What Would Occam Do?

If the Tick were asked to comment on the toxic asset repurchase, he would probably say something like this, "For those of you who aren't paying attention, we residents and citizens of the U.S. are about to make a big doo-doo in our diaper of finance."

I understand why injecting liquidity via "toxic asset" purchase may be beneficial. However I anticipate a very large cost of administration and foresee great waste and large missteps in execution.

I believe that there is a much more elegant solution to the banking liquidity crisis. We should temporarily reduce the required reserve ratio, and allow it to slowly climb back over a 3-5 year period.

I believe that India took similar steps last year, to positive effect. This solution immediately adds liquidity. It would cost nothing to taxpayers. It would aid all banks in a fair way, and would not require politicians or bureaucrats to make high-stakes decisions that they did not understand.

For those of you who don't know me, here is a quick background. I am an Economist by education and have worked in this capacity for the IRS, focusing on the analysis of large foreign owned corporations. I have also worked as a tax accountant, and in corporate finance. While this should not make me more qualified to have an opinion than all the "experts", apparently it does.

I would tremendously appreciate responses.