Economy and where we go from Here?
I’m becoming to believe no matter how much billions are being pumped in the market by the current administration nothing will happen…. UNLESS why would bank lend $ to a business if they know the market is not moving, and in return why would people want to spend their hard earned cash if they think market not going to stabilize.
One radical thinking would be: halt the Stock market trading for a year! Freeze all stock trading, no more long or short, highs and lows. If a company wants to raise capital sell bonds. In other words public companies become close to being private companies not able to raise capital thru stocks.
What about 401K, pension plans etc some would cry out. All that cash would be directed to money market accounts or buying corporate/government bonds.
By doing so, companies would be relived of a year to improve their out-looks increase sales, people psyche about stocks up and down would diminish, values at the retirement accounts would freeze for a year and cash would be “horded” until next year. This would get people into living their lives spending their cash and get the economy rolling.
Another radical idea, get the almost Trillion dollar in form of vouchers to every American that filed taxes. (Translates to over $3000/person)
The vouchers would be used within a year period (during the stock market freeze), for products and services that would require those products and services to move from one US region to another.
Finally, Government needs to make sure to convey the massage of everything will be OK and not DOOM
Pros for ideas:
1) Stopped the daily news about new market crashes
2) Got people thinking of future
3) Spending starts with vouchers being redeemed
4) After 12 months, all this cash that been setting on the side, can be reinvested in various stocks which will get the marketing humming with new capital
1) The fear of frozen stock market will drive people in droves to their banks to withdraw their cash. Hoard mentality.
2) Vouchers are not invested to their intended purpose
3) Failures of few banks, but then again that is capitalism and weak sectors needs to be reset
4) People close to retirement are most vulnerable in this, with frozen stocks and taking a year to implement 1 trillion in spending