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What would be the natural consequences of doing something else and legislating an immediate enactment of appropriate regulations to take effect immediately?
1. nobody in the banking, investment and finance industries will like it and other business leaders accustomed to 400% profits will echo that sentiment. They already have cut so many people’s jobs and cost their homes, equities and communities, who cares what they think anyway at this point? besides politicians?
2. the regulations that are appropriate for each of these industries are already made up and ready to go in place and their foundations were laid last year and the year before that and the year before that, etc.
They would simply have to be enacted by Congress immediately which is okay because they are predominantly lawyers and well-educated enough to read through them and sign off on it. They could hold to having no other conflagration of reality besides the actual regulations in the bill and it simply be passed.
3. The natural consequence of any bailout package of this size are known to be faulty and reeking of negative repercussions. This is documented historically and by recent events. However, to do something else requires some other workable options, many of which have been offered over the course since its announcement (and before.)
4. Many of these other instruments of policy have already been configured and analyzed for their devaluation to the currency and its reflection and consequences to the real economy. Any and all of these are actually on the table and available to use given the current situation as well as any combination thereof.
5. My suggestion is that Congress choose from among them as appropriate or put together a valued team to create a workable solution which is constrained not by politics and business-as-usual profiteering but rather by the principles we hold dear as a nation.
6. Rather than this massive bailout, a team to create a workable solution could be constructed from the intelligence of the State Dept. philosophies and knowledge base from the real world (senior analysts), the Commerce Dept. specialists in innovation and dynamic business/commerce modeling, along with the common sense of some international macro econ geeks.
7. And bring those solutions to Bernanke, Paulson, Cox but most of all through the University system enclaves and Congress. Then and only then, (no – not really) – considering the current crisis – this entire process can actually be accomplished over the course of days through computer conferencing among the team members with ready package of analysis quickly generated with brief, concise explanations and charts.
Written by Cricket Diane C “Sparky” Phillips, 09-25-08, USA1