The economic discussions on rcm have generated far more heat and smoke than light.
Here is a specific action item contained in webmails I just posted to my congressional representatives.
After you have read and digested the referenced Bloomberg article, fell free to use any or all of my webmail to write your own congressmen. Their webmails are free and you can identify/contact at
===== start of webmail =====
On being proactive, not reactive
To: Senator Roberts Senator Moran Representative Jenkins Representative Pompeo
From: Dr. George McDuffee
Date: Friday 20 September 2013
Subject: Market crash avoidance by bubble detection
Re:
--------------------------------------- The immediate validation and replication of Dr. Taipalus's seminal work on the objective and quantitative detection of the formation of asset bubbles, and if verified, the introduction of legislation forcing the Federal Reserve Bank, and appropriate regulatory agencies to remedial/preventative action against the formation and growth of asset bubbles is most strongly urged. The U.S. Government and people cannot afford another financial/fiscal policy failure resulting in another implosion of the economy as occurred in 2007/08. Most unfortunately, history shows that changes of this type must be legislatively forced, and backed with the full weight of weight of civil and criminal sanctions against the accountable organizations and individuals, to be fully implemented and effective.
What appears to be required, after the identification of an incipient asset bubble, is the application of existing regulatory authority to set [increasingly higher] interest rates for these sorts of transactions, limit credit availability and duration, and raise margin requirements. Because of the severe conflicts of interest within the regulatory agencies such as the FRB, FDIC, SEC, CFTC, etc. it is suggested the identification of asset bubbles be tasked to another agency with ?no dog in the fight,? such as the Bureau of Labor Statistics, and the regulatory agencies be forced by law to use existing their existing authority to choke off bubble growth, and as possible gradually decrease it, minimizing impact on the aggregate market/economy, once an asset bubble has been identified.
===== end of webmail =====