The World Ecnomic Crisis, What's Your Solution?

At this year's World Economic Forum in Davos, top business and political leaders offered their analysis of what caused our current turmoil and presented ideas on how to put the global economy back together.

Many intelligent theories have come out of Davos, but the only voices heard were those of the world's elite, many of whom created the economic crisis that we all face today. The Huffington Post wants to open the conversation to everyone, because the best ideas for change rarely come from the within the status quo.

What do you think caused this economic crisis and what should be done to fix it? Share your thoughts here. We'll pick the best submissions, giving weight to ideas that we did not hear coming out of Davos, and post them on Tuesday.

 

 

Comments

[Landoftheflee]

10:34 PM on 02/02/2009

WHY ARE YOU SO HAPPY WITH YOURSELVES? YOU THINK PUSHING BUSH INTO THE HELICOPTER WAS SOME GREAT VICTORY FOR YOUR REPUBLIC?

YOU FORMALLY SURRENDERED DEMOCRACY 8 YEARS AGO, although SOME ARGUE IT HAPPENED IN 1963. YOUR PROTESTS HAVE AMOUNTED TO NADA! IF OBAMA SEEKS TO DEFEND THE MIDDLE CLASS, then HE MUST REESTABLISH DEMOCRACY by PURSUING KUCINICH"S CASE, specifically those articles below. AND IF OBAMA continues NOT TO, THEN GOD HELP YOU ALL.

http://kucinich.house.gov/news/documentsingle.aspx?documentid=93581

1. Article XXVIII Tampering with Free and Fair Elections, Corruption of the Administration of Justice.
2. Article XXIV Spying on American Citizens, Without a Court-Ordered Warrant, in Violation of the Law and the Fourth Amendment.
3. Article XXIX Conspiracy to Violate the Voting Rights Act of 1965.

[Venise Alstergren]

02:44 AM on 02/03/2009

Landoftheflea: The best thing America ever did was to get rid of Bush. The worst thing America ever did was not to have had him up on a War Trials condemnation.

[Venise Alstergren]

02:48 AM on 02/03/2009

Landoftheflea: I want to amend my previous comment. The worst thing America ever did was not to have injected him with the AIDS virus, or quite literally crucified. After all, that's what he did to the voter.

[babymonster]

09:55 PM on 02/02/2009

1. taxes are a form of recycling money; they keep money within our economy and make it stronger; otherwise, it just goes out the window. 2. A mandate should be made that all gov. vehicles and equipment be made here. As long as we invest in things which do not rely on foreign goods, products, or materials and keep our investment in the education of people in trades of future markets, things we make, and the infrastructure that we build with materials that we make here, then we should not have to borrow to pay for these things and should be able to spend more generously. 3. Immediate action for foodstamps, extending unemployment insurance, large projects, innovative small businesses, the whole educational system, single payer healthcare, and energy independence 4. Regulate the stock market so that the business is benefited, not abused through speculation of its quarterly profits and stolen from through bonuses. 5. Nationalize the failed banks and reward the banks who did well 7. Absolutions of debt: Because of hedging, a bad credit rating system, and over valued real estate, buying back all the bad debt does not make sense. The government should absolve all debt and do something I call reverse hedging. Pay back on the tenth or third of the dollar what is owed to business institutions. We could then begin again without putting such a drain on the treasury. In the sixties, there was no usury and little debt which allowed people to start business.

[babymonster]

09:53 PM on 02/02/2009

There is not just one cause, except to speak generally of massive malfeasance and corruption of politicians who sold out the interests of the Americans to corporations. This was a coordinated attack of an elite class of people who used billions of dollars over the years to study how to manipulate the American people and the government toward their ends to enrich themselves at any social costs necessary. They knew, first, to attack the educational system. Despite all that has happened, they continue to support free trade, lowering taxes, the monopolization of businesses and media, and deregulation of all sorts including the kind which makes it easier for people to launder money. The Republican party has been allowed to act like the mafia. The American system of government has always failed to punish its crooked politicians. Greed has been allowed to literally lopside the system so much into the very few’s favor that it can no longer work. It will take much to patch it back together and make sure that no people so bent on America’s destruction ever be allowed to cheat the American electoral system again. The situation is almost exactly analogous to the French Revolution.

[donnajr]

09:38 PM on 02/02/2009

when the general populist understands the power and control of the federal reserve.revolution will begin.

[Carolab]

08:27 PM on 02/02/2009

The Two Step Plan to National Economic Reform and Recovery

1. Directs the Treasury Department to issue U.S. Notes (exactly like Lincoln"s Greenbacks) to pay off the National debt.

2. Increases the reserve ratio private banks are required to maintain from 10% to 100%, thereby terminating their ability to create money, while simultaneously absorbing the funds created to retire the national debt.

These two relatively simple steps, which Congress has the power to enact, would extinguish the national debt, without inflation or deflation, and end the unjust practice of private banks creating money as loans (i.e., fractional reserve banking). Paying off the national debt would wipe out the $400+ billion annual interest payments and thereby balance the budget. This Act would stabilize the economy and end the boom-bust economic cycles caused by fractional reserve banking.

For the full text of the Act click here to read the MONETARY REFORM ACT.

Support the Monetary Reform Act " write your Congressman today!

http://www.themoneymasters.com/

[PhilipTaylor]

08:42 PM on 02/02/2009

I am with you! But this is what we are fighting - the IMFsays we need World Central Bank, complete concentration of Power in the HANDS of the WORLD's ELITE MONEY CHANGERS:

"Standing put in the face of mounting inflation and financial disorder would inflict costly stagflation, contraction in trade and disorderly oil and food markets. Allowing a free hand for central bankers in waging monetary warfare, or pursuing exclusively domestic full employment irrespective of inflation and external imbalance, could be even more costly for the world economy than the monetary anarchy of the 1930s.

Without establishing a full-fledged World Central Bank, world currency and safeguards for reserve centers' monetary policy, any reform of the international financial system will suffer the same shortcomings as the successive regimes that prevailed in the post-1914 period."

http://www.atimes.com/atimes/Global_Economy/JF06Dj04.html

[Carolab]

08:50 PM on 02/02/2009

I know--this is the BIS (Bank of International Settlements) plan all along--and we have George Soros in favor of a global new world order--it's a form of "velvet revolution" that seeks to control the world's markets through monetary control versus mili tary action. George Soros has been urging an expansion of the IMF for years. He is considered the de facto "owner" of the Democratic party by many due to the many organizations such as Move-On that he has set up and the candidates he has sponsored (including Hillary and Obama). Many people including myself see this worldwide financial crisis as an engineered crisis in order to provide support/worldwide "necessity" for the "world solution".

[Mildmannered]

05:08 PM on 02/02/2009

"The World Ecnomic Crisis, What's Your Solution?"

The first thing I would do would be correct the spelling of "Ecnomic"

[Grannysue]

01:33 PM on 02/02/2009

A start would be for every country in the world to foregive all debt owed by other countries too them.
Then the slates wiped clean and everyone starts over!

[KarryH]

02:37 PM on 02/02/2009

WOW, that is the most incredibly naive and unrealistic idea EVER.

[C0Y0TE2]

02:40 PM on 02/02/2009

Anyone can have an opinion, but are yours informed? Prove it with a substantiating argument. Please do tell us why you think that forgiving debt is an unrealistic idea

[donnajr]

08:51 PM on 02/02/2009

ok,who holds the note on the Amazon river?

[Pippen]

12:50 PM on 02/02/2009

Corruption, Greed, Liars, Thieves and Pimps in limosines,..that's who's running the country. Your country! We looked the otherway when Republicans said,..."well at least we create jobs..." meaning if you let the rich get richer the money made would flow back into the U.S. economy and create more jobs. ERROR ERROR [ didn't and doesn't happen ] Those jobs went to Offshoring & recruitment of Indian nationals while at the same time the same financial institutions raping you here, fired your dad and hired Rahman Dhillon Sulliman from Bangladesh and KEPT the money for THEMSELVES in offshore bank accounts. Even Haliburton's subsidiary Kellog Brown and Root moved their home office to Dubai !!

The congress were so busy getting paid by these same housing bubble boys that they didn't care who was robbing the babies milk or what they did with the milk as long they got PAID !!

Economics 101 has proven to be a legitimate subject of study and cause and effect do actually exist like physics dictates, YOU EXPECT THESE SAME THIEVES, PIMPS and WHORES to support something other than PAYING THE SAME PIMPS, THIEVES AND WHORES as a recovery effort ?

There is only one solution now and it's time is soon. Revolution ! We drag every major financier out of their lairs and parade them around in the streets and take EVERY DIME they have. Should take a few years but if we start now we can get them all before they skip town.

[happiness seeker]

12:30 PM on 02/02/2009

Wrong government laws and policies are the root of this kind of crises. Ban each and every lobby group that has an influence on electoral outcome. These influential lobby groups are the enemy of welfare of the people. Banning these will prevent the making of laws that enriches few on top, scavenging on the lower strata of general mass. Thus, preventing the formulation of laws and policies that are against the welfare of general people, which ultimately leads to this sort of crises.

[DIdaho]

01:11 PM on 02/02/2009

I agree philosophically but think it misses the point. Executive compensation is determined by executive compensation committees, all composed of executives who believe they should be richly compensated - and who sit on each other's committees.

There isn't any other situation where people simply declare their own salaries and bonuses. Market solutions work, but only if there's a market - salaries and bonuses have to be tied to performance, just like in any other (smaller) business. I can't simply declare I'll pay myself more than my business makes without losing my business and therefore my job. Unions can make demands, but the salaries have to be approved in light of earnings. Companies can demand any price they want for their product, but somebody has to be willing to buy them.

The current system of executive pay is exactly like the old Soviet commissars, taking whatever they want from "the people" because there is no check or balance. However it's decided - by shareholders, by employees, by ratios - the decision has to be taken out of the hands of those who directly benefit without any relationship to their performance.

[DIdaho]

12:22 PM on 02/02/2009

First: extend margin requirements to individuals in finance. You cannot "buy" an investment unless at least 5% of your "own" money is on the line - borrowed or otherwise. Capitalism cannot work if it's all reward and no risk.

Second: any "bonus" must be based on gains. No profit, no bonus. And any bonus must be shared proportionally among all employees and shareholders.

Third: Eliminate completely the salary cap for social security and medicaid (FICA) to fund an actual social safety net, including health care, and eliminate the incentives to pour IRA and 401(k) money down the rathole investment companies have become.

Cap executive compensation at a percentage of the lowest-paid employee of that company. I don't care what it is - I think 40-1 is fair, but even if it's 10,000 to 1, at least establish the principle.

[miamia]

12:07 PM on 02/02/2009

Start making making the federal reserve truly FEDERAL and accountable to the people and not a private group of bankers. Cancel out most of the so called debt amassed by the federal reserve system.

All of the banks that are insolvent should cancel out all of the debts owed to them and liquidate.

Change the bankruptcy laws and end the system of neo-feudalism that congress created.

[miamia]

12:15 PM on 02/02/2009

Correction: Start by making the federal reserve truly FEDERAL and accountable to the people

[kells1001]

11:50 AM on 02/02/2009

We are at a crossroads in a giant game of capitalistic fervor, where suddenly there are many more losers than winners. Many people fear change and reasonably should as when any one loses or suffers loss they want to avoid such pain. For some reason ( Reaganomics) there are those who feel their right to win economically is worth the sufferings caused by a lack of regulation, education, non income redistribution or just out right foolishness.

History should teach us that eventually this inability to change and push the pendulum back to the left, to promote the general welfare will result in all kinds of pain through War, Violence and Environmental degradation. The solution lies not in aggravating the wounds by failing to act or change, but to be brave enough to accept even promote policies that thwart the demons of greed and pointless plunder while keeping the virtues of hard work and innovation. We should not allow the few now not in a majority to play mind games with reality and base their assumptions only out of fear and greed. One could say a revolution is coming—which is what we seem to know for sure.

“A revolution is coming- a revolution which will be peaceful if we are wise enough, compassionate if we care enough, successful I we are fortunate enough – but a revolution which is coming whether we will it or not. We can affect its character. We cannot alter its inevitability.” ~John F. Kennedy

[mamacat]

02:59 PM on 02/02/2009

Very good post. Thank you.

[lloydc123]

11:47 AM on 02/02/2009

The FACT is the lender holds all the power to lend, the borrower has none to borrow.

[OkieMon]

11:45 AM on 02/02/2009

polygamy....you need more than two working parents in a household to make ends meet.....

[LiarLiarIraqsOnFire]

01:16 PM on 02/02/2009

So, I can have as many husbands as I want?

[magibrotherhood]

11:35 AM on 02/02/2009

the Rothschild`s have their hands in ALL the cookie-jars------wink,wink.------