Why I Do Not Trust Washington

People can debate the relative strength of the economy all they want. I firmly believe that from a macro-level our economy has years to go before it has a real chance to recover. Why years?

1. The banking system overall remains loaded with an excessive amount of delinquent loans. Uncle Sam will continue to siphon money from the American public and deliver it to the banks. In the process, these “earnings” will be utilized to write down the values of loans and securities it holds at inflated levels.

2. Credit will not truly flow until the health of banks, especially the smaller and community based banks, is substantially stronger.

3. Municipal finances remain a mess. As these municipalities endeavor to work their way out of their fiscal nightmares, unemployment will remain high and cities and towns will remain strapped.

4. Washington remains a larger part of the problem than the solution. Although the free flow of money from the Federal Reserve and U.S. Treasury would appear to cover a lot of the holes in our economy, the fact is those holes are very real. In fact, I believe the holes are increasing in size given the manner in which Washington operates. Washington’s modus operandi is all too often dismissed as ‘merely politics’ or ‘business as usual.’ I do not buy it.

I detest those on both sides of the aisle who continue to mortgage our children’s futures while lacking the real integrity to forthrightly address the American public. The bums who engage in political and financial artifice should be sent packing. I would never do business with people whom I can not trust and I trust very few politicians in Washington. Why?

If our economy were truly improving why is the administration lobbying for another economic stimulus package? The administration is speaking out of both sides of its mouth currently. No surprise perhaps but I am past the point where I care to listen to the lies. The lies to which I am referring in this commentary do not actually address the economy. (Although the administration lies plenty about the economy as well.) What lies then? Let’s review commentary put forth this morning in The Wall Street Journal, American Jobbery Act,

President Obama and Democrats on Capitol Hill are publicly fretting about the dangers of spending and debt, which can mean only one thing: Another big spending “stimulus” bill is in the works. And sure enough, the House plans to vote this week on $190 billion in new spending, $134 billion of which it won’t even pretend to pay for.

The nearby table gives a flavor of what’s in this grab bag of political payoffs, corporate welfare and transfer payments.

The biggest item is $65 billion to prevent a 21% cut in Medicare physician reimbursements. Democrats promised this to the American Medical Association in return for its ObamaCare support, but they left the $65 billion out of the health-care law to make it look less expensive. Now they’re pushing it through under separate cover when they assume the press corps won’t notice.

Call it what you want but from my standpoint, I call this financial chicanery, lack of transparency, and absence of integrity nothing more than ‘cooking the books.’ Again, apologists can and will dismiss this as standard politics.

When I ask will America wake up and realize that ’standard politics’ is killing our country and our future. Why should America trust Washington if Washington itself will not be straight and honest with America?

In my opinion, America should not trust Washington.

I don’t.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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