Comments for A Different Kind of Stimulus at http://www.cepr.net , comment 1 to 1 out of 1 comments http://www.cepr.net Sun, 19 May 2013 01:42:31 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/cepr-blog/a-different-kind-of-stimulus#comment-9382 In times past, the controlling elites used to have a Jubilee Year where all debt were forgiven and the economy started over. The controlling elites are now the banks, hedge funds, other funds and their shareholders. It's not very likely they're going to sponsor a Jubilee Year. Government should give the "too big to fail" banks a choice: 1) Be broken up into "not too big to fail" banks, or 2) Mark you liar loans to market and take a haircut on them. The problem we have is that the amount of money available to create demand and job growth is depressed by the need to service debt. Get rid of the debt and we'll be on our way to recovery. Banks and other financial corporation are flush with cash, due to having access to free money for nearly a decade. They can afford to take a hit. Raising interest rates on savings accounts under the FDIC limit would put money into the hands of seniors and savers that would spend it, not sit on it, creating demand. If the banks won't do it, the government should do it. They're guaranteeing the accounts anyway. That would be a start. - Elwood Anderson Tue, 14 Jun 2011 11:48:40 +0100