I understand that many people may not like Ralph Nader. Personally, I will not vote for him this election and I am an Obama supporter BUT I do admire the man.
I think he has a very keen understanding of corporations and the way capaitlism works and so I always enjoy his commentary on these subjects.
He came out with a press release about how he plans on handling the current financial crisis and I thought it would be a good idea to post these points and to start a conversation on which parts sounds like a good idea and which don't.
UPDATE: I understand that MANY and I mean MANY people are bitter about him for Bush but please don't ignore the ideas. These ideas may be helpful to move the Democratics agenda.
Immediate Changes Required for Any Bailout
- No bailouts without conditions and reciprocity in the form of stock warrants
- No more lobbying for any company that is bailed out
- No golden parachutes and get out of jail free cards for guilty executives
- No bailouts without public hearings
Changes to Housing Market
- Reduce the moral hazard in U.S. mortgage markets by introducing covered bonds for the majority of mortgage products as they do in Western Europe. That gives institutions that finance mortgages an incentive to be prudent, because they cannot just unload them and wipe their hands clean of the liability, but are instead on the hook if the homeowner defaults.
- Maintain neighborhood stability and housing security by passing a law with a sunset clause allowing below median-value homeowners facing foreclosure the right to rent-to-own their homes at fair market value rates.
- Avoid future housing bubbles by removing implicit government guarantees for new mortgages that exceed thresholds of greater than 15-20 times the annual fair market rent value of the home.
Structural Changes to Financial Markets
- Make the Federal Reserve a Cabinet Position, so it is accountable to Congress, as well as making sure all Federal Reserve Bank presidents are appointed by the President and answerable to congress.
- Reduce conflicts of interest by taking away power for auditor and rating agency selection from companies and placing it in the hands of the SEC to be administered on random assignment.
- Implement a securities speculation tax, starting with derivatives to deter casino-style capitalism.