So lets sum it up: If I was hired by the administration to fix this thing this is what I would do:
Pass Amnesty and charge each new worker $20,000. Provide them with a first time homebuyer credit of 20k or 10%. Pass stronger labor laws to enforce the worker exploiting.
Take the bailout money and develop a virtual credit card for borrowers that increases their credit score. Give Americans a Nationwide Credit Boost. A 200 point Credit boost takes the economy out of the credit crunch and it costs us nothing.
Restructure loans to include loan insurance therefore creating a new industry..
Take the losses that offset gains in the stock market from 3000 to 50,000 dollars for the next 5 years.
Reduce capital Gains to 10% or eliminate them for the next 5 years temporarily.
Increase the investment levels from 5000 to 20k for the retirement accounts
Allow for traditional Iras to purchase real estate directly.
Make the ETFs obsolete.
Redeploy the federal housing department budget for homeless and the foster care system and use the homes in the foreclosure market to provide foster homes and temporary housing for section 8 recipients.
Everyone benefits.
Provide the loans in the foreclosure market with an extension for the foreclosed line of credit and extend their terms. Re Certify the applicants with employment verification and have them sign student loan type agreements. Take a 30 year defaulted mortgage and extend it to 37 years. Provide a bridge loan fund that allows the person to owe the money indefinitely like a student loan. Then you would make the payments payable from the income taxes filed yearly so the benefactors don’t get to walk away from their loans. We should not make it so easy to walk away from these loans. This would take the loans totaling 2 trillion and reduce the amount to 20 billion.
Train the workers that don’t have revenue sources (Jobs) and allow them to get interest free student loans to get education while they wait for the market to return. (Don’t allow the deadbeats to escape)
On a corporate end these loans should be attached to personal executives so they understand how serious it is. If you get an executive bonus you should get an executive liability on the downside.
Interim loans are the key to the crisis on a whole. Re loan these loan default fees to the borrowers temporarily. Hire some of these dead beats at the banks that they used to scam from. If its revenue that you lack that solves the problem right there
Have the shorting of stock limits raised to 7 dollars. A stock would lose its shorting status at $7. This would provide a 20% cushion for marginability and eliminate the pressure for pension funds who have to liquidate these securities once they reach $5. This eliminates the downward spiral significantly. The strength in this country is the replacement of funds in the retirement programs. When stocks are marginable they can be used for leverage. test
Increase Net Capital requirements for the financial firms…
Obama needs to meet with some foreclosed people to develop a comprehensive program that helps these people out of this hole and allows them to develop a strategy that works on a small scale and expand it outward.
