Willi, Don1, Islandman...et al...???? The US current...

[Karl]

...problems on what to do with the $700,000,000,000.00?

I say make it a 'trickle up' deal!

Get the money to the 'big boys' via the hands of the end users? ...i.e. clearly ear marked for specific end users' areas e.g. home owners in the case of those with mortgage loan (It does not even matter if the mortgage loan has servicing problems or no...althought it must be those greatest at risk of losing the property that mustbe helped...first)...

...( AS John McCain said - pay off the loans at risk then reorganise the rate and term on those properties - new mortgage loans - keep the people in their homes and at the same time free up greater spending power/keep more disposable incomes in their hands...some of that...knowing our people most of that will help to keep the economy going...)

...mek Detroit guh innah bankruptcy reorganisation plan...mek dem build good vehicles = best in the world? ...plans to stay on the cutting edge of advances... mek dem wuk fi solve fi dem problems...

...the investment firms, AIG and the Banks must lay on the table reorganisation plans...those plans must be as near as possible to covering all contingencies as to not have them return in future years for new bailouts. ...and eventually the guys and gals who presided over their 'demise' removed...never to return!

...as to the rest of the economy - social programs! - revitalise! schools, hospitals, roads, bridges... build out of 'township ships'... water supply, sewage/waste disposal systems, electrical systems (& switch to as much as humanly possible within US energy & fuel supply), etc...

(damn just reminds me of JA and the unholy mess of growth...uncontrolled and or planned...just one ugly haphazard 'lick dun henny-weh mess - in our little dot...producing a 'swift death' for all )


Aside: There is argument that suggests Detriot (car manufacuring industry) has largest reach in the economy...but is it larger than housing? ...and or does its tentacles reach deeper and wider throughout the economy than does housing?

Facts and figures...please?
...

[Islandman]

While I tend to like the approach of tackling the problem from the the homeowners end, I think it must be realised that not everyone can or should be "saved". Some people are simply not in a strong enough position to support the mortgage, taxes, insurance and maintenance on the house they purchased and it would be best of they gave up the house and used thier money to rent somewhere and get thier savings and bills back under control.

Detroit is a tough one. Thier reach is definately very wide, because of all the other companies that service the car manufacturers. The industry is also very concentrated so letting it fail would be particularly hard on Michigan and Ohio in a way that the housing industry does not affect any one area.

The difficulty with bankruptcy for a company like a car manufacturer ( and not so much for say an electonics retailer like Circuit City) is that they sell big ticket items expected to last and require maintenance for years. People are MUCH less likely to purchase a big ticket product from a company going through bankruptcy because of the long term implications of them not being around. On the other hand people will buy almost any item from a bankrupt Circuit City tomorrow if the deal is good.

I am guessing the govt will have to help them, and really soon too , but I am not sure how competitive the Detroit companies can be as long as thier costs are so much higher than their competitors.

Govt spending on infrastructure will no doubt help the economy, and some social programs are always necessary BUT these MUST also have some kind of accountability. This is especially where you always have to watch the corruption , overpriced crony contracts and government waste. I have some knowledge of what has gone on in New Orleans post-Katrina and the corruption is widespread. Ah bwoy. Subcontracted projects about 5 levels deep and everybody taking something off the top and doing nothing.

I am curious to see if Obama will be able to do anything more than high level planning on his universal health care proposals for his first term.

[Karl]

No to Universal Health Care as he spoke of it during the election run up.
...perhaps Universal Access...with co-pay type input. We just would not like the system clogged with all having a mild headache...and people who really need help unable to receive it due to the "log-jam".

...I saved this for last - Housing mortgage loans?
If the body (the holder of the mortgage loan) is warm...help can be provided. Pay off the old note...and write a new affordable note. 50 year mortgage note...with 4%...for the current market value?!

...or...50 mortgage note @4%...interest only for 5 years then rolled into new guaranteed 50 year @ 4%? ...whatever it takes to pump the already approved bailout money to where it was ear-marked...and leverage of that money into upwards of 1, 2 or 3 trillion dollars...all depending on each 'unique homeowner mitigation'!

Keeps the owners in the property! (by the way this is as it was ear-marked going only to owner occupied homeowners). Keep loans that are now 'performing loans' on the books! It shall then leave those homeowners - with some disposable funds! Slow the rate of the meltdown in the economy...as some of that disposable funds find its way into 'home upkeep maintenance' and filter to businesses allied to that 'home upkeep maintenance'...with excess filtering elsewhere throughout the economy! ...purchase cars/upkeep of cars, education for the kids, hospitality industry...whatever...
YES, WE CAN!

[Don1]

my take

...problems on what to do with the $700,000,000,000.00?

I say make it a 'trickle up' deal!

yeah mon!

Get the money to the 'big boys' via the hands of the end users? ...i.e. clearly ear marked for specific end users' areas e.g. home owners in the case of those with mortgage loan (It does not even matter if the mortgage loan has servicing problems or no...althought it must be those greatest at risk of losing the property that mustbe helped...first)...

If there are no problems servicing a loan... no need to intervene

...( AS John McCain said - pay off the loans at risk then reorganise the rate and term on those properties - new mortgage loans - keep the people in their homes and at the same time free up greater spending power/keep more disposable incomes in their hands...some of that...knowing our people most of that will help to keep the economy going...)

pay off loans...yes.... but at discounted level so as not to unduly enrich banks and financial intermediaries for their follies

Bankruptcy protection & reorganization on those lines ..yes

Keep people in homes... yes

...mek Detroit guh innah bankruptcy reorganisation plan...mek dem build good vehicles = best in the world? ...plans to stay on the cutting edge of advances... mek dem wuk fi solve fi dem problems...

yes, yes, yes

...the investment firms, AIG and the Banks must lay on the table reorganisation plans...those plans must be as near as possible to covering all contingencies as to not have them return in future years for new bailouts. ...and eventually the guys and gals who presided over their 'demise' removed...never to return!

yes, yes, yes, yes

...as to the rest of the economy - social programs! - revitalise! schools, hospitals, roads, bridges... build out of 'township ships'... water supply, sewage/waste disposal systems, electrical systems (& switch to as much as humanly possible within US energy & fuel supply), etc...

yes, yes, yes, yes, yes

(damn just reminds me of JA and the unholy mess of growth...uncontrolled and or planned...just one ugly haphazard 'lick dun henny-weh mess - in our little dot...producing a 'swift death' for all )


this confuses me.. but... you're on a roll so...yes anyway


Aside: There is argument that suggests Detriot (car manufacuring industry) has largest reach in the economy...but is it larger than housing? ...and or does its tentacles reach deeper and wider throughout the economy than does housing?

Facts and figures...please?
...

respek

[Islandman]

50 year mortgage? Yuk!

Not for me but I guess some people would rather that than lose thier house. I don't think its the right choice for everyone though.

[MdmeX]

Karl mussi mad - 50 yr. mortgage -

NO WAY!!

[Karl]

50 year mortgage? Yuk!

Not for me but I guess some people would rather that than lose thier house. I don't think its the right choice for everyone though.

What is the first purpose of the home?
Security of tenure?
Then 100 years mortgage may be right for some!

...additionally ...and image extremely low monthly payments while equity builds?

...just think on a reverse mortgage's best attraction!

Would not such a direction be also in the interest of protecting/shoreing up the economy? Win-Win!

[Karl]

NO WAY!!

Why not?
You would have a low monthly payment...and if you are disciplined there is the option of paying down the principal at your own convenience.