What type of financial crisis are you in?What do you think is the best solution to the financial crisis we are in?
Remove mark to market accounting, make SEC regulations based on market, but keep the books at cost 鈥?10% * (book 鈥?market) to curve volatility swings, I am sure the risk of underlying asset hasn't changed because a bunch of people borrowed a **** ton of money to short them. Whatever is needed as far as getting rid of the bad paper pack it up into government insured yields of 1, 5, 10 year debt securities that pay fed treasury rate, and then make the cost basis * 10% a deduction on schedule A. They will be as safe as Treasury bonds, and have a tax incentive to get them off the shelf quickly. This way you don鈥檛 have a 700 billion dollar outlay and more like a 100 billion dollar maximum risk instead. And even better yet鈥?you don鈥檛 have an all powerful debt czar who can do whatever he wants.
Help the people who have bad loans pay them so that they do not default. This will get the money moving back into the financial institutions that desperately need the cash to lend to others. It is simple and will be a lot cheaper than buying bad loans from those huge financial institutions. It is a win-win situation. We just cannot let that slimy weasel Paulson get his hands on on the 700 billion. Otherwise we will be duped by a multi-millionaire answerable to no one.What do you think is the best solution to the financial crisis we are in?
first of all, investing in bad debt is not the answer. i think we should let things fail and then pick up the pieces. from the tax base that's left, i would use money to start creating true assets. i would put people to work building real stuff like nuclear power plants, infra structure, and re investing in honest to god assets. greenie-weenie projects and the like. i would resetablish the american steel industry. i would eliminate labor unions and rebuild the american auto industry.
i feel in the long run the market corrections would indicate true value. i hate a society based on consumer credit. what's the point? when all the debt goes bad, you just have to do this whole freakin' thing again.
i would also establish a socialist based health care system where everyone gets care and saves money because the uninsured arent catastrophic when they roll into the emergency room, (that's a huge savings).
i think real work for real pay is a much better option! thank you. jim
Just posted tonight!!! i think the most important action for any American RIGHT NOW, is to watch this 9 minute video on what's REALLY behind the wording of the bailout %26amp; the related actions/messages coming from US Treasury Secretary Hank Paulson, Germany, Australia, and The UK.
here's the video! http://www.youtube.com/watch?v=GqIFoBXGizc
copy/paste that link to watch.
Americans are NOT puppets!! We will not sit silently!
The bailout in its current form only serves to nail the coffin on the US consumer %26amp; small businesses. Both US Consumer %26amp; Small businesses make up just about all of our economy. The last thing we need is steal away additional wealth from us (the working class), and to have this wealth thrown into the void of the banking system (or just the big banks specifically) who'll decide not to lend anyways.
The problem is with transparency, confidence, and lack of valuation. All three of these can be addressed without costing even $1 billion, yet the big bankers, US Treasury Secretary Hank Paulson, George Bush, and the Federal Reserve want us to give them $700 billion!?!?
We're not that stupid (and I certainly hope our elected officials aren't either).
To understand this situation and to be more knowledgable of alternate solutions to the current financial mess, please see www.fedupusa.org
Karl Denninger is one of many that understands the ins %26amp; outs of the financial markets, the big time financial players %26amp; what they're after, the accounting rules, and the foresight to understand what will happen under these bailout scenarios.
To Paraphrase the best solution presented thus far (by Karl):
The solution to the trust issues in our financial system is elegant and it will work.
1. Force all off-balance sheet "assets" back onto the balance sheet, and force the valuation models and identification of individual assets out of Level 3 and into 10Qs and 10Ks. Enact this requirement beginning with the 3Q 2008 reporting period which begins next month. Total taxpayer cost: $0.00
2. Force all OTC derivatives onto a regulated exchange similar to that used by listed options in the equity markets. Total taxpayer cost: $0.00
3. Decrease leverage by all institutions to no more than 12:1. Total taxpayer cost: $0.00
THIS HAS BEEN SUBMITTED TO EVERY CONGRESS MEMBER.
Get on the phones %26amp; demand NO on the bailout.
Eventually, we as a nation will have to get to the root of the problem. We need to separate the monopolistic power that the Central Bank (Federal Reserve) has on the ability to print our nations currency. Its ludicrous they have this right. They should only act as agent for interbank transfers and THAT IS ALL.
No mas.What do you think is the best solution to the financial crisis we are in?
After the governemtn buys up the bad loans and lowers people's interest rates...
#1 wrap this Iraq thing up and get out
#2 pay off the war debt and let Iraq start paying their own bills
#3 increase taxes on the musltinational businesses or increase interest rates to pull excess USD out of circulation to push the value of the dollar up. This will bring the price of fuel and other commodities down.
#4 Repeal the Gramm-Leach-Bliley Act
#5 renegotiate NAFTA and other free trade agreements or we'll be right back here in another 10 years.
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