This brief exposition suggests that the Federal Reserve System temporarily guarantee a lower bound on stock prices in order to escape the current combination of liquidity trap and credit crunch. It shortly discusses reasons for this measure, consequences, and some alternatives. It is meant as a...

Up until now, the management of the financial crisis has been placed, primarily, in the hands of those who allowed the crisis to happen. Investors and financial institutions have received government support at tax payers’ expense while the needs and interests of other victims of the crisis...