Hi,
I have been closely following the news on the US Subprime crisis which has led to the Global ecomic crisis and slow down in the global markets. There have been the biggest brains working around the globe to solve this crisis. Well last night I was discussing this topic with my family and thought there there can be a simple solution to this. This is purely my personal opinion and may be I can be wrong in many ways. However I thought it could be worth atleast sharing my thoughts..
Here is my solution to the Global economic crisis.
Firstly, what created the problem. Sub prime losses leading to land values in US shrink,Thus creating a major liqudity crisis globally.
My solution : Open up the US real estate market to the outside countries and allow people to invest in Land in US. Create policy and governance around it to regualte and monitor the policy.
Eg : US government allows retail investors outside US to invest in US. Supose US government does that then eg : an Indian can purchase land/house in US for 1200 sqft for 1 crore rupees which is equal to the price in an upmarket area in any of the metro cities in India. Why will people not purchase. Its a very luctrative offer for people to invest in US. Just imagine how many people (retail investors) from various countries would want to invest in US real estate market. In less than a month's time the demand for US real estate would increase substancially, liquity will flow into the market, and the economy is back on track.
There are potential challenges too like security, laws of the land etc.. But by having right policies and governance around this proposal , we can come out of this major global crisis..
This is my personal opinion. I may be wrong and could not have looked into other aspects as well. But I thought it would atleast be worth sharing my thought.
Let me know your comments/opinion regarding this..
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