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Bold action needed to stop the slide in US and world October 8, 2008

Posted by Bipin Agarwal in Global Economy, Politics and economy, Real Estate Development in Global Economy.

We all know that incremental step do not work when there is panic. Several actions taken in last six to eight months have not worked, including:

  • Bear Stern, AIG bailout
  • Lehman, Indy Mac, Wamu, and other failure
  • Merill, Wachovia takeover and recapitalization by almost all financial institutions
  • 700 billion dollar bailout
  • coordinated interest rate cut
  • liquidity injection, coordinated activity by so called rich nation

What is more surprising that the brain power of Fed, Treasury, and Washington is not able to get its hand around the problem and put a plan in place. IT seems like they are using this opportunity to take care special business interest group (remember there are only few months left int he current administration to pay back to the business lobby industry). Unfortunately there is no lobbies work for Main Street.

How to solve the problem. What are the top three action US and others can do to re-build the confidence

  • De-Value the currency of US, UK by fifty percent against China, Russia
  • Let Middle east invest heavily in US market
  • US bailout money should be used to buy huge stake in the financial company using pfd stock with reasonable dividend (like prime plus half point)

One last thing, put a court injection so the presidential candidate are not making irresponsible promise to get elected.

if you have a question, about Global economy and Politics correlation, feel free to ask.


Bipin Agarwal


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