This is the same woman who predicted the financial crisis on Bloomberg TV back in 2006 (http://www.blinkx.com/video/lynn-tilton -on-bloomberg/87JL8lMSQmrDI4ALaa5zdQ) so perhaps she’s worth listening to now.

She proposes direct lending to businesses through a new “Provisional Federal Bank (http://www.patriarchpartners.com/Lynn_T ilton_WashPost_NYT.pdf)”…Liquidity must be made available not solely to big banks where Treasury-injected capital has been amassed to fill the cavity left by gambling losses, but rather expressly to deserving American companies and their people who will reignite our sputtering economy. A provisional Federal Bank must be initiated to foster enterprise and to provide job opportunities for every American.”

Instead of giving the money directly to the banks bailout money should be used to buy back the mortgages that are in distress. It would be unfair to bail out only those individuals who are unable to pay their mortgage. This would penalize those we bought a house they could afford. However, it would not be unreasonable to negotiate a rental agreement with the current occupants of the house that reflected their ability to pay. For those who are not simply speculators this would allow them to stay in their current house, but they would not build up equity as their more prudent neighbors will be doing.

Details remain to be worked out, such as the pricing formula and in the terms of the rental agreement. If the scheme is restricted to those currently living in the house the impact on the rental market should be manageable. Some way of preventing, or reducing the amount of “key money” from being exchanged would have to be found.

Is the supply of rental accommodation also in surplus?

This could achieve two main goals:
1. It would retain the domestic capability.
2. It offer those with better ideas and less stuck in an old “automotive company culture” a chance to change the industry.

I believe maintaining a significant domestic automotive capability is essential to national defense. Without such capabilities we would have been hard pressed to win WW II.

Bottom line - the economy will not turn around until
1. housing prices come in line with average income (median income = $48,000/yr affordable house price is 3.5 times median income = $168,000. Current median single family home price = $235,000. We have a ways to go). Once housing prices come into line the economic contraction will stop.
2. If we then want economic growth, we need to create jobs which will increase real wages over time. If folks earn more money they will save and spend more money.
Unfortunately we have sent a significant number of these jobs overseas. The engineers and bookeepers and factory workers who used to spend and save a good income are now making half of what they used to make. Hard to grow the economy with that happening.

check out Michel Chossudovsky or Peter Scot Dale.

The challenge is to develop new products( other than just homes, autos and wireless devices) that consumers will buy. Bringing affordable solar panels, hydrogen cell generators, bio-fuels and low current electrical products to the market successfully will solve many of our problems. However, creating demand for such products, in this economic climate, has proven to be impossible.

It is clear to me that the previous commentators get it but those in political and economic power do not. High wages paid to defense workers, along with price and wage controls during World War II, created excess income for U.S. workers. Many products were rationed. The American peoples response was to save and buy U.S. bonds which provided more revenue for the war than taxes or Wall Street did. This is what brought the U.S. out of the Great Depression.

Free market capitalism, up to this point,has been unable to deliver to this society the things it so desperately needs. We must find a way to lift ourselves(and the world) up, like this nation did for itself in the 1940s, without going to war.

END THE FED

The fact of the matter is that we have been betrayed by the leadership for the benefit of their corporate backers. We really need to wake up here and impeach and remove these people, because they clearly intend to keep on doing the same actions (relieving us of our wealth and the wealth of generations yet unborn) by straight out corrupt practices. Why are we still giving these people the benefit of the doubt?

It is almost comical how the public keeps falling for the lies that drag the world deeper into the quicksand. We need to wake up, realize that we’ve been had, bring the perpetrators to book and try to get back on some kind of stable footing. Right now we are on the express train to a major Depression and no one is putting on the brakes.

Just the opposite. The forces of greed are lining up to try to get their share of the booty. It’s the new age of piracy, except the pirates are in charge!!