OT: economy action item

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 www.house.gov and www.senate.gov
===== 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: http://www.bloomberg.com/news/2013-09-19/asset-bubbles-found-by-finnish-economist-inspired-by-grandfather.html#comment-1053101285 <snip> Systemic Risk The worst financial crisis since the Great Depression and the biggest economic slump since World War II have prompted policy makers to develop such responses as so-called macroprudential tools, which gauge systemic risk among financial institutions and limit the impact on the economy. Feed in dividend yields and stock indexes, and Taipalus’s indicator signals every major U.S. stock-price bubble since 1871. Input rent indexes and house prices, and it signals when increases in the cost of homes are becoming unhinged. <snip> --------------------------------------- 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 ====
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