I like the thinking in Washington.  

Congress and the Administrations started a year ago saying they would solve the Mortgage Mess with a bailout of Fannie Mae and Freddie Mac with about $300 Billion of our tax dollars.   The initial efforts weren’t completely successful.  

They also noted that there were a few banks and other financial institutions about to go under.  And, a couple of major Auto manufacturers.  So, their thinking went, why not add a bit more to the pot.  Surely we can solve the problem(s) with a few hundred billion dollars more.  And, it would stimulate the economy.

Now, the “Bailout” looks like about a Trillion Dollars more.  And, Sallie Mae and about half the State Governments are looking for bailouts, too.

Call me crazy, but I think Congress and the Administration are on to something.  The only problem is they seem to lack the guts to do the job properly.  Or, they just don’t know how to think BIG.

I propose we go for a $14 trillion bailout.  I know.  You’re saying to yourself, “$14 Trillion?  That’s the size of our entire GDP for a year.”   True, it is a lot of money, but think of the benefits.  All we have to do is divide the money on a per capita basis and send out the checks.  Each of us would get about $45,000.  Wow!  Send me mine right now!

Just think.  That means most families of four would have enough money to pay off that mortgage that was almost in default yesterday.  So the problem with the banks and Fannie Mae and Freddie Mac would all go away.  The few folks who had been responsible about their housing choices and who did not have a soon-to-default-mortgage, would have enough to run down to buy a brand new Hummer or Explorer Hybrid, for cash.  Poof, away goes the need for an auto bailout.  And think of all the new money in circulation.  In fact, banks would have so much cash they would be begging people to borrow. Businesses would have all the money they need to expand and build inventory.  They would be hiring like crazy.  They would be spending on R & D and creating important new products.  They might even find a solution to the energy crisis.  Everyone who wanted a job would have three offers.  If everyone was employed, the need for social programs for the poor would drop dramatically.  We could cut the size of government………

There would be a few minor side effects, but, hey, doesn’t every one of our miracle drugs (like Botox and Viagra) have side effects?  Inflation would probably be triple digits.  But, that would only last for about a year or two … I think.  And the dollar would be devalued against every other currency.  But that means that stuff made in America would be cheap in Euros or Yen, so the US businesses would be exporting like crazy……

Why doesn’t our Congress and our Administration have the vision to think of such a great solution, let alone pull this off?  

Maybe we elected the wrong people.

 

 

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