Even before the drop in stocks today...

My smile attached to the progress we made relative to our financial crisis, has flattened, and my eyebrows are curving…. As the details of the "bail out" plan (at least those that have been leaked to the media) are being released, I am becoming – I hate to say – a little more enraged.

Policy in bank lending is “expected” to change .. in return for these bail out funds. Yes there are some significant requirements relative to dividends, executive compensation, preferred/common stock issues - but in the words of John Kanas (former CEO of North Fork Bancorp – sold to Capital One Financial Corp.) “It seems quite explicit that there are no strings attached to this money…It seems like a gift” .

That is a big problem.

Where are the regulations and reform, written into law, that should accompany these funds? It is undeniable, that deregulation over the last 30 years has led to this crisis. We have been in the bottom of the hole before this. After the Depression in the 1930’s and again in the early 1980’s, to address the Savings & Loan Crisis - the government infused cash into the financial systems to shore them up. Our current infusion is unprecedented in terms of its size – which is logical given the size of our economy and its “real” growth. Today's infusion is also unprecedented in terms of its structure – it’s lack of structure. That, is not logical. After the depression, the preferred stock that taxpayers purchased had voting rights and dividends were restricted until the government’s (i.e. taxpayers) stake had been bought out or paid back. The risk to the taxpayers was mitigated and regulation on lending practices was reasonable, prudent and aggressive. This time – the taxpayer stock is nonvoting, dividend restrictions are less onerous, and the infusion’s primary purpose is to re-ignite lending and “encourage” banks to stop engaging in "some" of their risky behavior.

“Encourage”. “Expect”. “Voluntary”. These are Paulson’s words not mine. They scare me. A Lot.

If you don’t see specific regulations relative to risk management including a defined weighted distribution of that risk, required at banks, consider yourself very,very generous. Because without this and a series of other regulations that I am not smart enough to outline - you will indeed have written the banks a really big check…“Confidence” will improve, and it will keep the banks in business in the short run, but do nothing to fix the long term, deeply rooted problem. This, if left in its current form, could - hold on to your wallet - perpetuate the problem. Somewhat cynical, I know, but think about the time it will take for the financial big wigs, to figure out how to use your cash to retire debt that pays a higher yield than what they owe us (5%). This will pad profits, in the short run, but will likely deflate right about the time they are “encouraged” to start paying their debt to taxpayers. Current lack of regulation allows obvious manipulation to lawfully avoid paying the taxpayers one cent. Further, activity like this will not address the overall, systemic, deep problem in our economy. Additionally, it will render us “duped”.

Although materially important, to our personal financial welfare, this conversation is getting boring. When it comes to money..your money, you are an army of one. Protect your family, and your interests. Do what you can to help you feel “less stress” and show up for work. Get comfortable with being on your own, and be proud of what you do everyday.

I am feeling somewhat powerless to affect change, and bring about a solution. What I do know is that my character is defined by what I do today…that is the only thing that guides me. On most days, it is enough. I expect not to stray from this principle – regardless of my financial situation. Rich or poor. Can we say the same about those that have control over our recent $ donation to spare them the consequences of their bad behavior ...