Deleveraging is the only solution.

Editor,

Leveraged and releveraged worthless loans cannot be transformed into anything other than worthless loans. The Bush administration, who as a matter of ideology are incapable of accepting this, will only make matters worse by pouring gasoline on the fire at the top of the financial pyramid when the obvious solution is to douse the bottom of the pyramid -- workers, taxpayers, citizens -- with baking soda.

This crisis can end only when "investment" banks publically acknowledge and forgive each others' trillions of dollars of worthless debt. This debt has no basis in real economic activity and therefore only affects banks and others who hold it.

Actual people -- who are hurting -- need jobs and money, and numerous ideas have been proposed to put these in their hands. Unfortunately, all the Bush administration knows how to do is give money to and protect the assets of the rich, so the suffering is going to spread and it is going to get worse.

re: "White House Overhauling Rescue Plan" (10/12/2008)