The Obamanation

Lamplighter · 09-04-2010, 10:29 AM

WOW Merc ! That's one heck of a "first decision" !

Let me pull out just one part of all that because I think I'm in complete agreement...

From what I've read and heard, the underlying road block to creating jobs right away is the part about banks having been bailed out in 2009 because that they had stopped providing credit to businesses. When businesses can't get loans to meet their needs, they can't keep up with inventories, payrolls, etc., and so employees lose their jobs.

In a nutshell, if banks were not sitting on those huge cash reserves and were not involved in using Federal Reserve Bank loans for "their own investment purposes", but instead were doing what banks are supposed to do (lend $) then the downward spiral might be reversed.

So, if the King would step aside and allow me to become Uber-President,
My one first decision would be to break apart the "banking activities" from the "investment activities".
That is, force a return of banks to what they used to be, and support them via the FDIC.
The FDIC should not be used to help with management's poor investment decisions.

The was a single law passed that allowed banks to get into the stock market, but I don't remember the name or year. But I think that was the beginning of all this mess.
Whatever that law was, the first thing would be to repeal that law.

Federal Reserve Bank funds should be used only for "lending/credit/monetary policies ".
Only stock-holder should funds be used for "the private investment" activities.
That is, make the stock holders take the risks and profits that come from short term management decisions.

If I could further direct the lending activities of banks, I would set first priorities at freeing credit (loans) to big, BIG, corporations because they can re-hire thousands of employees quickly, whereas starting up or re-starting thousands of small businesses is a much longer term project. After all, it was the big BIG corporations that laid off thousands of workers at a single crack, causes the chain reaction of thousands of people losing income, losing homes, etc.

Once I accomplished all that, I would resign from Uber-President and take nap.

09-04-2010, 10:29 AM	#11
Lamplighter Person who doesn't update the user title Join Date: Jun 2010 Location: Bottom lands of the Missoula floods Posts: 6,402	WOW Merc ! That's one heck of a "first decision" ! Let me pull out just one part of all that because I think I'm in complete agreement... From what I've read and heard, the underlying road block to creating jobs right away is the part about banks having been bailed out in 2009 because that they had stopped providing credit to businesses. When businesses can't get loans to meet their needs, they can't keep up with inventories, payrolls, etc., and so employees lose their jobs. In a nutshell, if banks were not sitting on those huge cash reserves and were not involved in using Federal Reserve Bank loans for "their own investment purposes", but instead were doing what banks are supposed to do (lend $) then the downward spiral might be reversed. So, if the King would step aside and allow me to become Uber-President, My one first decision would be to break apart the "banking activities" from the "investment activities". That is, force a return of banks to what they used to be, and support them via the FDIC. The FDIC should not be used to help with management's poor investment decisions. The was a single law passed that allowed banks to get into the stock market, but I don't remember the name or year. But I think that was the beginning of all this mess. Whatever that law was, the first thing would be to repeal that law. Federal Reserve Bank funds should be used only for "lending/credit/monetary policies ". Only stock-holder should funds be used for "the private investment" activities. That is, make the stock holders take the risks and profits that come from short term management decisions. If I could further direct the lending activities of banks, I would set first priorities at freeing credit (loans) to big, BIG, corporations because they can re-hire thousands of employees quickly, whereas starting up or re-starting thousands of small businesses is a much longer term project. After all, it was the big BIG corporations that laid off thousands of workers at a single crack, causes the chain reaction of thousands of people losing income, losing homes, etc. Once I accomplished all that, I would resign from Uber-President and take nap.

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