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For $700 billion dollars, each and every man, woman and child in the United States, legal and otherwise, could be given $1 million dollars each and pay off their own damn mortgages. Then the rest of the money could be used to bail out these corporations from their criminally negligent behaviors.
The credit default swaps, derivative instruments and exotic financial products backed up by air can be nullified and made illegal where the losses would be spread across those foolish enough to have bought them, traded in them and used them as an asset class. The defaulted mortgages already foreclosed are covered by Fannie Mae and Freddie Mac as well as by the “housing bill” already passed and the US Treasury could go back to doing the more sane things they are qualified to do.
These options do not destroy the foundations of our economic system in principle the way that nationalizing a publicly traded insurance company, AIG has done. They are cheaper in the short term and in the long run as well. They make better sense and overall, shore up our democratic representative republic instead of decimating it as their proposal will do.
The time to fear a market collapse has passed. The confidence game is over. This opportunity for change will not wait for the new president to pick out the drapes to be resolved sometime next year. But, since the government believes it is well within their sense of normalcy to spend another trillion plus dollars – they may as well give everyone whose feet are standing in this country, a million dollars each to solve the problem where they stand. At least something would get done.
Written by Cricket Diane C “Sparky” Phillips, 09-21-08, USA