With the financial crisis we have gone through and with the Congress pretty much refusing to agree on doing anything to help we really need to look at staying on every member of congress and as they come to election we need to kick the old school and the completely unreasonable new school out of office and get a group in there that can pull together and make things work again.
We certainly do have way to many regulations which is one of the things that is slowing down things to a degree but the problem was caused by regulation being removed because the benefactors (investors maybe?) of many members of congress pretty much told them what to remove and they did it without taking into consideration what might happen.
The removal of the Glass-Steagall act actually is what caused the vast majority of the crash. By removing the barriers that kept the banking system safe and allowing them to do pretty much whatever they wanted to do with the money of people that were placing there money in accounts along with those that were investing directly they caused the bubble by using the money to invest and speculate on things that were promising huge returns. Anyone that has invested knows that when something promises or guarantees a huge return it is not safe because there is no way you can guarantee a return.
Glass-Steagall needs to be put back in place. If it were put back in place it would put an immediate halt to the crap going on on Wall Street. Banks would scream and they would not make much money for a while but they have made such enormous profits that they can withstand that for a bit and if this was done things would start turning around and we would see a much faster pace in the recovery. It will not happen overnight but we could easily see a recovery to the way things were before the bubble started and we were doing quite well as a nation and companies were making a lot of money. They just might have to settle for 100s of millions or single digit billions in profits rather than 10s or 100s of billions.
Now for those that are screaming right now that money will not disappear. It will make its way to to those that are working like hell and barely able to afford the necessities of life. Once they start getting that money they will start to spend again and much of that money will work its way back up the chain to the corporations. That is the best way to handle things because “trickle down” economics has proven over the last decade and a half or so that it does not work. In order for it to work there needs to be an enormous change in the mind set of the corporate leadership that a decent amount of that money needs to go to the folks on the front line that make the business possible.
When that happens they spend more and a lot of it comes back and the country and the economy as a whole will explode into success.
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