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Stabilizing the Economy while reducing the deficit and National debt

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Below is an economic stabilization plan which has been kicked around Washington but has been ignored because there is nothing in it for the beautiful and powerful people. I named the plan the Yes We Can plan because of the recognition factor from its use during the presidential campaign. The plan has been reviewed in a bipartisan format between NY, Atlanta, Omaha and Washington; the comments from Atlanta "Your narrative is concise, easy to understand, and truly makes a lot of sense.  I don't know how I can help you but if you'd like I can pass it on to people who are more involved in this situation, including several members of Congress.  At least this is an answer, while most people are just giving us the problem.  So far, this is the first answer I've seen.  Let me know what I can do": from NY "I cannot conceive of the Government issuing triple tax exempt 20 year bonds. The treasury is selling taxable bonds at a lower rate of interest with no difficulty, why would it sell tax-free bonds at a higher rate of interest? If for some reason it did come to market with a triple tax free bond at a rate higher than it is offering treasuries it shouldn't have any problem in selling as many as it wished"; from Omaha "I'm following the policy with President Obama of "speaking only when spoken to."  I hope I get a call from time to time – and I think I probably will – and if so will pass along the idea you sent if it then seems appropriate to do so" and from Washington "There has been no new development on your plan. It's been more of an uphill battle since the administration came out with their plan and members of Congress coalesce around President Obama".                             

The "YES WE CAN" Plan

What is the YES WE CAN Plan?

The YES WE CAN Plan is a plan for buying up foreclosed properties and properties about to be foreclosed on.

How the YES WE CAN Plan is set up?

The government creates a REITC (Real Estate Investment Trust Corp.) type quasi governmental corporation similar to the original Freddie Mac and Fannie Mae corps.

  1.  
    • The REITC will purchase any type of real estate property, be it residential or commercial.
    • The REITC becomes the largest property owner in the United States.
    • The REITC's purchase of these properties forestalls people in single family dwellings, multi family dwellings and small business's from being displaced by foreclosures.
    • The REITC would purchase these properties for between 10% and 50% of the outstanding loan balance.

How does the YES WE CAN PLAN function?

The REITC under the proper circumstances and conditions in coordination with Freddie Mac or Fannie Mae will act like a bank and issue new 30 year fixed rate mortgages.

·         If qualification for a new fixed rate mortgage does not exist the REITC rents out the property.

·         The rental can be a straight rental

·         The rental can be a rent to own.

·         Guide lines and terms for these rental agreements would be predetermined, as to rental term, monthly payments and buyouts if appropriate.

How the YES WE CAN Plan is funded?

The purchase of the foreclosed properties will be funded through a unique type of savings bond, The Yes We Can Savings Bond  ("YWC

 BOND"); the YWC BOND is a reincarnate of the United States War Bond .

  1.  
    • The YWC BOND will have twenty-year redemption; with a 3.5% interest rate.
    • The 3.5% interest is triple tax exempt.
    • The YWC BOND also carries a 10% investment tax credit; the tax credit is separable and saleable.
    • If these bonds are given as gifts there is no statutory tax limitation. (The window of opportunity for the non taxable transfer would be 12 months from the first day the YWC BONDS become available for purchase).

How much money must be raised?

        The amount of money required to purchase these properties would be based upon how it affects the entire stimulus package. An    

         interactive financial model has been created demonstrating what the positive financial influence would be for the country. The model

         allows the user to play "WHAT IF" by changing the assumptions.

         To get a copy of the model send an email to more@yeswecanplan.org...      

What are the affects of the YES WE CAN Plan if enacted?

  1. The real estate market stabilizes, as the REITC purchases the foreclosed properties and issues new mortgages and or becomes the new owner/landlord that rents out these properties. The REITC' takes the glut of foreclosed property off the market and stops the wholesale sale of Americas real estate to foreign speculators
  2. The REITC becomes the largest real estate owner in the United States with no requirement to sell, thereby, immediately putting a floor under real estate values.
  3. Millions of American families and small business's are not displaced from their homes and working facilities due to foreclosures.
  4. States and Municipalities will have their real estate tax base stabilized, thus reducing their deficit in tax collection caused by the foreclosures.
  5. The YWC BOND is a unique form of bond in as much as repayment of this bond comes from cash generating assets and not tax revenues; therefore, annual deficits and the national debt are not increased by the plan and would in fact be reduced.
  6. The cash generating assets could produce in excess of 2 plus trillion dollars in positive revenues.
  7. Millions of sustainable jobs could be paid for by the positive revenue cash generating assets, over the next 5, 10, 20 and 30 years. The creation of millions of new sustainable jobs would annually generate Billions of dollars of Federal Income Tax revenues, Billions of dollars of State Income Tax and Sales Tax revenues and Billions of dollars of Social Security and Medicare Tax revenues.
  8. The YWC BONDS offers a safe place for the American public to invest their savings and 401K's.
  9. $100's of Billions of dollars would be pumped into the banking system without increasing the deficit, the national debt, nor nationalizing the banks.
  10. The YES WE CAN plan is transparent and simple to understand. The war bond was successfully used to help defeat the peril that threatened our nation.  We are again threatened. If we are looking to instill confidence in government and the economy, what better tool than a new war bond which allows Americans to help Americans and in turn help themselves?    

 

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Stabilizing the Economy while reducing the deficit and National debt

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I am a New Yorker that now lives in Florida. I am married and have 5 children and 4 grandchildren. I tend to be an optimist, my blood pressure and passion rise when I encounter an injustice. The economic catastrophe which has come to plague us and (more...)
 

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