[Kylon]

The way to stop the financial crisis in the long run is to,

A) Remove banks and other large financial institutions from engaging in risky investment practices by removing them access to the stock and deriatives market. If they wish to engage in such practices, they should be placed under an extreme tax burden for the risk they are putting onto the financial system. They should also stop, or heavily regulate the packaging and sale of loans, so that the taxes involved compensate for the risk to the financial system as a whole.

B) Increase short term capital gains tax to 75% and extending long term capital gains tax periods to be greater than one year. What has caused all this Enron like behavior is the fact that shareholders can buy part of a company, pump it's stock, or demand that CEO's take a very short term view of things in order to make quick returns and to make the company look good, and then dump the stock before the negative effects kick in. By making the short term capital gains tax extremely high, and by making the cheap long term capital gains tax take over one year to qualify as a long term capital gains tax, you can reduce the profitability of pumping and dumping.

Given enough time, short term policies of pumping would become apparent. This would in effect cause the pumping, illusionary effects to dissapate, and provide people a better understanding of what stocks are faulty and being prompted up by a house of cards, and what stocks are valuable. It would greatly remove risk from the market because of increased transparency, which in turn would increase investments. It would also increase the proper allocation of resources. Instead of money being spent on an Enron building paying workers to manipulate stocks, it might actually be invested in a real company building wind turbines or new nuclear power plants.

This is wht I think needs to be done to solve our current monetary policy crisis. I could go into how to effectively stimulate economies in a global economy, or into how to manage resource depletion, but that's for another post. Please message me back!

[Flowerr]

$this->bbcode_second_pass_quote('Kylon', 'T')he way to stop the financial crisis in the long run is to,