Stimulus package # 2

When companies try to save themselves by downsizing itself, they layoff employees, which sets into motion a chain reaction of misfortunes. The laid off employees eventually falls back on their bill payments resulting in the banks and mortgage lending companies into acquiring bad loans. Now these lending organizations then turn to the government for capital to keep themselves afloat. An example of which we have already seen in stimulus package#1.
Now the laid off employees are forced to tap into their saving accounts, like 401K, retirement accounts; forcing the brokerage firms to withdraw funds and once again they will turn to uncle Sam for help--stimulus package#2-- promising to downsize further in hopes of saving themselves from total collapse.
Increased unemployment burdens the social system for public support in the form of public housing, public health, public safety, welfare and transport etc. a cyclic problem leading one into another.
I read an article today suggesting a kind of sane solution to all this problem. The proposed solution is that companies should stop downsizing and laying off its employees, rather they should reduce the salaries and benefits of the employees to achieve savings. When every one in the company suffers it becomes a bigger motivation for all to save the company.
No simple answers but hope that everyone will try for the benefit of the company. This ship must not capsize; it should remain afloat and all should be done so that it will regain its thrust and course towards higher seas.