Why not do something to get private investors to start investing again? For example, instead of subsidizing the banks directly, incentivize private investors to purchase stock in the institutions that need assistance. Here's my plan: a. Identify the specific institutions that are at risk. b. Provide an incentivize to private investors to purchase stock in these at-risk institutions/corporations. c. The Rule Is: The Investor must hold onto the stock for at least two years. d. Incentive #1 is, if the stock value grows, the investor can hold, or he can sell any time after two years and not pay any capitol gains tax on the growth value. e. incentive #2 is, if the investment loses money, the Investor can sell within 6 months after two years has passed, and the Fed will reimburse the Investor at 40% of the investor's loss. This seems like a plan that would save taxpayer money, plus it would help the financial institutions as well as Wall St.
Comments are closed for this post.