The government proposes to take all the bad loans and hold them til they become valuable again. I suppose this is needed to free up the financial markets. Banks are now buying short term treasuries at 0.02% interest because they are safe, not even loaning money to other banks.
But here is my proposal.This proposal will affect all executives of any firm that "sells" it's loans to the government. Since Obama thinks 250K is rich, I propose that all salaries, bonuses, pensions, golden parachutes, etc. for executives of above that amount be placed in a special account until the government rids itself of all the loans from that firm. Money from that fund could be used to pay taxes. It could also be used to pay existing obligations, like mortgage payments, provided that those assets are pledged as collateral. These monies would be invested in U.S. treasuries. Upon completion of the sale of the loans, any losses would by made up by these funds, the rest returned to the executives.
Friday, September 19, 2008
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I disagree I think it is a good thing that the American taxpayer pay the 2 trillion for the high risk taking that the deregulated investment banks made as well as the 4 trillion in costs for invading Iraq, privatizing war (blackwater)etc.... at least the tax payers who voted Republican for either Representative, Senator or President since Reagan's time...it is ultimately their fault in the end for voting Republican, you get what you vote for and maybe these people will finally wake up now that they've lost their homes or jobs or retirement or healthcare.
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