Saporito Energy Consultants
Post Office Box 8413Jupiter, Florida 33468-8413Voice: (561) 283-0613Fax: (561) 952-4810Email: saporito3@gmail.comWeb: SaporitoEnergyConsultants.com
February 3, 2009Hon. Barack ObamaPresident of the United StatesThe White House1600 Pennsylvania Ave., N.W.Washington, D.C. 20500
In re: The Economy of the United States of America
Dear President Obama:Congratulations on your life’s achievements taking you the highest office in the land as our new president!Let your example set the bar inspiring the youth of our country to excel to their full potential. May Godguide your administration in bringing peace around the world in collaboration with all nations.In addressing the dire economic turmoil that our country now exists, let me first say that I am not aneconomist nor am I an expert in assessing the overall economic parameters currently affecting thevarious sectors comprising our economy. Nonetheless, I believe that it is imperative that youradministration have the benefit of how our country’s economy is viewed from the street-level.
Background
The United States government was late in identifying our country’s economic collapse as a recession andour government has also failed to realize and acknowledge that our great country has now entered a“depression” which will take years and years to reverse. The collapse of the financial sector was markedwith the failure of Leman Brothers with about $691-billion in assets followed by Washington Mutual withabout $327-billion in assets; Indymac Bancorp with about $32-billion in assets; Lyondell-Basell Chemicalwith about $27-billion in assets; Downey Financial with about $13-billion in assets; Tribune Company withabout $13-billion in assets; Fremont General with about $12-billion in assets; Semgroup with about $6-billion in assets; Luminent Mortgage Capital with about $4.7-billion in assets; PFF Bancorp with about $4-billion in assets; Pilgrim’s Pride with about $3.8-billion in assets; Landamerica Financial Group with about$3.8-billion in assets; Circuit City Stores with about $3.7-billion in assets and the list continues with Citi-Group, AIG, Bank of America and others. Next, the three-big U.S. auto-makers General Motors, Chrysler,and Ford sought and received funds from the taxpayers to bail-out their failed companies.Under the Bush administration and with the authorization of the U.S. Congress, 750-billion dollars oftaxpayer money was targeted in a bail-out fund “TARP” in an attempt to reverse the down-trend in oureconomy. Notably, the treasury secretary under the Bush administration, Paulson, stated that [h]eintended that the TARP funds be used to purchase toxic mortgages to prevent more banks from failing.Incredibly, shortly after Paulson and his team received the 750-billion in taxpayer money, Paulsonchanged [h]is mind and decided not to purchase toxic mortgages from banks! The U.S. economycontinued to significantly deteriorate with the loss of hundreds-of-thousands of American jobs forcingpeople from their homes.
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