The Solution to the Financial Crisis?

[detectiveconan16]

http://www.pbs.org/moyers/journal/02132009/watch.html

I was watching this yesterday, and this economist Simon Jones said a better way for these institutions to recover is the have the FDIC handle it, just as it did with IndyMac. Is this guy ing nuts? Is the best solution to keep pouring money into these dead horses?

 

[Capitalizt]

This article explains it:

There's No Pain-Free Cure for Recession (The Recession is the Cure)

 

[davo1224]

Yeah that's basically it. The economy will readjust itself given that those in charge start acting responsibly or somehow stumble on the next big boom. Unfortunately it'll probably be the latter and we'll end up in this mess again ten years from that point but oh well. It's really an interesting situation. The American people are up in arms about how the government can't control spending while most of them have overdrawn accounts and maxed out credit cards.

 

[Dr Mario Kart]

Sales tax on derivatives/credit default swaps on par with sales tax on products that actual people buy.

Wall street funds their own bailout, problem solved.

 

[elprincipe]

[quote name='Capitalizt']This article explains it:

There's No Pain-Free Cure for Recession (The Recession is the Cure)
[/QUOTE]

Good article. The solution is for the government to get the back to where it belongs (hint: this does not include owning large sectors of the economy) and somehow find fiscal responsibility (hey, criminals find Jesus, right?).