The answer is simple.... You are living it right now.... Work equation shrinks Prices of Everything Drops Production Drops Etc... Until the "new economy" comes to the fore.... ................................................................................ Thus the question becomes.... What is the logic of spending precious funds on projects that only payoff the bad gambling debts ? What is the logic of spending precious funds on projects that will represent truly good investments that will pay future benefits ? ................................................................................. Taxes The current administration does not seem to be taking into account that the tax structure has to be changed to a "consumption tax only"..... The current structure will not produce enough revenue.....even if the progessivity was increased to take 95% of the remaining productively employed earnings.... A "consumption tax" will produce a more reliable tax take....and will ignite "confidence" and jobs....and will be broadly distributed.... ............................................................................... Battle of the Fiats As everyone knows....the world's currencies are predominately fiat.... The number one issue at hand is for the coordination of Central Banks to dilute their fiat currencies on an equalizing basis.... ................................................................................. Energy (getting rid of all gas stations/depots....depot risks) Education (Internet) New World Stock/Securities Market/Direct Access Universal Accounts....Boilerplate....listing...information Food Production...ie Fish Farming in the Oceans, enhanced coordinated farm production GOVERNMENT End the lobbyist two party system by advertising....must be replaced by "township governance" Banking....Localized banking....separate and independent...ending "too big to fail".... Lots of other work to do...........Health care in the new era...etc... http://www.nakedcapitalism.com/2009/02/willem-buiter-us-and-uk-as-banana.html
"Too big to fail" is becoming the rallying cry for all the corporate socialists out there. In my opinion, if a comany is too big to fail, it's too damn big and needs to fail/restructure, so that we aren't even more depenent on it in the future. Do these people that use this logic think these companies will begin to divest and become smaller?
First of all, the shareholders should bleed because, they let bad management run their company into the ground. All private company's owners loose their money if their business fails. So these banks and other financial companies as well as the auto companies and others should go for chapter 11 or if they are too big to fail, a sort of chapter 11 which might have to be legislated first. What about all these smaller and middle sized companies that make out a multiple of the biggies? They have no choice but go for chapter 11 or worse. Why not the big ones? Resize them in an orderly fashion. There are lots of good big companies, banks and other financial institutions included, whose management didn't speculate and are well off. Like Banco Santander for instance. Felix
Yeah, no kidding. This is it? This is what all the doom and gloomers are whining about? A bunch of artificial wealth has deflated, and we as a nation are going to tighten our belts, crack down on the fraud and hopefully learn a lesson or two from this. God, it's awful.