It looks like some form of this bailout is going to happen. So here's the way I'd do it if I were running things.
Do to these financial institutions what they did to their customers: loan them the money at high interest rates.
If Paulson and Junior and their cronies, who think a big infusion of money is the solution, are right, the loans will work and the economy will improve and they'll be able to pay back the loans (to us, the taxpayers, via the U. S. treasury).
But if they're wrong and the financial clowns who caused this situation mess up again, then they lose their companies, just like people are losing their homes, and we (us taxpayers, via our government) take over their companies and auction them off to other companies for whatever we can get.
That way we're not out 700 billion, or whatever the final amount is, we're only out what the Wall Street genuises default on, and even that we get back something on, and the successful loans actually pay interest so we make money on them.
I'm no economist, or financial genuis (obviously) but I know how to live within my means, even when I'm broke, as almost every other person I know who makes their living with their "art"—or in day jobs that support their freedom to make their art—does.
Seems like the liberal arts majors once again know more than the business majors. No offense to all you MBAs but, come on, if the U. S. economy was a patient it would have been dead long ago from the malpractice of the money men.
To carry that medical analogy a bit further: if the "doctor" was a true conservative, he'd let the disease run its course and either the patient would recover or die. If neo-conservative, the doctor would let the disease run its course until it looked like the patient really was gonna die and then would infuse the patient with all the medicine it could get its hands on and hope for the best (but only if the patient was a friend, if it was someone the doc didn't know, well, then it would follow the conservative course and let it die).
If the doctor was a liberal, it would use all the latest scientific equipment and medicine, even if the patient then became dependent on that equipment and/or medicine for the rest of its life, better dependent on outside help than dead.
Etc.
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7 comments:
Seems reasonable. I believe that is pretty close to the concensus. Taxpayers are taking the risk and thus deserve a significant part of the upside if there is an upside down the road.
It seems that congressional Democrats are on board but the hang up is idiological pure Republicans that are against big govt. I suspect that McCain is going back to Washington in order to try and bring holdouts in his own party along.
I only hope that the Public will assess this situation with the same thoughtfulness and wisdom that Michael Lally has shown.
"Twas Brilig and the slithy toads did gyre and etc." The Walrus said and the oysters obediently fed his greed.
but until we get rid of the Demublican Administration We the People will never restore A Gov't of the people, for the people, and by the people.
We the People have the right of participation. We can overthrow the entrenched powers that control our Gov;t and our economy as The Farmers succeeded in doing in the 1880's. The Society of the Grange was an organization of citizens that seized the reigns of power from the the Capitalists and their puppet Gov't.
We the People still have the power to accomplish this, if we participate and truly become willing to get rid of an old idea that it will be a democrat or a republican that will restore a Gov't that promotes the general welfare and not the welfare of the power and wealth.
alright secretary lally - i'd like to offer my services as a staff advisor on a few of the issues at hand - with a masters in painting, i have to strongly recommend that the ground is stable before you add more layers - first, be sure that the institutions we're lending to are qualified borrowers and seize holdings in the minimum allowed time period if they default - secondly, you need to stabilize the "off-off main street" sectors by providing a minimum 90 day moritorium on all debt due dates for individuals and small business until the $'s start flowing again, and thirdly, you must convince bush to extend congress' activities for at least another two weeks because of the "crisis" he claims america is facing ... don't want to rush to judgement ...
If we said "no" to the bail out, what consequences would we see? Would gas prices go up sharply? Would we see a spike in our home heating costs this winter? Would a lot of people lose their jobs? Would we have difficulty paying for groceries? Would millions of Americans have to go without medical insurance? Would the value of the dollar decrease? Would people lose their homes?Would we lose the respect of other nations?
If we could spend a trillion dollars to fix our economy, why wouldn't we? But then again, why didn't we?
Do you need an intern Mr. Secy?
My goodness, you seem to agree with the GOP position of less bailout and more insurance.
Our economy from gas prices to the current debacle have been driven by the current Congressional 'leadership' down the toilet through lack of oversight and partisanship.
China has already questioned the validity of maintaining the US dollar as the world currency.
To add insult to injury, the party that preaches separation of church and state now must suspend talks for the Jewish holidays.
This should play well on Al Jazeera.
It's either confusing or hypocritical.
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