> RoMunn wrote:
> We need to invest in technologies and industries that will grow and create
> more jobs, not throw money at people for doing nothing.

Let's set that aside for bit and talk about the basics.  In a
nutshell, the problem is very simple and can be stated in 3 words:

* Falling asset prices.

Thus the solution is simple: stop the falling asset prices.

That can happen in 3 core ways:

1.) Consumer spending (consumers generate demand for the assets)

2.) Business spending (business' generate demand for the assets)

3.) Government spending (government generates demand for the assets)

Situation analysis:

1.) Due to massively dropping prices (stocks and home), mounting
layoffs, and large debt consumers beginning in Sept 08 started pulling
back and have gone from a net negative savings rate to about 3% today.
 Given none of the factors that are causing the drop are going to
change quickly we can't look to them.  They are 70% of the entire
economy.

2.) Business spending is following consumer spending.  Since consumers
aren't coming back for awhile neither are businesses

3.) That leaves gov't.  I won't get into the "how", but there's no other option.

I'll add that the US banking system is insolvent.  It's bankrupt.
Thus there's no other option that nationalization and frankly it's not
even a choice.  The gov't effectively owns them now and their
ownership is only going get higher.

So the only choice there is whether the gov't chooses active
transformation or allows the banks (and economy) to wallow.

So whatever your philosophy is, it doesn't matter.  There's only one choice now.

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