Mr. President Elect
We all know you are stepping into a problem of monumental severity. This is a set of problems which has a long legacy and cannot be turned around on a dime, however there would seem to be a basis for some simple guidelines that could guide the restoration process.
I. Most basic is a statement that free markets are key, but free does not mean anything goes, there have to be fundamental rules that protect the country and its citizens.
II. Transparency in financial transactions in markets is prudent and mandatory.
III. No bank or company, or individual is too big to fail if they do not want to follow a set of strict loan or restructure parameters. (ie: If you are in trouble, you do what the fed says or you are gone.)
IV. In this crisis the Federal government has a moral obligation to protect this country and its citizens by providing time for entities or individuals to turn around their financial situation, there should be no bailouts or forgiveness of principal or interest, only time to pay back restructured assets. All restructure agreements must have a maturity date. At the time of the maturity date either the asset will be paid off or a new agreement will be reached that reflects the situation.
Leave a Reply