There is a crisis for sure, and no amount of money will remedy this… it is a crisis of in confidence.
How does one restore confidence you ask? By making tough choices, and then following through with them. What are the tough choices that need to be made right now? Here are a few suggestions:
1. The Proposed RTC’esq structure which would oversee the purchase of all the bad assets be allowed to be traded as a publically traded government insured entity. That would allow the American public an opportunity to [purchase “bad assets” on the cheap like the private equity funds that will when this entity finally takes shape.
2. Cut government spending now! Put a hiring freeze on all government jobs and then cut the expenses of every government department by 10% immediately.
3. Offer early retirement packages to any government employee who has 20 years service.
4. No more deficit spending in future budgets. Its pay as you go.
5. Give the president the line item veto
6. No more “extras” / “riders” salted pork attached to any pieces of legislation.
7. Term limits for all members of Congress – 3 terms for Congressmen, 2 terms for Senators
These are just a few ideas for starters… I can come up with more.
And you’re not going to like what I have to say next. This current crisis is probably worse than the crash of 1929. Why? Because there are no true leaders / visionaries with the skills and courage to lead the world out of this mess. I’m voting for Barack Obama, but I don’t think – as much as I like him as a person – he has the overall juice that it will take to lessen the impact that is yet to come from this catastrophe.
Get your helmets on folks… this is no practice drill!
Walter Schubert, a third generation member of the New York Stock Exchange is the Founder and CEO of GFN.com: The Gay Financial Network.
Photo credit: stock.xchng.