Thursday, September 25, 2008

The Solution

All these problems, what are the answers?

1. Delay the decision as long as possible in order to buy time and to make the most educated decision possible.

I have always lived my life with one principle in mind. Never spend a trillion dollars under duress. Whenever I spend a trillion dollars, I want to consider all options, understand all issues and make a very educated decision to reduce my risk, and prevent having to spend another trillion dollars on a bad decision.  

2. Never reward bad behavior.

People are a creature of habit. We all understand this principle because we took psychology in college. Ivan Pavlov proved through the use of his famous dogs that repetitive behavior creates a conditioned response. In human applications, if a person is rewarded for work well done, she is likely to duplicate well done work. Inversely, if a person is rewarded for work done poorly, he will look to duplicate shoddy work.

3. Keep it simple.

Politicians do not understand the world of high finance. If they did, we wouldn't be in this mess. Doing the same thing and expecting a different result would point to stupidity, so it is hard to expect our government to do this right. So the solution must be simple enough for Maxine Waters to even understand.

4. Accountability.

The first billion dollars should go to building a prison for all the people that got us into this mess. If Martha Stewart went to jail for 6 months for insider trading over $40,000 when she was worth $1 billion, a proportional relationship of jail time should be reserved for those who swindled the taxpayer out of $1 trillion.


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