As world stock markets plunge and Wall Street teeters on the edge of what may be another very bad Friday, we can rest assured, or so says our fearless leader:
WASHINGTON (AP) - President Bush is arguing that high anxiety among both investors and the general public about the economy is making the credit crisis more severe.
Bush went to the Rose Garden of the White House Friday morning to reassure Americans that the government is doing all it can to cope with the problem. He acknowledged mounting worry among people about their retirement and investment accounts.
Bush said the United States is working “closely with our partners from around the world” to steady the stressed financial markets. He also said that “we’re in this together and we’ll come through this together.”
Yea, I feel much better now.
October 10th, 2008 at 11:49 am
So much for that “legacy”…
October 10th, 2008 at 2:48 pm
The Operation
The meltdown of the economy is like a cancerous growth in the body. The only way you can stop this kind of cancer is to cut it out. At the same time, you have to infuse new money into the system that will stimulate growth of new tissue. The only true way this can be done and save everyone from a great depression worldwide is you have to take the 700 billion dollars and use it in a more appropriate way. But before that can happen, you have to perform surgery on the market.
1st phase, the surgery consists of this, a congressional movement to take all homes that are in foreclosure and all arm loans and move them all to a 30 year fix at the current interest rate. This could be done by a simple application process. Anyone that is in foreclosure or is going to be in foreclosure if they apply to a special government comity should have their houses converted over to a 30 year fix at the current interest rate, and are automatically approved and given amnesty from their current mortgage problem.
All the homes that are in foreclosure or that are going to be in foreclosure should automatically be put at the current market value by the government. The upside down portion of home values today is just automatically moved by the government of the books as a loss.
It should be put in a special holding by the goernment to be metered back in to the market at a later date.
2nd phase is 350 billion dollars should be given by portion to all homeowners upon applying for it that have a current mortgage good or bad. Renters do not qualify. With all homes brought to a current market value in which all the money lost is a loss to the banks and institutions, the portion of the 350 billion dollars that the homeowner applied for, the loan will be paid back by property taxes over a 30 yr amortization. If the house is sold the loan would be paid back through the profit of the sale of the home. If no profit is made to pay back the loan in the sale, the new homeowner assumes the payback. The loan is locked into the taxes on that piece of real estate amortized over 30 years to pay it back. The loan should be an interest free loan. The purpose of this is to stimulate money flow back into the system.
It will be put in the banks and at the same time it will give the banks lending capital. 350 billion should go to Wall Street. This money should be used when applied for by a bank that needs to borrow the money with an interest rate attached to it. This money should be used for the sole purpose of lending to other institutions. It should not be used to pay the CEO’s salaries or to pay bank operations. But it should be used to generate lending back into commerce which in turn will generate jobs. A special committee should handle all mortgage transfers and all paper trails of the banks in lending the money.
If you don’t do this approach, everyone looses.
The rich will lose; middle class and poor will lose. Everyone will lose.
The reason why, because the bad loans will still be out there and they will bleed whatever money you put back in the system, they will bleed it out and you will arrive back at the same point which you are at right now and there will not be another 700 billion to give. The dead money in the loans that can never be recovered right now, that’s what’s killing consumer confidence, business confidence and Wall Street confidence. Only the government can convert every arm into a 30 yr fix and mandate that all the homes that are in or headed to foreclosure be lowered back down to the current market value. If you have any questions, contact us.
universalsolutionsgroup@yahoo.com