Such a drastic need for 'change' indicates that current ideologies for social, political and economic activities are inadequate, outdated and incapable of fostering the needed solutions. 'Money' has become the ideological substitue for real value. Who or what is using this planet and its resources for present and future evolution–the 'money'-man or the human? Change the primary focus and solutions will begin to be found. 'Money' is poured into institutions and projects and what comes out more unemployment, weakining trust, more fear, and less interest in humanity. Priorities have to shore up the human spirit to weather this crisis. The majority that will be affected and who must sustain the solutions is the working class. Set priorities to give hope and future opportunity and security to them and real world will endure this time of change.

I believe that any stimulus plan should provide immediate relief to Americans and not just long term job creation. Since the financial instititutions are now partnering with the governement courtesy of "the bailout", the government should "ask" that the interest rates on existing loans be reduced by at least half for a period of at least 12 months.

This would provide the instant relief needed, which will then help stimulate consumer spending. It also cuts across a wide range of income levels: small businesses will have a some breathing space to probably meet payroll, mortgages would be met as there will be that extra money etc. This plan is known as the Taxpayers' stimulus plan. Best of all, it does not cost the government a single cent!

Living in Michigan as I do, I can say our economy has been in decline for over six years. Michigan's government has been working like crazy to keep us afloat and broaden our economic base. but with the broadening of the down turn, our unemployent rate is 10.6 percent and getting worse. When I hear the Republicans talking about small government and less spending, I am overwhelmed by the hypocracy. For them to fall back on that old ideology – one them never actually follow when they are in power – seems horribly out of touch with what we are going through. We need this stimulus plan in Michigan. What we don't need is their ideological power plays and an idea party that has had an awful lot of bad ideas. What is happening now is nothing like what it was like 27 years ago.

Ali

I don't understand why everyone is asking themselves what they should do about the bonuses paid to Wall St executives who work for FI's who received TARP money.

Answer: If your employer received TARP money your bonus will be taxed at 100%.

Go Habs Go

Wall Street corporate behavior is "the height of irresponsibility." For employees to be paid more than $18 billion in bonuses last year while their crumbling financial institutions received a bailout from taxpayers----– "It is absoutely appaling. What is going to needed is from the folks on Wall Street, who are asking for help to show some restraint, and show some discipline, and show some sense of responsibility." But then again, you can touch the spots of the leopard, but you can't move them. Time will tell.

If I was going to get TARP's billions I will go PAR.......TY too!!

No employee from any of these bailed-out firms should be allowed to be compensated more than 500 or 600 or 1,000 times the lowest earning employee of that firm. Pick a number.

When the top people are making 5,000 times more than the lowest person and the firm is still firing people and taking government money, it makes you realize the top-paid folks are more loyal to their paychecks than the company and its shareholders. Let's not be fooled: they're just high-priced _______ (fill-in the blank).

Where do these Wall St. executives put this money? Obviously not into our economy. I really would like to know so we could impound it.

I agree with Larne in reducing the interest rate, not only on real estate but also setting a cap on credit cards. The reason people are falling behind on payments is the interest rate has been increased. This is not only for the people who are late with their payments; but also includes the people who are always on time with their payments. When you are trying to make some head way in paying off credit cards and the interest goes from 9.9% to 29% what are they thinking?

Journalists these days do a great job of making the public feel distressed. What I have observed in the past 2 years is nothing more than a self correction of free market enterprise. The bailout for banks, I believe, is only delaying the inevitable.

What everyone who has posted thus far has neglected to observe is when this new "stimulus" package passes, what is it going to do to America's currency inflation rate? Not only will other countries not trade with us, (due to hedge risk) but the money earned by average American's one week could end up buying 85% less within one month. When inflation goes up, the FED often feels the needs to raise interest rates. Does anyone else see a self fullfilling prophecy here?

Good afternoon. I have a plan that will work. This stimulus package, as the previous one, will cause only more debt. My plan is simple. For one fiscal year, do not charge individuals, sole proprietors, or corporations – federal tax. The economy will thrive. Businesses will try to make the fiscal year the best they've ever had. And best of all, in the end, no one will owe anyone anything.

Why do they put everything in one bill? If I gave my four year old a choice of ten outfits for the day we would never go anywhere! If I break it down to two outfits we get somthing done! Why are we not looking at a plan that involves puts the funds into the economy quickly and creates jobs quickly? I'm not against some of the other items in this bill but I don't think this is the time for us to be voting on education, stop smoking programs or arts endowments. Infrastructure, great! Tax cuts great! Do these now and vote on the other items later. Why isn't it this simple? Do politicians not do simple?

The key to expanding our economy is to get not only the public (government) sector to create jobs and spend money, but more importantly to get the private sectors (business and consumers) to spend and invest in business and job creation.
People with debt should not be spending what they can't afford, but should be paying off their debts; after that spend.
That leaves profitable businesses and people with purchasing power to drive the economy. What would incentivize these two elements to spend and invest?
Wall Street CEO's totally aside, there are many people who didn't ever take a private plane, but can still afford to buy a sweater, buy a baby gift at Tiffany, go to a restaurant, invest in an american company on the NYSE, go to a show etc.
In a nutshell, we past savers are for good reason on an investing and buying strike: we need to save our money for whatever is to come. For retirees, we need to save up for medical events in a time when 30-40 years of investment savings have evaporated in the market.
We are cutting back (know we must save up) because we know that our costs will go up. We are cutting back to pay higher taxes which will also be a future cost . We are not investing because businesses cannot function in today's markets. We are not demanding goods, but incentives.
In short we are paralyzed.
Jane

Adjust the gift tax exemption to inflation and get with the program. It should be about 40 to 50,000.

People with the means across the country then if they chose and wished to help out a less fortunate friend or relative could cut them a check with out a paper game,,,,and they could buy a car, pay down or off crappy mortgage, pay off credit card debt..etc etc.

This would put some private money flow into the economy, it would generate needed sales taxes for states and local economies.

For those that are worried that this benefits only the rich,,,note the rich all have friends and relatives less fortunate.

For those that are worried the rich could get rid of all their money and avoid estate taxes down the road,,,,note its better in the economy now than years from now in the irs coffers,,,and if they wanted to they could put a 2 year cap on it... letting them do at the 40 or 50000 level for 2009 and 2010,
I guarntee it would move a few cars, pay off some debt and clean pay off some houses,,,,without government money.

If you had the money and wanted to help your unemloyed friend or relative, you should be able to do so without paying a penalty (gift)tax

Having experienced 2 recessions (2001 & 2008), it isnt hard to conclude that Capitalism doesn't always work. Private companies are not out to do social service – they are out to do business. Expecting private companies to be more socially responsible is an oxymoron.

Banks are out there to make money on top of my money in bank .. that is how they can afford to open up branches in all corners, and hire people to dole out money. When banks fail, government guarantees the deposits – so why would nationalizing banks be a bad idea?

I believe that US needs to think of bigger satefy net for its people – be it heath care, shelter or food. When anybody in US needs health care, s/he shouldnt be thrown at mercy of private hospitals bent on making profit, rather than saving a human life.
When anybody is US cannot pay his rent or mortgage, s/he should not have to be thrown on streets.
When parents are not able to make enough money, their families should not go hungry.

We all know now that private companies are not solution for public service. We dont have private companies run fire houses. It is part of public service. Do we need to treat healthcare / food pantries / shelter differently?

No more money should be pumped into any company without addressing middle and top management pay packages. This problem of irresponsible top and middle management pay and expenses must be address immediately otherwise the American economy will never be competitive and the problem is not forex manipulation by other countries. Is there anymore credible management resource available for american corporates? How can anyone lend money to America anymore?

Government can take over some banking role but not the toxic assets otherwise we are still not facing our problems of false asset values in the economy squarely.

Government is printing so much money I wonder when is the hyper-inflation kicking in. May be the hyper-inflation is the answer but the next crash may be a hell jump.

I certainly don't have any answers, but I do have a future prediction regarding the continued downward spiral. Many the these people who just lost their jobs also lost their health insurance. Even if covered by a COBRA plan, they likely won't be able to afford it. And if your unfortunate enough to have to buy it individually, may God help you, because the insurance companies won't.

I now pay a lot of money for a bad policy even though I've never had a broken bone, a stitch, or day in a hospital. And I keep my fingers crossed just incase. It's as good as my current policy and a lot less expensive.

It is only a matter of time before the health care system explodes on the heels of the economic collapse.

Hearing the news today once again of how 2008 saw blow-out record profits for the oil companies (until things screeched to a halt in the 4th quarter), I can't help but wonder what impact there was to the faltering economy as millions of us shelled out hundreds and hundreds of dollars more than we planned to when we filled out gas tanks .... what about all of the businesses who consume fuel to exist ... so much "stuff" moves by some sort of gas-consuming vehicle. What if gas prices didn't quadruple? What if companies and individuals still had that money?

Follow Up to SN Barger: Great idea! We were talking about this at our dinner table last night. How much do we all pay in federal income taxes every year? Is it in the ballpark of the figures being tossed around? If so, forget the stimulus package ... just give everyone a year off from paying income tax and see what happens.

How do we fix the American economy ? Hmmm ...

We really need to start out by agreeing on the problem that we're trying to fix, and I propose: falling GDP causing lost jobs causing more falling GDP.

Borrowing and lending more money will not fix this, as we already have way too much debt. Stop using money to prop up failing banks; close them and sell off the assets to the healthy banks. Stop throwing money at real estate; it's still too expensive. Don't throw good money after bad. We need to increase employment so that people can pay down their debts, and we need more jobs to do this.

Tax cuts will not fix this, as we tried this last year. Some of the money was saved, and some was spent on flat-screens TVs, which are imported. We stimulated China, not America. We can't do this again.

We need to directly stimulate our economy, and classic public works are a great way to do this. This means repairing bridges, parks, roads, schools and other public and government assets. They are in bad shape and need repair. (Just don't build new ones, as they wear out and create more maintenance expense.)

We also need to reduce our imports of goods; we import too much, and it's sucking too much cash out of the economy. An energy program focused on reducing (mostly carbon) imported energy and increasing (mostly renewable) domestic energy will neatly do this for us. It keeps the money in the country. This will take care of imports from OPEC, but we still need to reduce imports from China for the same reason: they're sucking too much cash out of the economy. It's mostly cheap, consumer goods; we really need to cut back here. We need to make sure that the stimulus program specifies American supplies be used: no exceptions.

Finally, we really need to reduce our imports of people; it makes no sense to o spend $800 billion of our money to grow jobs and then bring in foreigners. We need to cut back big time on immigration and make sure that the stimulus program specifies American workers be used.

There are other things that need to be done: extend unemployment benefits to ease suffering until the stimulus kicks in, extend medicare to younger people to save money on health care and help companies, and the list goes on. These things are under way. We really need direct stimulus of the economy to grow jobs.

If you want to see what happens if we don't do this, rent and watch the movie "The Grapes of Wrath". The economy didn't start to recover until Roosevelt set up public works programs for jobs and labor camps for the millions of displaced people. It could happen again.

We have arrived the present sad economic tsunami mainly due to greeds from Wall Street, Freddie and Fanny, AIG etc. To get out of this rut, on one hand we need much more effective and reliable auditing of companies so to discover hidden bad debts, eliminate wanton squandering of money, and extravagant bonuses. (Bonus should only tie to a % of bottom line profits, not on tarp money. If no profit, no bonus to any one and no excuse.)

On the other hand, we have lots of opportunity to create good pay and green jobs here in US: crude oil drilling (in spite of low prices), better performance (lower cost) wind turbines, solar, battery for total electric cars with performance like Tesla, but better and lower cost; renew power lines where necessary, fix up worn down bridges, sell coal and iron to other countries for profits, develop more fuel efficient ways of air travel (lower cost). Retain leadership in health care and drug development but should emphasize on preventive care (eat, drink and live healthy instead of patching up later after bad addictions of cigarette and alcohol and cost much more), get rid of frivolous law suits to doctors and health care and such lawyers, so that we can lower the cost of health care. We also need to stiffen much the penalties on those who cheat, not just slapping on the wrist.

If Obama knows anything, he should look into these areas to help America stand up on two feet again. Otherwise, just giving a few extra dollars to the middle class, and funding some sleezy programs will accomplish nothing. Without reducing taxes, big corporations will move to elsewhere to reduce tax payments.

Regards,

Eric

I propose that we scrap the plan and start over. What would be fair would be to give each taxpayer and social security recipient 1 million dollars tax free with exception to those CEO'S who have already received their bonus from the original bailout. Putting this into our hands would provide us with a paid off home, a new car, no debt, a savings / investment program to help us as we age. My guess is that would be roughly 300 million people to stimulate the economy. If your dead set on spending 852 billion dollars, put the rest of the money into rebuilding our countries roads, bridges, energy grid and demand the automakers provide "Green" automobiles in 2 years. Now, lets work on repayment for this debt. Let's start by freezing interest rates for 6 months from the payout date, then let the Fed make adjustments much in the same fashion that they have lowered it to help stimulate the economy.

Ok, all of the socialists with their hands out need to sit down and think for just a moment about these wall street bonuses and compensation packages. Do we really want the government telling companies what they can and cannot compensate their employees. Most people understand that companies compensate people in direct relation to the amount of money that person makes for the company. Capitalism as we know it would grind to a quick halt if suddenly we paid the non-performers the same as the over-performers – any incentive to excel would be removed. Granted, Wall Street is having a bad couple of years and they've needed to ask for help, but, just because the company as a whole had problems doesn't mean that nobody in that company met their goals for the year. The people who meet their goals and exceed expectations should be compensated as they were promised. How would you like it if Mr. Obama came to McDonald's and took your 20% food discount – if the bonus or benefit was promised as part of your terms of employment then the employer is obligated to fulfill its promise. We have to allow companies to pay top dollar for top talent – otherwise, our cream of the crop innovators will have no incentive to stay in the United States. We shouldn't let a few bad apples push us away from our free capitalist economy that makes America great!

So while Congressional Republicans chastise the Democrats for a stimulus plan that has “too much spending” their solution is to waste more valuable time bickering and to urge Americans to spend more, ignoring the fact that massive current and projected job losses have crippled our willingness to do anything but hang on for dear life to whatever little savings we may have, and not withstanding having told us that we don’t save enough for the past 25 years. Unfortunately it appears our leaders are clueless.

Why bother to save the banks? Fix the problems and use the money that would go to high finance industry salaries and bonuses and perks like corporate jets to also fix the problems. The financial system is an antiquated relic left over from another time; it is ripe for replacement. Why should the taxpayer fund the excesses of Wall Street?

Give everybody a $5000 credit good only towards paying off credit cards. Then Americans can pay off the revolving debt that is killing them.

The only stipulation has to be that the credit card companies, close the accounts and everyone must reapply if they want another charge card.

The major problem is refinancing , the Obama Govt would tell all the Banks that any home owner neednot do the refinance and they can stay , if possible tell the banks to reduce the current interest rates , every home owner would have received their Home values from the County/State for this year- Based on that value of the house they need to recalculate the home values by reducing the interest rates, everyone will stay in their houses for sure without going thru the agony of refinacing and not able to meet the minimum payments to the bank to stay, this would immediately avoid the foreclosures , i can guarantee you on that, otherwise the foreclosures are going to go up in turn the economy will be stalled. If they find the solution to this problem people have more money to spend and consumer spending will go up and in turn job creation and we can fix the economy – i'm sure you all agree on this, i would request all the Journalists go to homes and talk to them , they all agree on this- Pl. convey this message to the Obama Govt and Ali i want you to look at this problem in detail and if we resolve this thing, we are certainly back on track.
Thanks

Suresh

Ali

This is not just America's economic crisis. It is worldwide. We are but one of cogs of the global economy that has grinded to a halt.

We can do some things to stimulate our own economy, but we are also very inter-dependent on other economies doing the same.

Susan
Phoenixville,PA

What about a tax cut with a capital influx created by the people receiving the tax cut? If we raised the amount an average Jane can put into an IRA made it double what a Joe can put in. Why? Jane does not always work for wages nor does she typically have the benefit of a 401k, even if she does works for wages she may only work part time or she may have taken years out of wage earning to take care of her children. Also since not every Jane makes as much as every Joe as seen in the recently passed senate bill. Also Janes are not typically savers. Incentivize Janes' savings and we might just catch on! And put money back into banks and the stock market!

Funny, I have not heard one Republican get on the news and say shame on you Wall Street. I am proud our President is taking a stand for the middle class working people of this country. We need to right this ship and get our economy going again. This mess took years to create and will not be fixed in a short time, I think we all know that.

NO MORE BAIL OUTS! Let those who caused the problem fail. If the goverment can't oporate a brothel (Mustang Ranch) How are they going to fix the economy?

Create jobs in the US and not hire foreign workers to fill in the requisitions. The jobs need to be in Education, Healthcare, Telecommunications, Engineering, Construction, Finance. Please do not give money away to failed banks..

Banking: Perhaps credit unions and local banks are the way to go.. instead of the conglomerates.
Construction: A report suggested that most US bridges and highways are in need of repair.. well get to it
Healthcare: Transfer patient records to electronic database (go green at the same time), improve emergency room wait period, bring down prescription drug costs
Telecommunications: Analog to Digital TV conversion; release spectrum for 4G technology so we can have the major wireless carriers competing again for new subscribers.. we all know that Data is the key to the future and with the mobile phone subs starting at 10 year old.. there is a lot of money to be made here.
Education: Pass a bill that eliminates school dist tax if your kid goes to a private school...The public school system is complacent and non competitive. They need to bring meritocracy back here.. and grade kids on real tests and exams on every subject not just math and reading... Our children are WAAAAY behind in Science and Technology too!

I always hear republicans want tax cuts because money saved by the richest Americans will be invested in small businsses, the backbone of the country. And yet news reports are always about the largest companies with the biggest layoffs. Seems like CNN could dig up some stories that demonstrate the scenario proposed by these republicans. Seems like the beneficiaries of the Bush tax cuts would be glad to step up and tell us how wisely they invested, so we can feel good when tax cuts are passed again. 10,000 layoffs should equal about 200 start up companies shouldn't it?

Aloha: I have been living on Solar Power on the Big Island for 10 years. My wife and I are both retired. We have used up our tax breaks for Solar and No longer employed. Has any thought been given to allow Tax Breaks for Solar Panels,Btys,Inverter or Controllers to replace existing equipment in the President Stimulus Plan? It would appear that this would spur small businesses and be in concert with The Presidents Energy Conservation? Any Comments. Pass to Congress and Presidents Ecconomical Council. Tks

cj – I think the people and the Government have every right to tell companies how to give out bonuses and perks when it is our bailout money they are using

Ali,

I feel it is absurd that some American political leaders are balking over the stimulus package because it requires company's in receipt of funds to “Buy American”.

Are the products and services our Nation provides so crappy that we don't even want them, let alone global consumers? As a proud tax payer I feel Buying American products and services should be a requirement since American tax dollars are what are being used.

We'll never be self sufficient as a Nation as long as we are World reliant as a Country.

p.s. To those who feel requiring American stimulus dollars be spent in America would spark a similar situation of the Great Depression, not requiring stimulus recipients to Buy American would certainly keep us in our current Depression, which right now feels pretty GREAT.

Hello Ali,

I see that you are scheduled to appear with Anderson tonight to address the recent effort of President Obama’s Administration. I have a theory about the monies going to business to help stimulate hiring would be encouraged to hire new employees at or slightly below the living wage and not the minimal wage.

I saw several economists on c -span, I believe in 2007 or 2006 state that paying people at the living wage would force companies such as fast food restaurants, hotels and the like to increase the price of their goods and services. I believe salaries at living wage would in my opinion give those receiving it an ease to spend more freely.

Cheryl Myrie

this recession is fourteen months in when do we change the classification

Republicans are apprehensive about creeping socialism. Give the bailout plan a sunset clause. Keep the projects small and diverse. Even if 'unpractical' items like museums may seem a waste, the money will permeate through to more people. The economic cycles in the US are too deep. Lay off workers, and you lay off buying power, converting a taxpayer into a tax burden. How smart is that? The rule should be: before the layoff phase begins, pay cuts should be taken, CEO's included, with government taking up short fall were needed. this will prevent investors from forcing business leaders into making short term decisions in order to take the pain away. Debt: lawmakers should force the banking community to confirm if anybody applying for a loan, can service that loan. This is law in South- Africa. In short, unrestrained free market activity is just as bad as too much regulation.The corporate executives today, are the new feudal land lords of the middle ages. Perhaps the real solution would be an economic constitution, existing in conjunction to the political one, with checks and balances as is appropriate.

You all hired the wrong person as President; you needed Ron Paul from the beginning: abolish the IRS and Fed, end the wars and overseas empire, and use that savings to pay down the debt. Return to the gold standard, and a balanced budget must be agreed to by politicians, otherwise they are to pay out of their own pockets.

Hold the President and Congress to the Constitution, return our rights to us, and let the states do the job they are supposed to.

What would you do if you were Obama? The 900 billion bailout is going to increase the total US debt by that much more...nonetheless, bailing out banks is crucial...much as it angers to see executives flying private jets again, banks are the machinery of the economy...should he print more money? Arent inflation levels low right now? Isn't that wiser?

If TARP money was not given to banks like Citi, BoA, Morgan, etc, these banks would not exist today and their employees would receive no bonus and no salary. Therefore, when $18 Billion in bonuses is paid out on Wall Street, this is only possible because of TARP. Shame on Wall Street for abusing the tax payers and shame on the US government for allowing it to happen under their watch.

Sadly, New york Attorney General Andrew Cuomo is the only person standing up to anything...

I cannot believe the collective ignorance that is illustrated by the comments that have been written here.

Unfortunately, I think what we need is a change in cultural paradigm of this country. I hope it happens before it is too late.

You asked how do we fix the economy?

Introduce a plan that would mandate banks to temporarily reduce mortgage rates across the board to 4% so that existing home owners in good standing can refinance their existing loan with no closing costs or fees.

Homeowners' mortgage payments would decrease in most cases and put more cash each month in their pockets to spend on the economy.

Home sales in the market would pick up as a result because 1st time buyers will be more willing to buy now at this rate: knowing full well it is a buyers market and knowing that a temporary rate of 4% would probably not be seen again and thus consumer confidence would be up some.

In my opinion, this would be a great start.

There is an underlying problem to the economic crises that is not being addressed and it pushed us into this recession and will keep us in it until it is resolved.
Either it is being overlooked or it is being buried by the politicians in Washington because of the special interest groups.
The start of the economic avalanche was when gas prices spiked.
This was the start of the real panic. When gas was at its peak $4.50 a gallon every
This made every household to take steps to combat this extra expense. This is when the worry and panic that is kept in the back of peoples minds was moved to the forefront and spilled onto main street America.
What the American people discovered was that they were being gouged by their credit card companies with the interest rates. The banking industry realized they were in trouble with the mortgage problems way before it came to a head. They looked for ways to recoup from the bad mortgages and they started finding ways to raise interest rates on there credit cards.
When people started examining there credit card situation and noting their higher interest rates they could do nothing about it. More money was leaving the American Peoples households every week all because the banks were trying to recoup there loses on bad mortgages.
Then the real hard cold panic set in and people across America just literally stopped spending. This was the avalanche affect that put our economy in a recession.
If the United Stated Government wants to get the economy moving again they should enact the following.

1. Cap interest rates on credit cards at 10% over the fed rate.

2. Credit card companies can then do the following:
Keep the customer at that interest rate.
If the customer is deemed a risk by the credit card company it can take what the customer owes and turn it into a 7 year load at 5% over the fed rate.
Guidelines should be established as to what is a “at risk customer” so there are no improprieties taken by the credit card companies.

3. For any customer that defaults on the 7 year loan the United States government buys the loan from the credit card company. The government can turn it into a 14 year loan and if the customer still does not pay the government can collect what it is owed through the garnishing income tax returns or wages.

Time for different thinking. Our economy is based on people working and people spending. The hindrance to our economy is people having and holding on to. Should we not consider shifting taxes from income and sales over to more taxes on personal property such as homes, cars, etc. Surely some smart people could figure out how to accomplish this.

Thank You CNN staff and Ali Velshi , 1st thing to do is replace the CEO's and the BOARDS of WALL STREET along with the FINANCIAL INSTITUTIONS management (Any firm that received government subsidies or bail out funds replace management with temporary government appointees). Consumer confidence and public trust MUST be restored.
2nd utilizing TARP develop a plan to assist in refinancing sub-prime and or toxic loans. Provide anyone with sub-prime or a loan valued more than property the opportunity to refinance at 2 to 4 percent above the FED rate basically removing the middle man (banks). (Any land , property and or home is an asset. The real VALUE is only determined by market.) Utilize the rule of thumb... no loan exceeds someones pay based on rates and term.
3rd invest in infrastructure items that are waiting on funding no new developments. Invest in replenishing military equipment.
4th create low interest loans for energy conservation by installing solar panels , solar water heaters , replacing outdated furnaces , thermal widows and insolation.
5th create alternate energy sources solar farms out west , hydro generators that utilize ocean currents.
6th create bio-diesel and ethanol fuel facilities. Funds that auto manufacturers received create new clean diesel engines along with ethanol fuel vehicles.
Ensure a living wage is paid and 4 day work week and 3 day weekends to promote travel and quality time for families.

Break the ice without buying the toxic assets: Pick ONE BANK and give it the $$ and mission to lend every penney. The other lenders will be forced to get in the game or be left out of the thaw.

We are a country always forgiving.No more !! Millions of the people are made pennyless because of the GREED of the ones who deliberately destroyed everything for personal gain.So far we have been exporting democracy to other Totalitarian states. Let us for a moment import their punitive measures for a change to be used on the ones who destroyed the life earnings of millions in this country.Subjecting those culprits to Firing Squad is most ideal (if our constitution allows) or keeping them at Gitmo forever will be the next best.
Let us not forget the unfortunate elderly who lost their life savings and forced to live on their S S alone. The S S may not meet even their medical expenses, leave alone the other life necessities.These defenseless ones should be helped this time.

Liken to an avalanch, it takes a certain order of events to make the snow unstable. Yet there usally needs to be a trigger. A skier, hiker, a snowmobile going across the unstable snow.

The trigger highly inflated house prices. That was the trigger that caused this financial avalanch. You want to dig out of this mess that is what has to be fixed first. Stop our officals from trying to keep home prices inflated. Let the market run it's course. It's gonna hurt, and it's gonna hurt bad. But the quicker the house prices fall the quicker we will hit the bottom, and can stablize that market. Instead of trying to backstop house prises and further dragging this out.

Our elected officals have tried just about everything to stop the bleeding, Lower interest rates, give tax cuts on homes, House buying programs. But with leanding tightening up it's lending underwriting. The houses have to become more affordable. THAT IS HOW YOU WILL SELL THE GLUT OF HOMES ON THE MARKET!

To jc, If you mandate the Gov. to make a 4% interest rate for people in good standing, that really doesn't do as much good as you think. It leaves a lot of people out of that plan.

Those in good standing can still be upside down on their mortgage, bank just won't refi people for 100%+. And those that are not in good standing, well the underwriting especially now just won't allow it.

I was as a first time home buyer, in April 2006 got approved for a $0 down at 6.5%. Couldn't find the home I liked and kept looking. Got re-approved in May of 2007, Couldn't get a $0, had to have 3% down min. and the rate was 6%. Kept looking, now I can get a 5.5% rate, but I need 10% down Minimum. With a Fico of score of 800+ and I am looking at the $170 to $190K, which in my area doesn't get you a whole lot.

Point is homes droped some, but not enough cause the upfront cost are now much more. You can drop intrest too 3%, the fact remains when the banks get to requiring 20% down, Saving up $38K for a down takes some time.

Please, Please, please tell Rush that you will not response to him because his lack of interest in getting an college degree. He was giving a push by his day money and uneducated GOP cronies. Please tell him that him that GOPs follow uneducated people but the rest of the world will rely on you the expert!!!!

Ali Velshi i personally think M.r Lambach needs to quit being a loudmouth and get off his OXi prone soap box and stop attacking others

Green JObs!!

Thats all wonderful! Today Biden says Green Energy means more disposable income for americans.

Well lets see the facts, Utility Companies and Investors have foreseen this, so almost all companies asking for on average, 25% rate increases and extra fees. So many items listed on your bill now , for this fee or this cost etc...

Solar and Wind Power , State officials are now being lobbied by utility companies and big oil to stop and pass or enforce little known laws , prohibiting regular citizens from installing and selling energy back to the grid.

Here in FL, every home could have a solar panel and cut utility costs in half or more. Where is the stimulus to get us these panels?

I dont trust any company , some now owned by Big Oil and other cronies to ever let us have cheap energy.

In MI we have to pay securitization charges, to protect reactors, hope they dont charge to protect wind turbines and solar farms. Look Out!!

I hate to be so negative on such a wonderful thing, but its business as usual unless we change it!!

Whats wrong with protectionism?

Right about now I could use a little protection!!

So its to make sure we dont start a trade war? Is that really the items we need to worry about?

So if we made our own clothes, shoes, towels, furniture, etc... Things we need and use, not the things we want, that a bad plan? why?

Guess we would rather send billions to China, like the Middle East for Oil, and then we can borrow the money back and pay them interest.

So we are trying to get off foreign oil, why not foreign goods?

Guess it is too simple for my small brain to comprehend!!

What happens after the everything is green? upkeep wont keep us all employed and its specialized like utility workers now.

Hmmm!!!

I purpose that in order to pump some real money into our staggering economy that we Introduce a Green Global Bailout Fund, and each person that chooses to, donate $2.00 of they're pay check each week,(it averages to about $104.00 per year} at the end of the year they can take a write off for that donation, at least some of the money would come back to them. This would create an instant cash flow to pay off this $800 billion dollar Bailout and pay down our current deficits, once that's done we can channel the monies into Health Care, Schools, Renewable Energy, think of the possibilities! The Preamble to the Constitution reads" We the people in order to form a more perfect Union " we are the people and we need to keep this country strong in the face of adversity! What say you?

The stimulus pkg money should be divided out to help main street and create jobs and that is all!!
..No more money to the banks, they got their bail out and they need to figure out how to fix their own problem. Since the TARP bailout, banks have done nothing to assist people who are in foreclosure, they have not loosened the credit crunch so let them suffer. they knew very well when they got their cut of the TARP funds what it was suppose to be used for..they are like children who just continually break the rules.
A $500 tax credit is not gonna help to stimlate the economy. A big chunk of this $850 Billion needs to go to average Americans & small business. How many more bail outs & deficit are we going to run up to keep the banks in there luxury offices, corp jets??

Bonuses ,.

Its not only Wall Street, its Corporate America !!

CEO’s for example, Steve Fishman, of Big Lots, he makes a 1million a yr salary, but after options and bonuses he makes 9 million.

Thats $4024 dollars an Hour, while he employees makes on ave $7.50 an hr, and can not get benefits, nor full time, no stock, nothing, juts a small weekly check and they still want you to do more everyday.

Fishmans, car allowance and his benefits coem to more than $50,000 a yr, more than any store mgr makes.

Wal-marts around $13,000 an hr, on and on!!

This is wrong!!! This is the reform and stimulus we need, make it fair again. We will work , but it has to be fair!!

Is there no way for the media to publish names of all the recipients of these Wall Street misuses and bonuses and embarrass them into returning them to the fund or immediately lending out that amount? Can the feds not demand this money back? Can the feds not demand that banks who are sitting on their rescue funds rather than lending them, start to lend them out immediately?

The most forgotten ones are the elderly living on SS alone.They worked hard hoping to have a peaceful quiet life.A lot of them have lost their life savings also because of the greed in the society.With out any shame or prick of conscience some appeared on the TV as if nothing happened.I am afraid we are too forgiving.The SS will not cover even the medical expenses leave alone the other expenses.They contributed their share now it is our duty to take care of them.I strongly suggest the SS should be doubled on monthly basis until the economy grows normal.Then the recipients will receive only the original amount.

Curious as to why we focus billions of dollars on large companies that only want to get larger. Why doesn't the government look to help more small businesses?

Ali,

Do you think it would be wise for Wal-mart to allow the unions to come in and start getting the plan down and live with it, versus being forced to accept it?

I have an idea for getting the economy going. What we are losing is the backbone of America. If the Government did a 90 day moratorium on foreclosures and make the Banks find a way to keep the people in the houses because they already have too much of an inventory of homes, condos, apartment complexes, Ect. If the Government started with giving $10,000.00 to each home owner (that is their only home) and lives in that house a grant with a prevision that they have to spend the money to fix, repair, upgrade their home. It won’t cost the Government that much money; in respect to some of the money they are wasting in this stimulus, to enact this project rebuild America. If we as Americans start rebuilding our homes, all the small business that buy products from the larger Corporations and everybody in between that makes a living. The sales people, the delivery people, Ect. If the Government doesn’t find a way to get money to the people to spend on goods we will lose the backbone of America.

Ali,
I do not understand why you agree to these bogus statement from wall street executives and bankers,that BONUS is important because the BASE PAY for these worker(Bankers) are small.

It is a complete lie and outrageous statement,look these guys negotiate a decent base pays for themselves and get on top of that a decent bonus(we call that GRAVY)

I know this because,I am in the same line of work,where you are rewarded with bonus if you perform.

I did not make bonus in 2008 because business was slow and poor,but I have consistently made bonus for the last 6 years. These wall stReeters should be able and willing to sacrifice in order to get us all out of this mess.

These people have residual income and can whether this turmoil and that is why you see them on CNBC all day complaining and criticizing President Obama for trying.

Lastly,don't go MR SOFTY on RUSH LIMBAUGH give it to him,take him on and argue the point in the public arena.......use your medium for the debate (CNN).......RUSH does not get people loosing their home and jobs, it since he has a multi million dollar contract.

Jobs baby jobs.

The Small Business Administration has a “bag of worms” from reduced funding. It needs time to rebuild. Census Bureau facts about Small Business (SB): 89% of SB has < 20 workers, and 98% of SB has < 100 workers.

These 2 categories have been given the “Texas Two Step”. Stepped on, and stepped aside.

Solution: Inserting a 2 tier system, with mandatory percentages of participation, into all Federal funded construction contracts will level the playing field and put the genuine SB to work.

Hello.......If the stimulas bill is not going to do anything till 2012 its not a stimulas bill. That is because only 3% of it is for a stimulas for jobs. it is sreaming oink oink! Do your research and look at the facts.

Think out side the box
1st. remove all credit card credit; then people will have to save then spend. not spend then pay. But that is in a dream ; because
most of use are not rich have forgotten the golden rule
(the rule is ) S/HE HAS THE GOLD MAKES THE RULES;
the gov & wall st are the law & rule makers. that is why we
have 700 billion bailout (good buddies take care of each other)
2nd make interest simple not compound 100,000 loan @
20% interest = 120,000 '/. 120 months = payment of 1,000
to simple; the common people will know when they are being cheated
by our now legalized mafia loan shark interest rates
simple is the key = K.I.S.S. ( keep it simple stupid )

Great dialouge, by the way... I look forward to this.

Regarding wall streets Bail-out Bonus Stucture – this story should not fade away and needs futher inquiry. What firms – what percentage went to average workers that require a bonus to sustain a actual living wage – and What percentage went to those whom enginered this mess in the first place. Shameful is one way of putting it – finding the money and getting it back is another. Accountable and transparency should be the headline

Rather than give the bail out to one bank, give it to small local banks. Let the big ones fall, they are the reason this has happened in the first place and they show no mercy to the consumer who is bailing them out.
Twenty years ago we didn't have mega banks and we did just fine.

We are forming a group that withdraw all our banking and brokerage accounts from those firms awarding excessive bonuses and redepositing them in more humble firms.

JOIN US!!!!

The Wall Street executives who have just received billions of dollars in bonuses should be forced to pay it back. The excuse given, that a bonus is really a part of their salary and paid from the profits, is ridiculous. THERE WERE NO PROFITS, so they should not be compensated at the tax payer's expense. Their failure to understand such a simple concept indicates criminal stupidity.

Why not give $200,000 to every person in United States? We will pay our mortgages, credit cards, car loans, electric bills, heating bills, taxes and other charges that will help the United States Economy. This will in turn, help banks, the housing industry, retailers and the list goes on and on and on.....

Please do some analysis comparing home price inflation to the stagnant average family income, and the roll this played in the development of creative financing to get the average family into a home in a market artificially inflated by speculation.

“The American Dream is in jeopardy” maybe it’s time for a new dream? Maybe instead of a car in every garage and a large house and the feeling of entitlement needs to re-examined. The economy cannot grow forever the earth is finite and as such we can only extract so much from it before we can no longer extract anything else.

On the note of credit and something for nothing, these days need to end. If you cannot pay you don’t get to play. It’s all about setting realistic levels of consumption and expectations.

The banking system based on John Law’s idea that money needs to come to an end. The Mississippi Bubble was a scam and a failure yet we still use this idea. It is time to re-evaluate everything from the ground up.

Borrower Rate Reset to 3% will be like a Magic Wand to the Economy

We all recognize that the United States economy is paralyzed and it would take trillions of tax payers dollars to re-kick started. My idea will change and turn around the economy in 3 month instead of a decade.
The president need to order the banks to have a mortgage rate reset for every borrower in residential, commercial, industrial and investment real estate from the current rate to three percent (3%) This reset to be effective within 30 days after the president orders it into law and it should be for next 5 years. Some negative impact but the positive will over power the negative.
Increase cash flow, this will increase spending and saving to retirements
This will be an incentive for home owners to stay in their homes and save their property from foreclosure.Banks will reduce the inventory of properties that are being taking due to default.
Less stress on government paying out stimulus packages.

Why is the Govt. taking on banks/FIs bad assets? (BTW they should make great bonuses for their chiefs)

Why not take the whatever $ x Trillion that would be necessary for these assets and create a couple of new banks around the country (away from NYC), with well defined model of governance, risk-reward benefits, and slowly sell their shares on the market.

These new banks can start lending immediately and will succeed/fail based on their performance.

All former and current executives and board members of the banks/FIs that accepted TARP funds should be barred from serving in any capacity on these new banks.

I agree with Lanre, reduce the interest rate for primary homeowners, not rentall properties. Also, when did "Giants Get To Big To Fall??? The Giants should fall, at least they wouldn't be stepping/stomping on the Ants (taxpayers).

Mr. Velshi...you talk too fast....and sound too alarming. The sky is falling ....the sky is falling. Yeah...Yeah...Yeah...we've heard that already. I have a little bit more faith in this country. How come you haven't mentioned how these companies in January and February in a recession will cut back employees to protect the companies and so that at the end of year they are not so much in the red. They are doing good business. They will rehire ....probably at lower salaries....but they will come back.

I don't believe the White House team is being totally truthful....I believe if you say the sky is falling enough times.....it's a diversion...and foolish programs will be slipped in as Pork and Pay for Play. Listening to Obama life is over as we know unless he saves us.

Young and experienced.

people keep saying businesses need tax breaks and money to grow their business and create new jobs. What if they pocket the money instead, like the banks did recently? Why would they grow their business if no has the money to buy their products?? Wouldn't giving consumers money to buy the products be more effective?? I am not sure either is the answer to our economy in the long run.

The so called mortgage crisis is just a consequence, it is as simple as go back to the basics : you spend more than you have, you end up in an economic crisis... Where doyou think the money to pay for two wars was going to come from ? plus a tax break ? plus shipping jobs to other countries ? follow the money... where is al the money we spend in the war ? who do we bought war supplies from ? mostly, outsourced....

how many of these mortgages are on Second homes? I think it is a lot. Also, the foreclosure rates are high in coastal states....florida, california, las vegas. Not as bad in the balance of the US

STOP Forclosures immediately!. Keep people in their HOMES. If this was done last year – we would have STOPPED the domino effect! Now, whats happening homes are losing value daily! People will not buy any home that is continuously declining in value. This isnt rocket science.
Bush Adm was negligent in not addressing the Forclosures
Also, we need work programs immediately – in 1973 it was CETA Programs JOBS and JOB Training – WWC- WPA- Hurry we are all drowing!
Even those who have jobs are not Spending!

Compliance of the TARP and other bailouts could become a costly and difficult process that merits a reserve for each loan with the costs borne by the beneficiary. The reserve remains in effect until certain compliance targets have been met.

I would also propose personal compliance guarantees from board members, officers and key employees up to the amounts of stock and bonus payments received over the last 3 years. Another twist is to mandate personal guarantees for a certain percentage of the total contributions requested by the company.

This serves to distribute the burden of repayment among those responsible and also it might foster fiscal restraint.

Former CEO of multinational company