“Ster•il•ize : to deprive of the power of reproducing, as in surgically sterilizing cats and dogs.” Such is the definition of this word as listed in Webster’s Dictionary.(1) In looking at all the havoc the financial wizards of Wall Street have laid upon the global economy, it seems appropriate to review this term. Our society has been overcome with notion of “excess” in the past few years. Excessive spending, excessive homes and mortgages, excessive credit, and even excessive eating were becoming the norm. All paid for by excessive spending by consumers and the government. My proposal to resolve the ‘foreclosure crisis’ rests in the meaning of this word. The time has come to sterilize many things, especially money.
Too much money has gotten us into this mess and adding more simply makes it worse. Many critics, such as Jim Rogers of the famous Quantum Fund, are very outspoken about this. He says curing a mistake with more mistakes is complete idiocy.
First I have to make quite clear that there are three types of individuals caught in the foreclosure trap. Those that have been unwittingly been caught in the downturn of our economy and have lost their jobs and source of income. I have great empathy for these citizens.
Then there is a second group. These are people who have been taking unnecessary risks speculating in the real estate market. They are comprised of people who have purchased more than one home, some times as many as five or ten homes, in order to sell them later at a significant profit. Late night television was inundated with commercials offering real estate courses and how to get rich quickly without working.
Finally you are left w...
... middle of paper ...
...rovided by the consumers themselves. This would supply liquidity to the economy, but at the same time taking it back out through savings. A process that I referred to in the opening paragraph as sterilization, depriving the power to reproduce. In this case it is money that will not be reproduced. It will, instead, be re-circulated in a productive and non-inflationary manner.
No longer will government bailouts be needed. The public will be spared having to pay for such bills. As an added benefit, we will be promoting and maintaining a healthy savings ideology going forward. Hallelulia!
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