I've been reading some about the current recession being the product of greed and regulatory indifference. So now I am wondering what would happen if we started with the opposites? Sgt C (christopher-calbat.newsvine.com) put the formula for the crisis like this
unbacked assets + immediate equity on securities - oversight + deregulation x greed - ethics = FAILURE!!
So my proposal to get out of the mess is to do the opposite thing.
real assets - equities with real value + oversight + regulation * generostiy = a stable economy
Real assets. We already have assets starting to take on relatively stable value (if you can see the difference in housing prices in 2009 vs 2005 you can see that we have more stable values today than 4 years ago). We still need to pull in short sellers and others who are undermining the value of goods and services today.
- equities with real value. Its time to limit equity markets and funds to selling shares limited in scope to actual assets or sales (real property, machinery, patents, proprietary technology, cash etc.) Yes the fast buck era is over for most on Wall Street; but real growth might actually take place now that the profiteers are all asking for bail outs.
+ oversight (the FDIC is ramping up today like it hasn't in years)
+ regulation (lets not ever get back to this type of market again
all this multiplied by generosity and altruism
= a stable national economy
tell me what you think
Unlikely