Sub:Restoring Trust in the Venerable American Banking and Monetary System
Dear Honorable Speaker Pelosi and Senators,
Your speedy approval of a buyout of toxic debts from bankrupt financials shows real personal sacrifice, because you risk reprisal from angry voters. Your credible sacrifice, however, indicates to an independent observer that you now recognize that the venerable American banking and monetary system has lost the trust of investors at home and abroad.
This memo points out (i) how a buyout can become a bailout in the real world of capital markets, (ii) how even a pure bailout may not revive a fundamentally weak economy, and (ii) some policies to restore the trust in the system to make America and the world prosperous again.