Bank Bail Outs and Energy Futures

What would you do with $700,000,000,000.00? The American financial system is broken, and this is the repair bill. There is no good solution, although we might like to let the captains of capitalism fail, the problem is that they would take us with them. We are told that with out some support to the banking system we could face a banking freeze, this could mean that the bank may not be able to issue your pay check. no pay checks and the economy could really go down hill. On the other hand 700 billion dollars may not be enough to fix the problem, or it could even make things worse.

As I write this congress is trying to hammer out the details of a bail out, fortunately many in congress are calling for accountability, transparency & re-regulation. Three important ideas include: 1) a call for equity exchange, that is if the government gives the banks 700 billion then the banks give the government some shares in banks. 2) that banks who choose to take advantage of the bail out should have limits on the salaries of their executives. 3) for the individual mortgages the government picks up the government should work to help those individuals keep their homes. A lot of people are referring to the system and bail out as a case of privatizing gains and socializing losses. Although demanding equity, and asserting authority over failing institutions may be lemon socialism it is at least a step better than welfare capitalism.

But what would you do with $700,000,000,000.00? About 4 years ago the Apollo Alliance started talking about a major investment in energy efficiency, renewable energy production and related jobs in this field. They presently suggest $500 billion investment over 10 years. Increasingly others are adopting energy programs that mirror this proposal, Al Gore and the We campaign to fight global warming have called for 100% of American energy to come from non-carbon sources with in 10 years. Barack Obama has presented an energy program that focuses on eliminating our need for foreign oil. Even John McCain has windmills on his energy policy page. In other words a consensus is developing around the importance of responding to global warming and oil prices with a plan for an ecological and sustainable energy future.

I don't know about you but I would much rather see hundreds of billions of dollars go to a green energy program than to help out banks that have made poor decisions. Green re-industrialization promises greater social and financial returns than buying bad loans.

Although the US government is already over strapped with debt related to the wars in Iraq and Afghanistan, it is possible that the government can bail out the banks and still have funds for an Apollo like energy project. Nonetheless, after this bill there may not be the political will. So if the "fixing of the economy"can't be redirected towards addressing the energy & environment problems directly, I would add one more key element to a 700 billion bail out package, Participating banks should be mandated to preferentially loan to energy efficiency and renewable energy projects.

it's worth mentioning http://www.freshaircleanpolitics.net/ is a page that is working to slow or stop the bail out process, go there and you can send a message to your legislators.