Nationalize lending
This post is inspired by Dave's righteous anger.
Nationalizing banks is becoming more and more acceptable as a solution, or partial solution, to the current crisis. I'm going to go that one better and say that we should nationalize lending. One of many problems that the financial system has right now is that lending is at a stand still. Obama's plan to fix that involves giving banks tons of loans so that they will lend that money to businesses and people. Why not cut out the middle man. The Fed, which is where most of the government "loans" to banks will go through, can just start lending directly to people and businesses. To do this they can simply nationalize a couple more banks, or just Citigroup, and then use their lending capabilities to lend at Fed rates, or just above.
Check out the link above for a move detailed explanation of how it might work.
Nationalizing banks is becoming more and more acceptable as a solution, or partial solution, to the current crisis. I'm going to go that one better and say that we should nationalize lending. One of many problems that the financial system has right now is that lending is at a stand still. Obama's plan to fix that involves giving banks tons of loans so that they will lend that money to businesses and people. Why not cut out the middle man. The Fed, which is where most of the government "loans" to banks will go through, can just start lending directly to people and businesses. To do this they can simply nationalize a couple more banks, or just Citigroup, and then use their lending capabilities to lend at Fed rates, or just above.
Check out the link above for a move detailed explanation of how it might work.