The Bailout

In the aftermath of the worst day ever for my 401(k), I have decided to start talking about the economy. I can only put it off for so long. 

 There are so many ways to tackle this problem that we can't just put all our eggs in one basket. This bailout would do just that. It would eliminate the possibility that we could have another better thought out stimulus bill because this one is so big. The next administration would have their hands tied behind their back because of Bush's Bailout. 

 We need to take a good long look and actually listen to the elitist economy professors that congress has been ignoring in favor of listen to Bush (because he is such a trustworthy guy). There much better ways to spend $700 Billion, here is a multifaceted approach.

 

• We can still buy back $200 Billion in toxic securities from "US banks only". 
• We then need to spend $100 Billion on public works projects like rebuild our crumbling infrastructure. 
• Take 300 billion and use it to make cheap cash available to the banks in return for equity in them. 
• The last $100 billion is very important, use to invest in getting us off our addiction to oil. Invest in renewable fuels and new technology.

 Then Congress needs to do some things that will not require and cash at all to be spent.

• Then require all distressed mortgages go into a foreclosure court that will renegotiate the terms of the mortgage to a low 30 yr. fixed APR at 85% of the current value of the house.
• Overhaul bankruptcy laws. First repeal all the changes from a few years ago. Add in protection for families first homes from bankruptcies. Eliminate protections for student loans.
• Overhaul the regulatory systems that oversee the market. Strict oversight over risky investments. More transparency for government oversight. If a company is deemed to large to fail then it should have to fallow even stricter control by the government. Create federal anti-usury laws; this is predatory lending at its worst, good-bye paycheck advance.

This is a good start on repairing 8 years of damage to our economy. There are still some huge issues that need to get handled, like stop funding the reconstruction of Iraq with they are running a surplus and making sure every legal American has health insurance to avoid most bankruptcies.