Saving The Economy

For demand to increase, confidence needs to increase. In order for confidence to increase the world leaders need to take action now.

In Europe, Spain needs money to support its banking system. Europe also either needs to create a politically united Europe or implement a plan to unwind the euro. The first step is to save the Spanish and probably Italian banks. Shortly thereafter, they need to unfold a plan to address the unification of Europe politically.

In the United States a stimulus is needed to prop up employment and not let it drift into the abyss. This includes regulations preventing banks from getting too big to fail, and demanding that banks and Wall Street pay retribution for the mortgage crisis that they created with the sub-prime housing fiasco on which they profited. This retribution will act as a stimulus and its cost to the taxpayer will be limited to enforcing the law. Demand in the U.S. will not significantly increase until concrete steps are taken to give back some of the net worth taken away from the American homeowner by the slick bankers and wall street.

These actions by Europe and the United States will provide the confidence and funds needed to save us from the depression of the twenty first century. More:


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