1. Implement Constitutional Adherence. The list of possibilities here in endless, isn’t it?

2. Implement Limited Government. For starters, someone can show me where in the Constitution it says that taxpayers are supposed to bail out banks. If no one can, then maybe we can consider NOT BAILING THEM OUT.

3. Implement Fiscal Restraint. Refuse to raise the debt ceiling, and balance the federal budget. Immediately. Now. Not tomorrow, and not “once the crisis has passed.” The crisis was caused by unsustainable debt. We used to believe that a federal deficit of $400 Billion a year was unsustainable, remember those good old days? Now, the deficit is $1.4 Trillion, and no one realistically expects it to fall anytime soon. Borrowing more money is not going to fix the debt crisis. Stop the deficits. RIGHT NOW.

4. Implement Virtue and Accountability by forcing federal regulators to investigate and prosecute rampant fraud by Wall Street and the big banks. Karl Denninger has been all over this story, in all of its nauseating detail, for years. Here’s a brief summation. This will be a necessary step towards restoring #5 below.

Then there’s this from Livinglies, exposing the reality of Trillions of dollars of Mortgage Backed Securities paper-mache in the banking system (please follow the link and read the entire piece; make sure you are current on any blood pressure medication first):

    BOTTOM LINE: The MBS bonds, synthetic securities and other exotic creatures have no value because they do not entitle anyone to receive anything. The promissory notes signed by borrowers are not, by themselves, enforceable even in courts of equity. The mortgages and deeds of trust, are not legal encumbrances on real property under any laws. The documents — bonds, notes, mortgages, deeds of trust, assignments, endorsements, allonges are all worthless.
    The only remaining plan of the banks is to get people into legislative office who will pass laws that not only absolve the banks of wrongdoing, but change property law, contract law and the laws governing commerce that have guided our societies through hundreds of years of the creation and changing of nations. This would be possible if nobody was watching. But now, ever watchful for signs of another fraudulent bailout, everyone is watching. If you think this isn’t important, then wait until you buy or sell your next car or house. Better to be angry now than later.

5. Enable Free Markets. Real free markets, not the phony, fraud-enabled kleptocrat markets we have now. The Federal Reserve is trying to manage the entire economy. It is using its CONgressional mandate for “monetary policy” by engaging in industrial policy. It is flooding the U.S. and the entire world with brand new money, buying assets (Treasury Bonds and Mortgage Backed Securities) in a vain attempt to prop up their already inflated but unsustainable prices. The Treasury used phony “bank stress tests” to encourage banks to hide losses and claim profitability and health. These actions have been amply documented here and elsewhere. If market forces were allowed to act, most of the major banks would be in government receivership and their investors would have taken their huge and rightful losses. The failure to allow the markets to work is what is holding back genuine recovery. Markets must “clear”. Losses must be realized so that the failed assets can be repriced; then, and only then, can they be brought back into play. This is how markets work when they are free. We can also end the regulatory nightmare where businessmen find ourselves having to apply to the government for permission to earn a living.