George Soros' idea

http://thehill.com/leading-the-news/soros-floats-alternative-bailout-plan-with-dems-2008-09-30.html

George Soros stated, “Instead of purchasing troubled assets, the bulk of the funds ought to be used to recapitalize the banking system.... The recapitalized banks would be allowed to increase their leverage, so they would resume lending.”

I agree with George Soros' basic notion that financial institutions need capital. I believe that's the basic premise Treasury Secretary Paulson is operating under as well. But I think an even better method, one that doesn't use Taxpayers and DOES NOT involve the Govt., is to stimulate investment. Congress should act immediately and place a two-year moratorium on Capital Gains Taxes in order to stimulate investment. If stocks went up for financial corporations, they in essence would be recapitalized to the point they could leverage borrowing or resume lending. An additional benefit would be that people could make money in the process, including the Federal Govt. when it collects Income Taxes in April.

The eventual plan has to be free of government interference, which would only exacerbate the financial situation much like FDR's Keynesian Economics worsened the Great Depression and dragged out recovery. The plan should instead focus on a means of using free-market principles to drive the economic recovery like cutting the Capital Gains Tax and not a Marxist bailout like the $700 Billion George Bush bullshit giveaway. Sound Economics should be returned to the system and crap laws like the Community Reinvestment Act of 1977 and the Gramm-Leach-Bliley Act of 1999 should be abrogated. There is no reason financial institutions should be forced to lend to borrowers who don't have sound finances. There is no reason investment banks should be allowed to repackage subprime loans as securities which became possible because of Gramm-Leach-Bliley.