Back to Basics - Blueprint for Economic Recovery
We are rethinking how our society functions and operates. In order to imagine and build an ideal world, we must plan to meet the basic necessities first. We have new ideas of how to meet basic needs as we tackle the tough economic problems of the day. Our Current view of the Mortgage/Banking crisis allows for a more bottom up restoration of our current debt load. First off, reposition existing bad notes into a trust fund to be used for Homestead Renewal Projects(See Our Homestead Renewal Act). This spurs a service sector that is ailing, real dollars will be spent on real products and services. This has an instant Multiplier effect. Getting Americans to work will increase revenue and consumer spending; while providing Banking/Securities Firms time to regroup investments. Secondly, allow a partial 12 Month Moratorium on current Mortgages that are nearing foreclosure. This is an estimated $480 Billion worth of equities that will recoup their revenue on the back end of their Notes. We Support This Plan ,additionally, we endorse a 4 Step Plan outlined by one of our Contributors(Jay B.) below.
If there is any government bailout, there should not be a bailout for just the banks, but rather, a government purchase of actual properties attached to those notes. This will offer future Home Equity and the money spent will not be a complete waste of taxpayer dollars. The Government bail out money should come with a home owner stimulus package attached to it, to help not only the failing financial institutes but the money borrowers themselves, with the following stated conditions:
1. Any qualified person/ borrower delinquent on their mortgage payments will hereby have the right to add up to 12 single monthly payments including P.I.T.I..to the back end of their mortgage without penalty and at no extra cost to the borrower whatsoever, the term will be extended up to one additional term year.
2. All adjustable rate mortgages that are falling into hardship or delinquent shall have the right not withstanding credit scores to refinance to a low 6.5% fixed rate mortgage at a cost of $200 - $500 dollars which shall be pooled and used to pay back the government for the bail out cost and any conversion mortgage can be extended up to a term, of no more than a new 40 year term. The extra 10 years will help the borrower do to the reduction in property values nationwide.
3. Any Interest only mortgages either of a first or second in nature as recorded shall be again for a nominal fee of $200 - $500 dollars from any qualified persons/ borrowers not with standing credit scores the right to refinance to a 6.5% fixed rate mortgage for any specified term up to 40 years in term for each mortgage conversion.
4. All late fees for monthly credit card payments will be lowered to no more than $5 dollar per month and said late fee will not be allowed to throw customer over their balance limit evidence by an additional over the limit fee charged by lender and the interest rate will hereby be lowered or adjusted to no more than 8.5% at a fixed rate on present balances on all qualified hardship borrowers until paid in full. These terms shall not govern any new money spent or borrowed.
This shall become law and no financial institution may deviate from the above bail out proposal and its terms and conditions. The above is only an outline of terms, dates, qualifications, payments, conditions, interest rates; late fees and other, the final draft will be more specific on terms and conditions of said proposal.
An all out Bail Out at anytime is too drastic of a measure. If anything, we need to impose a CAP on CEO Salaries and ratify a FLAT Tax(w/Employee tax Credit) to recoup much of the financial inequity in the Corporate sector and stimulate hiring. The Free Market has not had time to react. The more artificial support our Economy has, the deeper the problem becomes. Bottom line- Jobs, Homes and more Exports are needed to stimulate our Economy. Plus, a $1,000 Cash incentive to all Adults will cost $250 Billion. There is currently 250 Billion available in SSA/SSI benefits to Non-US Citizen population without impacting essential food/housing needs.
(More on this as the Story develops)
Water: Water is the basis of life. The earth is 70% water, yet most of the water is currently unusable. We propose a Seawater Pipeline be built in the US to passively desalinate water inland. Building a Seawater Pipeline in the Middle East could alleviate hostilities in that area as well.
Food:When we have taken care of our water needs, we need to focus on providing food for everyone. We are against giving farmers subsidies to not grow food! This only keeps the cost of food high when we need to grow as much food as we can. An alternative to the current arrangement is for the government to buy farmers excess food that they grow. This would be essentially subsidizing farmers TO GROW food! Let's make sure that everything we do in America has a purpose. There is no reason to NOT grow food, simply because the price of food can vary. Price stabilization can be achieved through a comprehensive Buying Plan. So, when farmers see a loss, the US can buy there product for wholesale distribution, thereby, guaranteeing that the farmers have a more predictable market.
Food management is Key to our Solution for America. As long as we have this back up system in place, people will never have to worry about the essential things that make Life comfortable.
Housing: There is enough land in America for everyone to be able to own a home. We propose giving everyone a mailbox to begin with. Eventually, we believe people can invest sweat equity and earn credits toward Home Ownership through our Homestead Renewal Program. We foresaw the mortgage crisis and believe one answer would be Re-Assessing the way Property Taxes are Assessed.
Transportation: A renewable energy Mag-Lev Rail with offer a long term solution to our transportation problems. It will help us move away from our dependence on foreign oil. In addition, we want to see a more regional approach to dispensing key products to the market. As we segue to a new way of managing our resources in America, there should be a transformation of points of service from far away to nearby. Even local markets are encouraged in this plan. That means if a neighborhood of 2,000 people exists 10 miles from a Store, then a store should be built closer. The net saving in fuel costs is enormous over the long-term.