SOS Reason for US Crisis

1. Over gearing/too much debt created over consumption
2. Intervention by Fed Reserve to suppress low interest rates (Alan Greenspan reduce interest rates to save the markets instead of letting recession takes its natural course)



3. Intervention by Fed Reserve in saving LTCM (bailout encourages reckless risk taking)



4. Easy credit encourage by government, causing bubble in sub prime mortgage bubble



5. Lack in regulations in high level (i.e. policy to allow derivatives to mushroom), instead of more regulations for SEC, Fed Reserve was not governed by Government but by elites and small number of private bankers, hence, Fed does whatever it want to to help the Wall Street



6. Greed

MyView

1. Reduce gearing by reducing expenditure especially on military budget (US to stop policing the world)
2. No intervention from either Fed or the Administration, let the nature take its course (as been proven in the history, let the incompetent fails and the competent to survive)
3. Punish the wrongdoers instead of bail them out like now, TARP. Agency need to be accountable and take responsibilities such as SEC, Rating Agency, Financial Policy Makers, and other authorities involved, the punishment for the private sector will be bankruptcies.
4. Increase interest rates to protect value of US dollar, which is objective of the Fed instead of printing more money
5. Close down Fed Reserve, as it is the main cause of the crisis
6. Smaller administration in the government, it is due to over government that causes the crisis
7. Encourage savings and productions instead of overspending/consumptions and negative savings

Basically to attack the cause or the root of the crisis.