American economic bailout package
Version 1: Buy bad mortgages
Recapitalize banks and financial institutions
Verson 2: Recapitalize banks and financial institutions
Force them to lend to individuals
@ the same time
Socialist Europe came up with
Take over banks in the name of recapitalization
Communist China
Rebuild infrastructure.
Can't for the life of me someone remember why we have this foreclosure crisis. It is just ridiculous solution that looks exactly like root cause of the problem itself. Is Henry Paulson so retarded that he can see this simple thing. Government allowed banks to lend to people who are not credit worthy and hence housing bubble followed by the foreclosure mess. Then how come lending more money to the same people becomes the solution all of a sudden ? Or is it corruption or cronyism ? How else could one explain the haste ? The explaination that pruchasing bad mortgages would take time screams, "I need to spend the money before the current presidents term runs out" (and hence my time to take care of my partying cronies in AIG and CITI).
Why can't we the start infrastructure projects to aging american infrastructure and massive reeducation programms to sagging education standards. Infrastructure projects will like i wrote in my previous blogs will be the most cost effective thing to do given the cost of labor, raw materials and energy at this time. Then instead of forcing banks to lend to insolvent individuals without jobs, they can actually lend to subcontractors with actual government projects and their employees with good salaries. And investing in education will not only gaurantee a bright future for young americans but also create new job opportunities aging baby boomer population. Which can only only help the younger generation benefit from the knowledge base. Education also means cutting that shortage in medical staff and stem increase in the medical costs. The possibilities are endless but will america take the challenge and do the right thing .... or will it fall for populism ?
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