Everything listed by the President may happen even with a massive bailout. Given the amount at risk, I suggest the following alternative plan:
- Wait until after the elections to do anything other than take the time to analyze the models and consequences of economic programs
- Ignore the bad loans: let the institutions that took the risk take the consequences
- Take the $700B and invest it in new loans to small- to medium-sized businesses, and to ensure the continued operation of student loans
- Have the SEC, FBI and any other federal agency investigate every decision-maker in companies responsible for getting us into this debacle. Engage in a ‘De-Baathification’ process, keeping the guilty from ever working in the financial industry again.
One last comment.The President called our capitalism the best economic ever devised. For once, I agree with him. But that means that the profits of capitalistic endeavours must be matched by taking responsibilities for losses incurred when engaging in free market activities.