Socialism is here
Yes sir, stand up, get in line, head out to work. Work for the government that is. How can I say this you may ask. It is simple. Look at what the government wants to do. Rob the taxpayer more and get into the mortgage business. Joe Biden is blaming the fact we own or should I say our purchasing our own homes. He is blaming the fact that piss poor loans were made to those who should not, could not , and never been allowed to get a home loan had home loans.
It is the tax payers fault and the government will come in now and take care of you. From President Bush down to the lowest Congressman. Do not be fooled the only reason that the politicians are dragging their feet is because they FEAR loosing their offices of power with the vote.
There is this feeling that if we do not do anything that the world economy will collapse and chaos will take over. To prevent this a proposal was first given to give free reign to Sec. Paulson over $700,000,000,000.00 in funds. These funds to go where he thinks it is needed even if it is over seas to another country. How big of a crock of defecation is this? It is a HUGE one my friends.
As I have often said and will continue to say and believe. Charity starts at home. If we do not take care of our own back yard then we have no right or say in others back yards.
So how do I propose to solve the economic problem. Well it is a mess and it would take some radical and simple economic solutions. First we need to go back to economics 101 and realise that this funky way of modern accounting is WRONG. A red flag should be hoisted any time you count money you DO NOT HAVE as money you do.
Investigations are needed and called for. But they should not be limited to the CEO's and CFOs of Freddie and Fannie. Or to any of the financial institutes involved. The investigations need to also be expanded to Congressional members and Senate members as to why they allowed certain QUESTIONABLE practices allowing high risk applicants to get loans.
Next a permanent ban on these absurd interest only loans with exaggerated balloon payments has to be put into place. It is obvious that people do not read the fine print. This is a big part of the problem. Yes many can not handle their own financial status. So a little protection needs to be in placed. To be honest it smacks of BIG BROTHER, but I am tired of my money buying someone elses home or car or boat.
Next the way interest is figured needs to be looked at. This is the most one sided and absurd way of calculating I have ever seen. Why in the hell does any one sign a loan that figures interest on interest on a loan that extends for years. You end up paying any where from two to four times what the price of an item is and then once paid the item is devalued to a point where it is not even close to the value of what it should be. An inherent greed factor is in place and this is in need of a change. Much the way that the tax code needs to be changed. A flat rate is what is fair and WILL WORK.
If you take out a loan for $10,000.00, at a rate of 10% it should cost you a total of $11,000.00 to pay back. Not $ 20,000.00. ( math here is not accurate but you get the point).
These golden parachutes we here about are not a salary package but a benefit package that includes stock options of a highly questionable nature. Where the CEO's are allowed to purchase stocks at a percentage of the value with company money. Revamping the way this is handled will alleviate the obnoxious amounts that executives walk away with. Not allowing these stocks to be purchased at cut rates not available to the average investor and not with company monies. If the CEO has that much faith in the company then he will not mind buying the stock at the rate Wall Street sells it.
Now what do we do about those who have foreclosed mortgages now and the banks who have sold off the loans to someone else (this being you and I as the government has stepped in and is wanting to buy these bad markers). Well this may sound harsh but you know what, life is a four letter word, and it isn't always fair. These people rented before hand and they can rent now. The dream of two car garage and a chicken in every pot is not an entitlement as the left wants it to be. You have to work for things in order to appreciate it. When it is handed to you you loose respect and desire for it.
So let the foreclosures go through. Let the banks loose the projected income they have counted on. Sell the homes at a true market value and not an over inflated one. Go one step further and remove this foreclosure and bankruptcy from the records of those who it has happened to.
Let the market take a big hiccup but correct itself. A true value of funds will then come forward. For way to long we have accepted the projected figures and not the real figures. yes this will devalue many banks and their assets, but it will solidify an accurate figure to move from and provide a solid base.
Will people loose money? No, what they will loose is a false projected cash value that never really existed. An accurate account will then replace these figures and move the economy forward.
A big overlooked factor is this projected inaccurate figures being accepted by economist now. Bottom line in economics is this. You either have it or you don't. There are two forms of monetary value. Liquid and asset. Liquid is the cash you can put your hands on right now, and assets are those you need time to liquidate or turn to currency. Holding a piece of paper that says someone owes you money is NOT LIQUID OR AN ASSET.
Now more prevented measures will be needed. Why, well as soon as you cancel these false projected values, gouging will immediately take place in an attempt to regain previous amounts of money. This can not be allowed to happen in a massive grab. A slow and thoughtful, reinvestment process will have to be instated. A cap on inflation will be required so that banks and financial institutions do not rob the consumer blind.
What this will do is shift the burden onto those who deserve the blame and credit for this mess and not the taxpayers pocket book. Yes there are still holes i this plan but it is far more reasonable then pumping money into a broken system. A system that is running wild on pretend, and false conclusions of financial gains.
It is the tax payers fault and the government will come in now and take care of you. From President Bush down to the lowest Congressman. Do not be fooled the only reason that the politicians are dragging their feet is because they FEAR loosing their offices of power with the vote.
There is this feeling that if we do not do anything that the world economy will collapse and chaos will take over. To prevent this a proposal was first given to give free reign to Sec. Paulson over $700,000,000,000.00 in funds. These funds to go where he thinks it is needed even if it is over seas to another country. How big of a crock of defecation is this? It is a HUGE one my friends.
As I have often said and will continue to say and believe. Charity starts at home. If we do not take care of our own back yard then we have no right or say in others back yards.
So how do I propose to solve the economic problem. Well it is a mess and it would take some radical and simple economic solutions. First we need to go back to economics 101 and realise that this funky way of modern accounting is WRONG. A red flag should be hoisted any time you count money you DO NOT HAVE as money you do.
Investigations are needed and called for. But they should not be limited to the CEO's and CFOs of Freddie and Fannie. Or to any of the financial institutes involved. The investigations need to also be expanded to Congressional members and Senate members as to why they allowed certain QUESTIONABLE practices allowing high risk applicants to get loans.
Next a permanent ban on these absurd interest only loans with exaggerated balloon payments has to be put into place. It is obvious that people do not read the fine print. This is a big part of the problem. Yes many can not handle their own financial status. So a little protection needs to be in placed. To be honest it smacks of BIG BROTHER, but I am tired of my money buying someone elses home or car or boat.
Next the way interest is figured needs to be looked at. This is the most one sided and absurd way of calculating I have ever seen. Why in the hell does any one sign a loan that figures interest on interest on a loan that extends for years. You end up paying any where from two to four times what the price of an item is and then once paid the item is devalued to a point where it is not even close to the value of what it should be. An inherent greed factor is in place and this is in need of a change. Much the way that the tax code needs to be changed. A flat rate is what is fair and WILL WORK.
If you take out a loan for $10,000.00, at a rate of 10% it should cost you a total of $11,000.00 to pay back. Not $ 20,000.00. ( math here is not accurate but you get the point).
These golden parachutes we here about are not a salary package but a benefit package that includes stock options of a highly questionable nature. Where the CEO's are allowed to purchase stocks at a percentage of the value with company money. Revamping the way this is handled will alleviate the obnoxious amounts that executives walk away with. Not allowing these stocks to be purchased at cut rates not available to the average investor and not with company monies. If the CEO has that much faith in the company then he will not mind buying the stock at the rate Wall Street sells it.
Now what do we do about those who have foreclosed mortgages now and the banks who have sold off the loans to someone else (this being you and I as the government has stepped in and is wanting to buy these bad markers). Well this may sound harsh but you know what, life is a four letter word, and it isn't always fair. These people rented before hand and they can rent now. The dream of two car garage and a chicken in every pot is not an entitlement as the left wants it to be. You have to work for things in order to appreciate it. When it is handed to you you loose respect and desire for it.
So let the foreclosures go through. Let the banks loose the projected income they have counted on. Sell the homes at a true market value and not an over inflated one. Go one step further and remove this foreclosure and bankruptcy from the records of those who it has happened to.
Let the market take a big hiccup but correct itself. A true value of funds will then come forward. For way to long we have accepted the projected figures and not the real figures. yes this will devalue many banks and their assets, but it will solidify an accurate figure to move from and provide a solid base.
Will people loose money? No, what they will loose is a false projected cash value that never really existed. An accurate account will then replace these figures and move the economy forward.
A big overlooked factor is this projected inaccurate figures being accepted by economist now. Bottom line in economics is this. You either have it or you don't. There are two forms of monetary value. Liquid and asset. Liquid is the cash you can put your hands on right now, and assets are those you need time to liquidate or turn to currency. Holding a piece of paper that says someone owes you money is NOT LIQUID OR AN ASSET.
Now more prevented measures will be needed. Why, well as soon as you cancel these false projected values, gouging will immediately take place in an attempt to regain previous amounts of money. This can not be allowed to happen in a massive grab. A slow and thoughtful, reinvestment process will have to be instated. A cap on inflation will be required so that banks and financial institutions do not rob the consumer blind.
What this will do is shift the burden onto those who deserve the blame and credit for this mess and not the taxpayers pocket book. Yes there are still holes i this plan but it is far more reasonable then pumping money into a broken system. A system that is running wild on pretend, and false conclusions of financial gains.
