8/14/2019 2009-02-03 Letter to President Barack Obama

1/2

Saporito Energy ConsultantsPost Office Box 8413Jupiter, Florida 33468-8413Voice: (561) 283-0613

Fax: (561) 952-4810Email: saporito3@gmail.comWeb: SaporitoEnergyConsultants.com

February 3, 2009

Hon. 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 lifes 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 countrys economy is viewed from the street-level.

BackgroundThe United States government was late in identifying our countrys economic collapse as a recession and

our government has also failed to realize and acknowledge that our great country has now entered adepression 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; Pilgrims 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 of

taxpayer 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.

8/14/2019 2009-02-03 Letter to President Barack Obama

2/2

2

Current Economic ConcernsThe current federal deficit will likely increase to 3-trillion dollars in the near term as more and moretaxpayer funds are authorized by the Congress to meet this challenging economic collapse. Notably, asCongress continues to borrow trillions of dollars to finance this deficit, decreasing corporate revenues willexacerbate the problem even further. The U.S. stock market continues on a downward path and will mostlikely visit the 5,500 to 5,700 area this year as more and more companies miss their earnings estimatesand reduce their forward looking guidance as deflation takes its toll on our economy. Personalbankruptcies are likely to continue this year as unemployment surges to record levels and this will resultin more foreclosures and a further collapse of the real-estate market.

The Future of the U.S. EconomyThe current economic stimulus plan of your administration which is now before the U.S. Senate forauthorization and approval is a great start to reverse the down trend in our economy. However,considering the overall dire economic situation of our country, it appears that a 3-trillion dollar economicstimulus package is required to meet existing challenges in reversing the down-turn in our economy.The aggressive approach of a 3-trillion dollar economic stimulus package will instill confidence in themarkets, the financial sector, and in corporate America encouraging banks to lend and encouragingbusinesses to borrow and expand. Moreover, a 3-trillion dollar economic stimulus package will providesufficient funds for job creation in the construction of alternative energy solutions such as wind farms,solar projects, biomass fuels and the rebuild of our nations electrical grid. Additionally, each tax-payer

should be provided a tax-rebate check in the amount of $10,000 to immediately stimulate oureconomy. This type of direct stimulus to the people is required to stop the bleeding of corporaterevenues and to stop more companies and banks from failing. We must act aggressively and decisivelyand we must act now, else we may not be able to reverse the down-turn in our economy.

Our country and economy must:

Make a fundamental change from a consumer based economy to an industrial basedeconomy where the manufacturing of goods and products supports our economic growth.

Completely eliminate our countrys dependence on foreign oil as a matter of nationalsecurity.

Provide proper oversight of Wallstreet and the financial sector.

ConclusionIt is imperative that Americans understand how to live within their means and not embrace credit productsto meet their needs. Our government has a moral obligation and duty to encourage Americans to save atleast 10% or more of their earnings and to invest their savings for their future retirement needs. Ourcountry will eventually recover from the dismal state from which it now exists, but the degree of oureconomic recovery depends solely on a sufficient and timely economic stimulus package to reverse thedown-trend in our economy. There exists no room for error and we must not do too little too late!

Sincerely,

Thomas SaporitoPresident

Copy provide to:Hon. Joe Biden Hon. Nancy PeloziVice President of the United States Office of the SpeakerThe White House H-232, U.S. Capital1600 Pennsylvania Ave., N.W. Washington, D.C. 20515Washington, D.C. 20500