With an agreement apparent, this is probably a bit late into the game, but I have a different approach to the “bailout” situation.
It is my belief that this whole situation has been created by the companies for whom that “bail-out” is planned. Therefore, they should suffer rather than be saved. If they go under, well, that’s the nature of capitalism, isn’t it? Before long, new, smaller companies will spring up to cover the market’s needs.
The ones who really need help are the consumers who trusted the specific professional expertise of these companies to properly evaluate their candidacy for a loan. Since this was not done, consumers were saddled with loans that they could not afford, and now they are losing their homes as a result. Since I do not have a mortgage that is affected by this “bail-out”, I offer up a better plan for those who are affected. These people should be the focus of any bail-out program, so here’s my plan:
1. Implement a federal moratorium on foreclosures.
2. Establish a branch of the treasury to oversee the implementation of this plan.
3. Sort through the paperwork of the lending institution that are in trouble, and identify those
loans that are in default or close to it
4. Through the use of a Federal mediator, all problem mortgages are “re-negotiated” to a rate, term
and payment that the homeowner can afford. The Federal mediator using appropriate economic
factors determines the affordability.
5. The Federal money used for “bail-out” is applied to pay back 85% of the balance of the
mortgage. The Federal money applied to the loan will be paid to the holder of the mortgage in
annual installments until the homeowner pays off the loan or refinances.
6. The mortgage company as penalty for poor judgment will absorb the remaining 15% of the loan.
Here are the benefits of this plan:
· This gets money to the companies holding the mortgages to keep them solvent in the manner that was originally intended through monthly payments.
· It doesn’t allow any one company to take advantage of the situation.
· The companies involved are still in business, but penalized for their risky actions.
· It leaves the handling of the executives to the companies of those executives as it should be. The financial loss that each company suffers should reduce the status of those executives and lessen the likelihood of financial reward.
· Federal money is properly managed and distributed evenly through several years, making it less of a drain on the budget
There are other benefits, but you get the point. This takes care of the people for the change.
Full Version: My Bail-Out Plan
Agree... somebody bail out my student loan debt. FK this.
I like it, very good. I have a theory that they planned this, want the properties in question, will get huge write offs for maintaining them until they sell, plus more tax breaks because they sold for less than they were worth, that's why Ilike your plan, they get to eat 15%, it should be 20%, but I'll take 15.
Oh and welcome to the board, great first post.
Oh and welcome to the board, great first post.
QUOTE (HouTX-lil-J @ Sep 25 2008, 03:08 PM) 
Agree... somebody bail out my student loan debt. FK this.
me 2 pls.
If they pay one dime to bail out these institutions and/or the congress gives them whole $700 Billion upfront we are literally screwed.
I heard Ravi Batra today on a radio program today discussing how and why this happened based on fundamental economic principles. The last time I heard this message and explanation was when I was doing some graduate work in economics back in 2002. At the time it really did not click or I wasn't sure what to make out of it from my professor. When I listened this morning it was like déjà vu. At first I could remember where I heard it before. I still had my economics text, I pull out and reread the section on the fundamentals of Supply and Demand, Labor, Production, Inflation, etc... , it was there in black and white!
http://www.ravibatra.com/
He is supposed post up on UTube later today an explanation of how and why this happened, and a recommendation of how to mitigate this problem with the "right mix".
http://ca.youtube.com/results?search_query...o_date_uploaded
I do not want dilute his explanation. The bottom line, Randi's recommendation of how to fix this; basically, "working with the distressed homeowner directly is the correct one!" What Ravi Batra adds to the discussion is an explanation of why this will work using sound economic principles. If possible, maybe Randi can getRavi Batra on her show.
I heard Ravi Batra today on a radio program today discussing how and why this happened based on fundamental economic principles. The last time I heard this message and explanation was when I was doing some graduate work in economics back in 2002. At the time it really did not click or I wasn't sure what to make out of it from my professor. When I listened this morning it was like déjà vu. At first I could remember where I heard it before. I still had my economics text, I pull out and reread the section on the fundamentals of Supply and Demand, Labor, Production, Inflation, etc... , it was there in black and white!
http://www.ravibatra.com/
He is supposed post up on UTube later today an explanation of how and why this happened, and a recommendation of how to mitigate this problem with the "right mix".
http://ca.youtube.com/results?search_query...o_date_uploaded
I do not want dilute his explanation. The bottom line, Randi's recommendation of how to fix this; basically, "working with the distressed homeowner directly is the correct one!" What Ravi Batra adds to the discussion is an explanation of why this will work using sound economic principles. If possible, maybe Randi can getRavi Batra on her show.
"that's why Ilike your plan, they get to eat 15%, it should be 20%, but I'll take 15."
It's a hard number to come up with. I was bouncing between 10 and 20 percent myself. If it wasn't for all of the people affected, I'd say let 'em go out of business.
Can we let them fold AND let the people with the bad mortgages keep their house?
It's a hard number to come up with. I was bouncing between 10 and 20 percent myself. If it wasn't for all of the people affected, I'd say let 'em go out of business.
Can we let them fold AND let the people with the bad mortgages keep their house?
I have a couple of questions for Randi to mention:
1. Why shouldn't the uber rich pitch in and bring down this total? I mean, don't they have a kagillion dollars? Or did they spend it building Dubai? (google Dubai and see).
2. Why isn't anyone INSISTING on knowing EXACTLY what is the ROOT of this impending emergency? Everyone in Congress/Whitehouse/the big three beggars are not saying what this big emergency is. I just WANT TO KNOW WHAT EXACTLY IS GOING TO HAPPEN AND WHY. EXACTLY WHY.
3. Note: If there is another "Depression" we are much better educated and have a lot better tools to rebuild a NEW economy and not invite these crooks to the table.
Why not let it fall instead? WHAT is so important about keeping these pigs on top?
1. Why shouldn't the uber rich pitch in and bring down this total? I mean, don't they have a kagillion dollars? Or did they spend it building Dubai? (google Dubai and see).
2. Why isn't anyone INSISTING on knowing EXACTLY what is the ROOT of this impending emergency? Everyone in Congress/Whitehouse/the big three beggars are not saying what this big emergency is. I just WANT TO KNOW WHAT EXACTLY IS GOING TO HAPPEN AND WHY. EXACTLY WHY.
3. Note: If there is another "Depression" we are much better educated and have a lot better tools to rebuild a NEW economy and not invite these crooks to the table.
Why not let it fall instead? WHAT is so important about keeping these pigs on top?
Letting these companies just fail could be a bit of a problem. I don't really like the idea of standing in a soup line for hours. I don't mind the goverment helping out. What I mind is that the focus is on the major corporations with the executives who have a "who gives a damn?" attitude, rather than on the average person who is struggling to feed their family.
With the talks having broken down, maybe now is the time for this plan to be proposed. Obama! You listening???
With the talks having broken down, maybe now is the time for this plan to be proposed. Obama! You listening???
QUOTE (politicalview @ Sep 25 2008, 12:35 PM)
Can we let them fold AND let the people with the bad mortgages keep their house?
Actually this would make sense if you limit it to primary homeowner vs speculators. Then focus on the real crisis, JOBS!
Yeah, and we need to bail them out of their homes. I want these people to lose their homes.
Politicalview yessssssssss I agree too. This problem has to be solved from the bottom up. Please, Please, Please Obama & Democrats, DON"T fall for this sucker bait. Don't give these Billionaires a Bail out, let them liquidate, if this is real, CALL THEIR BLUFF! This Con-Servative free market ponzi scheme has to end, Bring back FDR's policies.
And see my animated short film "Free Market Baloney" on you tube, here's the link;
http://www.youtube.com/watch?v=w8arYlKgYws
And see more cartoons at www.whatnowtoons.com
This Crisis is just Economic Shock and Awe!
And see my animated short film "Free Market Baloney" on you tube, here's the link;
http://www.youtube.com/watch?v=w8arYlKgYws
And see more cartoons at www.whatnowtoons.com
This Crisis is just Economic Shock and Awe!
QUOTE (what0now0toons @ Sep 26 2008, 01:44 PM)
Politicalview yessssssssss I agree too. This problem has to be solved from the bottom up. Please, Please, Please Obama & Democrats, DON"T fall for this sucker bait. Don't give these Billionaires a Bail out, let them liquidate, if this is real, CALL THEIR BLUFF! This Con-Servative free market ponzi scheme has to end, Bring back FDR's policies.
And see my animated short film "Free Market Baloney" on you tube, here's the link;
http://www.youtube.com/watch?v=w8arYlKgYws
And see more cartoons at www.whatnowtoons.com
This Crisis is just Economic Shock and Awe!
And see my animated short film "Free Market Baloney" on you tube, here's the link;
http://www.youtube.com/watch?v=w8arYlKgYws
And see more cartoons at www.whatnowtoons.com
This Crisis is just Economic Shock and Awe!
cool beans. whatnowtoons is in da house.
Keith---Great toon, keep it up!!!!
Whatnowtoons, great video.
Nice use of FDR. Those who do not study history are doomed to repeat it.
Do people really think that regulations were put there because one day a politician thought it would be a cool thing to try? Regulations are there to prevent problems we've had in the past from being repeated. So we take them away, and guess what... the same problems surfaced.
Think we can learn from it this time?
Nice use of FDR. Those who do not study history are doomed to repeat it.
Do people really think that regulations were put there because one day a politician thought it would be a cool thing to try? Regulations are there to prevent problems we've had in the past from being repeated. So we take them away, and guess what... the same problems surfaced.
Think we can learn from it this time?
QUOTE (politicalview @ Sep 25 2008, 02:58 PM)
There shouldn't be a bailout at all. These deregulation-crazed, Milton Friedmanite, global economy proponants need to face the same market consequences as everyone else. They cannot have it both ways, i.e. they cannot as Randi says, "privatize their profits and socialize their losses." This nonsense that "they're too big too fail"....EX-SQUEEZE ME?!!! They say size matters, but that only applies to when you're getting F*&%$ed...Oh yeah, I guess we are. I'll give them the same advice given to the rest of us mythical little people: Stop whining and pull yourselves up by your gigantic bootstraps. If that's not possible, then how about a page out of Sarah Palin's notebook: Just sell them on eBay!
With an agreement apparent, this is probably a bit late into the game, but I have a different approach to the “bailout” situation.
It is my belief that this whole situation has been created by the companies for whom that “bail-out” is planned. Therefore, they should suffer rather than be saved. If they go under, well, that’s the nature of capitalism, isn’t it? Before long, new, smaller companies will spring up to cover the market’s needs.
The ones who really need help are the consumers who trusted the specific professional expertise of these companies to properly evaluate their candidacy for a loan. Since this was not done, consumers were saddled with loans that they could not afford, and now they are losing their homes as a result. Since I do not have a mortgage that is affected by this “bail-out”, I offer up a better plan for those who are affected. These people should be the focus of any bail-out program, so here’s my plan:
1. Implement a federal moratorium on foreclosures.
2. Establish a branch of the treasury to oversee the implementation of this plan.
3. Sort through the paperwork of the lending institution that are in trouble, and identify those
loans that are in default or close to it
4. Through the use of a Federal mediator, all problem mortgages are “re-negotiated” to a rate, term
and payment that the homeowner can afford. The Federal mediator using appropriate economic
factors determines the affordability.
5. The Federal money used for “bail-out” is applied to pay back 85% of the balance of the
mortgage. The Federal money applied to the loan will be paid to the holder of the mortgage in
annual installments until the homeowner pays off the loan or refinances.
6. The mortgage company as penalty for poor judgment will absorb the remaining 15% of the loan.
Here are the benefits of this plan:
· This gets money to the companies holding the mortgages to keep them solvent in the manner that was originally intended through monthly payments.
· It doesn’t allow any one company to take advantage of the situation.
· The companies involved are still in business, but penalized for their risky actions.
· It leaves the handling of the executives to the companies of those executives as it should be. The financial loss that each company suffers should reduce the status of those executives and lessen the likelihood of financial reward.
· Federal money is properly managed and distributed evenly through several years, making it less of a drain on the budget
There are other benefits, but you get the point. This takes care of the people for the change.
With an agreement apparent, this is probably a bit late into the game, but I have a different approach to the “bailout” situation.
It is my belief that this whole situation has been created by the companies for whom that “bail-out” is planned. Therefore, they should suffer rather than be saved. If they go under, well, that’s the nature of capitalism, isn’t it? Before long, new, smaller companies will spring up to cover the market’s needs.
The ones who really need help are the consumers who trusted the specific professional expertise of these companies to properly evaluate their candidacy for a loan. Since this was not done, consumers were saddled with loans that they could not afford, and now they are losing their homes as a result. Since I do not have a mortgage that is affected by this “bail-out”, I offer up a better plan for those who are affected. These people should be the focus of any bail-out program, so here’s my plan:
1. Implement a federal moratorium on foreclosures.
2. Establish a branch of the treasury to oversee the implementation of this plan.
3. Sort through the paperwork of the lending institution that are in trouble, and identify those
loans that are in default or close to it
4. Through the use of a Federal mediator, all problem mortgages are “re-negotiated” to a rate, term
and payment that the homeowner can afford. The Federal mediator using appropriate economic
factors determines the affordability.
5. The Federal money used for “bail-out” is applied to pay back 85% of the balance of the
mortgage. The Federal money applied to the loan will be paid to the holder of the mortgage in
annual installments until the homeowner pays off the loan or refinances.
6. The mortgage company as penalty for poor judgment will absorb the remaining 15% of the loan.
Here are the benefits of this plan:
· This gets money to the companies holding the mortgages to keep them solvent in the manner that was originally intended through monthly payments.
· It doesn’t allow any one company to take advantage of the situation.
· The companies involved are still in business, but penalized for their risky actions.
· It leaves the handling of the executives to the companies of those executives as it should be. The financial loss that each company suffers should reduce the status of those executives and lessen the likelihood of financial reward.
· Federal money is properly managed and distributed evenly through several years, making it less of a drain on the budget
There are other benefits, but you get the point. This takes care of the people for the change.
QUOTE (politicalview @ Sep 25 2008, 11:58 AM)
With an agreement apparent, this is probably a bit late into the game, but I have a different approach to the “bailout” situation.
It is my belief that this whole situation has been created by the companies for whom that “bail-out” is planned. Therefore, they should suffer rather than be saved. If they go under, well, that’s the nature of capitalism, isn’t it? Before long, new, smaller companies will spring up to cover the market’s needs.
The ones who really need help are the consumers who trusted the specific professional expertise of these companies to properly evaluate their candidacy for a loan. Since this was not done, consumers were saddled with loans that they could not afford, and now they are losing their homes as a result. Since I do not have a mortgage that is affected by this “bail-out”, I offer up a better plan for those who are affected. These people should be the focus of any bail-out program, so here’s my plan:
1. Implement a federal moratorium on foreclosures.
2. Establish a branch of the treasury to oversee the implementation of this plan.
3. Sort through the paperwork of the lending institution that are in trouble, and identify those
loans that are in default or close to it
4. Through the use of a Federal mediator, all problem mortgages are “re-negotiated” to a rate, term
and payment that the homeowner can afford. The Federal mediator using appropriate economic
factors determines the affordability.
5. The Federal money used for “bail-out” is applied to pay back 85% of the balance of the
mortgage. The Federal money applied to the loan will be paid to the holder of the mortgage in
annual installments until the homeowner pays off the loan or refinances.
6. The mortgage company as penalty for poor judgment will absorb the remaining 15% of the loan.
....
There are other benefits, but you get the point. This takes care of the people for the change.
It is my belief that this whole situation has been created by the companies for whom that “bail-out” is planned. Therefore, they should suffer rather than be saved. If they go under, well, that’s the nature of capitalism, isn’t it? Before long, new, smaller companies will spring up to cover the market’s needs.
The ones who really need help are the consumers who trusted the specific professional expertise of these companies to properly evaluate their candidacy for a loan. Since this was not done, consumers were saddled with loans that they could not afford, and now they are losing their homes as a result. Since I do not have a mortgage that is affected by this “bail-out”, I offer up a better plan for those who are affected. These people should be the focus of any bail-out program, so here’s my plan:
1. Implement a federal moratorium on foreclosures.
2. Establish a branch of the treasury to oversee the implementation of this plan.
3. Sort through the paperwork of the lending institution that are in trouble, and identify those
loans that are in default or close to it
4. Through the use of a Federal mediator, all problem mortgages are “re-negotiated” to a rate, term
and payment that the homeowner can afford. The Federal mediator using appropriate economic
factors determines the affordability.
5. The Federal money used for “bail-out” is applied to pay back 85% of the balance of the
mortgage. The Federal money applied to the loan will be paid to the holder of the mortgage in
annual installments until the homeowner pays off the loan or refinances.
6. The mortgage company as penalty for poor judgment will absorb the remaining 15% of the loan.
....
There are other benefits, but you get the point. This takes care of the people for the change.
Good post, thanks!
We need a multi-pronged approach that puts mainstreet before wall street and provides some immediate liquidity for financial markets and similar to what you described and that by Rinaldo Brutoco on WorldBusiness.org
Someone sent me this interesting Video on the current 'economic CRISES' : STOP THE BAILOUT . . . or Depression !
It can also be found on my Website : Resistance is NOT Futile !
Not being all that 'economically' educated - I was wondering what you guys thought of it.
It can also be found on my Website : Resistance is NOT Futile !
Not being all that 'economically' educated - I was wondering what you guys thought of it.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.