What is taking so long? Chalk one up for the inefficiency of government.
Here is part of a piece I wrote on October 1st, 2008, 6 months ago! The government is just beginning to, possibly, follow some of these ideas.
A free market economic plan to deal with the credit crisis
- Securities and Exchange Commission (SEC) opens a free and open trading market in mortgage backed securities (MBS) in one of the major exchanges.
- SEC suspends mark to market accounting practices on MBS
- No capital gains tax levied on profits from trading MBS
- The Treasury Department will be allowed to purchase and sell MBS on the open market with the intent of securing appreciating assets for the treasury; and will be authorized for a maximum pre-determined dollar amount deemed appropriate by congress with oversight protections and General Accounting Office (GAO) review powers
- $5000 Tax deduction for all homeowners who have not defaulted on either their primary and/or secondary mortgages currently held for at least 5 years
- Increase in FDIC insurance limits to $250,000 per account
- Repeal the Community Reinvestment Act and offer legal protections for banks that adhere to clearly defined credit and lending parameters, including those that lead to “redlining.”
- Form a Commission to lay the groundwork, including timetable, for the privatization of Fannie Mae and Freddie Mac
- Full disclosure to shareholders of all contracts and “buy out/golden parachute” clauses of top executives in financial institutions prior to approval by the board of directors of any financial company.