THE NEW US ECONOMY???

Economic Crossroads
Where Should America Go From Here


Today the leaders of America say the bailout of our doomed economy is almost complete. We are split as a nation on the details of the plan and the scope and cost such a bailout will cover. Many agree that something is needed in this time of financial crisis, and are putting forth their various theories to the media. What should happen? How much should happen? Here are my thoughts.

First, I believe that a bailout plan is necessary. I believe that the ripple being caused by America’s financial institutions are crippling our economy and are ruining people’s retirement. Company’s that need to borrow before they make profits are being forced to go under and the people who work for them are losing their jobs. I personally think that this moment in time can be a turning point in America’s Economics and America’s Culture.

1) The government should buy up the bad mortgages and do what is needed to save the financial institutions that help stabilize our economy. Then, the government should go a step further and set-up a Government Mortgage Program. Under this program any citizen over the age of 25 can apply for a Government Mortgage for their primary residence. This loan will be given at 2% interest and will all be 30 year. This will lower Americans main expense and allow housing payments to become more affordable. It will provide the government a small but steady flow of interest and will also free up citizen’s money to be put back into the economy. This would only be for PRIMARY residences and vacation homes or second homes would not be eligible.

2) Short Selling should be banned. Simple.

3) All stocks that are bought should have a mandatory 48- hour freeze before they can be sold again. This will prevent people from trying to day-trade and artificially inflate a stocks value.

4) The US government should set up a bi-partisan evaluation committee to monitor all Fortune 500 companies and to limit the amount of risk they are able to take on behalf of their stockholders.

5) Pensions should be Federally Insured. A person should not work 30 years with a promise of a 75% end salary pension, just to be surprised that they can only receive 35%.

6) Health Care should be socialized. This would take away the risk of catastrophic illness bankrupting families…along with about another thousand reasons why it is just time.