Friday, December 2, 2011

Sachs: 5 steps to fix our economy

Jeffrey Sachs' 11/28/11 Huff Post article is clear and concise on how to fix our broken system.

"First, restore the Glass-Steagall Act's separation of commercial banking and investment banking, and strongly regulate derivatives trading. The financial casino continues to infect the core of the banking system and the real economy.

"Second, prosecute the law-breakers of the 2008 crisis. Virtually every marquee firm on Wall Street, including Citigroup, Goldman Sachs, and JP Morgan, committed financial fraud. Lead bankers who oversaw the fraudulent practices are still in place, and need to go.

"Third, retire politicians like Congressman Paul Ryan who pressed for financial deregulation on the grounds of "free markets," but who then called for Wall Street bailouts when the crisis hit. They are the agents of moral hazard.

"Fourth, end the rampant tax loopholes that allow America's biggest companies to park their profits in the Caribbean tax havens. Rather than giving tax amnesties to these companies, we should pull the plug on these tax abuses.

"Fifth, crack down on Congressional insider trading. Members of Congress are not only swayed by their big campaign contributors and the lobbyists who hire their families and staff, but also by the prospect of personal gains through trading on their insider information and access to sweetheart deals. Congress's approval rating is on its way to zero."

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