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A Real Bailout Plan

cutterone

Well-known member
I got this as an e-mail today. This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!


Hi Pals,

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their r pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else


Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed
by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work."

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than do the geniuses at AIG or in Washington DC

And remember, this plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
 

TexasBred

Well-known member
ROFLMAO...that's all well and good...only problem is with the math...the per family rebate from 85 billion would be $425 bucks.
 

fff

Well-known member
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.
 

Sandhusker

Well-known member
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

Nobody knows what the "current value" is. That's part of the problem.
 

fff

Well-known member
Sandhusker said:
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

Nobody knows what the "current value" is. That's part of the problem.

The "current value" will be decided by a bankruptcy or foreclosure court. Paulson is fighting that tooth and nail, though. He wants to buy equites, mortgages, whatever, at their face value, not their true value. If the REAL problem is that no one knows their true value, why fight establishing a true or current value. Then we know what they're worth; the market should stabilize.
 

TexasBred

Well-known member
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

fff..the problem is NOT mortgages not being paid. They have always existed....We have mortgages which have been flipped many times over and now carry a note for 200-300% more than the property is worth. The poeple who signed these notes were not qualified from day one and mosst of them knew it....but they got themselves a big new house...The borrower signed the note and moved in....make him pay the payments or throw him out and sell the property at "market value" to someone who can afford it, as it should have been sold in the beginning.
 

fff

Well-known member
TexasBred said:
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

fff..the problem is NOT mortgages not being paid. We have mortgages which have been flipped many times over and now carry a note for 200-300% more than the property is worth. But the borrower signed it and wanted to move it....make him pay it or throw him out and then sell the property at "market value" as it should have been sold in the beginning.

Of course, typical Republican response: give the top dogs billions$$. Kick the little guy out of his house.

Those mortgages can be revalued at "market value" and not kick the owner out of his house. If we're going to invest hundreds of billions of $$$, why not invest it in home ownership by helping people keep their homes instead of lining the pockets of the people who got us in financial trouble to start with?
 

TexasBred

Well-known member
fff said:
TexasBred said:
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

fff..the problem is NOT mortgages not being paid. We have mortgages which have been flipped many times over and now carry a note for 200-300% more than the property is worth. But the borrower signed it and wanted to move it....make him pay it or throw him out and then sell the property at "market value" as it should have been sold in the beginning.

Of course, typical Republican response: give the top dogs billions$$. Kick the little guy out of his house.

Those mortgages can be revalued at "market value" and not kick the owner out of his house. If we're going to invest hundreds of billions of $$$, why not invest it in home ownership by helping people keep their homes instead of lining the pockets of the people who got us in financial trouble to start with?

Big dogs billons?? And who would this be?? They've made their money.. They're out of the pic til the FBI calls them. Home ownership?? That's a priviledge....something you own...not something gov't dictates. Why let a bum renegotiate his note on his house from $500,000 to $100,000 and still keep it. Sell it to someone who WILL pay.
 

Sandhusker

Well-known member
fff said:
TexasBred said:
fff said:
Sounds like a plan to me. :lol: If the problem is mortgates not being paid, first revalue the houses to current their value, then put that money into a fund for people to pay their mortgages.

fff..the problem is NOT mortgages not being paid. We have mortgages which have been flipped many times over and now carry a note for 200-300% more than the property is worth. But the borrower signed it and wanted to move it....make him pay it or throw him out and then sell the property at "market value" as it should have been sold in the beginning.

Of course, typical Republican response: give the top dogs billions$$. Kick the little guy out of his house.

Those mortgages can be revalued at "market value" and not kick the owner out of his house. If we're going to invest hundreds of billions of $$$, why not invest it in home ownership by helping people keep their homes instead of lining the pockets of the people who got us in financial trouble to start with?

That won't work, either. First of all, nobody knows what "market value" really is until housing prices stablize. Secondly, a person who paid $500,000 for a house that your new market value says is worth $300,000 won't have to be kicked out, he'll just leave the keys on the counter, walk off, and tell whoever is holding his mortgage that they can have it.

The typical Democrat response is "poor little guy". They ignore the fact that the poor little guy signed at the X that affirmed all their finanical information was true. They wouldn't be in a mortgage that they couldn't afford had they been honest to the lender and to themselves on what payments they could make. Why do they get off scot free?
 

cutterone

Well-known member
I'm not sure either is correct. It almost needs to be a case by case situation. I think both parties (lender and borrower) need to be held accountable and a fair and equitable soution needs to be assesed. No one can presently afford some of these high interest rates and it does no good to put people out of there houses and then left to depreciate and set empty.
If individuals have made no attempt to make payments then that is a different story. Lenders who bought this crap share a responsibility too!
Another thing. A sector of this problem are all the mortgage brokers who sprang up like ants at a picnic pushing and selling all these loans and they've got their money and runnin to the hills without any responsibilty to this mess!
 

TexasBred

Well-known member
cutterone said:
I'm not sure either is correct. It almost needs to be a case by case situation. I think both parties (lender and borrower) need to be held accountable and a fair and equitable soution needs to be assesed. No one can presently afford some of these high interest rates and it does no good to put people out of there houses and then left to depreciate and set empty.
If individuals have made no attempt to make payments then that is a different story. Lenders who bought this crap share a responsibility too!
Another thing. A sector of this problem are all the mortgage brokers who sprang up like ants at a picnic pushing and selling all these loans and they've got their money and runnin to the hills without any responsibilty to this mess!

Interest rates are not high....Maybe you're not old enought to remember 16% on home loans., 24% on new cars..and unlimited on unsecured debt? Only state usury laws kept it from going higher. But if you had money you could 18-20% per annum on your deposits day in and day out and it would be insured as well. You don't accomodate people who do not perform under a contract...You but them back in the ghetto where they came from and sell the house to someone who can afford it and will pay for it.

When Carter was president was had the "Misery Index". Should have been there then.
 

TSR

Well-known member
cutterone said:
I'm not sure either is correct. It almost needs to be a case by case situation. I think both parties (lender and borrower) need to be held accountable and a fair and equitable soution needs to be assesed. No one can presently afford some of these high interest rates and it does no good to put people out of there houses and then left to depreciate and set empty.
If individuals have made no attempt to make payments then that is a different story. Lenders who bought this crap share a responsibility too!
Another thing. A sector of this problem are all the mortgage brokers who sprang up like ants at a picnic pushing and selling all these loans and they've got their money and runnin to the hills without any responsibilty to this mess!

Sounds reasonable,but your last paragraph is the most important because those people are the ones they are trying to protect with this bailout imo. They are their "buddies". If they go to jail who knows, some just might wind up "ratting" on somebody. Whether that would do any good or not remains to be seen.
 
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