Comes Now the Night - Doing It Right (Part 2)

As we watch markets falling at levels reminiscent of the Great Depression, and states attorneys general implementing direct actions against corrupt banks and implementing moratoriums against foreclosures that have not appeared from the feds, it does appear that we need some federal action immediately, before the markets freeze up so badly that lay-offs become permanent job losses. Fire!

1. Impose 120 day federal moratorium on foreclosures of residential real estate.
2. Until a bigger plan can be implemented, provide instant federal guarantees to banks operating under their reasonable and standard business practices in providing “receivable” financing to small business owners (those with fewer than 1000 employees) consistent with past practices (this means lending against sales that have been made but not yet collected). This will stop unnecessary bankruptcies and layoffs, perhaps permanent job loss, that will vastly exceed the cost of the guarantee. Begin looking at growing the credit markets to bigger companies as the economy justifies.
3. Ask the Department of Labor (with input from other federal agencies like Energy, Interior and Transportation) to submit a plan to create a massive job corps to rebuild our nation’s bridges, dams, highways, levees and comparable infrastructure under the supervision of the existing building trade unions, but at entry-level wage rates. Prepare to submit that plan to Congress and the President within 60 days. Since this represents a productivity investment, the fact that it may strain the federal budget must be ignored. It will pay for itself many times over and will put a huge cadre of unemployed workers in paying jobs.
4. Ask the Department of Education to prepare a budget and an action plan to: a. retrain laid off workers into fields where growth clearly exists (traditional and alternative energy, health care, etc.), and b. to add one additional hour per day to junior and senior high schools in math and quantative science (can be applied math, such as is standard in manufacturing or construction) to upgrade our national schools to provide competitive job skills (another productivity increase).
5. Invoice and collect the $79 billion of oil revenues sitting in the Iraqi government, and give them their wish of an accelerated withdrawal starting now (muster out 2/3 of the returning troops and send the other 1/3 to Afghanistan), to stop the drain on our budget – whether you are for or against the war, we just do not have the money to pay for it (this is not a productivity investment). The civil war will continue as we depart – it would no matter when we left.
6. Phase out water-wasting and unproductive ethanol farm subsidies over three years and all other farm subsidies (which mostly benefit large corporate farmers, whose commodity values are soaring in this market) over five years. Terminate the oil depletion allowance.
7. Train local and federal investigators and prosecutors in the prosecution of the white collar crimes that gave rise to this debacle. Go after the folks who lied on their loan applications, the lending officers who told them to do it, the financial wizards who having done the numbers still insisted on creating the “derivatives” that pushed us over the edge, and the senior managers at banks and other financial institutions who either encouraged this misconduct or chose to look the other way as it fell beneath their feet. Make them pay – in cash, assets and, perhaps in serving time.

I am sure that what I have written will offend one special interest or another, but what is at stake is the America I know and love. Time is not on our side. We need action. Now!

I’m Peter Dekom, and I approve this message.