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3 Things America Needs to Do to Get the Economy Back on Track

Hello - Here's one take: Sugar Money followed attacks of 2001 to put a Keynesian cure on a world of a mess in the financial markets. It was a "typical Democrat solution" but it was R's that implemented it. Frankly there was not a choice. Had to be done. When the banks started to get risky based on earlier deregulations and and trading rules going back to the Clinton era. Add to that policy rules that prompted banks to put out high risk loans to people with little ability to pay - as well as to speculators busy flipping the housing market, and voila ! BUBBLE. Warning flags and legislation to dial back the spicket came from the Bush Admin and McCain among others. Dems turned a blind eye. Bubble had no restraints. In reality there are low percentages of actual bad loans but given the "mark to market" accounting - the whole group of assets became tainted. So much of this is the cause of government tinkering but I see little way out except to tinker some more. I think the modified Paulson plan has a good shot at unclogging the credit pipes .. and reviving the economy - though the DOMESTIC markets may not follow so soon since the dollar gets damaged in the process. Oil is certainly a factor here but if our markets begin to respond - more oil and gold money will begin flowing back to the US equity pie.