The US economy continues to worsen. GM is on the verge of bankruptcy, now that the auditors have cast doubts on their continuation as a going concern. The financial services industry continues to bleed or shall we say hemorrhage profusely.
The Obama Administration is talking tough but not acting as tough. There seems to be a hesitation or reluctance to go all out and act to solve the problem. This is costing us dearly. We - the taxpayers - are putting money in the likes of AIG with no result. The stock market continues to go down (well, it has to stop when it hits zero, if that can be a consolation).
It is time we leave our inner phobias and nationalize these institutions - AIG, CITI, BofA and so on. This nationalization does not mean that we would create a federal bureaucracy to manage them. No. But we should oust all executives, replace them with more ethical professional managers who report to Government Accountability Office, conduct an independent audit, determine the amount (approximations OK specially in favor of classifying an asset as toxic, if it turns out to be otherwise, that would be a pleasant surprise) of toxic asset (or debt), transer it over to Resolution Trust Corporation v. 2.0 and let these institutions be run with a leaner balance-sheet. If we do not bite this bullet soon, we will continue to pump taxpayer dollars in a black hole and Mr. Obama's far of decades of depression will indeed come true.
And let the Republicans suck it up. Bipartisanship is an illusion, which we have no time for.
And job losses continue to pile up. I do not know how Mr. Obama will create jobs when in the last 30 years, we have stopped manufacturing anything in this country in the name of capitalism and free trade. We made funny money by lending money to each other, with no value added. And now the house of card has collapsed.
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