The Paulson plan to plunder the public treasury is a non-starter.

Congress must take the time to hear from some real economists, like Nobel Prize winner Joseph E. Stiglitz, in this article from the Nation. Here are some excerpts:

“With lack of oversight and transparency the cause of the current problem, how could Congress make a proposal so short in both? Why not include provisions to stop the source of bleeding, to aid the millions of Americans that are losing their homes? Why not spend as much on them as on Wall Street? For the past eight years money has been trickling up to the wizards of Wall Street. Enact bankruptcy reform, help Americans write down the value of the mortgage on their overvalued home. No one benefits from costly foreclosures.

“The Scandinavian countries showed the way. By issuing preferred shares with warrants (options), one reduces the public's downside risk and insures that they participate in some of the upside potential. This approach is not only proved, it provides both incentives and wherewithal to resume lending. It furthermore avoids trying to value millions of complex mortgages and more complex products in which they are embedded, and it deals with the “lemons” problem - the government getting stuck with the worst or most overpriced assets.

“Finally, we need to impose a special financial sector tax to pay for the bailouts conducted so far. We also need to create a reserve fund so that poor taxpayers won't have to be called upon again to finance Wall Street's foolishness.”

We need open, public and transparent hearings so the American people can hear proposals from real experts like Nobel Prize winner Joseph E. Stiglitz, and decide in the clear light of day what is to done with our economic destiny.

Pamela Anderegg

Auburn