This simple action will -- for each bank --
(1) Generate $16.5 Million / year that the Newark government can use to reduce taxes and/or improve life in the community -- and
(2) Save about $10 Million in mortgage payments for the 5,000
This above numbers assume $100,000 mortgages on $125,000
homes. If homes in your community average $375,000 -- just
multiply the numbers by 3 -- if less adjust appropriately
the State or Federal level.
We want you and other patriotic citizens to support this plan.
" ABSTRACT -- A plan is herewith presented whereby local governments will start Narrow, State-Chartered, Community Banks and specialize in giving and managing 4% mortgage loans for the life of the loans.
(1) This new, narrow, banking system will work alongside the existing banking system.
(2) The system will work for the stockholders by returning a 6% dividend to all stockholders on their invested capital.
(3) The system will work for the general public by returning all other profits to the general public by local government expenditures aimed at programs that will work for the good of all citizens. The money spent on these programs will be about 5 times the amount made by stockholders. In essence the stockholders will get 1/6 of the profit made by the bank and the public will get 5/6 the profit made by the bank. That seems fair -- the stockholders own part of the bank by virtue of their capital investment in the bank -- while the public owns 100% of the government by virtue of their being a citizen of the community. In essence -- the citizen-homeowners will be selling a share of their ownership to investors.
(4) The corporate charter for the bank will reflect the fact that the $50 Million Capital investment in the bank will be buying 1/6 of the stock in the bank while 5/6 will be retained by the local government in the common interest of the general public.
Please note: this plan does not have to be implemented all-at-once. It can be started with one trial bank. Why not Newark?
A glossary follows the plan -- it is intended to define all the words that may be new to the reader.
An introductory note of historical importance that emphasizes the importance and power of leverage.
"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." Archimedes
(this plan uses the leverage inherent in Fractional Reserve Banking)
IN A NUTSHELL -- Give communities a State-chartered Narrow Bank operating under existing law, including Fractional Reserve Banking and a place to sit and they will create all the money this country can use to support affordable housing through 4% mortgage loans.
FEATURES AND BACKGROUND --
1. UNCLE SAM WANTS YOU ... and other common, patriotic citizens like you ... to support Community State-Chartered ... Narrow Banks that will concentrate on providing 4% mortgage loans to the American public. Under existing laws, thousands of the Narrow Community Banks will be able to create and lend all the money this country can use to create 4% home mortgage loans
2. In all banks discussed in this report, the narrow charter is important: It must force the bank managers to follow sensible, prudent rules and refrain from doing strange financial sleights of hand or mind.
3. If you have comments or questions, write to Martin Carbone / < firstname.lastname@example.org > or 5123 Don Rodolfo Drive, Carlsbad, CA 92010