They need to set up some rules to determine who the winners and losers are so we can hurry and get to a bottom.
The winners and losers are already set, jmfcst.
then we need to shut the doors of the losers. And for the winners, the private stock holders of the "winners" need to be told their stock holding is worthless so that we can properly, and publically, recapitalize the winners.
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But regarding this 'economic team' - very poor. The selection of a bunch of Rightists does not bode that proper policy will be put in place to extricate us from depression. (not to mention anything about the hopes of all those working class people class people who voted for Obama)
it's fine that they're right of center, as long as they're not ideologues who have made their set of economic beliefs such a pseudo-religion that they're unable to be flexible during times of crisis.
I'm all for dissolving a good portion (but not all) of the "safety-net" during boom times so that we're not feeding the chronically lazy; but during times of widespread crisis, you have to be willing to pull out all the stops.
Here is what my plan would look like roughly in the chronological order of things that need to be done:
1. Publically promise that another Lehman Brother's will not be allowed to go under - that will help alleviate the systemic risks.
2. I like his idea of a pre-packaged bankruptcy plan for the autos. Hopefully it will be enacted quickly and tied to greatly-increased MPG standards.
3. The winners and loses in the banking industry need to determined so that we can recapitalize our banking system.
4. State budgets need Federal aid so that teachers and policemen aren't laid-off. We have to protect the fabric of our infrastructure.
5. A plan needs to be passed to keep people in their homes. Their mortgages are going to have to be restructured. (Not sure I want to protect the value of their homes since I am not convinced prices have deflated to pre-bubble levels…but once they have deflated to those levels, prices need to be stabilized in some fashion)
6. In addition to aiding the states, a Massive Stimulus package in the range of $500-700B needs to be passed, BUT not executed until the economy starts to rebound (probably late 2009). Otherwise you're just throwing money down a hole.
7. On top of any stimulus package, Obama should propose a $1Trillion infrastructure package to be spent over the next 3 years.
8. Energy Plan is needed that hits the problem at ALL angles - nuclear, coal, wind, solar, natgas, bio (except ethanol which will do nothing but starve people), drill for oil, etc, etc, etc. Including a plan to have every car sold in the U.S. by 2020 (date can be flexible) to run on something other than imported fuels. The goal of this policy is not only to make the U.S. energy self-sufficient, but it is also aimed at bankrupting the USSR once again.
9. Our military dominance needs to be maintained. Don’t cancel missile defense, the F-22, or the F-35. Modernize our nuclear forces.
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