| The American economy and the capitalism system | | | | absence and cover-up of relevant facts, insufficient |
| responsible for building this great country of ours is in | | | | legal power, and amazement at extent of fraud, |
| crisis because our "leaders" have failed us and | | | | research never read, and findings rarely used. One |
| continue to fail us. Our "leaders" fail to recognize that | | | | thing is certain, the issuance of the report will ignite the |
| the American people are critical to the economy's | | | | start of political posturing, spin, denials, and the process |
| success. American's innovative spirit, freedom to | | | | of determining the individuals for the required roles of |
| contribute ideas, and dedication to outstanding | | | | "scapegoat." |
| performance contain the only successful solution to | | | | The Commission's report, like almost every report of |
| this economic crisis. | | | | its kind before, will not lead to any meaningful changes |
| Our current "leaders" did not build this great Country. | | | | of behavior. This is because the entire financial |
| "The work of 55 men at Philadelphia in 1787 marked | | | | collapse was the consequence of deliberate actions of |
| the beginning of the end of the concept of the divine | | | | the "leaders," government regulators, and financial |
| right of kings. In place of the absolutism of monarchy, | | | | institutions entrusted with America's financial system. |
| the freedoms flowing from this document created a | | | | The current dilemma for our "leaders," government |
| land of opportunities. Ever since then discouraged and | | | | regulators, and financial institutions is simple: they have |
| oppressed people from every people from every part | | | | absolutely no idea of what to do next. The millions of |
| of the world have made a beaten path to our shores. | | | | dollars necessary to finance the countless hours |
| This is the meaning of the Constitution."1 | | | | required to prepare this report by the Financial Crisis |
| Our "leaders" in this new century have been | | | | Inquiry Commission can be saved, because the |
| conditioning us to rely on them to take care of the | | | | conclusion is five words: Greed - Arrogance - Loss of |
| American people at the expense of our Constitutional | | | | Discipline |
| rights. The Declaration of Independence was the | | | | Regardless of what our "leaders" told the American |
| promise; the Constitution was the fulfillment. Our | | | | public about their fiscal policy for 2009, their actions |
| current "leaders" propaganda of reliance on | | | | revealed the truth about their primary concerns. |
| government solutions has our economy in a deepening | | | | America's "leaders" concerns were preventing a Great |
| crisis, one that when combined with their recent | | | | Depression type run on the nation's bank deposits, |
| solutions, has America poised for an unprecedented | | | | replenishing the FDIC cash reserves, severely limiting all |
| collapse of its capitalist system. | | | | commercial bank lending to increase banks capital |
| Financial institutions and government "leaders" | | | | reserves, and expanding government's role in all |
| convinced government regulators, then the American | | | | aspects of our financial lives. |
| public, that the primary component of global economic | | | | Government officials' actions allowed and sanctioned |
| greatness is that financial firms and financial markets | | | | commercial banks using "Troubled Asset Relief |
| must be allowed to self-correct and self-regulate. This | | | | Program" (TARP) money to purchase assets of other |
| concept is today universally accepted by financial firms | | | | commercial banks, as well as, the actual commercial |
| as standard operating procedure, and by the American | | | | banks themselves. TARP money also financed the |
| people as the "beginning of the end." | | | | purchase of former investment banking firms by large |
| Before, during, and after financial institutions achieved | | | | commercial banks. Preventing bank failures was the |
| their goal of self-regulation, all of the involved parties | | | | number one priority. However, fiscal policy did not |
| sought out unregulated investments, deregulated credit | | | | include commercial banks lending money to the |
| markets, repealed laws, and "legally" created both | | | | American people then or now. |
| unregulated financial industries and "innovative" financial | | | | The actions of our financial and government "leaders" |
| investments. An ensuing spiral of bad decisions with | | | | that reflected self-interest (greed), self-importance |
| grave consequences should not have been hard to | | | | (arrogance) and the agenda of special interest groups |
| foresee. Not foreseeing it allowed them to maximize | | | | (loss of discipline) are documented history. However, in |
| their legal plundering of not only America's financial | | | | the 18 months since the 2008 collapse of financial |
| assets, but assets of foreign investors as well. | | | | markets, these same actions have continued into 2010. |
| The global perception of American financial markets | | | | Americans must have loans for investments in their |
| allowed for the human failings of greed and arrogance, | | | | communities, the primary purpose banking institution |
| but believed financial firms were competent and | | | | charters allow banks to operate. |
| created financial instruments for "valid investments" | | | | Financial confidence results from a belief that financial |
| containing acceptable risk/return ratios. This global | | | | firms and their employees are competent and honest. |
| perception of "investment validity" was an illusion | | | | These character traits form the trust that investors |
| created by financial firms. The most catastrophic loss | | | | require to invest in our financial markets, the places |
| for Wall Street, financial firms and financial markets | | | | where investors provide funds through financial |
| was the exposure that these new and "innovative" | | | | institutions to corporations. Trust in properly operating |
| financial instruments never contained "validity". | | | | financial markets is the most important component to |
| Reality is that the American people have been victims | | | | re-start investor confidence that valid investment |
| of an incredible and unconscionable fraud that ripped | | | | opportunities are available in American financial |
| the heart out of their economic system. There have | | | | markets. |
| been previous "bubbles" and "Ponzi Schemes," but | | | | Now in 2010, there is absolutely no trust or investor |
| never a financial fraud the scope of the "Easy-Money | | | | confidence in any of America's financial markets. The |
| Boom" America just experienced. | | | | proof is that all of America's credit markets remain |
| Government Response to the Collapse of America's | | | | dormant except for the conforming mortgage-loan |
| Financial Markets | | | | market, only operating because the U.S. government is |
| President Obama signed into law the Fraud | | | | buying these conforming mortgage-backed securities. |
| Enforcement and Recovery Act of 2009, on May 20, | | | | The only way to prevent the continued deterioration of |
| 2009. The Financial Crisis Inquiry Commission (FCIC) is | | | | our economic system into a "Second Great |
| a ten-member commission with the goal of | | | | Depression" is to make commercial banks start lending |
| investigating the causes of the financial crisis of | | | | again, return integrity to financial markets, and provide |
| 2007-2010. The purpose of the commission is "to | | | | leadership that unites the American people. This |
| examine the causes, domestic and global, of the | | | | requires an honest, competent, and transparent plan |
| current financial and economic crisis in the United | | | | that actually benefits everyone involved. That plan is |
| States." The deadline of December 15, 2010 has been | | | | obviously not coming from our "elected and appointed |
| set for providing "a report containing the findings and | | | | leaders." |
| conclusions of the Commission" that shall be submitted | | | | 1. Warren Burger. Chair of the Commission on the |
| to the President and to the Congress. | | | | Bicentennial of the United States Constitution. Served |
| Final reports of commissions of this type always | | | | as Chief Justice of the United States, from 1969-1986. |
| contain the standard items: political correctness, | | | | |