It occurs to me that when confronted with a problem and the desire to construct a solution, that one needs to have a firm grip on the real nature of the problem. So join me in the hunt.
Yesterday, I posted a diary with three items that I consider to be key elements of the financial crisis. As follows:
- Restore liquidity to the financial institutions.
- Establish the value of the mortgage backed security instruments at the heart of the crisis.
- Clear the housing market of mortgages that are in default, or likely to go into default.
I then went on to suggest solutions to these three elements. There have been a lot of proposed solutions, but it has not been clear that the solutions bear on real problems. And without knowing what problem you are trying to solve, you cannot know if a proposal addresses the problem.
So, Kossacks, what additional elements are part of the problem? If the list of suggestions gets long enough, I will update this with a summary.
Thanks for the help.
[Update I].
Several diaries on the Progressive Caucus proposal. See DeFazio Rips Paulson, Leads Progressive Alternative Bill by Torridjoe.
Also, Progressive Caucus to present Rescue package at 3pm by gaspare.
[Update II] Thanks to 4democracy for his comment on restoring confidence in the system by:
- "Throw the bums out".
[Update III] Thanks to ausoleil for very useful comments.