I would not call what is happening now “unprecedented.” We have had a S&L Crisis in the 1980s (for the most part) and something called “The Great Depression.” What we see today is not unprecedented, just, perhaps, new to those who haven’t studied what have come before, to those “caught up” in their description, or …

Public records show that 300,000 foreclosures happened in August 2008. FHA loans average 180000 USD. Multiplying those numbers gives you about 54,000,000,000 Dollars. Yes, 54 Billion. If home values have decreased 25%, those “institutions” that loaned that money are out 13 Billion USD–for the month of August…

The cause of the foreclosures is due to several issues: mortgage originators, “Joe Public,” and lending institutions.

Originators make money by making loans and selling those loans to a institution–the originator has no care as to whether the loan is foreclosed on–as long as the loan is taken, they are paid. Alter this so that the originator must repay the person/party applying for the loan or the lender if the loan does not work–the originator should have some responsibility to make sure the loans are good. Perhaps a good start is getting rid of ARM loans for residential mortgages…

“Joe Public” needs to not sign something when they do not know what they are signing. Blaming the originator, who might be to blame, for not describing the loan to you when you could have read the “fine print” or done research at the Library or on-line does not “cut the bacon.” You are responsible for your actions–take responsibility for your actions.

The lending institutions are foreclosing on homes/property often contributing to their loss. One of my clients tried hard to get the bank to let them “rework” their loan, but the bank said ‘No.” The bank took the property back (foreclosure) and sold it “on the courthouse steps.” My client bought it back… Saving himself millions that the bank might not have lost if they had been willing to renegotiate…

Just as the FDIC was NOT needed to bail out Wachovia, the 700 Billion is a guarantee. Wells Fargo has made the Wachovia deal MUCH better for the public and for the government–apparently Wells sees value in what they are buying. Just because Citi “got good financing” from the fed does not mean it was “good” for anyone else. As a perfect example, GE could have sold stock to the public to raise 3 billion dollars without having to make it preferred stock with a 10% interest rate AND letting Buffett buy another 3 billion in stock over the next 5 years at a price lower than GE sells for today…

Stop making the “rich” richer, and things will get better. Remember, the average person getting more money is what stopped the Great Depression and what made the economy swing after WWII…

History teaches us much that we have, apparently, missed or refuse to see…

305 million people don’t control 536 politicians.

Loose cannon. The IOU comes due.

I would buy a house with my part….HAHAHAHAHAHAHAHA!! Maybe one that’s already been foreclosed on!!

Umm…no really….and pay off my car…

There have been numerous, intelligent objections
to this proposal by many experts in the field. The need to
provide available credit to the public aka “Main Street”, can
be accomplished by lending the 700B, or a portion of it, to
institutions who are not at risk of collapse.
The assumption being that these institutions making
better business decisions, would use better judgment
in extending credit to borrowers based on their good credit
history and ability to repay!!

Then rather than rewarding Wall Street’s mismanagement
& corruption by bailing them out, we are instead enabling
Main Street to buy their car, make their payroll & obtain
their student loans, while validating hard working,
bill paying, credit conscious tax payers who’ve purchased
homes they could afford !!

We will avoid an additional 100+ million dollars in unnecessary
add-ons and extend opportunity to smaller institutions who
operate with good business practices and have the potential to
provide jobs secured by stable corporate policies.

I would like to request that Fox News post on their web site,
a list of the Rep.s who vote “yes” and those who
vote “no”.

Since it is clear that tax payers have no recourse other than our
one vote, we should have the opportunity to either vote out or re-elect our Congressmen & women as we see fit. Voters who feel this
bill was warranted are free to re-elect those in Congress who
supported this bill and those who feel their wishes were not
represented can choose to vote accordingly.

The market has always had some degree of risk. Poorly run corps
should fall (or be sold) if they fail, allowing for growth in smaller
better run organizations which may provide additional employment
opportunities.

In every instance, free market solutions will always succeed where
socialized government intervention will always fail.

We are at such a crucial crossroads… Do we choose Liberty or
Socialism??

I. INSURANCE

A. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

B. In order for a company to accept the government-backed insurance, they must do two things:

1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and ruined lives.

2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs.

C. This backstop will cost less than $50 billion—a small fraction of the current proposal.

II. MARK TO MARKET

A. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

B. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing.

III. CAPITAL GAINS TAX

A. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing.

B. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
stand up, speak out, and fix this mess.