Re-Capitalizing the Benefit

The no-confidence market sentiment for a top-down (disconfirmed trickle-down theory) bail out plan will quickly go strong positive with its antithesis: a bottom-up bail out that would be a re-capitalization of the benefit.

Recapitalizing the benefit will restore the liquidity not lost, but being withheld from the market waiting to be rewarded for its inefficiencies, and the narrow benefit it incurs to be trickled down if the right incentive is provided.

Lowering the capital-gains tax to lure liquidity back in just exacerbates the problem because, it is the problem. Rewarding the perverse incentive with the means to be perverse, I dare say, is more perverse!

Our economy--the credit economy (needing to borrow to make ends meet)--is being held hostage to a practical solution that causes the problem.

Regressive tax policy and deregulation of the financial markets without ensuring a self-correcting, free-market mechanism has produced an enormous benefit and detriment. The way to quickly and surely reduce the cost, and the risk, of re-capitalizing is to redistribute the benefit to the cost side of the equation. That is, by recapitalizing the benefit.

There is the very clear risk, given the failure of trickle-down economic measures, that top-down measures to fix it will not work, throwing away good money after bad. The sentiments of Republicans for instilling the bail-out bill with free-market "principles" by, for example, reducing the capital gains tax on the consolidated capital is one of those disconfirmed principles they love to validate with legislative authority that does more to cause the problem than effect a solution.

Interesting how bi-partisanship cannot produce an empirical solution to this problem. The only solution available is Hamiltonian, which is the problem.

While Obama and Biden will likely apply a more empirically verifiable, and Jeffersonian, approach to this problem, and McCain/Palin, so full of their conservative "principles" (for change?), most assuredly will not, the choice, both politically and economically, is all too clear if a genuine solution is what you want.

The Hamiltonian tenet that it is a representative's responsibility to give the governed what they need, rather than what they want, in better judgement is not well supported here, if not generally just a whole lot of Hamiltonian hooey designed to redefine and misapply The People's self-interest and the General Welfare.

Confine the principles of conservative economics to the dustbin of miserable failures, empirically verified.

Choose the way of an effectively pro-growth, low risk, investment strategy now!

Recapitalize the benefit from the bottom up.

Vote for Obama/Biden to sustain it.