother and grandmother struggling to make ends meet and hoping her family can afford health insurance and college. She’d like to talk to Barack about investments in education and healthcare that will make things easier for her children and grandchildren.

Paul Deery is an elementary school art teacher in Easton, Pennsylvania. Paul’s never been involved in a political campaign before, but was inspired by Barack’s call for change. He and his wife have two children around the same age as Barack’s daughters, and Paul believes that Barack has a sincere commitment to facing the challenges of energy and education that will shape their future.

Raissa Dorff is a singer, actor, and waitress in New York City. Raissa is the youngest of twelve children raised just outside Philadelphia. She first became involved in politics as a volunteer for Senator John Kerry during the 2004 presidential race, and recently she’s been traveling back to her home town to volunteer and help build support for Barack. With seventeen nieces and nephews, Raissa is concerned about education and ending the war in Iraq.

Bonnie Locchetta is an office manager in Rushville, Indiana. Bonnie’s from a largely Republican small town and has not always supported Democrats. But she is inspired by Barack and has been actively organizing in her community with the help of her children. One of Bonnie’s biggest concerns is finding a way to make sure her kids can afford college.

Each of these folks has a different story, and each will come to the table with their own ideas to share with Barack and with one another.

Along with more than a million supporters like you, Ben, Alisha, Paul, Raissa, and Bonnie are united by their commitment to this movement for change.

Take a minute to learn more about these folks and share a question you’d like them to ask Barack:

http://my.barackobama.com/dinnerguests

Thank you for your support,

David
David Plouffe
Campaign Manager
Obama for America
—————————————————-

I responded to the above email.

Re: Meet Barack’s dinner guests

Padmini Arhant

Add Tuesday, April 8, 2008 2:26:58 PM

To:info@barackobama.com

David,

Thank you for the update.

I am pleased to note that the individuals invited for dinner with Senator Obama this week represent the mainstream society that has been hurt severely from the current economic situation we are experiencing as a nation.

Their story might be unique but the problems are similar to most individuals’ struggling to meet ends in their daily life. They all appear to have genuine concerns and issues to present to Senator Obama and I’m sure he will address each one of them eloquently as he deals with any other issues raised by the media, press corps or during the “Presidential Debates”.

I do not have anything more to add than what they already have to ask Senator Obama. If there are any, I’m sure you will see them in my blog.

I appreciate you providing me the opportunity along with millions of other supporters equally committed and working hard to bring about the positive change that we all can’t wait to happen through Senator Obama’s candidacy.

Your thoughts and regular update is much appreciated.

Thank you once again.

Padmini Arhant

Subsequently, I had continual requests from the Campaign at the higher level of hierarchy.

—————————————————

“Put us over the top in Oregon”

“Buffy Wicks, BarackObama.com” <oregon@barackobama.com>

Add Monday, May 12, 2008 4:18:40 PM

To:Padmini Arhant

Padmini –

I wanted to reach out to you before next week’s contest in Oregon.

Folks like you were the heart and soul of our movement in California. You brought Barack to a strong finish on February 5th — and helped build the momentum that’s resonating all across the country.

The nomination is finally in sight, but there’s still more to do to finish this race — and we can’t take anything for granted.

The Oregon primary is coming up on Tuesday, May 20th. We have an opportunity to put Barack over the top with the majority of pledged delegates — but we need supporters like you from nearby states to take the trip and make a difference one more time.

Oregon’s primary is conducted entirely by mail, and all eligible voters have already received their ballots. It’s essential that we reach as many supporters as possible, as quickly as possible, and encourage them to vote before next week’s deadline.

You’ve been there for Barack before — now let us know you can come to Oregon before the May 20th primary:

http://my.barackobama.com/CometoOR

In contests across the country, home-state supporters have worked their hearts out for Barack — but they’ve relied on folks like you from nearby states to help them cross the finish line.

You can make an especially big difference in Oregon, because voters already have their ballots in hand. Every single person you’ll talk to can make their decision, vote for Barack, and mail in their ballots right away.

You’ve already shown your commitment to grassroots organizing, and you know that change only happens when everyday Americans come together to work for it.

This is our chance to close out the nomination for Barack — can we count on you to take the trip to Oregon in time for Primary Day?

http://my.barackobama.com/CometoOR

Thank you again for all that you’ve done.

Buffy
Buffy Wicks
California Field Director
Obama for America

P.S. — You can also make a difference for Barack right from your home.
Our team has put together a list of the potential supporters in Oregon we most need to reach. You can use our simple online tool to call and encourage them to support Barack and mail in their ballots before the May 20th primary deadline.

Get started right now:

http://my.barackobama.com/CallOR

—————————————————

I have had several email communication with the Campaign members, Senators and great many with the “Presidential candidate”, Senator Barack Obama. The above message struck a chord as it reflected the true emotions and sincere gratitude from Campaign staff workers like “Buffy Wicks” and many others toiling to have a candidate get through the most difficult part of the “Presidential Contest” i.e. “The Primary”election.

I was amazed to see the difference in the “attitudes” at various levels. Obviously, the “volunteers” and other campaign workers at the “bottom” tier with no assurance of any future in the “Obama Administration” worked tirelessly and displayed “Patriotism” in doing so.

The “foot soldiers” and “volunteers” are the real “heroes” as they selflessly and loyally work for the candidate with a conviction and determination to see the campaign prevail in the race.

These hard working concerned citizens are praiseworthy and deserve every attention by the media and news organization.

That is not the case. Often, heavyweight endorsements are given prominence even though they have been proven otherwise particularly in the current “Presidential race”.

The other matter related to “unethical standard” is the publishing of “unauthorized” residential details with an enlargement on the “Google map” by the “supposedly liberal” Ariana Huffington of “Huffington Post”.

Such irresponsible journalism with utter disregard for individual privacy and family security of the “subjects” is the kind that deserves condemnation. Ironically, the “On-line” publication is upheld for violation of other’s rights by all those considering themselves “democratic”.

Is it because it is not about them?

Should it matter only if it affects a certain individual or group of individuals in the society and not others?

Why isn’t Ariana Huffington’s home address not published on her own web site and highlighted on the Google map as a political campaign donor?

The hypocrisy and defiance by “Huffington Post” in publishing campaign donor’s residential details despite strong objection by any particular donor, proves the lack of credibility, ethics and respect for individual privacy in a democratic society.

The lesson to take home is…..

In memory of the “Great Heath Ledger”, who portrayed my favorite character “The Joker” in the
the blockbuster movie “The Dark Knight” as well as the creators of the mega production, “Christopher and Jonathan Nolan” for opening my eyes as a writer – Thank you.

“If you are good at something, never offer if for free”, especially in “Politics” with an exception to saving lives, wherever you are.

Please stand by for more interesting scoops on this topic from other factions.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Ethics | Leave a Comment 

Congress Adjournment

September 29, 2008

Review of the current article on;

Congress moves to adjourn with no deal on AMT

By JIM ABRAMS, Associated Press Writer 25 minutes ago – Thank you.

WASHINGTON – The House prepared to adjourn for the year Monday with no deal on a major tax relief package, increasing the odds that businesses will lose out on critical tax breaks and millions could get hit by the alternative minimum tax this year.

House Majority Leader Steny Hoyer, D-Md., suggested that it might be next year before consensus can be reached on a tax initiative that includes adjusting the AMT, providing tax relief to disaster victims and extending tax credits for renewable energy development, business investment and individual education and child care costs.

Lawmakers in both the House and Senate stressed that the bill would create tens of thousands of jobs and contribute to the nation’s energy independence. But House Democrats insisted that more of the package, totaling $138 billion in House bills, be paid for so as not to increase the deficit. Senate Republicans, averse to new taxes, said any changes in the Senate-passed tax bill would kill the entire package.

The House “has taken the morally and fiscally responsible position,” said Rep. Mike Ross, D-Ark., a leader of the 49-member Blue Dogs, a group of fiscally conservative Democrats. Meanwhile, “Republicans in the Senate continue to hold up this important legislation,” he said.

As Ross spoke, across the Capitol Senate Majority Leader Harry Reid, D-Nev., tried to bring up a House-passed bill dealing with renewable energy and extension of business and individual tax breaks that expired last year or will lapse at the end of this year. Republicans objected to consideration of the bill.

Reid acknowledged that “we can’t get it done” because Senate Democrats don’t have the votes to move the bill without GOP cooperation. He said he hoped the Blue Dogs “would understand we are not trying to embarrass them or anyone else.”

Hoyer, joining the Blue Dogs at a news conference, said “there’s not an intention” to return to Washington after the House votes on the financial bailout bill and adjourns Monday afternoon.
“I’m going to continue to work with Sen. Reid to see what can be done even if it is next year,” he said.

That delay would be a blow, at least temporarily, to a wide group of business and individual taxpayers. Without congressional action, those affected by the AMT, originally aimed at just a few very rich tax dodgers, would grow from around 4 million to up to 26 million. Those hit by the tax, most earning less than $200,000, would pay an average extra tax of $2,000.

The solar industry alone has estimated that it could create more than 400,000 jobs if it receives an eight-year extension of its investment tax credit.

“With hundreds of thousands of American jobs and billions of dollars in clean energy investment at risk, we urge congressional leaders not to leave for the election recess” until reaching an agreement, the CEOs of national hydropower, geothermal, solar and wind energy associations said in a statement.

Business groups have warned of serious repercussions if Congress does not renew the R&D credit, which expired at the end of last year, and various advocacy groups have pleaded for renewals of individual tax breaks affecting those paying college tuition, those from states with state and local sales taxes and teachers with out-of-pocket expenses.

The Senate last week, on a 93-2 vote, passed a massive package that included AMT relief, $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana, and some $78 billion in renewal energy incentives and extensions of expiring tax breaks. In a compromise worked out with Republicans, the bill does not pay for the AMT and disaster provisions but does have revenue offsets for part of the energy and extension measures.

That wasn’t enough for the House, which insisted that there be complete offsets for the energy and extension part of the package.

Fiscal irresponsibility was a major factor in Wall Street’s meltdown and the need for Congress to step in with a bailout plan, said Rep. Dennis Cardoza, D-Calif. “It’s time for us to say no more.”
The House included steps to boost tax revenues from the oil and gas industries and close loopholes used by hedge fund managers and corporations to avoid taxes on their overseas incomes.
Senators also included in their bill a far-reaching measure to ensure parity in insurance benefits for mental health problems.
______________________________

Review and Analysis: The democratic society exercise voting rights to elect a representative in Congress and Senate to address issues affecting their daily lives and pass necessary legislation to primarily benefit the people through businesses and other economic infrastructure.

The legislators’ “priorities” from the above article should be of concern to the constituents. Their decision to leave for the election recess “after having returned from a long recess in August”, without reaching an agreement on issues like energy independence, tax relief to millions in small businesses, education and childcare costs reflects minimal importance to major economic crisis.

With election around the corner, it is important for legislators to recognize their obligations to the electorate and fulfill the commitments in restoring the nation back on track. In a gloomy economic climate, that is saddled with multi-trillion dollar debt conveniently passed on to the hard working lower and middle income groups struggling to meet ends, vacation should be the last thing on the mind of the lawmakers.

The electorate should demand that their elected officials resolve all of the above issues related to tax initiative that includes adjusting the AMT, providing tax relief to disaster victims and extending tax credits for renewable energy development, business investment and individual education and childcare costs with no further procrastination.

To quote the House Speaker “Nancy Pelosi” at the announcement of bailout deal “The Party is over” not just for the “Wall Street” but the entire “Power” specifically elected for policymaking and solving problems confronting the nation at all fronts.

When the “Presidential candidates” are advocating “performance based” salaries for “teachers” and others , the same principle should apply to “Washington” and “Wall Street” that are primarily responsible for the current economic mess.

The voter frustration and disappointment with “Washington” and “Wall Street” should be clearly demonstrated in the forthcoming electoral process.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Energy, Featured | Leave a Comment 

Economic Security

September 28, 2008

The legislators are currently addressing the financial crisis confronting our nation and it appears that a consensus has been reached to bailout the Corporations from the burden of bad debts. According to the lawmakers, the “bill” is structured to largely benefit the taxpayers and assist with the stabilization of the financial market.

It is important to recognize the fact that the twenty first century economy is a global economy and the investments are tied to one another directly or indirectly and traded in the global markets. Therefore, it is vital for the U.S. economy to remain stable and provide necessary market assurance to both domestic and foreign investors with stakes in U.S. investments.

The other important factor for the unprecedented government intervention in a “free market” environment is to eliminate loopholes to avert such catastrophe in the future. When the actual agreement proposal is presented to the taxpayers, it should reflect the absolute protection of the taxpayer’s funds and profitable return on any investments.

At the same time, politics should not take precedence over “American taxpayers” interest in terms of “Appropriation of funds” for a certain political faction like “ACORN” or for that matter a “private sector” from the “Wall Street” with any misrepresentation to provide insurance on the “mortgage backed” securities with no prospective buyer in sight.

The “bill” must include provisions for full disclosure of the deals regardless of the nature and size of the bailout amount.

Further, it is essential for the “impending bill” to fund the bailout in “installments” rather than a lump sum settlement as it would indicate the initial results on the venture carried out on a “trial and error” basis. This would also allow public opinion to analyze the “pros and cons” of such investment and facilitate the required liquidity in the financial market with a “majority” approval.

The task ahead of our nation is to restore economic security with the revival of the “housing” and “job” market. As stated earlier, the “housing market” crisis is directly related to the “credit crunch” and “subprime mortgage” failure leading to “foreclosures” and that could be resolved by overhauling the lending practices and assisting the “homeowners” with affordable revised mortgage package. The foreclosed homes should be made available for sale to potential investors with verifiable income and credit history.

Commercial lending should resume freely yet carefully to promote and revitalize the small businesses and Corporations relying on credit for the growth and development in the job market. The flow of goods and services without any disruption will contribute to the anticipated growth and help the nation in reducing the multi-trillion dollar debt due to trade and budget deficit which otherwise will be the inevitable burden on the next and future generation.

It is time to focus on this crisis as “national” rather than “individual” and collectively deal with the issue for a better future of all.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Economic Crisis

September 25, 2008

Our nation is currently experiencing a deep financial crisis due to major financial institutions, investment banks and insurance industry failure.

It all started crumbling like the house of cards beginning with Fannie Mae and Freddie Mac, Lehman Brothers, AIG and others in line with bad loans from the sub-prime mortgage crisis.

The economic meltdown in late 2006 precipitated nationwide housing market decline with saturated equity borrowing.

The entire network in the real estate and financial sector with hedge fund managers, underwriters, financial institutions processing the mortgage applications, mortgage brokers, realtors, homebuyers and sellers were primarily interested and vigorously involved in promoting and wrapping the deal with minimal and/or non-compliance of the standard rules and regulations that are specifically set up to avert such catastrophe.

The housing market bubble eventually burst contributing to credit crunch and massive foreclosures across the nation.

The commercial sectors were also hit in the process due to lenders streamlining measures and Congress legislation in an effort to slow down the escalating credit crisis.

Subsequently the ripple effect was felt in the job market with small businesses and medium size corporations struggling to maintain their credit limit from the sharp increase in interest rates on the borrowings and capital depletion essential for survival in the highly competitive market economy.

Meanwhile, some investors diverted their attention from real estate to stock market for short-term gains and as a result certain stocks earned the preferred status in stock value despite any performance history.

The stock market was warming up with superficially inflated stock prices along with futures trade speculation on oil stocks mostly responsible for the crude oil price elevation triggering the sensitive energy crisis.

At the top level, the monetary authority and incumbent administration as the economic growth and development oversight implemented policies including lowering of prime rates to an unprecedented level in recent times creating opportunities for financial institutions to outreach borrowers with no solid credit history.

The executive branch euphemism to display patriotism through home ownership factored for unscrupulous practices in the housing market debacle.

It has further come to light that some legislators are beneficiaries of personal financial deals as VIP PATRONS of the failed financial institutions such as Fannie Mae and Freddie Mac, Lehman Brothers and more.

However, it does not exclude Presidential contenders’ campaign advisors confirmed to be the financial institutions’ lobbyists/former executives enlarging the oversight conflict of interest.

Hence proving the theory….corruption and cronyism thrives in economic and political systems.

Strategy:

The government proposal to bail out these Corporations indulging in reckless undertakings with staggering $700 billion of American taxpayer’s money is currently debated in the House of Congress.

There is also anxiety over the executive branch cavalier approach for the clean bill immediate approval without tax payer investment protection or oversight for an unprecedented and historic venture.

The irony is the Treasury Department and the Federal Reserve Bank with the primary responsibility to monitor and recommend any regulation in the financial sector is experiencing labor pain after nearly twenty two months gestation and demanding Congress to deliver regardless.

With current Presidential race in process, one has to hope that this situation does not lead to the controversial Pro-Life vs. Pro-Choice debate on the financial crisis.

Congress favoring Pro-Choice to ensure the bearers safety and security would be prudent particularly with taxpayers bankrolling Corporations bailout and their erroneous decisions.

The urgency to regulate the financial sector granting unilateral authority to an individual – the Treasury Secretary with a sum approximately equivalent to Argentina and Chile’s combined GDP arouses legitimate skepticism among legislators on both sides of the aisle.

Some of them reminisce the current administration’s similar demand prior to invasion and occupation of Iraq.

Remedy:

Since the bailout is imminent and crucial for the stabilization of the financial markets, it is imperative for legislators to secure investments with conditional offers.

Several economists and experts have come forward and presented their thoughts and strategies for the existing national crisis.

1. The consensus among all of them is to establish an Independent Oversight with no Special Interests or Lobbyists infiltration posing conflict of interest.

2. Oversight Committee to approve after reviewing the proposal to invest in mortgage-backed securities to relieve the remaining financial institutions from the bad debts burden.

3. These securities purchase price carefully taken into consideration with a set profitable return upon instruments sale would be beneficial. It is also important to identify the buyers and sellers.

4. Open Bid transparency during investments’ sale or purchase is vital for investor confidence and value enhancement.

5. Corporate Executives pay off for poor judgment and weak performance eliminated as a precedence to existing and future Corporations heading in that direction would prevent repeat mistakes.

6. The hedge fund managers subjected to strict scrutiny and ethical standards is vital in addition to management fees and asset allocation determined in a manner to yield nothing less than profitable return to the investors i.e. the taxpayers.

7. Moratorium on foreclosures in bipartisanship agreement would relieve homeowners across the nation.

At the same time, the home owners to be evaluated on individual basis by the lenders with Oversight Committee alongside and encouraged to make payments equivalent to rental payments or interest only on revised mortgage package whatever is affordable.

Again, this offer made available only to the first home buyers dealing with foreclosures.

Successful sales and marketing of foreclosed homes to potential investors could expedite the housing market revival besides helping communities restore social and economic security through property taxes used for funding public school education and other services.

8. External audit on financial institutions listed as risky and brought to public focus would restrict undesirable activities.

9. The firewall resurrected between the commercial and investment banks protects public funds.

10. Sound and solid lending practices in both private and public sector would energize markets.

United States economy has proven record of accomplishments to rebound following crisis throughout the twentieth century.

The United States economy is resilient with a highly productive work force that has risen to the occasion and challenged the market forces acting against it.

The economic boom will resume and prosperity shared by the global markets.

The temporary turmoil in the market will be settled with prudent economic strategy, robust fiscal policy, leadership and confidence of the people of the United States of America.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

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