WHAT WENT wrong with the US economy after the Lehman Brothers collapse? Its cascading effect the world over was nothing but the US government’s economic subjugation. It was something that all economic gurus or pundits in the US were skeptically aware about since its inception but still nobody had bothered to come up with a solution for the D Day.
When the economy collapsed, the way it did, they all called it an economic whammy just out of the blue. Everyone knew that the US mortgage market had been hot for quiet some time due to an unrealistic property boom, which had most Americans vying for real estate as the best investment option to give maximum short term returns - which of course went bust.
All the mortgaged properties should have become government properties with debit notes or debentures handed out to the owners to the value of their properties to be slowly purchased or sold off to others by them over a time period to free their properties. Those who could not should have had the option of staying in their abodes until their remaining life term without the right to sell or inherit the property and after their deaths the property would automatically become government property thus nullifying the particular properties debt. This would also have fixed the real estate prices from bottoming out and benefited the economy in the long run.
I consider the banks should return the money or the doles to the new debt fund created by the government with full expenditure statements of the help funds with interest. They should also have the option of surrendering their shares to the fund in case they are short of cash. If the government had followed or still follow this formula the world can be still saved from further economic embarrassment.
I hope that this solution can still be adopted to save the world economy from collapsing and exposing the biggest banking mismanagement ever.
The most popular citizen journalists' reports on merinews chosen automatically on the basis of views and comments
View more jobs