A “DEAR JOHN” LETTER TO MY FRIEND JOHN NOLAN

Dear John:

I would like to comment on your headline story last week, “Local Banks Concerned by Brewing Federal Regulation.”  Believe me; they have every right to be concerned.  It’s apparent that our U.S. Congress (which is controlled by big business) is, under the Federal Financial Regulatory Reform Bill, about to bury America’s 8,200 small and medium size banks with a ton of rules and regulations that will restrict their independent, prudent business decisions.

As you stated in your story last week, our 8,200 American banks are not the problem of the U.S. and global financial difficulties which have our entire financial system on the verge of bankruptcy.

At the root of these seemingly unsolvable world-wide financial problems is their inability to solve the “too big to fail” problem with world-wide banks and financial institutions which poses a systemic risk to not only America’s 8,200 domestic financial systems but the world’s financial systems.

Not only can the world financial systems solve the problem of “too big to fail,” they, with their lack of transparency, can’t even recognize the big world-wide banks who caused this “too big to fail” financial crisis.

In my 2007 book “National Politics is Everybody’s Business”, I have a chapter on “The 2005 Bankruptcy Law” and a follow-up chapter on “You Can’t Get Blood Out Of A Turnip.”

In these two chapters, I tell how the 2005 bankruptcy law took away the risks of the lenders (credit card companies and banks).  When this 2005 bankruptcy law took effect in 2006 it gave the lenders a green light in regards to the consumer credit they were issuing.  The lenders gave way too much consumer credit to too many Americans who could not pay it back.

So in 2006 and 2007 consumer deficit spending skyrocketed, along with federal deficit spending, leaving us with a false economy which was not sustainable.

In my chapter about the 2005 bankruptcy bill I said that “free enterprise is simple” – you invest to make a profit, and this is called a return on your investment.  However, the free enterprise system has risks involved, and one could lose their investment.

So with the 2005 bankruptcy bill, the people and businesses who had to file for bankruptcy could not write off their credit card debt.  This sand in the gears of the free enterprise system gave the credit card companies and bank lenders a guaranteed investment in issuing too much credit to too many bad risks.  Since 2005’s bankruptcy bill was enacted, the free enterprise system has been malfunctioning.

Now to make matters even worse, these large world-wide “too big to fail” banks sold most of their bad, uncollectable consumer debt, neatly packaged with real estate mortgages, to foreign banks and countries.  They, under Triple A bond rating, sold Iceland so much bad, uncollectable collateral that it bankrupted the entire country.

Make no mistake about it, these large world-wide banks and institutions on Wall Street left the 8,200 American banking systems as well as the whole world banking system teetering on world financial collapse.

The second chapter in my book is entitled “You Can’t Get Blood Out Of A Turnip.”  Simply said, the credit card companies and big banks carried $900 billion plus of bad consumer debt on their books as assets, but they were inactive, uncollectable liabilities.  That’s why Citi Group Inc. has no transparency in their balance sheets.  They want to keep recent the inactive, uncollectable consumer debt they still have on their books.

So as the 2005 bankruptcy law gave the lenders, big banks and institutions the right to chase credit card debtors to their graves, they didn’t realize you can’t get blood out of a turnip, which means you can’t get many one- and two-year delinquent credit card debtors to pay their indebtedness because they simply don’t have it.

So John, these 8,200 American banks are the victims of the world-wide financial crisis and the Financial Regulatory Reform Bill is not needed to hinder the American banking system, which is already under strict government transparency and has their deposits insured by FDIC protection, which has worked for 70 years.

As you know, John, I have been writing columns for eight years or more under the headline of National Politics is Everybody’s Business.  I feel that the unfair new rules and regulations placed on America’s 8,200 banks, the unfair advantages given to credit unions, and the newly proposed 22,000 government employees to provide us consumers with a Consumer Financial Protection Agency (CFPA) are all nails in the coffin of our financial system.

As Dear Abby used to say, “If it isn’t broke, don’t fix it.”  I say our 8,200 American financial system isn’t broken, and more government rules and regulations will bury it, not fix it.

Now I am throwing out a challenge to all Rochester citizens.  Get involved – because national politics is everybody’s business.  We should unite with the NH banking system and march on Washington.  I will be in front of the group carrying a sign that says, “Don’t dump on us.  We didn’t create the world-wide financial crisis” or “Americans who want to preserve our financially sound banking system.”

A “DEAR JOHN” LETTER TO MY FRIEND JOHN NOLAN

Dear John:

I would like to comment on your headline story last week, “Local Banks Concerned by Brewing Federal Regulation.”  Believe me; they have every right to be concerned.  It’s apparent that our U.S. Congress (which is controlled by big business) is, under the Federal Financial Regulatory Reform Bill, about to bury America’s 8,200 small and medium size banks with a ton of rules and regulations that will restrict their independent, prudent business decisions.

As you stated in your story last week, our 8,200 American banks are not the problem of the U.S. and global financial difficulties which have our entire financial system on the verge of bankruptcy.

At the root of these seemingly unsolvable world-wide financial problems is their inability to solve the “too big to fail” problem with world-wide banks and financial institutions which poses a systemic risk to not only America’s 8,200 domestic financial systems but the world’s financial systems.

Not only can the world financial systems solve the problem of “too big to fail,” they, with their lack of transparency, can’t even recognize the big world-wide banks who caused this “too big to fail” financial crisis.

In my 2007 book “National Politics is Everybody’s Business”, I have a chapter on “The 2005 Bankruptcy Law” and a follow-up chapter on “You Can’t Get Blood Out Of A Turnip.”

In these two chapters, I tell how the 2005 bankruptcy law took away the risks of the lenders (credit card companies and banks).  When this 2005 bankruptcy law took effect in 2006 it gave the lenders a green light in regards to the consumer credit they were issuing.  The lenders gave way too much consumer credit to too many Americans who could not pay it back.

So in 2006 and 2007 consumer deficit spending skyrocketed, along with federal deficit spending, leaving us with a false economy which was not sustainable.

In my chapter about the 2005 bankruptcy bill I said that “free enterprise is simple” – you invest to make a profit, and this is called a return on your investment.  However, the free enterprise system has risks involved, and one could lose their investment.

So with the 2005 bankruptcy bill, the people and businesses who had to file for bankruptcy could not write off their credit card debt.  This sand in the gears of the free enterprise system gave the credit card companies and bank lenders a guaranteed investment in issuing too much credit to too many bad risks.  Since 2005’s bankruptcy bill was enacted, the free enterprise system has been malfunctioning.

Now to make matters even worse, these large world-wide “too big to fail” banks sold most of their bad, uncollectable consumer debt, neatly packaged with real estate mortgages, to foreign banks and countries.  They, under Triple A bond rating, sold Iceland so much bad, uncollectable collateral that it bankrupted the entire country.

Make no mistake about it, these large world-wide banks and institutions on Wall Street left the 8,200 American banking systems as well as the whole world banking system teetering on world financial collapse.

The second chapter in my book is entitled “You Can’t Get Blood Out Of A Turnip.”  Simply said, the credit card companies and big banks carried $900 billion plus of bad consumer debt on their books as assets, but they were inactive, uncollectable liabilities.  That’s why Citi Group Inc. has no transparency in their balance sheets.  They want to keep recent the inactive, uncollectable consumer debt they still have on their books.

So as the 2005 bankruptcy law gave the lenders, big banks and institutions the right to chase credit card debtors to their graves, they didn’t realize you can’t get blood out of a turnip, which means you can’t get many one- and two-year delinquent credit card debtors to pay their indebtedness because they simply don’t have it.

So John, these 8,200 American banks are the victims of the world-wide financial crisis and the Financial Regulatory Reform Bill is not needed to hinder the American banking system, which is already under strict government transparency and has their deposits insured by FDIC protection, which has worked for 70 years.

As you know, John, I have been writing columns for eight years or more under the headline of National Politics is Everybody’s Business.  I feel that the unfair new rules and regulations placed on America’s 8,200 banks, the unfair advantages given to credit unions, and the newly proposed 22,000 government employees to provide us consumers with a Consumer Financial Protection Agency (CFPA) are all nails in the coffin of our financial system.

As Dear Abby used to say, “If it isn’t broke, don’t fix it.”  I say our 8,200 American financial system isn’t broken, and more government rules and regulations will bury it, not fix it.

Now I am throwing out a challenge to all Rochester citizens.  Get involved – because national politics is everybody’s business.  We should unite with the NH banking system and march on Washington.  I will be in front of the group carrying a sign that says, “Don’t dump on us.  We didn’t create the world-wide financial crisis” or “Americans who want to preserve our financially sound banking system.”