Accounting News and Notes

Although I am a fervent believer in our federal government doing what it must in order to shore up our declining markets, I am equally as zealous to doing so in a method and fashion that will add controls, rules and guidelines to ensure that monies are used wisely. To date the mortgage lending industry itself has proved to be incapable run its own affairs and to judiciously run its business in a way that justifies trust and confidence. As such we have no credible assurance that the very decision makers who not only got themselves into this mess, but also the whole of the American economy, are able to effectively ride herd over the monies and opportunities the bailout will afford. Accordingly we need to demand as a condition of the bailout that the very business leaders/CEO’s  who created this mess are not in power if they are to receive any of the proceeds to their firm or organization.

A bailout unfortunately is necessary. However, it should be done with much more insight than that of the people who created it as they alone created the problem; they should and cannot be part of the solution. The CEO’s and leadership who led these lending institutions to financial ruin should find new work more suitable to their skill set and not  the financial well being or a large monetary institution.  As bailout hearings go on today in the U.S. Senate, we need to focus on a plan that not only deals with the root cause of such catastrophic losses but also to provide a clear and comprehensive plan for the present as well as the future.  Succinct and direct oversight should be established so that all taxpayer money is spent wisely and with adequate safeguards. As we all are required to run our businesses and households with sound economic policies lest we bankrupt, so should we look to our leadership to govern and legislate our money accordingly. Let us all pray our sound economic decisions to be reached in an intelligent and well thought out plan during these tough economic times.

Related posts:

1. Fannie Mae & Freddie Mac Collapse…Has America Been Misled
2. Executive Compensation/Golden Parachutes…A Bailout for the Greedy
3. Market Freefall…Will the Market Ever Bottom Out?
4. Helping Clients in a Down Economic Market…Procuring $100,000 line of credit for Atlanta Based Business
5. The Federal Bailout…Limiting CEO’s Compensation vs. Termination

This entry was posted on Tuesday, September 23rd, 2008 at 10:32 am and is filed under Business News...Politics/Economy/Our World.
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