Change We Need,

Change We Don’t Need

To the Editor:

Change? It’s what our dollars will be worth if Washington doesn’t “Change.”

I am owner of DMP Asset Management, LLC. First off, I believe President Obama to be a decent man but he, his staff, and his congress know nothing about economics. You don’t need to have a PhD in economics to know that saving creates wealth, not spending. Yet, the only solution Washington has offered is spending. If Washington doesn’t get around to its promise of “change,” the 2008 financial crisis will look like a celebration of prosperity compared to the next crisis.

In order for this country to prosper Washington and Americans need to change. However, Washington is getting it completely wrong. Here are some examples:

“Cash for Clunkers.” What did it accomplish? Washington took on more debt, people financed cars they could not afford, which is leading us back to the same issues and no change. American’s don’t need more cars (and debt)! We and Washington can’t afford them!

Here’s a solution: Sell cars to people who need them. Chinese citizens need cars; and they can afford them. Why don’t we produce a car (create jobs), and sell them (aka export, what a concept) to the countries that can afford them. That would be a good change!

 “The Federal Reserve.” If we want to become a nation of wealth, we need to accumulate wealth. Three percent interest rates on 30-year treasury bonds are not going to cut it. Did Mr Bernanke learn anything from his predecessor, Mr Greenspan? These interest rates promote borrowing and discourage saving, the exact cause to our problems today and ahead.

There is no easy solution, but every day Washington makes it worse. Raising interest rates would cause short-term unpleasantness but would get us on the right path. For example, homeowners with ARMs about to reset will face mortgage payments they might not be able to afford. This might not be a bad thing because this would force people to rent, accumulate money (the higher interest rates, the easier to accumulate), buy a home they can afford, and someday own 100 percent of the home. Imagine giving homeowners the possibility of owning their home outright? That would be a good change!

In late 2008 I was optimistic. Today, April 2010, I have never been as concerned about our future as I am now. Everything Washington is doing is eventually going to crash the stock market and sink the US dollar; the second misfortune is much more devastating. As a seasoned trader, investor, and investment advisor, I know how to protect myself and my clients. If you don’t have a plan to protect yourself, get one! That would be a good change!

Daniel M. Patti

84 South Main Street, Newtown                                   April 19, 2010