Many policy solutions to financial problems don't make sense. I'd like to discuss a few that have circulated the financial media recently. Most of the criticisms come from the government and the banksters.
First, explain to me how we are going to solve our current crisis of too much credit by getting more lending to people who can not pay their current obligations? Many people who have loans and credit cards from Citibank and Bank of America aren't able to make their payments. Maybe government and banking officials should go to credit counseling. Most people would love to be like the government and run up credit cards and have the taxpayer or China pay for the frivolous spending. Solutions to this problem would be to cut government spending across the board by 25%. This would include payments to retirees and Medicare.
Second, why would you give the Federal Reserve more power when they have created the problem we are currently in. Rewarding failure in the United States is something we should embrace? The FED is the problem and not the solution.
Third, Obama's administration came out with a loan foregiveness program. If you have your mortgage reworked and have mortgage principal forgiveness. Then, the loan becomes a recourse loan where the bank can come back at you for future consideration. Currently the mortgages are non recourse where you can walk away and the bank eats a shit sandwich. I'm not saying this is right. It's actually very wrong and immoral. Remember though, this would have never become a problem if banks would have required a down payment, proof of income, and used conventional loans to finance the real estate.
Fourth, how is too big to fail a good idea. If you have too big to fail then you must have too small to save which is where the American taxpayer foots the bill. Our country is getting too big to save. Who's going to bailout the United States. Looks like the United States will be defaulting on debt to the Chinese.