For those who think passing out bailout money ...

[Tilted]

is easy - you try it. Try not to wreck the economy while you're at it.

The Bailout Game

I especially love the news headlines that scroll along the bottom.

 

[Larry Gude]

It is EASY if you do it intelligently.

What is the core problem? People not paying their mortgages. There is no such thing as a bad loan until the person who owes it stops paying it, regardless of whether or not they should have ever gotten a loan.

So, do you give money to insurers and banks? No. They've proven to have poor judgement. You do not, CAN NOT reward this. If they can't attract capital from investors, that is ALL you need to know; they've been judged to be not worth it.

You put the money where the problem is; housing. I've written the plan and, so far, one administration has totally ignored it to the peril of the nation. Hopefully, we'll see some change and the new people will see the wisdom of the Gude Plan.

You take $1 trillion and put it into the 20 million lowest assessed value homes in America. That's $50,000 per home. One per individual, owner occupied home, so, too bad for investors who bought three condo's in Vegas.

You set up a credit for that $50k that pays their existing mortgage for however long it lasts. If your mortgage is $2,000, that's 25 months.

If you sell within the next 5 years, you have to pay back the full $50k. If you sell in 6 years, you get to keep 20%. 7 years, 40% and so on up to 10 years.
You pay cap gains on the percentage you got to keep.

This INSTANTLY frees up money for the people who need it most; home owners. It gets payments going for the people who need help the second most, the people who own the mortgages. Their book values improve, dramatically, over night because there will be known stability. This frees up money for the people who need it third most, all of us, via the improvement in the economy as a whole.

Had this been done, as I wanted, before Christmas, retailers would have had a boom and employment would have soared. If it happens now, the same thing will happen because the money people would have had to struggle to put into their mortgages will now be freed up to pay down credit card debt and get out there and consume.

So, Obama, if you're listening, take a trillion in TARP money back from the people who should NOT have been given it, AIG and so forth, the auto manufacturers, all of them, and put it where the problem is.

To a grateful nation, I say you're welcome.

 

[BoyGenius]

It is EASY if you do it intelligently.

What is the core problem? People not paying their mortgages. There is no such thing as a bad loan until the person who owes it stops paying it, regardless of whether or not they should have ever gotten a loan.

So, do you give money to insurers and banks? No. They've proven to have poor judgement. You do not, CAN NOT reward this. If they can't attract capital from investors, that is ALL you need to know; they've been judged to be not worth it.

You put the money where the problem is; housing. I've written the plan and, so far, one administration has totally ignored it to the peril of the nation. Hopefully, we'll see some change and the new people will see the wisdom of the Gude Plan.

You take $1 trillion and put it into the 20 million lowest assessed value homes in America. That's $50,000 per home. One per individual, owner occupied home, so, too bad for investors who bought three condo's in Vegas.

You set up a credit for that $50k that pays their existing mortgage for however long it lasts. If your mortgage is $2,000, that's 25 months.

If you sell within the next 5 years, you have to pay back the full $50k. If you sell in 6 years, you get to keep 20%. 7 years, 40% and so on up to 10 years.
You pay cap gains on the percentage you got to keep.

This INSTANTLY frees up money for the people who need it most; home owners. It gets payments going for the people who need help the second most, the people who own the mortgages. Their book values improve, dramatically, over night because there will be known stability. This frees up money for the people who need it third most, all of us, via the improvement in the economy as a whole.

Had this been done, as I wanted, before Christmas, retailers would have had a boom and employment would have soared. If it happens now, the same thing will happen because the money people would have had to struggle to put into their mortgages will now be freed up to pay down credit card debt and get out there and consume.

So, Obama, if you're listening, take a trillion in TARP money back from the people who should NOT have been given it, AIG and so forth, the auto manufacturers, all of them, and put it where the problem is.

To a grateful nation, I say you're welcome.

Larry,

Even the Dems aren't this liberal. I'd rather see the low-end crap get bulldozed to fix the supply and demand problem.

Hell, no more kids eating lead paint chips would save a bundle.

 

[Larry Gude]

Larry,

Even the Dems aren't this liberal. I'd rather see the low-end crap get bulldozed to fix the supply and demand problem.

Hell, no more kids eating lead paint chips would save a bundle.

Are you a Soviet spy who has been in a gulag for the last 30 years and are now reading Life magazine from 1973 to get caught up on how to blend in and know 'current' events in America?

There has to be a rational reason that you always sound like some Cold War relic...

 

[aps45819]

Larry,

Even the Dems aren't this liberal. I'd rather see the low-end crap get bulldozed to fix the supply and demand problem.

Hell, no more kids eating lead paint chips would save a bundle.

You're so incredibly stupid, I'm amazed you remember to breathe

 

[BoyGenius]

Vote for Aps and Larry

You're so incredibly stupid, I'm amazed you remember to breathe

Free money for everyone!

Free houses for everyone!

 

[Larry Gude]

Free money for everyone!

Free houses for everyone!

It is indicative of my level of boredom this morning that I am even bothering with you.

The problem IS housing, mortgages handed out via government fiat to people who needed housing to continue to appreciate to be able to handle the liability. This poisoned the well when the music, appreciation, stopped.

It is a far more market oriented solution to put money in a place where business can compete for it than it is to directly become partners IN the companies. It is not 'free' money. It is directly tied to an asset and puts the money directly to work on THE problem; not bailing out corporations that may or may not put the money to work.

I take your objections as a compliment to the further validity of the idea.

 

[BoyGenius]

Just What the Dr. Ordered

It is indicative of my level of boredom this morning that I am even bothering with you.

The problem IS housing, mortgages handed out via government fiat to people who needed housing to continue to appreciate to be able to handle the liability. This poisoned the well when the music, appreciation, stopped.

It is a far more market oriented solution to put money in a place where business can compete for it than it is to directly become partners IN the companies. It is not 'free' money. It is directly tied to an asset and puts the money directly to work on THE problem; not bailing out corporations that may or may not put the money to work.

I take your objections as a compliment to the further validity of the idea.

Sure Larry,

Go ahead and buy some more of this stuff.

Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com

 

[Larry Gude]

Sure Larry,

Go ahead and buy some more of this stuff.

Would You Pay $103,000 for This Arizona Fixer-Upper? - WSJ.com

I am ALSO very much in favor of prosecuting fraud, as is the case in this 'home'.

 

[BoyGenius]

I am ALSO very much in favor of prosecuting fraud, as is the case in this 'home'.

Then most of your charity cases can't be kept in their homes because they signed loan applications in which they blatantly lied about their incomes, and should therefore be sent to jail/debtor prisons then, shouldn't they?

 

[Larry Gude]

Then most of your charity cases can't be kept in their homes because they signed loan applications in which they blatantly lied about their incomes, and should therefore be sent to jail/debtor prisons then, shouldn't they?

As I say, I'm all for prosecuting fraud. Most of it is going to come down on the lenders and brokers; they're the ones who did the pimpin'.

Past that, if we put a $50,000 credit on homes, there WILL be interest in the market starting to move some even if it's a simple matter of the bank taking the house back because it is in default and then they get to enjoy the credit and have some time to figure out what to do with it over the next couple of years.

 

[BoyGenius]

As I say, I'm all for prosecuting fraud. Most of it is going to come down on the lenders and brokers; they're the ones who did the pimpin'.

Past that, if we put a $50,000 credit on homes, there WILL be interest in the market starting to move some even if it's a simple matter of the bank taking the house back because it is in default and then they get to enjoy the credit and have some time to figure out what to do with it over the next couple of years.

I notice a conspicuous lack of die-hard Republicans coming to "bail" you out in this thread.

 

[Larry Gude]

I notice a conspicuous lack of die-hard Republicans coming to "bail" you out in this thread.

Nothing new. Republicans sat on our asses for eight years when we most needed to be active and questioning decisions. My tax plan is, by far, the best one for the nation, as is my 'bail' out plan, but, GOP'ers, like libs, do not like to hear their, our, guys are wrong. We wanna BELIEVE in them and trust their wisdom.

The difference is that, if nothing else, we at least own up to it after the fact. Libs are STILL in denial about Bubba.

 

[czygvtwkr]

What is the core problem? People not paying their mortgages. There is no such thing as a bad loan until the person who owes it stops paying it, regardless of whether or not they should have ever gotten a loan.

So, do you give money to insurers and banks? No. They've proven to have poor judgement.

The people that took these loans for houses that they could not afford also exercised poor judgement.

I say you reep what you sew, nobody had a problem when they thought their house was going to appreciate forever at an unsustainable rate. I'm no economist, but I'd say in 2004 when I first learned of ARM's I said to myself I bet in 3-4 years I can pick up a house much cheaper from all the foreclosures.

I'm for no bailout for anyone period. It was their own stupidity and we need the correction in the market and the lesson.

 

[Larry Gude]

The people that took these loans for houses that they could not afford also exercised poor judgement.

I say you reep what you sew, nobody had a problem when they thought their house was going to appreciate forever at an unsustainable rate. I'm no economist, but I'd say in 2004 when I first learned of ARM's I said to myself I bet in 3-4 years I can pick up a house much cheaper from all the foreclosures.

I'm for no bailout for anyone period. It was their own stupidity and we need the correction in the market and the lesson.

Look, here's the deal; The president, both GOP and Dem leadership, bankers, insurers, builders, developers, real estate people, they ALL took the full faith and credit of the United States government through Fanny and Freddy, and put it on the sidewalk with a great big sign;

HAVE SOME

The music has stopped and the Piper MUST get paid. Now what? NOW WHAT?

If a guy in your building has set his apartment on fire do you say "Too bad for him"?

Find an analogy that works for you; point being that this is a national economic fire and it affects damn near EVERYONE be it through a lost job, a lost customer, the weakening of the entire economy, the crumbling of stock portfolios and, ultimately, the full faith and credit of the government itself.

This isn't just a few, or even a million, dumb asses that have run up credit card debt they can't handle or bought a car they can't afford. It's the foundation of US citizenship AND the American dream; housing.

Now what?

I am NOT closed to the idea that we should have done NOTHING. However, when you look at the level of government involvement, specifically, Fanny and Freddy, we are ALL culpable through our representatives. We are, in fact, all in the same boat to some extent more or less.

So, identify the problem and fix it, says I. And fix it in a way that directly address's THE problem and does NOT reward the primary culprits.

Hell, wanna know the unspoken truth of why Bush suddenly just HAD to do SOMETHING in early October? The election. He was trying to, as a last minute desperate act, help McCain by not having a melt down that would saddle the GOP with most of the blame at the critical moment; the election.

Obama can take every last freaking dime back from these mother####ers, all of 'em, and put the money into houses and let everyone go back to work competing for those dollars. My plan provides stability and puts us back in order and does save a rather massive economic disruption. What Bush has done is NOT working unless you were a major #### up before and earned the exalted title of 'too big to fail' and HAS taken us far, far down a road we will no more come back from than Social Security or our ####ed up tax code.

The genie is out of the bottle.

 

[BoyGenius]

Look, here's the deal; The president, both GOP and Dem leadership, bankers, insurers, builders, developers, real estate people, they ALL took the full faith and credit of the United States government through Fanny and Freddy, and put it on the sidewalk with a great big sign;

HAVE SOME

The music has stopped and the Piper MUST get paid. Now what? NOW WHAT?

If a guy in your building has set his apartment on fire do you say "Too bad for him"?

Find an analogy that works for you; point being that this is a national economic fire and it affects damn near EVERYONE be it through a lost job, a lost customer, the weakening of the entire economy, the crumbling of stock portfolios and, ultimately, the full faith and credit of the government itself.

This isn't just a few, or even a million, dumb asses that have run up credit card debt they can't handle or bought a car they can't afford. It's the foundation of US citizenship AND the American dream; housing.

Now what?

I am NOT closed to the idea that we should have done NOTHING. However, when you look at the level of government involvement, specifically, Fanny and Freddy, we are ALL culpable through our representatives. We are, in fact, all in the same boat to some extent more or less.

So, identify the problem and fix it, says I. And fix it in a way that directly address's THE problem and does NOT reward the primary culprits.

Hell, wanna know the unspoken truth of why Bush suddenly just HAD to do SOMETHING in early October? The election. He was trying to, as a last minute desperate act, help McCain by not having a melt down that would saddle the GOP with most of the blame at the critical moment; the election.

Obama can take every last freaking dime back from these mother####ers, all of 'em, and put the money into houses and let everyone go back to work competing for those dollars. My plan provides stability and puts us back in order and does save a rather massive economic disruption. What Bush has done is NOT working unless you were a major #### up before and earned the exalted title of 'too big to fail' and HAS taken us far, far down a road we will no more come back from than Social Security or our ####ed up tax code.

The genie is out of the bottle.

Larry,

Whenever someone pitches a plan, you have to understand how the plan affects or possibly benefits the plan pitcher, so here's some questions for you about your own situation.

Are you someone who:

1. Owns your home outright, paid off your mortgage, owe nothing?

2. Rents?

3. Has a mortgage?

Breaking that down:

1. Do you have positive equity in the home?

2. Did you buy in the last several years and now have negative equity?

Mortgage Types, you have a:

1. 30 year fixed.

2. You have an Adjustable rate mortgage.

3. You used a stated income liars loan to purchase your home?

I'm willing to answer all these as well.

 

[toppick08]

Larry,

Whenever someone pitches a plan, you have to understand how the plan affects or possibly benefits the plan pitcher, so here's some questions for you about your own situation.

Are you someone who:

1. Owns your home outright, paid off your mortgage, owe nothing?2. Rents?

3. Has a mortgage?

Breaking that down:

1. Do you have positive equity in the home?

2. Did you buy in the last several years and now have negative equity?

Mortgage Types, you have a:

1. 30 year fixed.

2. You have an Adjustable rate mortgage.

3. You used a stated income liars loan to purchase your home?

I'm willing to answer all these as well.

 

[BoyGenius]

If I read that write, that you have no mortgage, then you Sir are currently the smartest guy in the room, that is most prepared to survive this nasty downturn.

You have no mortgage payment. No landlord to toss you out or lose the home you rent in foreclosure. You sir, have nothing but the tax man to deal with, and he's on the run, because he knows his days of getting fat are nearly over too.

I congratulate you on your ability to resist the best efforts of the real estate and lending shills to mortgage your future to them.

Debt is not wealth. You are living the American Dream.

 

[Larry Gude]

Larry,

Whenever someone pitches a plan, you have to understand how the plan affects or possibly benefits the plan pitcher, so here's some questions for you about your own situation. I am not responsible for your, or any one else's, phobias. It is GOOD for you to floss your teeth, every night, REGARDLESS of how it affects me. People can either consult their paranoia, their inner demons, their own insecurities or not. People can either look at a plan objectively or not. It is totally fair, if you choose to do so, to look at my ideas for an entire nation as being centered all on my own benefit if you like. That does not change the merits. At all. Your motivations are you problem, not mine because I learned long ago, that getting crazy people to agree with you is no different than getting them to disagree; it's all the same and of no benefit or interest to me.

Are you someone who:

1. Owns your home outright, paid off your mortgage, owe nothing?

2. Rents?

3. Has a mortgage?

Breaking that down:

1. Do you have positive equity in the home?

2. Did you buy in the last several years and now have negative equity?

Mortgage Types, you have a:

1. 30 year fixed.

2. You have an Adjustable rate mortgage.

3. You used a stated income liars loan to purchase your home?

I'm willing to answer all these as well.

My interest and my motivation is centered around one and only one thing; what I THINK is best for the country, you me, my neighbors, your neighbors, Obama, Bush, you name it. What we're doing is not.

 

[Larry Gude]

If I read that write, that you have no mortgage, then you Sir are currently the smartest guy in the room, that is most prepared to survive this nasty downturn. What if he's tyring to sell? What is he gets fired? What if he losses enough customers to lose his business?

You have no mortgage payment. No landlord to toss you out or lose the home you rent in foreclosure. You sir, have nothing but the tax man to deal with, and he's on the run, because he knows his days of getting fat are nearly over too. Wrong

I congratulate you on your ability to resist the best efforts of the real estate and lending shills to mortgage your future to them.

Debt is not wealth. You are living the American Dream.

What if was on the verge of retirement and now can't? What if he was living off of investment income?