Frank Bernheisel: The View From Here
Frank Bernheisel
Frank Bernheisel
Posted 02.06.09
Just Outside Washington


Get it done

February 6, 2009

    Dear Senator Webb,

    I support the idea and legislation to try to turn the current economic downturn around. I think that spending should be the primary mechanism and I see no benefit to a long argument in Congress to micro-manage individual spending projects.

    In fact, a long drawn out process in Congress will be counterproductive. Time is of the essence.

    Tax cuts do not belong in this legislation. Some members of Congress promote tax cuts as the solution to all problems. The current psychology of the American public is saving and not spending. A tax cut that is saved will not stimulate the economy.

    I do think that the idea for a federal guarantee of home mortgages at a 4 percent fixed rate for qualified applicants is a good approach. This would get some of the more ‘creative’ loans off the books and enable new buyers to purchase homes.


    Frank Bernheisel

Do I think the stimulus package will work? I do not know. It is clear that unemployment is rising, sales are down and dropping, and the banks are not lending -- even to people and small businesses that have good track records.

We, as in The Country, need to do something. Tax breaks will not do much -- according to Reuters, seventy percent of the people interviewed said that they would save the last tax rebate. Not very stimulating.

The Republicans, based upon the statements of the members of the House, are singing the same old song -- tax cuts and especially to the rich. And when they didn’t get their way, the decided not to play.

Worse, they have resorted to the misinformation game by focusing on some of the smaller and misguided projects in the stimulus bill -- effective politics, particularly with other diversions like Tom Daschle.

This does not help the country and I do not blame Speaker Pelosi for running over them -- andI am no Pelosi fan.

If we put any more money into banks, it should go with ownership.

I hear the Rs asking: "Do you want some incompetent bureaucrat running the banks?"

The answer is: Of course not. However, the bureaucrats could hardly be as incompetent as the current crop of bankers and they have much lower salaries. Also, they probably won’t steal as much. So nationalize the banks, even though I will lose my investment in Bank of America and maybe Morgan Chase.

I am convinced that if we do nothing, we will see a big crash, as in 12 to 15 percent unemployment.

Time is of the essence.