Sunday, March 29, 2009

Some suggestions for USA

To deal with the current crisis, why not Obama try these:

1. Create a National Housing Corp to buy out the undewater homes and then rent them out to the ex-owners at some nominal rent so they would have the incentive to stay there, take care of the asset, look for a job and restart their lives. This could save lot of time and money that is going in foreclosures and similar legal actions. Also this way the bailout money could be used directly to help home owners instead of being swollowed by the Banks

2. Start a new Bank of USA, owned by the Government with initial capital of say $250 billion or so. This could give incentive for people to shift their money from the failed banks like Bank of America, Citigroup etc which can be allowed to merge with the Bank of USA. The new bank could have new management and new policy directions to help the development of the needy sectors of the economy.

3. Obama should invoke emergency powers to take tough economic and financial decisions like these. In the present climate I am sure the Congress, Senate and the Public would support him

4. At present it looks like Obama is acting for acting sake and is throwing money indiscriminately at the problem without any control about who gets it and how it would be used. The Banks are scaring him into giving them the money to compensate them for the book losses that they may incur if they recall all the bad loans. Which need not happen. The losses can be continued and only the rules for marking the assets to the market need to be changed so Banks can still have a healthy balance sheet. ( Remember at present the balance sheets are like , ' there is nothing right on the left side and on the right side nothing is left'

5. The Americans should revalue their values of Public and Private Sector roles in the Economy and also about the 'Too big to be allowed to fail' syndrome. Like the Auto industry is heading towards consolidation the Banking and Finance industry also need consolidation with dishonest, stupid and incompetent Banks and Finance firms allowed to fail or merge.

What if Osama declares Peace on America

I am just wondering what if Osama Bin Laden declares- 'My dream has come true, America is down and has come to a standstill, thanks to the Wall Street Wizards, which was what I attempted to do when I sent in those planes to hit the Twin Towers. I am now declaring my Mission Accomplished and am putting an end to the Jihad. All my followers, please note, the Jihad is over, throw away your guns and bombs, don't hate Americans instead go and love the Americans'.

Will Obama still pursue Osama if he does this ?