Wednesday, October 8, 2008

Think of Americans FIRST - a Note to Policy Makers

Once again everyone - the Politicians, the Economists and the Bankers - miss THE key point that unless the benefits of tax cuts reach the Main Street and the American Consumer our economic recovery will splutter and fail.

72% or is it 76% of the US economy is consumer (spending) driven, so unless that majority feels secure to spend and earns enough to spend nothing will change.

Bailing out the banks while the American consumer bleeds to death by high credit card interests is a national shame and a Pyrrhic hypocritical effort to save those whose greed drove this great country and the world into this peril.

Solution is simple:

  • Lower credit cards rates while freezing spending limits until balances get reduced to avert credit card defaults which hurt banks
  • Work with home owners who have lost jobs or earnings to save their homes from foreclosure

These 2 alone will boost Consumer Confidence (CCI) and with reduced interest rates and security and peace of being able to keep their homes Americans will go out and shop again and things will improve with more money in circulation.

Messers Bush, Paulson, McCain, Obama, think of people before you think about financial institutions and the results will surprise you. THINK OF AMERICANS FIRST IF YOU WANT AMERICAN ECONOMY TO IMPROVE.

1 comment:

Hiren said...

You are right. The credit card defaults especially are a big shame and when fundamentals are wrong, crisis is bound to follow.