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Back when George W was running the world, I sent the following to every member of Congress:
Let's take a good look at this taxpayer bailout. I practiced law for thirty years and represented a lot of lenders that financed 'distressed loans'. It takes more than a week to prepare and review a contract for a $2 million documentary film. I won't bore you with the legal gibberish but will give you the highlights.
The loans are made available to individuals or companies on the ropes, so to speak. Lenders of this type are like 'loan sharks' and don't want you suddenly increasing your pay taking around-the-world cruises on their dime. So they do the following:
1. Pledge all of your assets. Even your wife, children, parents, mistress, and any other person they can find must co-sign.
2. Your salary is minimal until you can document that you're doing a good job and you're doing everything in your power to ensure the repayment of the loan. Your salary is reviewed every six months and if your performance is superb, you'll get a reasonable raise.
3. The borrowers must sign non-compete agreements to ensure that they don't quit and go work for a competitor. This means that if you quit you usually can work in the same field for two or more years.
4. Early termination will result in penalties. This can even include the forfeiture of the assets that you've already pledged.
5. If the deal is high risk, the lender will demand up to a sixty percent equity interest with a buy-back provision usually equal to 150 to 1000 percent of the original loan.
6. There is no negotiation. You take it or leave it on the table. DISTRESS BORROWERS HAVE NO POWER WHATSOEVER. The lender sets the price and the terms.
The Congress needs to hire a couple of mean New York lawyers to act on their behalf. They'll work for $200 per hour and they aren't impressed by tears.
The loans are made available to individuals or companies on the ropes, so to speak. Lenders of this type are like 'loan sharks' and don't want you suddenly increasing your pay taking around-the-world cruises on their dime. So they do the following:
1. Pledge all of your assets. Even your wife, children, parents, mistress, and any other person they can find must co-sign.
2. Your salary is minimal until you can document that you're doing a good job and you're doing everything in your power to ensure the repayment of the loan. Your salary is reviewed every six months and if your performance is superb, you'll get a reasonable raise.
3. The borrowers must sign non-compete agreements to ensure that they don't quit and go work for a competitor. This means that if you quit you usually can work in the same field for two or more years.
4. Early termination will result in penalties. This can even include the forfeiture of the assets that you've already pledged.
5. If the deal is high risk, the lender will demand up to a sixty percent equity interest with a buy-back provision usually equal to 150 to 1000 percent of the original loan.
6. There is no negotiation. You take it or leave it on the table. DISTRESS BORROWERS HAVE NO POWER WHATSOEVER. The lender sets the price and the terms.
The Congress needs to hire a couple of mean New York lawyers to act on their behalf. They'll work for $200 per hour and they aren't impressed by tears.
Obviously, no one listened. Well the chickens are not roosting but sitting-in on Wall Street. There are hundreds of thousands of young people in this world with huge obligations and no hope. These young people have never known hunger, deprivation, and no hope for the future. However, the 1% power machine is blind to the the truth.
Click on the following link and get a glimpse at what I mean:
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