Sorry I left this part out of my posts, but this is included in my Group pages..
The Funds should be split 50% for Home Mortgages to keep Home Owners in their homes and 50% for the Derivatives to pump liquidity back into the Financial Institutions. The Funds should be dispersed over 3 Quarters $350 Billion, $250 Billion and $150 Billion, First come First served.. On Oct 2, 12:26 pm, VT Sean Lewis <[EMAIL PROTECTED]> wrote: > OK One more time the SOLUTION > to the Real Estate Meltdown / Rescue-Recovery Plan > > October 2, 2008 > Sean Lewis > > All real estate properties included to the Trust should be submitted > at the value of the 2003 tax assessment value. > > The homeowners new rent will be based on the tax assessment > value at a 30 year mortgage. > > The original homeowner has two years to purchase back the property > at the tax assessment value. > > If the original homeowner purchases the home it is with > the understanding they can not sell the property for 5 years. > If forced to sell the property it will be at the tax assessment rate. > This prevents flipping. > > The financial institution can hold the certificate and receive > interest until maturity or may sell the certificate of the trust > as a 5 year bond. > > After 2 years the US government may sell the property at fair value > market rates. The profit goes to the treasury. The homeowner > after 2 years will have to pay market value. > > The length of the certificates will be 5 years. > > The Pricing of the derivatives is this. > > If the Financial Institution is not willing to > have oversight, allowing the US Government > an equity state in the company and a hold > on executive compensation then they receive > $.33 on the Dollar. > > If the Financial Institution IS willing to > have oversight, allows the US Government > an equity state in the financial institution and > hold on executive compensation then the > Institution will receive $.66 on the Dollar. > > This stabilizes the real estate market. > Gives homeowners a chance to reclaim their homes. > Punishes the financial institution for not doing proper due > diligence, but also allows them to mark to market the > value of their holdings. It also allows the treasury to receive > a fair return for it's risk. > > FIXING THE ECONOMY > > The bottom line the Bush Tax Cuts are the main cause. > > The US government needs income to run. > > Without the income the US government must borrow funds > from other sources. > > The more the US borrows, the higher the US Debt goes and > the larger the payment on the Debt Interest becomes and the > more money the US needs to borrow. > > The double edge is that as the Debt grows the faith in the US > Economy and the US Dollar declines. > > The US dollar has fallen by almost half against every major > currency. > > The Bush Tax Cuts did not fulfill any of the claims promised. > > More money to the rich did not stimulate the economy, did not > create 15 million jobs, did not balance the budget or lower > the debt and did not increase revenues. > > When people make more money than they need they keep it, > they do not give it away. Greed creates Greed. > > The increase in revenue came from the increased profits from > abroad either from exports to foreign countries or profits from US > international companies taking advantage of the US currency drop and > padding their Earning Reports with profits made overseas. > > Add to this mix US companies exporting not only jobs but > entire industries overseas to maximize profits at the cost of US > citizens and you have the second leg of the collapse. > > The American middle class, the true engine of the US economy was > under siege. > > Americans were losing their jobs at the same time interest rates were > rising and core inflation WITH food and fuel were exploding higher. > > Interest rates were rising so that Foreigners would buy the US > Treasuries > to finance the DEBT. Unfortunately the American middle class had > Adjustable Rate Mortgages tied to the interest rates. So American > Mortgage payments increased beyond their ability to pay. > > Foreclosures began, and created a falling real estate market. The > more > foreclosures the more home prices fell. Middle Class Americans had to > make a decision, sell their homes at a lost or hold on in hopes that > things would turn around. > > Unfortunately not only did things NOT turn around, things became > worst. > > The Fuel from Food program accelerated the decline of the economy. It > created a spike in grain prices and food costs and did little to > reduce the price of oil products. > > The new law making bankruptcies harder and also no longer protecting > people from losing their homes, which means Americans could not > attempt any financial remedies to restructure their debts. > > Financial institutions looking for a new way of making money, linked > up with mortgage brokers to securitized loans in early 2001 to 2003 > with creative vehicles such as no money down, interest only, 5 year > balloon ARM's. > > Everything looked good on paper but was hinged on one thing, the > continued > strength of the Middle Class, which I have shown was under heavy > siege. > > As Americans fell behind on their payments the securitized mortgages > were > not receiving payments so began to lose value. As the housing market > continued to collapse so did the securitized instruments. > > So here we are. I streamlined this, there were a few other issues, > irresponsible spending, off budget expenses of two wars and Katrina. > > How do we fix it? > > Painfully. > > There is no easy fix. > > The US Debt most be reduced. The economy must be stimulated. > The middle class most have jobs. The long term costs of Medicare > medicaid and social Security must be addressed. > > The tax cuts must be rescinded. > > Government spending must be reduced and pay/go instituted. > > The age at which retirees can claim benefits must be extended by one > month a year and benefits will have to be means tested. > > The alternative minimum tax must be raised to exclude individuals who > are single at $120,000 and Couples to $200,000. (middle class tax > break) > > Social Security taxes need to be raised to 12.5% split between > employer and employee and also raised to include the first $200,000. > (I need to double check this percentage it may be less) > > Businesses will receive tax breaks equal to the gross expense of > bringing US jobs BACK to the US for 7 years of continuous employment > of the position as long as the net jobs of employed are increased by > the same number of jobs at the job site. > > Health Care should be bottom up. > > $10,000 of health credits per tax payer for preventative care. The > individual Must get a physical check up each year or lose a portion of > the benefits. Give the Taxpayer a lifetime Budget of $250,000 for > medical care of their choosing. Pro rate this by age 18 to 72 at the > start of this program. > > The way to keep medical costs down is early treatment. If a person > does not address a medical problem reduce their benefits. > > This is not to REPLACE medical insurance but to give a minimum level > of medical care. > > All of the above is the medicine to get the country back on track. > > Ending the tax cuts to the rich will lower the debt, which will > strengthen the US dollar, which will mean oil will cost less, which > means inflation will go down, which means core inflation including > food and fuel will diminish, which means the economy will become > stronger because US workers will be able to afford to buy > discretionary products, which will employ other Americans who will > now > have jobs so they will not lose their homes which means the housing > market will stabilize, which means banks will be more solvent, which > means money will once again become liquid which means loans for > investments will once again become available which means industry > will > grow which means increasing GDP growth and more jobs. --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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