So How Would YOU solve the financial crisis? ?

What suggestions do we ordinary citizens have to help this problem? So How Would YOU solve the financial crisis? ?
I would say look to the people who predicted all this mess. Look at the solution given by Ron Paul who is a follower of the Austrian School of Economics. Ron Paul (together with the Austrian Economists) predicted the Fannie and Freddie crash, and the mess we are in right now. If you read the Austrian Economists, you would see that they predicted the Great Depression, the crisis of the 70s, Enron, the tech bubble/bust, and the mortgage crisis. So I would say, the solutions given by the followers of this school of economics would have the best credibility.



The mess we are in is caused by government intervention. Because of government coercion in the market through price fixing, inflation (increase in money supply), artificially lower rates, etc., the market gave false signals thus prompted people to use their capital in bad investments. Hence we have the bubble. The bust comes when the market forces out all these malinvestments to get back into true prices and equilibrium. The government right now is doing exactly what the Hoover and Roosevelt administrations did during the 30s which caused the depression to last more than a decade. Prior to 1929, depressions lasted only 1 to 2 years because they let the market liquidate all the bad investments.



To solve this problem, the logical to do is for the government to get out of the way (remember, the problem came up because of government intervention/central planning). Yes, it is going to be painful, but the depression is the bitter medicine needed to get back to prosperity. By printing all this money out of thin air to "save" us all, they are practically debasing the dollar. Hence, everyone will be affected because our dollars will worth less and less because of all these inflationary methods. Indeed, it is going to be hard at first if we did not bail them out. But, by intervening, we are basically destroying the dollar which will be bad for EVERYONE.



Good thing to do is to cut taxes, cut spending, bring all our troops home from abroad (and save billions of dollars) and return to sound money.



The business cycle is not caused by the free market which is normally touted by media cheerleaders. The business cycle is caused by government intervention with the help of central banks (Federal Reserve). I say we look at the lessons of history and those who truly understand the situation and listen to what they say.
I honestly don't know the answer, or answers. But one of the most common sense ideas I've heard is to help people in these bad loans get refinancing with better terms. If we can reduce the number of foreclosures, that should help stabilize the markets.



It may be that this $700 billion bailout is the best alternative, but it needs to come with assurances that it won't happen again - which is going to mean more regulation and oversight of financial institutions.



I also think companies accepting bailout money should offer up a substantial stake in their company as collateral. When the markets recover, this stake could then be sold at a profit which would help reduce risk to taxpayers. So How Would YOU solve the financial crisis? ?
First we seize all of the CEO's bank accounts, homes and property. Short sell properties and have investors take their bumps and bruises.





This is what takes place when our businesses fail. Why would this be any different. Yes, this will cause serious revocations but we are a strong nation and can take it.
i would not even know where to start with all this borrowing from peter to pay paul i daubt i could even figure out who owes what to who.......So How Would YOU solve the financial crisis? ?
assassinate george bush. just kidding. (sort of)