Drastic Sub Prime Solutions

Wealth beyond a point is illusionary; and worse, the mirage of wealth is deadly. Now there is this mess created by frantic consumerism, by obsessive instant gratification, by sheer greed! Of late, few people in the developed world do not spend beyond their means. Thanks to globalization, cheap wealth comes from intense exploitation. Both human and natural resources have been gutted to the last drop, and the environment devastated along the way. It is said India and China, along with hoards of others have risen. All sang praise to capitalism’s unintended miracle. Now, the sand castle is vanishing. How many can safely run for cover? Let’s not allow illusion that intoxicated many to turn into misery that will hurt tens of billions – had the world financial system crumbled to ashes as a result, and a great depression ensued. The debt of over spending must be paid, and the retreat be orderly. The financial system must not be allowed to unravel. The root of the problem is house value. It was artificially and greatly inflated, starting from the US and propagated across the Atlantic and beyond. When false wealth caught up with dummy owners who have no means to prop up the housing market, the domino starts to fall, and the multiple protections (derivatives) Wall Street whiz kids thought they have built to distribute risk and safeguard loss implodes. Who have benefited from the housing binge in the first place? It’s time to pay up! Apportioning is arbitrary, but it is safe to say 90% of the false wealth lingered in the US and Europe and a few oligarchs took the lion’s share. Now is the time to act, governments must pay on behalf of their citizen’s greed! Act now so that fewer innocent bystanders get hurt. - Government must issue as much sovereign debt as possible to finance the collective debt; the debt will be repay by its citizen overtime, maybe amortized to a few generations; individuals who owes, whatever the excuses have been, must be made to pay until all avenues are exhausted; - Emergency measures quickly implemented to freeze the market: a worldwide exchange control; - Every default house bill be paid off with public fund; - All banking accounts and institutional credits be underwritten by the government; - All money of major trading partners(G10, China and Russia included) be firmly coupled and exchange rates be frozen at the current base; no country will be allowed to devalue its currency at the expense of others; - In all G-10 nations, any citizen who had an annual income of over a million (US dollar equivalent) in the last 10 years be taxed 50% of their gross income retrospectively. Let’s purge away the illusion and set our feet on the ground again.