An Open Letter to Mr. Paulson

Dear Mr. Paulson:

It seems that you and your team are working furiously to prop up the financial industry. Unfortunately, just about everything you do seems to help the insiders and leaves us average citizens screwed.

So that you might at least attempt to demonstrate that you are for us taxpayers, I thought you might want to consider this suggestion.

I was reading how distressed debt-backed assets are being sold for pennies on the dollar. For example, Lone Star's recent deal to acquire $30.6 billion of Merrill CDOs for the equivalent of 5.5 cents on the dollar.

These securities are backed by our mortgages, car loans, credit card debt, and student loans, etc. I thought it might be a better deal for all of us if these deals included a rule that reduced the outstanding principal debt amount. For example, if Lone Star is getting the debt for 5.5% of the face value, why not require that all debt collateralized in these securities be immediately written down by 4 times the 5.5% or 22%?

If this was done, both the creditors and debtors would win.

Now, I know that it is a challenge for you and Wall Street to engineer a game where both sides win, as most of Wall Street is based on a zero sum game. But, I am challenging you to enact rules or legislation or something that gives the individual American a fair deal.

Regards

The Best Money Guy.

Copy to Senator Reid and Speaker Pelosi

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