The strength of the global economy is not dependent on a strong U.S. housing market, but it is very relative. Citizens of the U.S. personal financial strength entirely revolves around their equity in their own home. Now for instance; this Christmas will probably be a little depressed, or maybe even more like a disaster primarly because of the devaluation of home values versus the amount owed in mortgage. The credit position of most of the U.S. citizens is in a pretty bad way!

A quick fix, and long term solution is posible.

I propose that 4% Feddie Mac direct loans be made available to anyone who actually qualifies for them as long as:
> this is the primary residence
> the owner has only one home
> the total loan is $2 mil or less
> the loan can encompass down payment, closing cost & credit debt as long as it doesn't excede a 5 year projected appraisal value
> the mortgage payment cannot excede 38% 0f the owners gross income
> the applicant must have a credit rating and employment history that insures repayment
> U.S. citizens can only be eligble for this loan
> A person can only get one of these loans in a 10 year period
> Applicants must pay a $500 loan set up fee to title company for Feddie Mac to process.
> This can be a new loan or a refinance
If this was pushed through by Thanksgiving the U.S. Christmas retail economy would boom, encompassing some of the credit card debt would free people up to spend a little. The longer term economic healing would be there as well because people would have more money each month to spend on other things besides mortgage interest.
If you feel this is a socialist point of view or that this idea undermines free interprise then please read the above paragraph. If you feel that this idea would take private sector buisiness away and put in the hands of a government controlled enity, then drive down your street in your home town and look at all the bank owned houses for sale, you know the ones with a $350k repossed mortgage that the bank would gladly sale you for $210k today.
If you are buying a second home or you are refinancing for a big cash out the this loan isn't available. Here is where the private sector comes in.

Basically the U.S. government is buying the country back for the people!

I also propose that a Housing Market Bond be created. A simple long term bond with a guarenteed 4% payout in 5-10-15-20 years. The money from the 4% Freddie Mac direct loans would basically be bought up by U.S. citizens as a long term investment. The money from mortgage payment interest could be pooled and payed out to maturing bonds.
I am tired of losing money in my 401k and I believe there should be a guarenteed long term alternative. And here it is!

I've noticed that no one has responded or commented on this suggestion here, but talking with people I'm friends with and people at work they like the idea a lot. Even the people that say at first that this is a type of socialism want this loan available for themselves. These loans and bonds would rekindle the U.S. economy quick, and over the years would put the U.S. middle class in a very strong financial position. The global economy revolves around the individule financial position of the U.S. middle class as proved by every economic up turn and down turn in the last century. Its pretty simple to see the value of this idea, and hard to see why it isn't even being considered as a viable option.
Its would be nice to see poor people own their own home, but it is imperative that the middle class keep their homes and keep being consumers. The loans and Bonds I'm suggesting will not cost the gov. a dime once the system is put in place.
This economic system will put the U.S. economy on a fast track to recovery, and as time goes will continue to strengthen the U.S. financial position. Can you honestly say that about any other economic plan in place now or proposed for that mater. Do any of you have an idea that would so greatly impact the American way of life in a positive manner as this..........?

Let's look at some other proposed economic fixes proposed by others:

> Bail out the failing auto industry ~ give them billions of $ to stay afloat until ......... people start buying more cars.... with what and when folks??? If this doesn't work we may as well flush the money down the toilet because the auto industry will fall eventually unless we fix the middle class financial problem. If people are saving a couple hundred dollars or more a month in interest they may very well want to get a new car every 5 years or so. But they can't if they don't have the money.....right.
> Bail out the Banks ~ Many billions of $ to put them into a hold-em position, you really want to do that.....put the banks in a position so they don't want to make loans because of lower interest and high risk of a failing economy????? I want the banks to make loans and lots of them at a premium rate for those who qualify and want to remodel their house, buy that RV, etc, etc, etc. But floating all that money to people that are rightly paranoid doesn't seem to me that it will help matters any.
> Buy up foreclosed loans to keep people from going through forecloser. Hey folks there is a reason many of these foreclosers happened..... You know the guy that misses work every other Monday, or the one that has had 14 different jobs in the past 2 years, and lets not forget the ones that even going down hill with the wind at their back are not going to make enough money to pay that mortgage month after month ( but the last three months they did real well) and there is the other ones that should buy their own department store because I think it would be cheaper to buy it all at once rather than a peice at a time.......! These people don't need to be set up like bowling pins just to get knocked down again in the next round. A strong middle class will be spending a lot more in the community that they live in thus supporting the lower class with lots of jobs. With some training, some education, and some wise personal finance management some of the the lower class will migrate into the growing middle class. The key words here are "growing middle class"!
Think about this don't flush our tax dollars into the toilet, don't try to wire the economy together until it fixes itself. Make the 4% home loans to those who qualify, let people buy the 4% Housing Bonds I'm proposing through their 401k's these will put us (the citizens of the U.S.) in the strongest financial position in history within 4 years. That is an absolute!

Well Christmas has come and gone, the feds are giving the money to the lending institutions, and the interest rates available to the middle class hasn't changed that much. The economy didn't jump start, and will not until the middle class's personal finances are in the range where they can spend, not go further into debt.
Banks only loan cheap money to people that are already at a point where they have that extra room. The people that really need the cheap loans got to pay more. 2% more, that 2% that could go elsewhere into the economy.
Also everyone I've talked to wonders who, and more importantly when, is paying for the give-away federal reserve rate that is being given away to the lending industry. Tax payers will pay for this and our national debt will remain extreme until it is payed for, doesn't that devaluate the U.S.D?
With a Freddie Mac or Fannie May direct housing loan locked @ 4% to everyone who qualifies, the borrower pays in a 30 year term. If the feds sale the interest of these loans out to U.S. citizens as Housing bonds the cash is quickly returned to the federal bank system.

Benefits of the direct loans are:
> The middle class are in a financial position to jump start the economy.
> The middle class are in a financial position to maintain a strong economy.
> The middle class are in a financial position to keep their homes and pay them off.
> The Federal Reserve is not giving away money that U.S. tax payers will be paying for for the next thirty years.

Benefits of the Housing Bonds are:
> Cash put out on the Freddie Mac direct loans is quickly replaced thus no federal debt, and no devaluation of the U.S.D. in the global market.
> Middle class people have a solid 4% investment they can make with their 401k's so they don't lose their retirement funds!
> The Housing Bond sales the interest made so the actual profit is returned to the middle class!
> The middle class that now fuels the U.S. economy, will retire and it's pretty important that they can pay their own way, or the federal government will have to pay for them then at a lower quality of living then they deserve!

The benefits of both of these financial systems in place are:
> An immediate boom in our national economy.
> Within four years our economy will be at its strongest since the post WWII boom.
> Within 30 years when these loans are paying off, and the present middle class is retiring their finances will be rock solid, not like it is now.

Why? Because this country rides on the backs of the majority, the middle class. Gross national product, the deficit, economic strength, and they are also the voting majority. The politician that puts these systems to work for America will obviously be remembered as a leader of the people, not just another "politician".

Tom Sowder

I've recently heard rumors of The U.S. Treasury Department starting a plan to push mortgage rates to 4.5% and saleing treasury bonds @ 2.5% to create a buy-up fund for the mortgages. Close, but that will only benefit a few who are already in a good financial position.

Example:
A house on my street has a desperate price of $50,000 dollars. (I paid $90,000 for my house in 2001 and that was a good deal then). The person who buys this at $50k is in a +$150k position as soon as this market straightens out. With a 4.5% loan that they have to closely qualify for they are going to be in a position that is a total plus. I'm not jealous, but I know whats going to happen here with this. They'll certainly qualify for this house and ten others and rent them out till the market returns and then they'll casually sale off their collection at a premium price.

Me and my house @ 6.375% interest with a second are not going to be able to refinance at a lower rate and consolidate my debts to take advantage of this opportunity. Why because 2 years ago its was appraised at $200,000 now ...... not. Myself and the greater majority of this nation is in this position!

I think if you are in the house, and you have and are weathering the economy as is (a.k.a. making your payments) you should be able to get on board this opportunity.

I think appraisals should have two deferent focal points, someone refinancing their existing home to consolidate debt and free up credit for the next year or so should have their appraisals set on what it once was and will certainly climb back to.
On the other hand someone buying appraisal should be set to reflect what going in the are at that time.

First time home buyers, people that are in the market now looking to buy, and people that are buying up rental homes will make out like a bandit with this plan I've heard rumors of, but the majority of the nation are in an upside down position in their homes, today, tomorrow no if the appraisals adjusted to reflect the true "value" of the home. If the majority don't get a chance to consolidate/reduce their rates the jump start won't work, and the first year of Obama's presidency could be marked by the greatest number of foreclosure in American history........ this is the jump-start, not the results of it.

4.5% doesn't put quite enough money back in to the local economy ....you know the money the local economy needs to provide local jobs.
2.5% for the suggested housing bonds puts to much money into the fund management firms pockets and doesn't offer the "middle class retirement investor" enough gain to cover normal inflation.

The key word here is Jump-Start, the only way your going to start this drive down the field to score is to get the rest of the team (the middle class majority) in the play. Then we will all win big time.

Is the Government willing to take the financial risk for the working majority of this nation, if not then who will ...................

Hello, Me again.....

I think this would work if either Fannie Mae, or Freddie Mac were made into a non-profit organization. Which ever needs more restructuring should be the best choice. I don't mean a volunteer run entity, but pay completive salaries and benefits, the goal of the organization as a whole is to provide a service, not make a profit. After several years go by and the middle class solidifies into a real economic back bone then this same non-profit entity can be used as a tool to get the lower income groups of this nation into a home owner status.
The government strictly regulates these two anyway, why not focus one into a lower bracket, and target the other higher. Sound good to you?

Sometimes the truth hurts,

Like a runaway truck going down a step grade, once it gets going so far and so fast a crash is inevitable. I don't care what the prime rate is now banks are not going to drop to a 4% loan rate because they'll wait out the buyers and make that extra profit. A 4% Freddie Mac direct loan system will put the brakes on quick and let us cruise up the recovery hill in a high gear.

Believe it or not people are making a whopping profit right now, buying up our homes at pennies on the dollar. Once the price goes back they'll let us move back into our houses at a cost....... the cost will be that we've paid twice for the same house. The true 'National Treasure' of this world is a persons primary dwelling. Do let this treasure fall into the wrong hands, like investors, or worse foreign investors. At what point does the extreme minority force this country into a long term depression do to economic stagnation and extreme economic differences in classes? I say we are close, too close. We have always referred to poor countries as 3rd world countries but if you look at the general economic principals they all seem to share is they have vast differences between the rich and poor, and they don't have any middle class to speak of.

Don't let this country dip to the level that it'll risk running a ground, look what happened to China, Russia, and Germany so many years ago when the majority of the population didn't have a thing but bread lines. This sounds extreme, but it is all to possible.

You can't drag your feet in an emergency situation, you have to move and move quick. Make these low interest loans now while people still have jobs..... doesn't that seem logical? Look back at a previous high appraisal so the people who qualify for these loan can borrow enough money to consolidate all their bills and free up their credit so they and the national economy can start moving forward.......!

You got to stop this our we are going to crash, and the rest of the world will pile up behind us. My 401k has gone from $17k to $14k in two months, it should be in the $40k range. I've moved everything into the least losing fund and that didn't even help. I guess it will be easier on me that way because my retirement plan will be real simple..... go check into the homeless shelter..............

Tom

This is kinda sad:

Quote:Bankrupt Circuit City Stores Inc., unable to work out a sale of the company, said Friday it will go out of business — closing its 567 U.S. stores and cutting 30,000 jobs.

Quote:Some employees were notified Friday that they would lose their jobs and certain stores would begin close-out sales as early as Saturday.

Quote:Shareholders are likely to receive nothing, as is typical in bankruptcy cases.

That's just one of them...... you can stop this in weeks by implementing my economic suggestion of 4% Freddie Mac (non-profit organization) loans and 4% housing market bonds for 401k's. Simple as that and its fixed. I really suggest you act before the whole thing topples over.
Tom

Watching the banks interest rates over the past month I noticed they sloped down right around 5% and now they're on the way back up near 5.5%. I also noticed their adds for home equity loans are bigger and brighter then ever..... They get the money dirt cheap loan it to you on a variable rate, interest only clauses too, then when the rate shoots up to to much to handle they offer the home owner a refinance @ a rate that is really comfortable to the bank.
This is what collapsed the economy, not the politicians.

I also think I figured out how to move an entire class of people into their own homes.... but you have to correct the economy first or they wont have jobs to do this.
As I've proposed set up Freddie Mac as a non-profit organization, then link city urban renewal systems with non-profits like Habitat for Humanity using the 4% loan system and affordable housing construction types.... people in the lower middle class and the upper lower class could afford a home, even if its a town home. You also need to create a charitable right off clause in cooperate, business, and individual tax system so people making a donation to these entities to acquire land and materials can take a full write off. Also businesses that can provide service and/or materials @ cost can take a write off for full retail.
People buying these home still need to qualify for the 4% loan with the same parameters I've previously outlined, but it will be much easier for them to do so because of the reduced construction cost.
This proposal will also help urban renewal systems throughout the country fast track their effort.
But if you don't "motivate" the middle class with the $4% direct loans the lower classes wont have jobs because the middle class employs the lower class for the most part with their localized spending.

More to come,
Tom

If Freddie Mac Direct loans were available I think the people that process the application should be already in the business and be qualified.
Banks, savings and loans, and finance companies would have the best people and resources to do this. Why would they do it? $250 for the application fee and $250 for the appraisal fee, paid up front. Doesn't sound like much but when 60 million plus people apply during the first week it'll square away alot of their past losses. And consolidating many of the charge card debts for the people refinancing with the Freddie Mac Direct loan the lending institutions will be come "cash rich". They will then have sufficiant backing to loan to businesses, construction, and further support they investment holdings.
Home prices with very low interest rates will shoot upward fast. I think we should look back at the previous high appraisals for the homes in that area and start there with a limit of no more than 4% increace a year. Once again good for the banks and the ones that are trying to sale their properties at a greatly reduced price. The banks/owners of those properties fairly quickly can sale of those holdings at a break even price. The 4% limit only applies to the loan amount for a given property, if someone wants to pay more they can arrange other financing somewhere else.

So to sum up this little exert the banks, savings and loans, and the other finance companies that are on the edge right now will be in a plus profit position with in weeks of the start up of the Freddie Mac Direct loans.

This is something we should try soon:
In the last depression people were more self reliant for food, clothing, and shelter, that's a fact! They raised rabbits, had gardens, made their own clothe, chopped their own fire wood...... It is not that way now. This depression will probably lead to a masive increase in crime, suisides, rioting, large scale civil dis-order and all of these cost money... government money. I figure if the Freddie Mac Direct loans were available country wide by mid Febuary this country will turn around. By summer we'll see a economic boom like no other before this... if not we're going to crash, and we are going to crash hard this time.

Oh and by the way, I think there should be a time limit on the availability of the refinance option of these loans. At least 2 years so people don't rush in to a deal their not quite sure of, they'll know they have a couple years to do this. As soon as the market stabilizes or after 2 years, no more Freddie Mac Direct refinancing, only home loans. Remember you can only get a Freddie Mac Direct loan once every 10 years so you may want to wait on refinancing the home your in now, sale it when the prices go back up, and buy that new home you really want with the 4% Freddie Mac Direct loan. I hope the President reads this I'm pretty sure with the hands on experience he has with the loan system he'll know if this is a good idea or a bad idea....... it seems like a perfect solution to me, but I don't know for sure.


One way of thinking of this economic solution is that the United States Government will buy up America, then it'll sale it back to the people at an affordable rate.

If 60 million people did take advantage of these loans during the first year the government would need $21 trillion dollars to buy up the notes for the average home ($350,000 based).
That brings in a payment of $100,257,212,047.75 a month. That money is also secured against property here in the U.S. that will increase in value @ approximately %4 a year. Day one the U.S. dollar may look like it has a value of 1/2 it's present value, but by the end of the year I think it will have twice the value that it does now.
The banks will have $21 trillion dollars in cash that they'll want to put to work, that means growth......

If this plan is enacted by years end our gross national product will be double the mean year average, not half. When banks have that much cash they want to put to work into the economy means a lot of businesses will have the financing they need to move forward.

Oh and also there will be about $80,000,000,000 a month returned to the U.S. treasury every month until the entire "start up fund" is returned. That allows for $20 billion a month available for the %4 housing bonds so people can buy a sure investment for their 401ks. Leaving $257 million every month for cost of operations for the non-profit organization of Freddie Mac, the wide range of cost that always go along with doing business.

$21 trillion in a single year.........that is a big investment, but the economic returns will be phenomenal. I believe everyone in this country will move one "class" upward within the first few years of this plans start up. But this plan was not designed to work after an economic melt down, it needs to be done now. If the country has already folded the individuals getting these loans wont have a job to secure them. If the colaspe has already occurred you would be giving the money away to the banks, thats a whole new set of conditions with too many undefined variables.

I have to go to work, today my boss(s) have a lot of "thought intensive" task for me to do, but when I get home I'll try and revise the return income division in a more "business realistic" manner. We want to pay back the U.S. Treasury and them some (national debt) in a more realistic time frame. 30 years is more likely. In those thirty years we may look like we are in the "red" but our economy and private secture financual stability will be way in the black.

Where are we going to get $21 Trillion dollars????

Just click print, not exactly. The funds are pointers transferred to the former lean holders and can be cashed in. But we don't really want to print much more up being $21 Trillion is about 22 times more then we need at the present. But as our economy rockets upward don't be surprised that $3 or $4 trillion will be needed, bigger economy more cash needed.


There is about $829 billion dollars of U.S. currency in circulation; the majority is held outside the United States.
The Federal Reserve Banks distribute new currency for the U.S. Treasury Department, which prints it.
Depository institutions buy currency from Federal Reserve Banks when they need it to meet customer demand, and they deposit cash at the Fed when they have more than they need to meet customer demand.


Principal borrowed: $21.00
Annual Payments: 12   Total Payments: 361 (30.08 years)
Annual interest rate: 0.01%   Periodic interest rate: 0.0010%
Regular Payment amount: $0.06   Final Balloon Payment: $-0.56
Minimum amortizing payment for this Principal and Interest rate: $0.01
The following results are estimates which do not account for values being rounded to the nearest cent. See the amortization schedule for more accurate values.
Total Repaid: $21.04
Total Interest Paid: $0.04
Interest as percentage of Principal: 0.190%


Principal borrowed: $21.00
Annual Payments: 12   Total Payments: 360 (30.00 years)
Annual interest rate: 4.00%   Periodic interest rate: 0.3333%
Regular Payment amount: $0.10   Final Balloon Payment: $0.00
Annual Debt Service Constant: 5.7143%
Minimum amortizing payment for this Principal and Interest rate: $0.08
The following results are estimates which do not account for values being rounded to the nearest cent.
Total Repaid: $36.00
Total Interest Paid: $15.00
Interest as percentage of Principal: 71.429%


So the government floats $21 Trillion up front @ 0.1% interest, and Freddie Mac loans it @ 4% interest. $100 Billion month in, and $60 Billion a month out. Much of the work should be automated reducing cost substantially. I believe that will leave about $39.8 Billion a month to sale off as 4% Housing Bonds for 401k retirement use. That ~ $32.3 Billion face value to mature into $39.8 Billion payout in 10 years. There would be 3 sets of these Bonds, $39.8 Billion every 10 years. Futures that are not sold are saved in trust for when they are needed.

These figures are based on 60,000,000 Freddie Mac Direct Loans @ 4%.

I don't want to sound negative, but the new economic stimulus program isn't going to stimulate too much more then a larger federal debt. It's to little too late. The energy conservation parts are needed, but I'm afraid most of that money wont go into actual energy savings, profit will take the lions share here folks. The tax breaks will be a quicky spending spree for most, cordinated sprees like that do more damage to a local economy then you may think take that lump sum and buy something they want, not need. Sometimes they fall short and fill in with credit, they usually buy the item from who ever has the best sale going and don't always shop smart to find the best product. A steady extra income of $100 to $300 a month from reduced interest rate on the peoples home mortgage.
600,00 people lost their job in January, that didn't have to happen, I tried starting from November to get this point across, I guess this economic 'idea' is extreme, but aren't extreme measures justified in extreme situations.......
Do this and perminatly repair the U.S. economy, the strength of the backbone of any structure will always account for the majority of the total strength of that structure.
If you decide to do this there is a part of the plan I have not mentioned yet, education. People need to be taught, and reminded on "wise" spending. Paying an extra $100 a month on your mortgage will pay that loan off sooner and cheaper. Puting money into to a retirement invest will make the "older years" realistic, we need to put end to "impoverished retirement". The President's word is heard and his direction is sought world wide, a simple economic message added to his weekly address would forge our economy into a solid object that the entire planet could revolve around.
Lets not let Febuary's fate be cursed like January's take the plan to the people!

I'm not sure, but I believe the economy will landslide in late February-early March. You haven't made enough repairs for this economic system to stabilize. If another round of layoffs and mortgages failures dominates February like January's, if businesses continue to close we will reach an economic fulcrum and the down slide will domino into complete depression. This downfall is obviously non-linear due to the fact of cause and effect of economic roll over being non-existent.
There would time if this plan would at least be announced..... but if not maybe a plan "B" should be thought about. C.C.C. ..... Civilian Conservation Corps! Wiki C.C.C.
The government should put a hold on all foreclosures and reposes ions for people that are participating in this project. The focus this time should include Alternative fuels, Energy conservation, and wildlife habitat restoration. We must also try and maintain the simple necessities of a modern civilization, law and order, education, medical services. Also let's begin to face the facts that the government will need to provide the pure basic needs of life..... food, clothing and shelter. People in urban and suburban areas will be devastated, they'll lose everything, they wont have a place to live, they will not even have food to eat. The worst part is none of these people are trained in this type of environment. People meet extreme changes with depression, anger, and frustration .... these are survival instincts. When the hording behaviors start to surface our country will be in trouble, big trouble.
As you can see the future of government spend is going to be incredibly large anyway we turn. If you adopt this plan of Freddie Mac Direct Loans in conjunction with my proposed Housing Market Bonds we can pull out of this and very quickly balance both private and federal budgets.


I believe this "uncomfortable economic situation" may be in part deliberate. To quote Baron Rothschild:

Quote: Buy when there is blood in the streets, even if the blood is your own.

I had hoped we as a species had evolved beyond that, but there is much proof that maturity does come with age.

Who is to blame for this market crash?

Well me partly........
As home prices went soaring up I was able to re-finance my house and buy "goodies" and home improvements with the money. Of course you probably know that already... I bought the house in 2001 for about $90k and now eight years later I owe $136k, kind of a reverse mortgage so to speak in my own special way. But I'm a little different then some of the other 10's of millions of people here in America, I made a commitment, a contract and I'm going to stick with it. I didn't lie to the bank about paying back the money. As a matter of fact when I saw the prices of homes start dropping I was a little "bummed" out for sure but I never once even considered "bailing" on my contract. But then again I bought my house in the last stable market! In 2001 the housing prices were about rock solid as far as a 4% increase a year on average through the previous decades, at least here in this part of Phoenix. Then the prices "fluttered" up, then soared, then fell like a "rock in a pond". The most important reason this happened, there was no fail safe on housing price inflation. Find the last stable market price in your real area, then simply add $4% a year to that and that is what your house is really worth today.

For instance my house:
2001 = $90k Last stable market price.
2009 = $122K Real value
2009 = $136k I owe.
2012 = $137k When the real value and actual debt lines cross

I guess this means I'm ahead of my time, or that I'm upside down in this loan. But I bought in a stable market...... the neighbors didn't!!!

Their house:
2007 = $203k This is what they paid.
2009 - $39k This is the listing price, someone has stripped the house of it's copper....... they took all the water lines out of the attic, the water heater, the compressor from the AC unit.

I asked the bank yesterday for a loan to buy that house, they said they'll call me......... no call back. I didn't think they wanted to loan me anymore money even though I'm absolutely positive I'll be able to sale that house for about $160k paying off both homes. That would make my retirement really nice. Eight years from now, 2017 the lines of what I owe on both homes would cross the real value comfortably.

What I guess I'm saying is "the blood is in the street now, buy now or forever kick yourself in the "______"" I'll let you fill in the blanks.

If you adopt this economic proposal of the 4% Freddie Mac Direct loans don't forget the golden rule..... 4% a year.

Oh and by the way (that's long hand for btw) later we can move the 4% price control to 2% and put the reigns on inflation permanently!

Start with $500Billion in loans @ 4% to home buyers/refinances with the average home price of $250k = 2 million homes. The sale of the 4% Housing market bonds for 3.75% of the face value. This will give a near immediate return of 93.75% of the initial start up cost to be rolled over again and again until it is used up.
3.75% = 4% - 0.1% Prime - 0.15% operations cost


$500Billion > $468.75Billion > $439.453125Billion > $411.9873047Billion > $386.2380982Billion > etc > etc > etc

500,000,000,000/250,000 =
2,000,000 Homes

468750000000/250000 =
1,875,000 Homes

4.39453125E+011/2500 =
1,757,812 Homes

4.119873047E+011/250000 =
1,647,949 Homes

3.862380982E+011/250000 =
1,544,952 Homes

As you can see this adds up to a lot of homes for $500 Billion!

Closing the loop:

In the above post I started my figures with $500 Billion as a "Economic Stimulus" fund, free government money. Not good! Right now our country is so upside down the Chinese wont even loan us money. Also let's not forget the economic state of the Central American countries that were barely paying interest on the loans we made to them and what it did to their economies.

New proposal:
U.S. Government puts up $200 Billion as a loan for Freddie Mac Direct @ .1% (prime rate) interest. Freddie Mac Direct loans out the money @ 4% and the sales off 10 year maturing bonds @ 4% for 93.75% of the face value........ leaving a 6.25% hole...... can't balance that unless some of the bonds are @ 3% with a 2 year maturity. Investors or banks can purchase the fast maturing, guaranteed 3% bonds but only sale enough of these to patch the hole. As the bonds are sold the government is repaid (with interest) and within weeks the government can make another $200 Billion loan to Freddie Mac Direct. And it wont cost anyone a thing!

Who prosper off of this plan:
>Banks; with a growing economy the banks will be able to sale off the properties they are stuck with now at a price closer to what they have into them.
>Banks; will have a sure investment option buying the 10 or 2 year bonds this will help them maintain the financial strength with no risk.
>Banks; will now have a terrific amount of cash from the houses they get to unload, and from all of the payoffs they are getting from people who refinanced with Freddie Mac Direct. Now they will have the cash on hand to make personal loans, vehicle loans, business loans, and all the other loans that payoff sooner at a higher rate. This alone will catapult the country out of the hole and into steady growth position.
>Everyone; who gets this loan will have hundreds more a month in their pocket.... to spend of course.
>U.S. Government; will not have to carry the entire country for what could be years.
>U.S. Government; with a rapid increase of value for the U.S. Dollar the foreign debts will be easy to pay of...... nice if it tripled from its present position in 7 years.
>All U.S. citizens; a stronger dollar means more for exports and less for imports ...... (translation) better buying power.

That pretty much sums it up:
Tom

The above post(s) I think outline a great plan to put the U.S. housing market back on track and will set up a stable economic system with the U.S. middle class as the primary back bone.

But there is more to it then that:
To be blunt, 0% capitol gain taxes for stock/mutual fund investments that are certifiably 100% American..... Owned by U.S. companies, made by U.S. workers, marketed by U.S. entities, and assemble in the U.S. by U.S. citizens. Money from stock trades don't actually go to the company after the IPO, but they do reflect the level of trust that company has with American and global investors. The higher the "comfort level" the more assets that company can draw on through loans or stock sales in their future. I think we should reward these 100% U.S. companies with a huge bonus for people that invest in them, either it be through stocks, mutual funds, or direct investments. The message is the real strength of this action, employ U.S. citizens!
The above action should be combined with a raise in taxes/tariffs for imported goods that have U.S. based competition. The money generated by this extra import tax should be ported directly into paying down on our foreign debt. Once again the message is the real strength of this policy.
The key thing to enable these two helper policies is to clearly define then list companies that are certifiably 100% U.S..
Further more foreign companies that have assembly plants here in the U.S. should be able to duck some of the tariffs and get some of the capitol gain incentives based on the percentage of the amount of work that is actually done by U.S. citizens.

More to come:
TomS.

Foreign policy:
Withdraw from from all military actions today, and here's how..........

We need to form a new alliance with Russia, China, Indian, and the European Union to form a sort of league of super powers. All of us need to put our trust and money into the U.N. for policing the World. This will keep us and them out of trouble and will in effect provide better protection for the parts of the world that so desperately need this help.
In doing this we'll cut our military spending to about 1/3 of it's present cost, not. Take that money and invest into defense technologies, and training personal to a level of 'special forces'!!!!! If we ever get into a scrap with another human culture we will be able to "beat them silly". I'm not really suggesting a reduction in spending here, just a more logical placement of our investment, that's all.
The most important objective here is to form this league of superpowers, the second being to get them to help fund and support the U.N. for global policing, then take our money and buy the most "hit-4-the buck"!

This maybe controversial to some, but this idea is based on logic not emotion:
TomS.

Take your oil and shove it!
I'm really fed up with the oil situation and the Middle East in general.... but my mother told me "If you don't have anything nice to say then don't say anything at all." so I'll leave it at that!!!!!!!
There are many technologies that can and will replace "gas" and "diesel" for vehicle propulsion but all of them need resources to optimize their technologies. Everyone seems to be going in different directions on this as well. I don't know if you have ever heard of "open development" but it's where a group of companies and governing factions get together to share ideas and develop standards for a product release. Bio-waste, and farm raised plants are my personal favorites. I want to employ Americans here in America first. I'm just a laborer foreman at a concrete plant but if I had some say so here it would be very load and very clear.
You need to get off of it and get it done now, today essay!! The billions we spend today will generate trillions in our immediate future, who doesn't see that and how could you miss something so blatantly obvious????????
Our "newly formed" "league" of "super powers" will also be seeking these answers soon, so maybe a global "open" development is needed, did I say maybe.....?
Open development is a group of entities that are seeking an answer for a problem that needs a solution that will be globally compatible.

This represents the "grand canyon" of the global deficit;
TomS.

War on Terrorism?
I suggested a reduction in "man power" for the armed services but I think we need them to help combat another fight against terrorism, the one going on here in the U.S. against gangs, drugs, and violent crime. The federal government needs to to re-assign many of the present forces in action in the middle east to a civil enforcement division and assign them where they are needed in the U.S. at the time. Basically money and manpower for the police forces that need them. Many of the service people in the middle east on active duty can finish their tours in civil active duty roles right here at home and on our borders.
Where is it more dangerous in Baghdad, or L.A.? If we(U.S.) and the other super powers put our trust and money into backing the U.N. I think a majority of international terrorism will be stopped & stifled. But we have some "issues" going on here at home that we can no longer let go. The only answer is to put these people into prison and force rehabilitation, re-education, and re-location onto these wrong doers. They are just like bad bears.

Rehabilitation:
Get them off the drugs, force them to see the harm that they are doing to society, and let them see what kind of life they are really missing out on.
Re-education:
Train them to go to work in something they have an aptitude for and something that is rewarding for them.
Re-location:
Can't turn em loose in the "hood" they'll fall back into the same rut because of the environmental influences. States need to trade them according to their qualifications and the jobs needed to be filled, right out of prison and into a job in another state.

Prisons:
Put these people into a group of other bad people isn't such a good idea. Unless you want them to trade drugs, intimidate each other, and further demoralize them. Isolation, not in a cold dark cell with no-one to communicate with them (that is an "*****'s) idea of isolation. You got to keep them separated, where have I heard that before. They need to be kept busy with studies in the areas of re habitation and education, and the only contact they should be able to get with others is with visitors, clergy, therapist, educators, and prison guards. They need to face what it is that's messing up their head enough to cause them to commit these crimes and sacrifice their freedom. A lot of them have never seen or experienced a normal life so they don't think it's even possible for them to get. Another large segment are excitement junkies, we turn this need into something a little more productive like being a work workaholic, don't laugh people that are compulsive will remain compulsive just got to give them something better to get excited about, simple enough.

Taking away their right to vote??????
Taking away their right to bear arms is a good idea. Taking away their right to serve on a jury panel is a good idea too, at least until they stabilize. But I would make them be a part of the political situation, I don't want to drive them further away from society, I want them knee deep in it, they need to know why, how, where, and when laws are formed so they mesh in with 'our' community. Every probation and parole officer should give them assignments to their 'clients' to make them fully aware of the political and legal surroundings of the local, state, and federal levels. The is one of the key things that many people don't realize, they wont want to hurt it if they are a part of it.

The cost of this will seem enormous, the cost of not doing this will be as much as 10x in the longer run. Plus a good number of U.S. citizens will be killed or injured every year until we make an effort to do this job right.

The more people that are productive, the stronger our economy. The less people that our society has to support the stronger our economy.

TomS.

About the war on terrorism, well, i don't think it advisable to bring back those soldiers now especially in this crisis, where they are they are getting well paid and those are active jobs instead of coming to share in the financial crisis they are presumably unconscious of. these soldiers are not well trained in policing but in armed combat unless America is now full of organized armed gangs that need tanks to break up. And you should not forget it is better to fight the enemy before he launches than waiting for him to attack and find you unprepared, that is why i think Obama is relocating the troops to Afghanistan (The Alquaeda base) instead of Iraq where they were fulfilling the whims of Bush. For American security, my opinion is that the Police and judiciary should be vigilant in their duties.

Rehabilitation may not work because some people have lost the sense of right and wrong and only God can change them, they are beyond repair.

for Re - education, i don't know which method you propose to use to reeducate these guys because i wouldn't want them to associate with my children, teaching them all bad behavior.

And relocation gives a criminal new hunting grounds because he is not even known in the area and can wreak extreme havoc even though they are monitored.

I think prisons should remain active and these guys can be used constructively in industries and other communal jobs, activities and tasks. this will enable them to support themselves instead of the average tax payer.

About their right to vote, you have my support, they should be active in the politics of the economy, maybe a president like Obama might inspire them to do better after serving their sentences.