VT, The US is $53 trillion in debt. US debt grew by 5.5 times GDP last year, while another 5.5 million home foreclosures are predicted by 2012. Each day the US requires $4 billion in overseas capital just to keep the economy functioning. If the US were a business it would be closed down by the administrators.
On Oct 3, 3:09 am, VT Sean Lewis <[EMAIL PROTECTED]> wrote: > 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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