Great article

Dear siriusss
I do not know about the subject as I have been living in very remote area, but style of your writing is excellent. I love reading your article.

by Muhammad Khurshid (258 articles, 27 quicklinks, 160 diaries, 105 comments) on Thursday, March 27, 2008 at 9:32:37 AM
 

Ask Hillary

She has an excellent plan. Many economists say so.

by fou (0 articles, 0 quicklinks, 0 diaries, 80 comments) on Thursday, March 27, 2008 at 1:52:08 PM
 

can you be more specific?

I did not catch her talk.

I could care less if any economist says her plan is great. Economists got us into this mess!

where can I find it on line?

siriusss

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Thursday, March 27, 2008 at 1:59:53 PM
 

Go to her site and the plan is there

Contrary to what many would have you believe, she actually has outlined and published her plans on various issues. She has vision, not just nice words.

by fou (0 articles, 0 quicklinks, 0 diaries, 80 comments) on Thursday, March 27, 2008 at 4:48:02 PM
 

Wow,

I think you may a have future with the federal reserve.

Your suggestion would be to borrow 100% of the money to purchase a bond that would yield 1000% at maturity with no backing what so ever.

This is similar to loaning a 100% of the purchase price on a home, plus the closing costs and paying interest only with a written guarantee that default will never be your fault. Great.

This is the type of plan that landed us here to begin with. There is no free lunch and life doesn't come with a guarantee.

The mortgage crisis is the tip of the iceberg, Americas entire economy is melting down.

by Mike Folkerth (82 articles, 0 quicklinks, 2 diaries, 410 comments) on Thursday, March 27, 2008 at 2:01:15 PM
 

the whole mess has been going on for a long time

I agree What I am trying to do is start at helping people save their homes.

We have to start somewhere. I Know this worked or something like ti.

Where would suggest we start if we don't start here?

 I am looking for feedback not hugs. 

siriusss

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Thursday, March 27, 2008 at 2:21:00 PM
 

Sure

The very existence and traditional use of finance to produce just more of itself has never been anything else but a monumental swindle, and the present devious use of it to leverage power against the whole planet and all its inhabitants is a damnable crime.

How or why you folks won't face up to this and consider getting rid of the whole accursed system is beyond my comprehension.  Do that, and you solve almost all the world's problems at a stroke.

by amazin (26 articles, 0 quicklinks, 7 diaries, 340 comments) on Thursday, March 27, 2008 at 2:53:18 PM
 

How?

specifics please. If we immediately do what you suggest how will it affect the people with the mortgage in forcloseure?

How will it affect the person with a job going over seas?

Can this plan (Garner's plan) be used until we can get more things done? Like creating hard currency?

Did Obama Address this?

Clinton?

McCain?

I am open to anything. I am trying tto get a workable plan going on paper that we can talk to each person running for office, each governor each state rep. I want to get a workable plan on the INTERNET that people can go to and make a proposal to their bank.

I do not see any of the big 3 doing anything but talking promises. Their promises will not help the rank and file until it trickles down to them

John Nance Garner served as Vice President under Franklin Delano Roosevelt. Garner was minority leader and Sopeaker of the House. He was known for Integrity.

This pLan I understand is being used to bail Bear Stearns out. It was written in the Hoover Admin for the common people to pay off loans in a Depression.

If you know how to fix this for the people of this nation, not the Bear Stearns or the JP Morgans please telll me.

I want specifics please

siriusss

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Thursday, March 27, 2008 at 5:10:29 PM
 

The law that the Fed

is using to bail out Bear Stearns is in fact a law drafted during the depression which allows the Fed to loan money to other than the member commerical banks in a situation of “unusual and exigent circumstances.” 

Look for the Fed to purchase the bad loans of the giant quasi government lenders, Fannie Mae and Fredding Mac  and replace them with good funds to make new loans.

This is similar to the mafia laundering money. The bad loans then will be reduced to an-ability-to-pay status and the losses will be absorbed by the taxpayers. 

This will accomplish the results that you are seeking. The consequeces of those who made bad choices will be shifted to those who didn't make bad choices and we will be happily on our way to a depression.

The U.S. economy has hit zenith and no forgivness or new loan program will change that.  

by Mike Folkerth (82 articles, 0 quicklinks, 2 diaries, 410 comments) on Thursday, March 27, 2008 at 6:39:57 PM
 

Thanx for the feedbackbut plese be more specific

Unfortunately the FED is going to have to move in the direction of FDR. The taxpayers are going to pay for it no matter what. Nothing I have seen says the taxpayers are not going to pay for it.

I have flund out this is called the Homeowners Refinancing Act AND it was the most successful mortgage act ever enacted. I found out when it ceased operation if HAD PAID ITSELF OFF and returned a modest profit to the federal goverment. I am going to write on this as I do more research. 

The taxpayers were paid back and made a profit. 

Do you have a plan whereby the taxpayer does not have to pay for it?  Can you promise that the plan will pay the taxpayer back?

 We have to stop the bleeding in the private sector. I could give a fig for the investement banks.

Pouring 2.5 billion into Job training is pretty much the same thing only it does not address the mortgage crisis now.

 Most of the plans of Hoover were already beginnig to work when FDR came in.

Garner was Speaker of the House under  Hoover. He became VP under FDR and ran against FDR when he ran for his third term.  Garner was very much against much of the New Deal.

 From what I understand the plan was used in the Democratic Primary to give FDR the final vote to put him over the top. Wow just where we are now.

 And the plan paid for itself and made a profit.

I will go over your site. I am sure it is good but I don't see how it will help the people in crisis now

To assume that every one in the sub prime bubble is a spendthrift is pretty elitist. Let them eat cake right?

siriusss 

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Thursday, March 27, 2008 at 7:11:38 PM
 

No Thanks

I actually do have some ideas that might help (I lecture in Risk Finance at an Australian University) but right now I'm so peeved at the US over Iraq that I'd rather see you collapse.

by kwalsh (1 articles, 0 quicklinks, 1 diaries, 71 comments) on Thursday, March 27, 2008 at 10:26:23 PM
 

lol

I agree there is a sense of karma in all this isn't there? It is hard to feel bad about a nation  drowning in debt when that  nation brought the world shock and awe.

And it isn't like people weren't warned! All throughout the 90s this was foreshadowed . Certainly the fiscal irresponsiblity of the 80s make one wonder why it did not  happen long before.

 I think many people ran to get on the housing band wagon because they were afraid they would get shut out by the skyrocketing housing prices.

As many have pointed out the irresponsible policies of the FED and the Treasury and Congress have led us to this place.

I don't want to see the most vulnerable take  the brunt of this mess. As Hillary said "At the end of this we will be ok but what about YOU?"

siriusss 

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Thursday, March 27, 2008 at 10:39:41 PM
 

lol

Sorry for taking so long to reply. I'm not used to comments on my comments.  So I'm pleased I gave you a good laugh.

For the record I am serious on both points.  I,m quite angry at the Iraq situation because, my wife is Arabic and I regard Arabs in general as my relations by marriage and as a former professional army officer  and qualified tactics instructor (including low level OPs) the whole thing has been both morally wrong and unbelievebly mishandled.

Secondly I do have some valuable insights into this current crisis eg one of my previous commments

Capitalism and Risk

Much of our problem today is the poor accounting for risk.  The emphasis on performance devoid of measuring the risks taken to acheive it rewards gamblers at the expense of good risk management.  The true costs are not measured.  Risk management incorporates process.  Should we reward somebody who ran unaceptable risks such as sprinting across a busy road without looking just because he/she got to the finish first?  The economic costs of increased risk of social disruption and climate change must be incorporated into our economic model.

For the record I teach at the post graduate level.

by kwalsh (1 articles, 0 quicklinks, 1 diaries, 71 comments) on Tuesday, April 8, 2008 at 10:04:00 PM
 

HOLC

This might be of use. 

http://www.answers.com/topic/home-owners-loan-corporation?cat=biz-fin

"In June 1933, the Home Owners' Loan Act, following the president's lead, sailed through Congress. The law authorized $200 million to set up the Home Owners' Loan Corporation (HOLC) with authority to issue $2 billion in tax-exempt bonds. The money raised would enable the HOLC to rescue imperiled mortgages by offering financing up to 80 percent of assessed value, to a maximum of $14,000. There followed a rush to file applications in 1934 by those holding 40 percent of all mortgaged properties, of which half with lowest risk were accepted. As intended, the main beneficiaries were homeowners at the lower end of the middle class with incomes in the $50 to $150 monthly range, persons who in the private market would have lost their homes.

The HOLC permanently changed the prevailing mortgage system. It offered money at 5 percent, provided insurance for its loans through the Federal Housing Authority and the Federal Savings and Loan Insurance Corporation, and allowed up to twenty-five years for repayment. To reach far-flung clients the HOLC dispersed into regional centers. Every loan situation was handled individually, including personal visits to prevent default. Given wide discretion to act, agents improved the chances clients would meet their obligations by helping them find work, collect insurance claims and pensions, attract tenants for rental space, qualify for public assistance, and even locate foster children to take in for a fee. The success of this sympathetic outreach was best demonstrated by the fact that the foreclosure rate for HOLC's risky mortgages was no greater than that for much safer mortgages accepted by banks and insurance companies."

Of course, this is after people lost their homes. 

 FDR tried to work within the Fed system.  Today, given the Feds failure, Congress should set up a government bank,  and provide loans directly to homeowners with money issued debt free, before they lose their home.  Government isssued money.  If a government can issue a bond, it can issue it's own currency.   Banks within the Fed would be required to accept the new currency as legal tender.

by pft (0 articles, 0 quicklinks, 0 diaries, 46 comments) on Friday, March 28, 2008 at 3:57:17 AM
 

Did you know the Home Loan Bank paid it self off

and returned a small profit.

Notice the roughly 10% of the loan value.200 million is mortgages and 2.5 billion in bounds. It was roughtly 10 cents on the dollar.

I was wondering BY BACKING THE BONDS with land in essence aren't you creating a land bank? Isn't that exxentially a hard currency?

If Bear Stearns was propped up using the law is the law still on the books? Since it was written for home owners can it still be used for homeowner if we find a way to write a blue print boiler plate?

Bear Strearns is NOT going to repay this loan. Historically we know homeowners DID repay the loan.

That is our barganing chip.

siriusss

by siriusss (4 articles, 3 quicklinks, 1 diaries, 68 comments) on Friday, March 28, 2008 at 9:49:13 AM