The real problem is that America is over burdened in debt. Incomes have not increased and America, its businesses and people, need a quick restructuring to create a “continuous” cash flow to ignite spending to support businesses. Without consumer spending, this recession, will quickly turn into to the biggest financial disaster this country has ever seen.

The fastest and most effective way to correct the damage to our economy is to offer low interest loans to consumers to refinance their homes and debt. Credit card companies need to restructure credit card debt into long term low interest non revolving instruments. Mortgage companies need to be able to offer low interest (3 to 4%) 30 year mortgages for refinancing. Once we restructure the debt load and create this continuous cash flow, banks should revert to sound lending practices to prevent this mess in the future.

Once we restructure the debt loads, disposable incomes will be on the rise and spending will commence. The quicker we restructure debt, the faster the economy rebounds. If we don’t restructure debt, bankruptcies will prevail. If I were an investor, I’d rather get 3% back than loose everything.