09-23-2008, 04:29 PM
I keep hearing Sec. Paulson testify talking about saving the system. Really? Why?
This is the perfect opportunity to tear down the old system and replace it with one that actually works.
Example: We have over 4,000 pages of Federal Tax Codes. Why? Special Interests. What the hell is an oil depreciation allowance anyway? The point is - we need to reboot everything. Will it be painful. Yes. Very. But we are looking at an 11 Trillion Dollar debt for this country. That will kill us and our way of life more surely than another terrorist attack on this country. So what to do?
I call it the 20/20 Solution.
It starts at the bottom, not the top.
The root problem seems to be the Housing market. Okay, so how do we do that? Let the Fed buy up bad loans and foreclosures. Then sell them at twenty cents on the dollar of the current Value.
I live in Southern California, so let me use that as an example. Say you have an empty house valued at $ 500,000. Sale price would be $ 100,000. And who would benefit from this program? FIRST TIME BUYERS with a proven income of $40,000 who can make a down payment of 5% cash. Interest rate would be 6% for a 15 year fix mortgage. That would make a monthly Mortgage payment of around $850 per month.
So the program makes money via interest on Federal Loans. And how does the taxpayer get back the $ 700 Billion?
When the Home Buyer sells his property, assuming that the economy does indeed turn around, he returns to the Government $ .20 on the Dollar of his NET PROFITS.
What would happen? Empty homes would be filled. Neighborhoods would be made whole and have people caring for their homes/investments. Local taxes would be paid. And money would flow back into the economy via people caring for their homes. Building materials for upgrades. Appliance sales. Decorating items.
The focus of the taxpayer Bailout would be the Taxpayers, not Wall Street. The help of this program starts at the bottom, with people who consider their house their home, not an investment tool, for that is indeed the basis of the problem here. This is not about the financial instruments and deals.
No reverse auctions. No balloon payments. No reverse mortgages. No short selling. It is a straight, clean deal between the home buyer and me, the taxpayer. And, since it is a Federal program, just like the IRS, the investor (me, the taxpayer) will always get their money back.
If the Government wants to use my money to revive the economy, OK. But this time it's for regular people. Not investors. Not speculators. Not people looking to flip. Regular people who have always wanted a house, but could never afford one.
The Focus is not the losers who caused the problem, but the people willing to make the investment of money and time to secure the country's future. That, John McCain is what "Country First" should be about. The Wall Street Mafia should figure out how to survive on their own. Adapt or Die. Hey, why have they been paying outrageous salaries to all those Business Geniuses all these years? It's time for them to do what old time actor John Houseman told us in TV ads, "They earn it!"
And that's the 20/20 Solution.
As usual, the government seeks to solve a crisis by starting at the top.
How about starting at the Bottom?
This is the perfect opportunity to tear down the old system and replace it with one that actually works.
Example: We have over 4,000 pages of Federal Tax Codes. Why? Special Interests. What the hell is an oil depreciation allowance anyway? The point is - we need to reboot everything. Will it be painful. Yes. Very. But we are looking at an 11 Trillion Dollar debt for this country. That will kill us and our way of life more surely than another terrorist attack on this country. So what to do?
I call it the 20/20 Solution.
It starts at the bottom, not the top.
The root problem seems to be the Housing market. Okay, so how do we do that? Let the Fed buy up bad loans and foreclosures. Then sell them at twenty cents on the dollar of the current Value.
I live in Southern California, so let me use that as an example. Say you have an empty house valued at $ 500,000. Sale price would be $ 100,000. And who would benefit from this program? FIRST TIME BUYERS with a proven income of $40,000 who can make a down payment of 5% cash. Interest rate would be 6% for a 15 year fix mortgage. That would make a monthly Mortgage payment of around $850 per month.
So the program makes money via interest on Federal Loans. And how does the taxpayer get back the $ 700 Billion?
When the Home Buyer sells his property, assuming that the economy does indeed turn around, he returns to the Government $ .20 on the Dollar of his NET PROFITS.
What would happen? Empty homes would be filled. Neighborhoods would be made whole and have people caring for their homes/investments. Local taxes would be paid. And money would flow back into the economy via people caring for their homes. Building materials for upgrades. Appliance sales. Decorating items.
The focus of the taxpayer Bailout would be the Taxpayers, not Wall Street. The help of this program starts at the bottom, with people who consider their house their home, not an investment tool, for that is indeed the basis of the problem here. This is not about the financial instruments and deals.
No reverse auctions. No balloon payments. No reverse mortgages. No short selling. It is a straight, clean deal between the home buyer and me, the taxpayer. And, since it is a Federal program, just like the IRS, the investor (me, the taxpayer) will always get their money back.
If the Government wants to use my money to revive the economy, OK. But this time it's for regular people. Not investors. Not speculators. Not people looking to flip. Regular people who have always wanted a house, but could never afford one.
The Focus is not the losers who caused the problem, but the people willing to make the investment of money and time to secure the country's future. That, John McCain is what "Country First" should be about. The Wall Street Mafia should figure out how to survive on their own. Adapt or Die. Hey, why have they been paying outrageous salaries to all those Business Geniuses all these years? It's time for them to do what old time actor John Houseman told us in TV ads, "They earn it!"
And that's the 20/20 Solution.
As usual, the government seeks to solve a crisis by starting at the top.
How about starting at the Bottom?