If the Banks raise interest rates over the course of the next 6 months to 2 years that should help create production jobs.
If the Banks were forced to pay 1.8% compounded rates over the next 6 months to those that had holdings, then 3% in a year, then 5% in 2 years people would start to pull their money out of the stock markets and put it into the banking system.
The Banks would give interest incentives to those who took loans out to create manufacturing jobs. After the Jobs are created America will then have product to sell; which increases capitol. After that, people will then be able to invest their funds back into a legitimate stock market if they desire.
An Executive Order Forcing Banks to Raise Interest Payouts.
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Re: An Executive Order Forcing Banks to Raise Interest Payou
There's a simple way to do this without an executive order. The Fed could raise the federal funds target rate which is currently very low by historic standards. They have said they won't change the rate until 2013 (conveniently after the election).