As you've noticed, this proposed rape of the US Treasury has my dander up.
Listening to a number of Conservative pundits and commentators, you definitely have to think of Chicken Little, screaming because the Dow took a big hit, even though in terms of percentage we've seen and survived far worse. They don't realize that they are playing into the Democrat's hands, as they want to make this election about the economy and are thus exacerbating a 'crisis', just as they did with oil prices by refusing to allow any domestic drilling.
One thing I agree with them on is that what's mainly causing the decline is a drying up of credit, as lenders panic and pull their horns in.
So, as a public service, I'm offering to completely solve this problem, at a fraction of the cost of the proposed grand larceny now being proposed on Capitol Hill.
All we have to do is do what we do best, which is allow the normal motivations of fear and greed to work for us.
Since the Feds seem determined to go into the private sector, here's my proposition:
Give me $100 billion or so to work with, and a small staff to answer inquiries and underwrite and process the paperwork. I'll lend it out as credit lines at market rates to small and medium sized businesses and homeowners with at least 70% equity in their properties as security, and take no salary but a mere two points on what I originate.
I give it a month - at most - before the usual suspects get back into the game and start scrambling to lend money to consumers and businesses again...since paper money earns zip when it's sitting somewhere and not working earning money for the people that control it, and the last thing they'd want to do is be left out of the market.
And, with no bail out or government largess in prospect, those companies holding hyper-inflated mortgage debt would be forced to foreclose and sell off those assets at fair market prices to investors...and what losses these companies incur would be treated the way they should be - as tax writedowns against their profits,just as they are for any other business .
Yes, I know, common sense and capitalism.
I'm sure the White House will be in touch with me shortly, no?
Okay, sarcasm off. But what I proposed would save the taxpayers a fortune.