bobomite

Rethinking Subsidized Finance

The government should lend for houses, schools and capital purchases. The interest collected should offset income taxes.

Commercial banks would still exist - they can do business with anyone seeking more than these basic and fundamental services, such as credit cards or LBO action. The commercial banks would do this by borrowing money from the Treasury. (Not the Fed.)

The Greatest Short Sale in History

This is a desperate move by the Fed.

What should happen is that the US government should issue debt free currency, let's say $700B or so to start with.

Then they use some of this this money to buy assets from the banks.

There are 2 pricing models:

1) Mark-to-market, you get cash

2) Full price, you get cash but hand over equity (not warrants) to cover the difference from the mark-to-market value.

The extra money and any income (if there is any) from this program would then be used build a real alternative energy infrastructure.