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designforsense
Joined: 11 Jan 2009
Posts: 12
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 Posted: Sun Jan 11, 2009 5:45 pm Post subject: |
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johng0477
Message #14
11/06/08 06:00 PM
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Keep all the Bush tax cuts in place !!! BUT
We all know it would nice to get a $1000. tax cut but how the heck will we pay for the rescue plan and the loss of future tax revenue due to the losses now occurring in the markets...PLEASE, I think even the greedy will agree that we need to have a means to pay back the massive debt so I feel the middle class will pay a little more to keep our economy sound and America strong...President elect Obama please take note and ask us first...We might suprise you !
If we suppress the Markets with new taxes we will in effect keep the Markets down, so the losses now generated will no longer provide tax revenue
Immediate 2 year suspension of all capital gains tax.
ALLOW FOR EARLY DISTRIBUTION OF 401K OF UP TO $10,000 for hardship // Mortgage payments or a down payment on new or existing homes .
Limit or eliminate OPTIONS trading...No owned hard asset //NO PROFIT or LOSS // this in itself is like having a betting - bookie. Just stop it.
DO NOT CREATE NEW TAXES ON ANY BUSINESSES, PERIOD, ESPECIALLY SMALL BUSINESS. How will they hire or keep people if they pay more in taxes and insurance costs...
(No mandatory healthcare coverage placing the burden on that "small business" and no PUNISHMENT FINES for companies that can't afford to provide health care for it's employees). |
Tax cuts are not making us more competitive, but certainly help the struggling families.
But the point that needs to be made is well stated above - if we are increasing debt while reducing taxes, this all could spell disaster as well.
Eartly distribution of 401K may be a good idea as well. But then again, what are they going to retire on if it is depleted? There must be then, a means of getting it back. If a ton of cash is freed to allow people to buy and get the economy growing, then people should have a right to get it back later some way. Thus, rather then the government spending heavy now, it should devise means to allow the people to spend heavily to get the economy going. Then, when things get better, the government could spend to help people keep what they already obtained in better times. It seems to make more sense.
And the other ideas such as no new taxes for business are good also. Also, if healthcare is to be mandatory, there should be more affordable options by increasing the amount of competitive bids for the services, rather then by increasing public debt. This can be done by various creative means as well. With so much brain power being placed into other areas, why not place it now in these productive areas?
PoorandUgly
Message #18
11/06/08 07:04 PM
| Quote: | | The way that the governent (not Al Gore nor private industry) created the Internet and technological revolution that followed from DARPA in the Department of Defense, real government spending should focus on expenditures for innovation towards research and development of new types of biotech-nanotechnology drugs. War on cancer and disease was declared by Nixon in his presidency way back then. For the benefit of future generations with better jobs and health care, lets finish the war on cancer! Government should set up new science programs in schools at to create the next generation of US scientists and researchers so as to develop these next generation drugs. For the benefit of not only America, but of all human kind, healthier people and better jobs are a win-win here. True prosperity is built over time with vision. |
Biotech nanotechnology drugs? Next generation of scientists? Build prosperity with vision?
I am not sure how the first part will resolve the crisis - but certainly focusing on high tech areas is the key to gain the vision needed. This is why the NASA/Auto/Private Aerospace merger is being proposed. It would fuse all these technologies into a coordinated effort of a very large scale. The nanotechnology and high tech drug development areas could possibly be brought in as well, to a limited extent. |
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designforsense
Joined: 11 Jan 2009
Posts: 12
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| Posted: Sun Jan 11, 2009 8:39 pm Post subject: |
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PoorandUgly
Message #19
11/06/08 07:26 PM
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For the sake, though, of urgency, a more immediate elixir can be had not only in infrastructure spending but in what I like to call the C.P.R. (Community Projects Rejuvenation) program. It is a little crude but beneficial ultimately. It works like this: Before the actual foreclosure and evictions occur in neighborhoods, let the current past-due homeowner sell the property for a short sale back to the govt, then have the state government hire maintenance and compliance government workers to renovate and maintain the vacant home(s) in the neighborhood. This way, next door neighbors will not be unduly harmed physically or financially by the vacant property that would otherwise be filled with vandals or be used as a crack house etc... |
Infrastructure spending is not going to solve the crisis, as in only increases debt. Any solution increasing national expenditures and thus debt, without a payback system should be ruled out, as noted previously. If it doesn't bring economic or financial pay back that will cover it's cost, ditch it.
Now, about this Community Projects Rejuvenation Program - this could work. How about extending it a little further, to include my original idea, of upgrading those homes with the latest in energy efficiency and green technology, sponsored by the gov? Then re-finance those homes back to the original owners at low interest. Why has nobody thought of this or placed such a plan into action? What are they waiting for?
| Quote: | | Furthermore, through this program, anyone who currently works on the property and is interested in that property can also get a bonus discount upon its purchase as added incentive to maintain the upkeep of the home. This program is a win-win for all concerned. The former homeowner wins because he/she is cutting his/her inevitable full loss of foreclosure and moving on to greener pastures. The government wins because the property is maintained adequately in the neighborhood. Most importantly, the American worker wins because there is another job out there plus a possible new refurbished place of residence for him/her when the job is complete. |
Great idea also. The homes, now with the latest in energy efficient technology, will be green, lean and mean and outsell and gain greater value then similar properties in the neighborhood, thus inverting the depreciation of properties, and reverting this course, thus accelerating the valuation of properties, bringing the economy thus to instantaneously recover! It is so simple, can't figure out why they have not tried this before. This is the magic pill we are needing! Plus, not to mention all the jobs it will create in the technology industry, for the production of the components, for the workers to install them and for the workers to renovate the homes as well! Fantastic idea! Wow, very exciting.
Great idea Obama! People, what are we waiting for? If somebody in your cabinet reads this, please heed the call. America thanks you. |
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sense&sensibility
Joined: 11 Jan 2009
Posts: 2
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| Posted: Tue Jan 13, 2009 7:37 am Post subject: |
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| Quote: | Crations
Message #20
11/06/08 07:55 PM
I'm with Kent70. Do absolutely nothing to "fix" this. There is nothing to fix. Businesses fail all the time. Unless you are challenged enough to believe the end of the world if the banking industry goes down bologna. |
Now there may be some logic to this. Look at who created all this mess and who desires to increase the national debt. What are they gaining from increasing it? Billions in revenues on the 6% interest they earn. The private .b.an.k.ers who run the fe.d are earning hoards of money by increasing our national d.ebt. Doing everything we can to change this and reform this is the only way.
| Quote: | FKA
Message #21
11/06/08 08:08 PM
There is a "fix" we need to quit living on inflated house values and stock values. We have been living on an always upward spiral of assumed values. Dot Com, Enron, Housing, bubbles, they always pop. Think about how much value was "milked" off in the recent $4.00 plus fuel price fiasco we just went through. Would our economy be any better off if this money had been applied to "durable" goods. Think about it. If the money ain't in your wallet, don't spend it. |
Now this is the best advice seen so far. All these crisis are manufactured to get us to increase out debt. Once we realize this and get out of this mess they have created, we will be much better off. Reform the entire structure and get us back to a simple one that works. No more private b.an.k.ers earning hoards of money that they lend to the gov earning huge amounts of profit just on the interest they are getting on our countries d.ebt.
| Quote: | katlab58
Message #23
11/06/08 08:28 PM
How about making it okay to hire somebody to work part-time in a in-home business. I would love to hire someone for about 4 hours a week, to help me with secretarial and clerical work. I can't because I'm only allowed to have relatives work for me in my house. I tried giving a project to a lady from our church who was hard up to work out of her own home, on her own computer, at the times of her own choosing. I just wanted some papers copied that had been lost when my computer crashed. I had paper backup but not on the computer.
According to our lovely state, she was not an independent contractor but an employee. I should have had workman's comp insurance on her. I guess if she tripped over her own rug? She only worked for me for a few weeks, by the time this came up the job was done. I could either buy an insurance policy for a non-existent employee, or face fines $2500 for unintentional, or $15,000 if I did it intentionally. Wow no good deed goes unpunished. There are so many more in-home businesses start-ups, who could use part-time help so they can grow, but government makes it as hard as possible to break through to the next level. |
Certainly, any measures to boost home business would help. But there must be a certain minimum of hours to hire someone, as many with no work could not afford to have only 4 hour jobs. However letting them work at home on hours of their own choosing is a great idea. They could fill up their time with many clients and stimulate private business. Legalize independent work is a great idea. Getting back to the basics, to grass roots, support small business and down with big business. |
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djswan
millennium club
Joined: 17 Aug 2007
Posts: 1119
Location: Montana, USA
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| Posted: Sat Jan 17, 2009 11:23 am Post subject: |
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#4 quit printing lies on the money.
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ourgreatestfind
Joined: 20 Jan 2009
Posts: 6
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| Posted: Tue Jan 20, 2009 4:54 am Post subject: |
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| Clearly, those who do not express a clear line of reason cannot in any way be making any sense whatsoever. |
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HorizonDesign
Joined: 31 Jan 2009
Posts: 54
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| Posted: Sat Jan 31, 2009 12:25 pm Post subject: |
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Here are some new ideas to resolve financial crisis:
I. Encourage all foreign industry to return to the US = New more jobs for Americans, with cascading effect on industry.
1. By giving tax incentives.
2. By investing in a new national scientific pool of the greatest minds working together to create the technologies of the future.
3. By new government sponsored high tech companies that fuse all foreign and national high tech into one big government sponsored conglomerate, stimulating millions of new jobs and high value of these new high tech products manufactured on national soil.
4. By producing on a huge scale new technology, fuels to allow America to be independent of foreign energy.
5. Investing in new technology in key large industrial sectors, so as to bring them back to America, such as:
A. Auto.
B. Textiles - new high tech materials that are mass produced, with high tech machinery that can turn out textiles, food, and basic raw materials out in green ways with a reduced cost, allowing for more efficient home production, thus bringing jobs back to America.
C. Housing - create new community pools of labor to build new green homes and invest the latest in green technology, and create the new green high tech products for these homes in government sponsored industry.
II. Create a new parallel banking system, one backed by:
A. Government issued Bonds.
B. Private entrepreneur funds.
C. Private investment & small & large scale - national and international
D. New Government high tech industries.
It shall create a new parallel independent bank, backed by faith in the government:
Independent New Bank 1.
This new bank shall:
1. Issue it's own government backed certificates.
2. Establish it's own high yield of interest to depositors, above market value, to encourage all new money to go into this new bank.
3. It shall make loans directly to consumers.
4. It shall make loans directly to business.
5. It shall make loans directly to home buyers.
6. It shall give financial support to those in risk of loosing their homes. It shall thus revert the course of the current mortgage crisis.
7. Establish a reserve requirement in a combination of gold, government backed securities, a new parallel government backed insurance deposit, backed by new standards.
8. Use only money from this new parallel banking system to fund all the bellow activities.
9. Gain a min. 80% share in new issued loans. Use this power to reform the current reserve system and monetary system in place, that is backed on public debt. Transfer this over to shared debt, out of the public sphere, and to new debt created by the new parallel bank.
It will not:
1. Borrow money from any outside source.
2. Engage in high risk activity.
3. Buy up toxic mortgages.
4. Spend money on frugal infra-structure projects that are only increasing debt.
5. It will not increase government debt.
6. Allow private banks to loan money to the government and collect interest on this, as is currently done.
Independent New Bank 2:
The current toxic mortgages are transferred over to a second independent bank, that shall:
1. Bring together private investors and offer them a guaranteed return on their investment.
2. Bring in money from the new independent bank to back up and shore up values.
3. Upgrade these homes with the newest in green technology, applying government sponsored industry materials and systems to the homes.
4. Finance the homes at easy terms to those who currently lost homes.
5. Create and offer new jobs to those buying the homes back.
6. Offer cash back rebates and government certificates to those buying the homes back, which they can redeem in the case of personal financial emergency.
7. It can halt payments on defaulting buyers if they demonstrate progress towards payment.
8. The purchase price of current defaulting mortgages shall be very low, but the new market price shall be established only within a limited contained market. Thus, the mortgages shall not be sold or transferred to other institutions and shall be evaluated solely by the standards of the new bank, and financed only to clients of this new bank. Since the majority of clients will not be able to obtain new mortgages outside of this new bank, it shall gain a large market share.
This parallel banking system can allow the standard banks to fail, and not use government funds to bail them out. The toxic mortgages normal market value can be established once the current mortgage defaults have ended. Once the system is stabilized, mortgage values will also flatten and stabilize. In the meantime, the toxic mortgages are immediately upgraded with green technology and financed by the new bank to new families under new loans.
Thus, all the toxic mortgages are removed from the market and transferred to the new parallel bank 2.
This new parallel bank will function independent of any other banks, of the current Reserve system in place
The traditional banking industry can thus decrease in size, and the parallel government bank thus takes over, determining the new dollar value by directly controlling the capital and monetary base, rather then allowing private banks to control the monetary base, as currently is occurring.
In the mean time, the new President is protected from sabotage, guarded by the people, and prevented from being undermined by current banking interests. The program gains full government support at all levels, and the current struggling system is thus fully over-hauled, bringing back peace, stability and prosperity. |
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SDR
millennium club
Joined: 02 Oct 2004
Posts: 1845
Location: San Francisco
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| Posted: Sat Jan 31, 2009 7:49 pm Post subject: |
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John Stewart made this suggestion to Gwen Ifill, the other day: give the bank bail-out money to the homeowners who can't pay their mortgages. This way the banks AND the home-owners are rescued -- with the same set of dollars.
Out of the mouths of fools ? It made sense to me. . .
SDR |
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djswan
millennium club
Joined: 17 Aug 2007
Posts: 1119
Location: Montana, USA
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| Posted: Thu Feb 05, 2009 8:30 pm Post subject: |
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That's a good one.
How about #5 stop building and start re-building. No new permits, we've chewed up enough earth with garbage architecture. Give the land the value it deserves.
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djswan
millennium club
Joined: 17 Aug 2007
Posts: 1119
Location: Montana, USA
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justellus
Joined: 22 Jan 2009
Posts: 203
Location: World Wide
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| Posted: Wed Feb 11, 2009 7:24 am Post subject: |
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Latest ideas on how to solve the mortgage crisis, the toxic mortgages and thus the first stage towards resolving the financial crisis:
PLAN 1 - TOXIC MORTGAGES RE-STRUCTURING
1. Transfer all mortgages to a government securitized "holding bank".
2. Offer government backed guarantee on the investments by:
----A. Paying a good interest rate to investors who are willing to invest in the "shares" of the bank.
----B. Offer the highest interest rates to those who invest first, on an inverted escalated chart.
----C. Offer the ability for investors to gain a higher then market yield and ability to gain a greater return on investment for longer investment periods. Thus, as a CD, those who hold the titles for the longest time gain the greatest yield.
3. The government slowly, over a long period of time, purchases the mortgages and takes them over, but only as a last resort, as explained further below. This will allow the government to buy them as needed and when needed, over a long period of time, of say 20 years, so that it does not have to fork out 1 trillion all at once to resolve the problem. Instead, it can spend 50 billion a year, if needed, over a period of 20 years, as the market slowly stabilizes, and if needed. In practice, however, the mortgages will never need to be completely transferred over to the government, once the economy picks back up. But this promise to purchase - PTP - will give a government backing or guarantee to the mortgages, thus - scam spam - their value.
4. The government is not allowed to fully purchase or redeem the loans immediately. It will only be authorized to do this after a minimum time of maturity of each loan. Thus, once the mortgage loans are placed into the "holding bank", the investors must maintain their deposits in the bank for a minimum of 1-5 years, with the government guaranteeing an interest yield on the investments over this time, before the government is allowed to fully purchase the mortgages, slowly. This will allow the loans to be slowly "absorbed" by the system and allow for their gradual recovery of value. Since the mortgages now are together in a bank which guarantees a yield on their investment, private capital can slowly feed itself back into the system, to cover the values of loan depreciation, over a large period of time.
5. The profits on the private investments shall revert 100% to the government. Originating mortgage loan lenders shall not be able to gain a return on the investment, but shall be allowed to maintain a higher book value on the mortgages, so as to protect their books from depreciation. They are not guaranteed that the loans will be re-financed, but they are free to offer them back on the market. However, mortgages will "sit" on the market for a period of 2-3 years and who are not re-financed, shall be booked at their market value, guaranteed by the government by the agreement to purchase, and any private investors who own shares of these will be guaranteed a return on investment in either the form of interest, government bonds, government assistance in setting up private pools of sub-lending companies, new mortgage companies to hold the investments until the economy recovers, with government backing of these.
6. The toxic mortgages will not be down-written from the originators books, but rather placed into a separate accounting bracket as tax-deductible investments in a third party government backed holding company that is set up to maintain their value and guarantee the stability of the investments.
7. The government shall apply the most creative means to lure private investors into buying "shares" of the newly created holding bank.
8. A certain percentage of the mortgages shall be written off the originating banks books at a loss, so as to spread out the losses among the system, so that the government does not have to alone take the loss. This will also allow the government to re-structure the current system, as was previously suggested by other ideas.
The mortgages shall remain in the private domain and maintain their originating ownership.
Transfer of mortgages to government shall be gradual, on a "first come first serve" basis, and according to maturity, and only as "critically needed". Thus, every effort shall be made to avoid transfer of the loans o the government, by creative means, and the transfer shall occur only as a "last resort", when all other options have been eroded or become non functional. In this manner, when transfer is ultimately made, older mortgages shall be transferred first, then newer next.
PLAN II - ECONOMIC RECOVERY PLAN
1. Avoid government spending as the solution to get the economy going. This will only further feed the problems we are currently facing. The primary goal will be to spend less and find creative ways to allow the economy and the system itself to spend it's way to recovery.
2. Thus, instead, in creative ways, encourage the economy to recover by itself. The first and most important step was already taken, in resolving the toxic mortgages problem. Now the economy is allowed to start to breath again, and slowly credit is opened back up.
As much as possible, allow the economy to recover itself slowly. Encourage new technology by government incentives. Encourage community development programs, run by local think tanks and community formed groups.
3. Encourage industry to return to America, by various creative means.
4. Do public campaigns to encourage people to buy American made products. Re-wire the way people think, to place more value on helping to re-build the economy and create new jobs.
For employees of US based industries, who produce key large scale items, offer a special type of high yield investment to these companies which are US based, and to their employees, that foreign based companies will not be able to qualify for. This will encourage industries to return to America.
Offer high technology equipment, government sponsored manufacturing high technology to new start up industries and those who return their manufacturing plants to America. The government thus invests in creating this new high tech through private venture partnerships, then offers it back to leading industries.
5. Create new government sponsored loan programs, to free up credit.
6. Offer tax reductions to the companies doing the most hiring, so as to encourage more employment.
7. Facilitate home based business and small informal employment, by changing current regulations.
8. Encourage the auto industries recovery by helping it develop new fuel efficient green technologies.'
Spur growth by newly created government back high tech research, in the previously suggested merger between auto industry, aerospace, NASA research and other government space related programs, into a new fusion of industries to produce the most advanced technology and products so as to lead the world in the development of new technology, and thus encourage industries at the same time to emerge within America to produce this new technology, under government incentive, tax incentives and backing.
PLAN III - REFORM the CURRENT SYSTEM
From top to bottom, change the way we do business, the way loans are made, the way the financial system operates, the way America borrows to fuel it's growth. Employ the greatest minds working together to reform everything from taxation to money creation. Start grass-roots campaigns to bring America back to simplicity. Reform the accounting practices and accepted accounting practices.
Reform the stock market. Currently the stock market is manipulated both by private "sharks" who control the same, and by government interference and intervention in the same. Bring us back to a less complicated, more functional stock market that follows certain basic new rules to guarantee it's stability and growth and avoid abuse at all levels.
Reform the welfare system, making it more functional, more efficient and guaranteeing more security.
Reform the health system.
Reform everything related to banking, loans, insurance and the way investments are allowed to be insured, combined, and re-sold to investors.
This, only a start and phase I of the recovery, with various aggregated plans combined.
These ideas can be further refined also, since they are initial embryonic ideas. But they should serve to guide us in new directions toward recovery. |
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justellus
Joined: 22 Jan 2009
Posts: 203
Location: World Wide
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| Posted: Wed Feb 11, 2009 8:56 am Post subject: |
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Good to see Ford listening to this advice, posted earlier in this topic, (Fri Dec 12, 2008 7:16 pm) -->>
| Quote: | | Auto Crisis? It is time we help the auto sector and promote alternative energy efficient vehicle development and deployment programs, to get these industries out of the slump. How about hybrid vehicles that run on either gasoline, electricity, solar power, alternative fuels such as ethanol or hydrogen? Such multiple fuel vehicles would allow for total flexibility and choice. And with the braking system charging the electric motor, the solar panels providing for additional energy, and the heat emissions from the engines being collected by heat transfer absorption cells, the energy can be infused back in to workable energy in the vehicle. |
So what was suggested?
1. Help the auto sector get out of the slump with hybrid vehicles that run on either gasoline, electricity, alternate fuels. These will allow for flexibility of choice.
2. Ideas - brakes to provide charging of batteries. Heat emissions from engine collected by heat transfer absorption cells.
So who has adopted these ideas first?
FORD! Way to go Ford!
What model?
2010 Ford Fusion.
What technology does this vehicle have anyways, that demonstrates the suggestions have been adopted?
1. Second generation gas-electric hybrid technology, to sweep away competition.
2. A second generation starter/generator motor that starts the gas engine and provides braking power, which is used to recharge the 275 volt nickel-metal-hydride battery pack.
Result? 47 mph on battery power alone,
Approaches 3.5 liter acceleration - better then standard 4-cylinder models.
39 city/37 highway EPA fuel economy rating for a vehicle more luxirious and larger then the Prius. (How about one trip to the gas station per month?).
-Brake pads that last nearly forever as the regenerative braking does almost all the work in typical driving.
And here is what people have to say --->>
| Quote: | | It is good to see what Ford had done with the Fusion, I have ALWAYS bought American, and now with the Fusion being a major player in the type of market in which fuel economy, and functionality combine in the form of hybrid vehicles, Ford has brought the American car back from the verge of extinction. Ford really did their homework on this one - Congratulations to the folks at Ford, may these cars sell faster then you can build them! |
http://boards.msn.com/Autosboards/thread.aspx?threadid=911626
| Quote: | I would definitely say the Fusion. The Toyota Prius, while good for being a compact car only gets marginally better fuel economy that the Fusion Hybrid. For what trade off you get for sacrificing maybe two miles to the gallon is a mid-sized sedan with all the same goodies as a conventional mid-sized sedan -- but without the stigma at the pump. You can use Ford Mo. Co.'s proven platform as a benchmark of good handling, drivability, and saftey. Sure... you can get a few miles per gallon better with the Toyota Prius. Then again, it is a compact car and not exactly something you'd want to bring home to show your mother.
The Fusion is an efficient, luxurious, and safe car. Besides having slightly worse fuel economy than the Prius, I say Ford here has a winner! |
| Quote: | | Consumer Reports and JD Powers rate the current Fusion/Milan as good or better than the Camry and Accord, so the quality issue can be set aside. A family member bought a Prius and found that other than the great mileage, the car is not very fun to drive or look at. If built in mass market volume and at a reason able cost, this could indeed be a big winner for Ford. Hurry to get your 3k plus tax credit on this car, Ford's 60,000 unit limit is running out in the 2nd quarter of this year. |
So by applying these new ideas, as suggested, we are quickly on our way to beating the Japs at their own game!
Long live American creativity!
GM, Chrysler, wake up before it is too late! Heed the call! |
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justellus
Joined: 22 Jan 2009
Posts: 203
Location: World Wide
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| Posted: Thu Feb 12, 2009 8:42 pm Post subject: |
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It is good to see the ideas as suggested yesterday finding their way up and starting to be implemented in some form today, in the new public announcements made at the last minute today, and that also are "in the works" today.
This can be seen in the new mortgage buy down plan being announced today - The idea is to buy down the mortgage rate - the lenders will have to lower the loan. It will be an incentive to the banks. They offer a loan reduction, then the borrower pays less and the government picks up the tab on the difference, for qualified applicants. Under this plan, the government will come in with 50 billion (a year) to match difference between what borrower can pay and government. We are not sure yet if this will require the banks to produce a principal reduction or not. But it certainly is in the works and will resolve into a smooth working plan, as was suggested yesterday. A combination of ideas is being infused together and the new plan is thus mutating. In essence, it is a plan to merge together the force of the lenders reducing the loan, private investors shoring up the value of the government assets, and the lender paying a portion, plus the government paying a portion of the tab. This multi-pronged approach should prove a success and it is in the works as we present this.
In essence, there was an "on-the-fly" conference call meeting to propose these ideas today. It was called on at 3 p.m. by the Federal Reserve and they did a presentation on what they dub the "Asset Backed Securities Loan Facility". Bill Dudly was on the conference call and was excited about the prospects to re-start the securitization program. The content of meeting was talking about funding 3 year term loans leveraged 10 to 1 and "non-recourse loans" to prevent "tail risk", a program to expand as much as much as one trillion dollars in assets - "that call just finished a little while ago."
http://www.msnbc.msn.com/id/3036789/vp/29158420#29165723
Video title: U.S. to subsidize troubled mortgages?
So in essence, they have began to incorporate the ideas suggested yesterday, "on-the-fly", at a last minute urgent conference call meeting conducted also "on-the-fly".
So what ideas are they incorporating today that were suggested here yesterday?
From Plan 1 - Toxic Mortgages Re-structuring
1. They are considering the holding bank idea.
2. They are considering the idea of combining private investors with government money, as suggested yesterday.
3. They are considering the idea of spending 50 billion a year. It was suggested this plan be over a 10 year period, so this would make 500 billion, with the remainder picked up by private investors, thus making up 1 trillion in total leverage over a period of 10 years.
They will gain the 10 to one leverage by implementing our plan as suggested yesterday as well, by spending 50 billion a year and having the private sector match the 50 billion in investment, backing up the expanded program of payment reductions for borrowers and thus guaranteeing the payment to the lenders under the new program.
4. They are implementing the plan suggested, of 1 to 5 years (item Nb. 4 on our list) into what they call "non-recourse" loans, to create leverage and prevent tail risk. Thus, they want to create a type of program to offer government or Federal Securities combined with private investor assets, to facilitate the re-working of loans and sharing of burden among private investors and government funds, as was suggested yesterday.
(Item nb. 4 - Asset Backed Securities Loan Facility is essentially what had been suggested here yesterday).
5. They believe they will be able to create 1 trillion in leverage using these ideas, as had been suggested.
I believe they are considering the idea of having the government slowly absorb the loans as suggested yesterday, as well.
What is being incorporated from Plan II -
They are talking about government type sponsored loan programs, or other creative ways to free up credit.
and from Plan III - Reform the Current System.
They are talking about this also, all this is in the works.
For example, they are planning to reform the health system to make health more affordable and had been mentioned previously, but re-emphasized today (see Obama's Press conference speech on this).
They are planning to reform the way investments are packaged, as suggested and most likely many other similar ideas are being considered.
Thus, they are adopting the mult-prong approach, as suggested. Only Obamas speeches today emphasize the following order of importance --->>
1, Job creation.
2. Get credit flowing again.
3. Solve the mortgage crisis.
In this order he has stated it.
So with jobs, people can pay their mortgages. With credit flowing people can buy manufactured and durable goods again, and business can begin to expand again. And with the mortgage crisis being abated, the downward spiral is inverted, and home values are stabilized and the situation begins to quickly invert itself!
Obama's speeches today also emphasizes getting as much capital injection from the private sector as possible, so as to minimize spending as much as possible and maximize leverage by getting private investment rolling again. This also had been suggested and should work. So in essence, it is great to see Obama and his team "tuned in" to the same frequency of ideas and doing a great job at implementing these types of ideas. Keep up the great work Obama and economic team! There is certainly a long way to go and for sure mistakes will be made, but at least this should initiate the process of recovery, if set-up properly. At least everything that is being suggested seems to indeed match the new on-the fly plans the government is creating, indicating we are on the right track and that these ideas indeed will be effective and work. So we have found the solutions needed to resolve the crisis, by treading this correct new pathway towards recovery. So this should be encouraging to those who were loosing hope.
Way to go America. Today was a very fruitful day for economic planning and the stock market has reacted positively as well.
The power of networked intelligence at work and on-the-fly solutions are slowly working marvels and inverting the negative tide, as predicted. |
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justellus
Joined: 22 Jan 2009
Posts: 203
Location: World Wide
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| Posted: Thu Feb 12, 2009 10:48 pm Post subject: |
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So how are these ideas then being incorporated? See this video below:
Under the revamped bail-out plan, a "bad bank" is to buy the troubled assets. It will combine financing from the public and the private sector -->>
http://www.msnbc.msn.com/id/3036789/vp/29158367#29120834
Video entitled: Treasury unveils overhauled bailout plan.
Timothy Geitner, treasury secretary outlines the new plan.
A new financial stability plan being outlined and announced, as Congress gathers to pass the economic recovery plan. It will:
1. Help re-start the flow of credit.
2. Help to clean-up and strengthen the banks.
3. Provide critical aid for home-owners and small businesses.
He outlines how we got here, with the causes of this crisis being multi-varied.
(Please, no more money to the financial institutions and banks that caused this crisis then.)
Key elements of the plan, which demonstrate these ideas we suggested yesterday are being incorporated:
1. Fundamentally re-shape the program of financial recovery.
2. Comprehensive and forceful sustained action until recovery is established.
3. Policy to mobilize and leverage private capital, not to supplant or discourage private capital. When government investment is necessary, it should be replaced with private capital as soon as that is possible.
(This is exactly also what was proposed yesterday here).
4. Replace the current program with a new financial stability plan designed to stabilize and repair the financial system and to support the flow of credit that is necessary for recovery. The new plan will take a comprehensive approach -->> unite the efforts of the Department of the Treasury, the Federal Reserve, the FDIC and all the financial agencies in our country.will bring the full force of the government to bear on and strengthen the financial system, so that we get the economy back on track.
A new framework of oversight and governance on all aspects of our financial stability plan, by allowing people to see how money is being spent, and if banks are being responsible, with new conditions on executive compensation.
financialstability.gov will show all the data.
Revamped bail-out plan:
1. Expand consumer spending program.
2. Make loans more available.
3. Housing plan unveiled soon.
3 New programs 3 steps:
Program to clean-up and strengthen the nations banks, to bring in private capital to re-start lending and to go around the banking system directly to the markets and the consumers and businesses depend on.
1. Clean-up and strengthen the nations banks:
Banking institutions will go through a comprehensive stress test, for institutions that need it. Analyze better exposures of bank balances. Capital support to institutions that need it. Analyze better exposures of bank balance sheets.
2. Bring in private capital to re-start lending:
Capital from Treasury as a bridge to new private capital. Use money from tax payers to generate a new level of lending that is greater then what have been possible in the absence of government support. The assistance will come with terms that will encourage these institutions to replace public capital with private capital as soon as that is possible.
(Now this is where it is getting good!). With a 3 tier approach:
3. Get Around the Banking System:
The Treasuries investments in these new institutions will be placed in a new Financial Stability Trust.
A Public-Private investment Fund shall be set-up, working with FDIC, Federal Reserve and the private sector. It will provide government financing to help leverage private capital and to help get private markets working again. It will be targeted to the legacy loans burdening financial institutions (mortgage related primarily as we see it). It will provide the financing the current markets cannot provide (due to virtual money disappearing due to bad nature of current structure, as explained previously). It will thus open up a market for the real estate assets that are at the center of this financial crisis. The objective is to use private capital and private asset managers to help provide a market mechanism for valuating these assets. They are exploring a range of different structures to accomplish this and they continue to seek input from the public as they design this program. This program should ultimately be able to provide up to 1 trillion dollars in financing capacity. They plan to start it on a scale of about 500 billion (exactly as we had suggested yesterday, using this system of leverage, which they are now seeking to implement, as delineated yesterday here on this site). They will then expand it "based on what works".
They plan to work with the Federal Reserve, and commit up to a trillion dollars to support consumer and business lending, to help kick-start the secondary lending markets, bring down borrowing costs and help get credit flowing again.
(So where will all this money come from? Most likely from the money stashed away, as has been described previously in this thread...most likely they will begin to release it into the market slowly, combined with private venture capital. Thus, using the system of leverage, as had been suggested yesterday also).
The securitization market thus needs to get moving again, where loans now become possible under a new structure, (since the current structure has failed and frozen up.)
The program will be based on the Federal Reserve's Term Asset Backed Securities Loan Facility, that was announced last November, with capital from the Treasury, and financing from the Federal Reserve. They plan to expand this program to target the markets of small lending, student loans, consumer and auto finance and for commercial mortgages.
They will also take some steps to make it easier for small businesses to get credit from community banks.and from large banks.
Comprehensive Housing Program
Finally, a comprehensive housing program will be launched soon, in the next few weeks. Bring the full force of the government in to help reduce mortgage rates and interest payments. They will use a substantial commitment of resources already authorized by Congress under the emergency economic stabilization act.
So in essence, the revamped bail-out plan will involve a two-pronged approach:
1. Job creation and private investment.
2. Get credit flowing again.
The plan is to completely re-vamp our entire system of financial regulation, so that we never again face a crisis of this severity.
Revamp the International Financial System
Also, broad reforms to the international financial system will be made, in preparation for the G-20 summit in London on April 02nd. The success of this new plan will require an unprecedented amount of support, both in the US and around the world.
A substantial and sustained commitment of public resources will be needed to guarantee the success of this plan.
Government Compensated for Risk Taking
The government also will be compensated for the risk it is taking by establishing terms and conditions to be favorable to the public interest. So the risk will be less then the headline numbers.
(This is where it really gets good now):
Goal: The largest benefit in terms of recovery at the least cost to the tax payer.
They take this obligation seriously.
It will cost money, it will take risk, and it will take time.
The program will be adapted and conditions change. But these core principles will guide: transparency and as swift of a recovery as possible. It will require new programs and extraordinary action.
Great job Geitner! |
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justellus
Joined: 22 Jan 2009
Posts: 203
Location: World Wide
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| Posted: Fri Feb 13, 2009 8:15 am Post subject: |
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Notice before all these ideas were suggested, everyone was kinda lost, and the shot-gun approach was being used, with nobody knowing really what to do. First, the government considered buying up all the loans, just a week ago or so. Then it realized it couldn't, as it would cost 1 trillion, so it began to abandon the bad bank idea. The previous government was certainly running like a spam with it's head cut off, not knowing what to do, and in fact botched it all up, giving money to the banks, only to have them swallow up smaller banks, throw parties, and lavishly reward their executives, while the economy was in shambles. Now, with new clear directions, and quickly realizing that a clear definitive plan is suddenly possible, the government has suddenly scrambled. They have realized it is possible to create a bad bank to buy up the assets, by using leverage! Voyla! Now they have firm, decisive directions to embark on and there is no need thus anymore for uncertainty! So they are quickly scrambling, with last minute conference calls and on-the-fly plans exactly as has been suggested! We have thus plunged America into an immediate pathway of recovery, by elaborating creative ways to resolve the crisis, that had not been considered previously by the "brains" in DC. So what does all this spell? Swift and quick recovery! Cheers says the crowd! Now America is on a pathway of quick recovery! Yaaaahhhh. Bank of America is now estimating that by the end of this year, things will start to turn around. So what does this say for American enginuity.
As Geitner declared in his speech yesterday, so as to grant recognition for the ideas, truly America is made up of the entrepreneurs, the inventors, of those who have vision and are able, with their ideas, to re-shape the entire world we live in, by use of God given creativity and enginuity. So what does this say for those who are on the list of the 20 or 30 to have helped cause the crisis (list we saw on the news yesterday). Obviously they didn't know what they were doing. Those of us who had foresight clearly saw around 3 to 4 years ago that there was a real estate bubble, and that it was going to burst, having also advised our friends of this matter three years ago. So how could they say nobody in the government fore-saw this? Truly, only the incompetent, those with no fore-sight and who were only botching things up and making things worse could not see it. The great economists and those with fore-sight all saw it.
The same for the Iraq war - those of us with foresight new no weapons of mass destruction would be found and that the cost of the war would be too high and only lead to problems. Truly we have done the world a favor by eliminating a major pocket for anti American groups to breed. And truly our soldiers merit honors and recognition for their efforts. With so many soldiers on the brink of despair, we ow them more gratitude and respect for their efforts and the world truly has benefited much also from being freed from a tyrant. So let's get them the recognition and honor they deserve. And may America have learned a lesson from it's mistakes of the past and thus pave the way for a new future.
We Are Now on the Pathway to Recovery!
No more need to worry about the downward spiral, as if and when these ideas are adopted correctly, we will quickly see an reversion of the current situation, and it can even be charted. So we are at an historic juncture, and future charts will demonstrate this reversal.
So when one begins to think that there is no hope, one realizes that power to change comes from joining small ideas, and when applied on large scales, turn into gigantic leaps for mankind. As was once stated, "one small step for man, one giant leap for mankind"
Long live the American dream. Long live science. Long live creativity. Long live the American recovery. The pathway for a new economic freedom has been laid and the true heroes have quickly embarked upon this pathway to economic success. Long live America the beautiful. |
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djswan
millennium club
Joined: 17 Aug 2007
Posts: 1119
Location: Montana, USA
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| Posted: Fri Feb 13, 2009 12:06 pm Post subject: |
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What about Mexico or Canada?
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