Ray Bourhis

Talk Me Down From the Wells Fargo Ledge

Instead of taxpayers bailing out Wall Street, would it make more sense for Wall Street to bail out Wall Street?

The market lost over a trillion dollars earlier this week. Those with the most to lose in the event of continued difficulty (and who have the most to gain by a strong turn-around) are wealthy individual and institutional investors. Why not put together a market-sensitive private entity (e.g. something similar to a mutual fund or index fund) and give corporate America a too-good-to-be-true tax deduction allowing them to deduct, say, 60% of their investment in this entity. This approach would be aimed at large investors. The entity would issue say a billion shares at $1,000 per share (or 100 million shares at $10,000 per share and the money (a trillion dollars) would go to a bail out fund.

The one-time deductibility of these monies would not amount to a government payout because these investors are already maximizing their deductions. They would simply shift focus in order to take advantage of the larger write offs.

Isn't this better than a simple government bail out? what am I missing? Why am I the only one who has thought of this?

Ray Bourhis
37 Redwood Drive Box 773
Ross, Ca 94957

415 407 7773

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