Thursday, October 13, 2011

How to fix Wall Street

What do the people on Occupy Wall Street want? Common Dreams, one of the most forward-thinking watchdog groups in the United States, has contributed a list that I think makes a lot of sense.

The List:
1. If a bank is too big to fail then it is too big to exist
2. Cap credit card interest rates to end usury
3. The Federal Reserve needs to provide the same low interest rate loans to American small businesses that it offers to foreign banks
4. Stop Wall Street speculators from artificially inflating the price of gasoline and heating oil
5. Demand Wall Street invest on job creation rather than worthless derivatives - they need to produce something of value.
6. Establish a Wall Street speculation fee on derivatives, credit default swaps, and options and futures.

To these I would add a seventh: prohibit the sale of discharged debt. Banks are inflating their earnings by trading in worthless, discharged debt that is uncollectible. By eliminating this - they will be forced to be more responsible in investing.

When Wall Street complains that this will make credit hard to come by - we need to say -- good. We have excessive credit and it is just as dangerous as excessive inflation.

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