I’m no economist, but I have comment on a couple of things:
1. Leveraging is a really bad way to do things
2. Fannie May should be a public company
3. The new bailout scenario should have some outcome assessment
4. The burden of cost should lay on financial institutions (yeah, I know, good luck)
5. The fed should share some percentage of equity. This makes sense, doesn’t it?
6. We need some way of defining risk and rocking on it
7. We’ve learned a lot about wealth generation in the last few weeks; a lot of wealth just doesn’t really exist
8. Overpricing is a reality; I think there’s a deeper problem than greed here. I think what we’re seeing is a fundamental problem with contemporary markets. They grow and we have to cheat to keep up. It’s a simple syllogism: profit requires more and more growth. Thus the bubble metaphor.
8. Smart regulation by smart government is a good thing
I also find these ideas from Brad Delong interesting. Should we all own the financial markets? Hm, interesting.