Banking Sector Requires $1.8 Trillion Plus Comprehensive Plan, Uba Says

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Economic Technologies' Chairman & Chief Global Strategist, Jude E. Uba, this morning, at the GLB economic leadership teleconference, welcomed the passage of an $819 billion stimulus package by the House of representatives. Meanwhile, as that legislation winds through the Senate, to an expected passage, Uba warns of dire urgency to fix the financial sector, in order to stabilize the financial system, relieve the hemorrhaging banks of distressed assets while boosting their common equity and balance sheets, and aggressively facilitate credit flow to businesses and households, but avoid bank nationalization as much as possible

"We are seeing grave economic contraction ripple through, the worst in 65 years," Uba said.

The number of Americans claiming unemployment insurance, as of Jan 17, stands at 4.78 million, adjusted, which excludes the 1.7 million people under the extended unemployment compensation program, passed by Congress last year. That is the highest on record, dating back to 1967, and the economic outlook is clogged with even more layoffs. According to the International Monetary Fund, world output in 2009 would fall for the first time since the second world war, slashing its global growth forecast down to 0.5%, from 2%. With 50 million lost jobs, worldwide.

"This is a gathering destructive momentum, with sights set on all leading economic indicators and institutions."

"But failure is not an option, and the American people realize that and agree," Uba stated.

According to Uba, combating that, in part, demands, "reinventing U.S. financial institutions through a $1.8 trillion comprehensive plan, higher if accounting for significantly wide and broadest targets and obligations, using the Citigroup bailout as a partial model. Some banks, expectedly, will not survive this downturn, but the plan will inject massive liquidity into banks by purchasing significant high distressed assets, through a bad bank window. Buy enough common shares in these banks, to help support their common equity. Unfortunately, banks' current share price weaknesses and their massive capital infusion appetite will minimize any ambitious common share policy, leading further to preferred shares. And deploy two or three of the banks, through a special agreement, to quickly and aggressively inject liquidity into the economy, as much as additional $500 billion."

"We must preserve the current banking system as much as possible, but with far-reaching, real and stronger regulatory structures and efficiencies, providing for robust transparency and accountability," Uba said. "Going forward, effectively calculating future risks and opportunities, and broadly and targetedly anticipating and reading cross-current balance sheet psychologies will define great monetary and regulatory policy management for 21st century markets."

"This economic downturn, severely grave, demands timely, decisive and brilliant measures."

"So far, the Obama administration has shown remarkably impressive and senior depth of upper level perspectives and appreciation of this crisis and the opportunities that will evolve, on both domestic and foreign windows," Uba said.

About Jude E. Uba :

Jude E. Uba, Economic Technologies' Chairman & Chief Global Strategist, developed, created and authored the Fluid Fence Economic Principle and the Dimax/EXCAP economic growth blueprints, applications and mechanics for national economic growth, productivity and efficiency objectives.

About Economic Technologies:

The company is leading an ambitious global effort, driven by innovative ideas and products, to help countries achieve massive and sustained economic growth, through the bundling and convergence of breakthrough economic growth technologies and applications, advanced global healthcare access, brilliant infrastructure solutions (water & power), data distribution/delivery platforms and its mega-infrastructure funding concept, EDTC. Working with governments to build a country where everything works. The Company's proprietary economic science breakthrough, Dimax/EXCAP, the product of a 15-year intensive R&D, the first-of-its-kind, is poised to change how billions of people, worldwide, work and live.

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