Dear President Obama:

You promise to make changes when you ran for president and it seems you did nothing new after you get into the position because you are still controlled by the old concept of consumption. This financial crisis is obviously due to over consumption. Seeking a high GDP has made our earth, our country, our banks and our people broken. Saving the economic by stimulating consumption therefore is wrong. Just like little Bush led us to wars you are leading us in the wrong direction and America can not afford to pay for these kinds of huge mistakes again and again.
At this moment, government can not rely upon any business company but has to deal with the unemployment problem directly. Creating jobs in not business owner’s obligation. Their goal is to make profit. If they can simply make profit from oversea investments, from international trading and from the stock market, why should they bother to create jobs – dealing with unions, labor department and health insurance companies? This is a new trend that we should have noticed a long time ago. Stimulating consumption will help people in the other countries get jobs only. Capitalists will not come back if rent, minimum salary rate and health insurance rates do not go down in the Unite States.
Government should directly create jobs instead of giving out money to the banks and to the cars or houses purchases. The easiest way is to let people share all the government jobs. Government jobs paid by tax payer’s money should benefit as many people as possible at this moment. New York City employee’s average annual income and benefit combined together is $100,000, money that can support two to three families. Another fast way to stimulate the real estate market is to give citizenship to foreigners who invest two millions dollars in our market.
Government should use capitalist concepts and socialist mind to solve problems at this special and new situation. At the last few chapters of a book “ Why Life Events are Predestined and How Our Universe Originated” has some very good methods to deal with this financial mess.
Using fund that we bail out banks and funds we gave to the cars or houses purchasers we can build up government own properties such as retirement home or factory facilities. To the people who willing to retire earlier (55 years old) we can provide them free housing and substitute that as social security checks before they are 68 years old.(people who unwilling to accept the deal get nothing before 68 years old) The retirement homes can be built in the place near colleges and let students learn things by participating in their management. Every week they have trip to the city or somewhere. Retirement homes have different levels base on the social security that people contributed. It will provide garden, cooking, dancing, computer course, and poker games there. People can transfer to different retirement homes all over the country and can register in with friends.
In case we build up 10,000 retirement homes in all over the country, the construction projects will create up to 1,000,000 jobs immediately. In case every retirement home has one hundred rooms that will encourage 1,000,000 people to retire and leave their jobs open. We can use government’s land in suburbs and use the labors of those collecting unemployment to build the retirement homes. In case each retirement home cost 3 million dollars and that allow us saving $700 dollars from each person every month. One hundred rooms will create $840,000 indirect income for the government each year. Within five years investment in a retirement home will be returned and these kinds of government own property will continue substitute for social security checks for at least 50 years. That means it will create $37,800,000 for the government in long term.
We can also build up factory facilities in the places where there is a high unemployment rate. Those facilities can be used for free for the businesses that are willing to create jobs for the market. With the free rental and minimum pay salary rate businesses should have better chances to make profits. Later government can share the profits and get the rent back.
We can also encourage college students and youth to compose business ideas. Government should back financially those practical ideas, helping them to build up connections. Government is entitled to share profits later. All these processes government are not directly hiring people and can avoid deficit like which occur in the post office.
The base idea is that government should give up the non-profit concept. Government’s function is no longer collecting tax and spending it. Government should use their fund to accumulate asset and properties and use that to help society in the long run.
Please reevaluate the previous policies we used for saving the economic. Three billion dollars we used for stimulating car market. During that time one of the auto companies claimed that they had ready increased employment by about 100 jobs. Even that seems to be temporary because after the policy of “ cash for clunker” ended the rate of car consumption went down 17%.
All you did is print dollars and create debt and that is what anybody could do in your position. Please be smart, viewing things beyond the box and give us new concept as you promised. I still have high expectation of you because I can tell that you want to do something that is new. This is the time but it is determined by what you actually do.

Pia Fields- author of “Why Life Events are Predestined and How Our Universe Originated”

The relationship of California to lower-cost-of-living states is much like that of US to China, except that California does not even have the currency devaluation mechanism to release pressure. Making it reasonably likely to default.

Something akin to the S&L resolution trust would have been nice. Politically it should be remembered that was stumbled on after some time and was not an immediate solution to the S&L crisis. Calling that a crisis in comparison to late 2008s debacle is like comparing a rubber dinghy to the USS Enterprise.

The other side of the idea of supporting a stimulus has to be balanced with the bogey word…taxes. Once the economy has recovered it is then time to bring more revenues back into the treasury. During the 90′s those spendthrift Demlibs did just that without harming the economy and causing a recession. Continuing that course after 2000 would have put our country in a much better position today than it presently is.

No, it would not have staved off the present crisis.

This comment reminds me of Carter’s much maligned “malaise,” speech. Conventional wisdom is that this speech cost Carter the election, but if you go back and look at the poll numbers a MAJORITY of Americans actually responded quite positively to Carter’s call to reexamine American values. Of course it was Carter who really started the U.S. military buildup in the Middle East to ensure easy access to cheap oil in the first place. We all know how that turned out.

Paul Samuelson wrote the classic, multi-edition college economics text you are presumably referring to….