The idea of us going into a Great Depression was bantered about on March 14, 2008 as the fall of Bear Stearnes took place. That almost seems trivial as Lehman Brothers, IndyMac Bank and others visited Davey Jones.
But is $700 Billion to Wall Street really the answer? Dr. Evil would blush amid scornful reminders of his idiotic plan: "I will launch a 'Death ray' aimed at Wall Streeters, to sooth my pain...Nice pussy" (Petting his cat.)
It was interesting to watch Hillary Clinton on Today, whose husband signed the law that made this collapse possible (with Phil Gramm's urging), call this "The Perfect Storm." No shit. You suddenly are a writer using wit to score points amid this fiasco you call a market?
Frankly, if $700 Billion is available, I would suggest the following distribution:
- Wall Street has access to a $100 Billion credit window. Only if they do the following:
a) the 50 largest banks in the world (if such a number exists) sit down daily between 1PM and midnight in New York (or via satellite) and discuss the bad debt they generated. They argue and discuss the whole problem everyday for as long as it takes to figure out whose got what, what can be salvaged and where does regulation of these exotic financial instruments go from here. I expect, no, require 2-3 weeks worth of hard work out of these $2,500 suits wearers.
b) set up reasonable terms with people making $50,000 per year and have a mortgage. Cut back their cut and tell their stockholders it is this or, "the government will let us collapse."
2. $200 Billion in infrastructure investments. Roads, Schools, Electrical power, storm walls and things that people need immediately done in their areas. This isn't rocket science, we know where the poor people are and what they are not getting.
3. 150 Billion in investments in energy and high-technology solutions to pressing environmental and energy crisis. The cars we drive are terrible on gas. Fix them. The analysis on global warming and farming concerns lack. Get'er done.
4. $100 Billion to people that can not get student loans, car loans, home improvements or other needed upgrades. 2% interest rates per annum. Guaranteed qualification for it. Must make under $50,000 per year.
5. $150 Billion in job retooling of America. The country needs more than fast food, retail outlets and government teets to suck on. It needs an industrial, technological might that kept us near or at the top.
6. Foreign aid. (Of the $700 Billion, 21 Billion should go to overseas development in Africa and other struggling countries. Somehow, I think we can get people to join the Peace Corps or other worthwhile endeavors if we pay the way for them to work on pressing issues.)
That's my plan. Wall Street doesn't get nickels for nothing.