(Experiments can either click or go absolutely awry and this is one such experimental solution. Readers are welcome to add their thoughts :) )


Vaccination is a really amazing concept. It involves taking a small quantity of the very substance or organism that produces harm and using that as a base in preparing remedial substance that helps fight the same poisonous substance. Why speak about it now?

Something on similar grounds is needed now to provide the much needed fillip to the sagging economies. This is now a Crisis of Confidence and not a Crisis of Credit and that is why I believe that any amount of Stimulus packages alone wont go really far in resolving the the current problem.

The same goes with creating Jobs, even if jobs are going to be created, Unless people come out and spend again, the business scenario is not going to improve much.

Stimulus packages and Job creation Packages need to be accompanied by measures which go in improving the confidence of the people in a very big way. It should alleviate the fears of people, who are worried about the flow of credit.

So what is my prescription? Interest rates are at an all time low, How about taking it to a next level and start to tax Savings and reward Investments?

Taxing Savings, would mean that people would start spending or Investing their savings, which would start restoring a bit of confidence amidst people. Banks would start facing pressure to pay the Investors and this can be addressed with the help of funds which are being provided by the Fed and other National banks.

How about taking this route?