so....how would YOU fix it?
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| Sat, 01-10-2009 - 4:38pm |
I started a thread earlier about the Proposed Stimulus Package, thanks for all the responses. The majority of you said the same thing....If I do get a check, I am not going to stimulate the economy. It will go towards the EF, or debt repayment, for overstimulating the economy before, lol!
It got me to thinking....if YOU had a fix, or several fixes, for our current economic climate, what would they be?
I have a few ideas myself. In order for people to spend money, they have to have it. In order for people to have the money, they need a job. In order to have a job, their company has to be financially stable. For that, credit needs to flow freely, and consumers need to buy their product and/or use their services, i.e. have the money for buy the product/service.
Houses for sale are flooding the market, driving prices down further. How do we get this going?
This is a difficult question and an even tougher problem to solve. there are so many factors involved, and each one effects the next.
Bottom line, the guy that has money to spend has to be a confident buyer, knowing that his job will not be gone in 6 months. Consumer confidence.
I heard one economist say that in order for things to bounce back, the consumer has to *think* the economy has recovered before it's actually happened. I ask, how in the heck is that supposed to happen???
Thanks in advance for your thoughts & replies!

What a remarkable topic!
Great question on how to get the economy going. Here are my idea's.
1. No more stimulus to institutions to loan money, Gov't must act like a bank for the people and make loans directly to the consumer.
2. If we give $ to the auto industry for a quick fix, stop and create a $4000 tax incentive to buy american cars in 2009 and that will spur sales.
3. Obama's idea to give money back immediately through limiting paycheck tax withdrawls is right on.
4. Create a 1 year moritorium on federal income taxes - people would purchase goods and services and pay sales taxes but spur the economy.
5. Any business wanting a bailout must provide above and beyond service levels - ie if GMAC wants a handout, then they must start making loans to people to buy cars or fund mortgages.
There are other ideas but those are mine
Well today there was a new guy named Clark on CNBC or CNN don't remember which one Talking about getting Credit cards paid off
Universal healthcare in some form or another (maybe like Chip for kids in our state, where for a family like us it would be over $500 a month, but decent insurance for less than the $1400 that Cobra would cost us).
My husband is starting a small business.
How strange...last semester, for the final exam in Econ class, we had to pick one area of the economy and write a paper about how we would fix the problem. I am a paralegal for a bankruptcy attorney so I chose the housing market. The short version of my plan would be first to put an automatic 6 month freeze on forclosures, nation wide. The banks loss mitigation dept. would need to really look at modifying the terms of the loans and not the half hearted way they are doing now. Bankruptcy judges should once again be given the power to modify the terms of the mortgage loan. New appraisals should be done on the homes and that amount should be the most the homeowner owes. Would this make the banks lose money, yes, but not as much as if the homeowners continue to just walk away from the houses that are now upside down.
Melissa
How to fix the economy? Easy. The Fair Tax.
www.fairtax.org
Read both Fair Tax books by Neal Boortz before drawing conclusions or making assumptions. They can be found on Amazon for a discounted used price.
Amazon link below:
http://www.amazon.com/s/ref=nb_ss_gw_0_12?url=search-alias%3Dstripbooks&field-keywords=the+fair+tax+book&sprefix=the+fair+tax
Hey Government, where's MY bailout?!
Edited 1/11/2009 1:54 pm ET by jinx4040
"Bankruptcy judges should once again be given the power to modify the terms of the mortgage loan. New appraisals should be done on the homes and that amount should be the most the homeowner owes. Would this make the banks lose money, yes, but not as much as if the homeowners continue to just walk away from the houses that are now upside down."
I completely agree.