NASHVILLE, Tenn., Aug. 25, 2011 /PRNewswire/ -- The Federal Reserve Chairman, Ben Bernanke has seemingly run out of ammunition in the fight to stimulate the economy. Neither super-low interest rates, QE1 or QE2 have been able to create growth or confidence in the economy. But, David Trainer, CEO of New Constructs®, a Nashville-based independent research firm, believes the Fed can still take action to not just stimulate, but fix the economy. "Drastic times call for drastic measures and it's time for Mr. Bernanke to break out the big guns in Jackson Hole this Friday," says Trainer.

According to Trainer, Mr. Bernanke should fire the "Fed's Bazooka", which means breaking up all banks that are "too big to fail" by separating the deposit-taking and lending arms of the banks from all trading, investment banking and other speculative activities in which broker-dealers engage. The separate banking units would stand on their own with no shared liabilities. "The goal is that the high-risk-taking activities of one entity only affect that one entity. If that entity loses too much money on bad bets, then they go bankrupt just like every other American corporation or individual." Click here for more details on Trainer's plan.

"Let's face facts, the bailout strategies, despite costing taxpayers $1.6 trillion, have not worked because they rely on the same financial companies that got us into this mess in the first place," says Trainer. "The time has come to move beyond the flaccid short-term stabs at stimulating the economy and show the strong, decisive leadership needed to restore confidence in the capital markets."

Too many banks, like Bank of America (BAC, which gets New Constructs' dangerous rating), Citigroup (C, very dangerous rating), JP Morgan Chase (JPM, dangerous rating) have been able to continually bend the rules to their money-making favor by leveraging their war chests of profits to lobby Congress.

"The time for talk is over," says Trainer. "Only decisive action will do. The bigger the Wall Street monster gets the more destructive and exploitative it will be and the consequences could be devastating." Without confidence and trust in the financial system, Mr. Trainer believes, everything will grind to a halt.

"Mr. Bernanke, the time to act is now. The longer we delay, the worse the problem gets as the more capital gets wasted and the lower the stock market goes."

Now this seems to be an interesting idea I think many can get behind.