Our CPA, Henry Michalenka, has been helping households, individuals, and small businesses for thirty years. He’s honest, smart, and…from years of dealing with every financial entity on the planet…cynically funny.
Hank has an alternative plan to the Bush Administration bailout.
The Michalenka Plan will give the $700 B to American households (he figures it would be $10,000 to $15,000 per household). He will let the market decide what to do with the banks…which most likely means bankruptcy and reorganization. Stocks will further deteriorate….people will re-evaluate which investments (and people) are investment worthy…folks will buy back in to new companies at low P/Es.
The market will recover with money being invested in better companies with more responsible management.
P.S. About the credit crunch that so worries Mr. Paulson…don’t forget that retail banks still have significant good mortgages and accounts.