Overthrow capitalism Travis wrote: > (Rec'd from author) > > From: Travis > Subject: Ideas for a Plan to Solve the Subprime Mortgage Crisis > Date: Wednesday, October 1, 2008, 4:15 AM > > *Ideas for a Plan to Solve the Subprime Mortgage Crisis* > > *Rene Guerra*** > > > > Years of malicious policies by the Democrats and stupid mistakes by home > buyers have created an economic nightmare in America , but $700 billion > ---and probably more--- in new debt for worthless mortgages, and a systemic > drift toward socialism and autocratism is not the answer. > > > > The solution to the problem cannot be worse than the problem itself; it > cannot be a bailout that wastes taxpayer money, foments socialism and > implants autocratism. It has to be a workout based on > free-entrepreneurialism, which is one of the greatest assets of America . A > partial plan is presented at the bottom. > > > > The problem must be solved at its superficial manifestations and at its > roots. Furthermore, the solution must also include prophylactic measures > that prevent similar problems in the future. To that effect, a brief review > of the origin and development of the crisis fits here. > > > > On the one side, the Democrats craftily perverted and inversed the pro-free > enterprise goals of the Bill Clinton administration Gramm-Leach-Bliley Act > (GLBA) <http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act> of 1992 into a > pi�ata in the housing market, where credit unworthy individuals were given > mortgage loans that they couldn't pay; "Ninja" loans, were called those > "instruments" of credit that in essence was bad paper, mere Monopoly money. > > > > *"Ninja = a member of a Japanese feudal organization practicing clandestine > activities."*** > > > > In a jujitsu-like massive operation, the Democrats used the pro-capitalism > momentum-generating-power of GLBA to create critical conditions that would > eventually lead to pushing America further toward socialism. The genuine > intention of GLBA is to promote capitalism but the Democrats maneuvered to > use GLBA to promote capitalism's antithesis: socialism. > > > > *"Jujitsu: a Japanese martial art mainly consisting of cleverly attacking an > opponent by using his/her strength and weight to her/his disadvantage, > rather than engaging in attacking him/her directly."*** > > > > Using GLBA as the lever and the Carter Administration Community Reinvestment > Act (CRA) <http://en.wikipedia.org/wiki/Community_Reinvestment_Act> of 1977 > as the fulcrum, the Democrats created a clever mechanism to manipulate the > housing market into a great chaos, conducive ultimately to socialism. And, > in the process, it conduced as well to the enrichment of some Democrat > apparatchiks, such as Jamie Garolick (the very one who built the walls > between the national security agencies, which contributed heavily to 9/11), > Franklin Raines, James Johnson, Penny Pritzker and others who, by the way, > are very close to the Obama campaign. > > > > Add to it that Senate Banking Commission Chairman Christopher John Dodd (aka > Chris Dodd) became the largest beneficiary of Fanny Mae and Freddy Mac > political contributions, followed by none else than Barack Hussein Obama, in > second place. > > > > Using CRA and GLBA, the Democrats pushed Fanny and Freddy to in turn push > banks to make Ninja loans like in giving away candy in a pi�ata party. Fanny > and Freddy bought the phony paper by boxcar loads. The big investment-banks > (Lehman Brothers and the rest here in the U.S.A. and abroad, went into a > piranha frenzy buying the worthless paper from Fanny and Freddy, in the > illusion that if the two Fs were selling them in their condition of Government > Sponsored Enterprises > (GSE)<http://en.wikipedia.org/wiki/Government_sponsored_enterprises>, > they had to be good . . . although they neither looked nor were good, at > all. > > > > On the other side, hundreds of thousands of entirely credit unworthy, giddy > homebuyers jumped into the occasion and gingerly applied and obtained their > Ninja loans. They perfectly knew that they couldn't pay those loans; > however, they went ahead with it. The realtors who sold them the homes knew > it too; however, they went ahead with it. The banks that made the loans knew > it too; however, they went ahead with it. > > > > The bubble that *Ninja-ism* ---along with other causes that would take too > long to discuss here--- had contributed to create in the housing market had > to burst. And, in the aftermath, the Democrats would push for the > statization of the resulting failing financial entities under the disguise > of a bailout that taxpayers would pay for. Pure socialism, the end result > would be. > > > > Duplicitously clever creatures, the Democrats indeed are; they make the > American people pay from their own pockets for the yoke ---socialism--- that > they will be enslaved with. > > > > Thanks to true conservatives ---that is, conservative talk show radio > anchors, some conservative columnists, some Fox Business Channel and Fox > Business Channel anchors, and hundreds of conservative bloggers and Internet > journalists--- Americans are aware of what is going on and have, by the tens > of millions, realized that the entire thing is the duplicitous socializing > work of the Democrat Party. > > > > We need not a solution to the crisis, but the proper solution. That is, we > need a solution based on workout rather than bailout. What we need is a > solution based on free-entrepreneurialism, not in socialism. > > > > The stronghold in the crisis resides in the fact that the failing financing > institutions ---having mal-invested huge resources in worthless Ninja > mortgages--- have run out of cash to cope with their other financial > operations and with their obligations. Most of their cash is captive by > worthless paper; they need cash; they are suffering a lethal lack of > liquidity. > > > > That's the problem . . . on the surface. > > > > But the underlying problem must be addressed and corrected as well, and that > problem resides in the intrusion of the government in the realms of the > private sector. And that governmental intrusion materializes, in this > particular case, through Fanny Mae and Freddy Mac, and in general, through > other GSEs. > > > > GSEs lend themselves to political manipulation and cronyism, and therefore, > to corruption and unaccountability. As long as GSEs exist, they will keep > being fertile ground for the generation of crises like the one the Democrats > created with *Ninja-ism*. We must make sure that similar crises don't repeat > in the future. > > > > Borrowing heavily from the "*Commonsense Plan*" that conservative author and > TV and Radio Show anchor Dave Ramsey has posted on his > website<http://www.daveramsey.com/etc/fed_bailout/3_steps_to_change_the_nations_future_10928.htmlc?ictid=sml>, > and expanding with the help of commonsense ideas from others and from my > own, I have compiled a partial plan to solve the liquidity problem and the > root problem of the mortgage sub-prime meltdown. > > > > No bailout at all is included, and the plan is rich in measures that > stimulate the economic growth we need to work our way out of this mire. > Serious measures to prevent similar problems in the future are included. > > > > I call it "*Commonsense Plan++*", meaning that it is Ramsey's plan plus some > other goodies that bite hard, and you can find it below. > > > > > > > > * * > > *Commonsense Plan++* > > *To Solve the Current Finance Crisis*** > > * * > > *I. INSURANCE* > > > > A. Insure the subprime bonds/mortgages with an underlying FHA-type > insurance. Government-insured and backed loans would have an instant market > all over the world, creating immediate and needed liquidity. > > > > B. In order for a company to accept the government-backed insurance, they > must do two things: > > > > 1. Rewrite any mortgage that is more than three months delinquent to a 6% > fixed-rate mortgage. > > > > a. Roll all back payments with no late fees or legal costs into the > balance. This brings homeowners current and allows them a chance to keep > their homes. > > > > b. Cancel all prepayment penalties to encourage refinancing or the > sale of the property to pay off the bad loan. In the event of foreclosure or > short sale, the borrower will not be held liable for any deficit balance. > FHA does this now, and that encourages mortgage companies to go the extra > mile while working with the borrower�again limiting foreclosures and ruined > lives. > > > > 2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive > team members as long as the company holds these government-insured > bonds/mortgages. This keeps underperforming executives from being paid when > they don't do their jobs. > > > > C. This backstop will cost less than $50 billion�a small fraction of the > current proposal. > > > > *II. MARK TO MARKET* > > > > A. Remove mark to market accounting rules for two years on only subprime > Tier III bonds/mortgages. This keeps companies from being forced to > artificially mark down bonds/mortgages below the value of the underlying > mortgages and real estate. > > > > B. This move creates patience in the market and has an immediate stabilizing > effect on failing and ailing banks�and it costs the taxpayer nothing. > > > > *III. CAPITAL GAINS TAX* > > > > A. Remove the capital gains tax completely. Investors will flood the real > estate and stock market in search of tax-free profits, creating > tremendous�and immediate�liquidity in the markets. Again, this costs the > taxpayer nothing. > > > > B. This move will be seen as a lightning rod politically because many will > say it is helping the rich. The truth is the rich will benefit, but it will > be their money that stimulates the economy. This will enable all Americans > to have more stable jobs and retirement investments that go up instead of > down. > > > > *IV. BUSH TAX CUTS* > > > > A. Make the Bush tax cuts permanent. Much more money will be available > to invest and stimulate the economy to grow. > > > > B. Same as in III B above > > > > *V. TAX MISCELLANEA* > > > > A. Lower business taxes considerably, say, to no more than 10%. > > > > B. Abolish the death tax. > > > > C. Ban federal and state tax hikes for at least 10 years. > > > > F. Similar as in III B above > > > > *V. GOVERNMENT SPENDING AND SIZE* > > > > A. Cut government > spending<http://en.wikipedia.org/wiki/Federal_budget_(United_States)>drastically, > by at least 5% (about $140 Billions at minimum). > > > > B. Reduce the civilian size of government (126 in > 1808<http://books.google.com/books?id=W4CloB3dvZoC&pg=PA395&lpg=PA395&dq=%22total+number+of+federal+government+employees%22+and+%22United+States%22&source=web&ots=iRM2eMHi-Z&sig=zb7AkkxA3NUlUxCSHTjJ7STQRU8&hl=en&sa=X&oi=book_result&resnum=8&ct=result>; > 2,720,688 in 2006 <http://ftp2.census.gov/govs/apes/06fedfun.xls>; no one > knows in 2008, not even the U.S. Office of Personnel > Management<http://www.opm.gov/> knows) > drastically, by at least 5%. > > > > C. Ban earmarks for at least 10 years. > > > > D. This will reduce the budget deficit and will lower the need of further > taxation. > > > > *VI. GENERAL* > > > > A. Give the President line-item veto powers. > > > > B. Name a special prosecutor ---with subpoena and Federal Grand Jury > convening powers--- to investigate any wrongdoing by officials ---and indict > them if necessary--- of failing financial institutions tangled in the > crisis, including Fanny Mae and Freddy Mac. > > > > C. Create and install a Subprime Mortgage Meltdown Commission ---not a > sham like the 9/11 one--- with subpoena power, to investigate the whole > affair, from its origin to the meltdown itself. > > > > D. Privatize Fanny Mae and Freddy Mac. > > > > E. Ban the creation of new Government Sponsored > Enterprises<http://en.wikipedia.org/wiki/Government_Sponsored_Entity>and > wean any existing GSEs from the government. > > > > G. Remove Christopher John "Chris" Dodd and Barnett "Barney" Frank from > their positions as heads of, respectively, the Senate Banking Commission, > and the House Financial Services Commission, for their grossly complicit > dereliction in the matter. > > > > > > > -- > *~@):~{> --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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