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Mortgage Solution for the United States

Mortgage Solution for the United States

 

Mortgage problems should be in part fixed with passive permanent grants.  Both local and federal grants should be made available to those that want help. Grants are not new, and have been tailored to meet challenges of our country in the past.   A grant program dedicated too homeowners that want help, and need help would have a positive multiplying effect on the entire nation, and world.  Changes in infrastructure needs, debt levels, population demographics, and sustainability all contribute to the need for more government grants.  

 Vermont a leader in progressive ideas has used a small scale passive permanent homeowner grant in selected environmentally considerate multiunit complexes to the benefit of all Vermonters.  Vermont requires those who want to apply to the program to take a financial education workshop, and also helps people straighten out past credit issues. Vermont is one of only two states in the nation to sustain housing prices in the last year.  The grant would stay in place forever as percentage of ownership in the property supporting the homeowner, home values, the entire community, all with a financial interest, and or moral interest.   

Struggling home owners could use this type of grant to regain their ability to contribute to the economy. Home owners could transfer partial ownership of their home to the grant program.  Homeowners, banks, realtors, appraisers, bondholders, renters, and the entire world would benefit.  Being progressive in dealing with struggling homeowners will help deal more effectively with fluctuations in the business cycle, and allow our government to show its commitment to being thoughtful of all.  

 So much of a home owner’s life goes towards paying the mortgage. This maybe impractical, and unsustainable in part because of increased efficiencies, limited natural resources, global competition, and an aging population.  Resolving this material weakness will be good for everyone, and increase flexibility of our economy to meet future challenges.

Currently small regional banks have been exempt from banking regulation of their mortgage originations.  Banks have relied on the under educated, and under informed customer to be their main profit source.   Enticing people with low introductory rates into products they could not realistically afford in the long term.  The lapse of regulation that has occurred continues to contribute to the housing problem, and now threatens to hurt the entire economy.  All Banks need to be regulated in all areas to ensure fair treatment, and pass along increased efficiencies to society.

Further regulation of mortgage brokers will only work if all banking is regulated.  Brokers’ help customers get into programs created by banks.  If banks can do anything then increased regulation of brokers will be ineffective. Rates of profit allowed should be tighter on brokers because of increased efficiencies in recent years.  Government needs to from time to time pass along efficiencies gained by business/society to the consumer.  Too address and eliminate a weakness of capitalism.  

Rates of profit allowed should be lower in particularly on teaser rate mortgages, adjustable rate mortgages, stated income mortgages, and interest only mortgage programs because of the increased risk to bondholders who take on this debt.  Additionally smaller profits on questionable programs would encourage brokers to put customers in the right mortgage product for the customer.  This can be done by slight modifications to laws already in place by states, and the federal government.

Mandate all adjustments in rates to be indexed to too the federal funds lending rate. Rather than indexes that have the potential to distort adjustments materially higher. To ensure maximum multiplier effects by federal policy. To increase transparency of investments’ in mortgage bond; hence, helping all investors be able to make better decisions.  

Prepayment penalties on mortgages need to be reduced, and morally applied to everyone alike.  I would suggest no more than one year to reflect the increased ease at which mortgages can be created, and to not unreasonable slow down transactions of home investors. To fill a loop that unfairly sets up teaser rate borrowers to large pre-payment penalties that can erode equity in homes.

Passive or active government grant type owner ship in all banking comparable to what is already in place with large federal banks could be used to help banks retain market value, continue to work to improve efficiencies, and better align there moral values with everyone in society.  Government intervention would ensure the sustainability of the banking industry despite continuing unforeseen changes in their role.  Banks need to be better able to make more thoughtful decisions without fear of going out of business.     

Handling this sensitive issue quickly would be prudent to show Americas’ ability to respond quickly to changing information.  Permanent grants can be used by individual states, entire United States, the world, and or any area of human concern. I hope to continue to share my understanding on other issues our nation faces in the future.

   

October 22, 2008 Posted by | American Politics and Policy Ideas | , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

12 tips to improve yourself, and or home business

Some  helpful ideas to improving your home business.   List of recent ideas I have brain stormed, to help improve myself and others. 

   1.  Network with those you come into contact with.  

   2.  Learn From others.

   3.  Be professional.

   4.  Work hard; Add value.

   5.  Help others;  worry about profits later.

   6.  Take responsibility.  Admit when you are wrong, and solve problems.  Focus on problems you can fix.

   7.  Business and personal goals should be shared.  Despite what others have said about seperating the two.  Keep your morals close by your side when you conduct yourself and good karma will be on your side.  

   9.  We all have different wants, and needs.   Have faith in constructive actions.  Destructive, greedy, and oppressive forces are risks worth looking at when analyzing your market thoroughly.

  10.  Use good judgement, and learn from your experiences.

  11.  Get business cards to share your contact information with aquantances, friends, family, and business prospects.       http://www.printsmadeeasy.com/  

  12.  Pay attention to details.

    Entertainment purposes,

June 5, 2008 Posted by | Personal Growth | , , , , , , , , , , , , , | 2 Comments

Lower taxes with government partnerships would make corporations much more competitive. Funded with tax credits.

 Given the size of these corporations and importance of operating with a more competitive tax structure.   As an economist I would suggest lowering tax rates from to as low as 15%.  This can be down with the government taking grant style permanent ownership in  corporations funded with tax credits for death taxes.  People could more effective plan their estates without having to make disruptive transactions of their assests before death while settling all or part of their tax burden.   A lower tax rate and partial ownership  would  be most appropriate to allow the government to reduce the tax rate on corporations. 

Private industry needs to become more competitive with lower tax rates and maintain an understanding of good morals.

Government passsive grant style ownership in corporations will help to keep markets competitive and  share risks with business in times of uncertainty.  The government could do this with any corporations and reduce stagnant money.  Greatly strengthen the balance sheet of the United States government.   Imbalances and risks need to be spread out more evenly between business, citizen’s and the government.  Government ownership clearly works to share risks with everyone.   Government involvement can guaranteed operation of businesses and rates of profit regardless if profits evaporates.   Sharing of risks stands to make society more insulated against changes in the world and esasier to make the most appropriate  decisions.  This should be done with the goal of maximizing benefits to society.  

   The influence of money is too strong and sometimes acts in appropriately.  Not creating the most efficient economy possible.   China will crush U.S citizens and corporations with  trade surplus’s and 15% tax rates.   Trade imbalances need to be eliminated over time and concern for everyone needs to be shared.    Tax rates need to be lower to encourage investment, competiveness and a debt free society.  No  more business as usual.  Honesty and hard work is the American way.   Technologies created by corporations should be profited from and shared robustly with the world to minimize waste and optimize economies of scale.             

entertainment purposes only,   

January 23, 2008 Posted by | American Politics and Policy Ideas | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Staying Short CRM, and QQQQ. Most stocks look good to short here

Given the weaknees in the market, and a number of competors in the CRM (customer management software) sector this stock should tank.  I first took the idea from Jim Cramer’s Mad Money last night about  CRM stock being priced to achieve perfect earnings given they have very little earning and a stoc multiple in the 100’s.     I bought the Jan 55 option puts.  It can take a long time for big shareholders to get out in a stock and the stock has been selling off as the market trends lower.   The stock has crossed below the 50 day moving average which should bring more sellers into the picture.  Besides insiders never miss a day to sell the stock.  Check out insider sales on yahoo finance.  Automatic sales take place just about every day according to yahoo’s stats.  
 The market maker does appear to be accumulating  alot of shares and supporting the price.   
On the QQQQ trade I can’t see any reason why the index won’t go lower.   The only thing holdnig up the market here is the drug index which is the worst index of them all long term.   With so many drugs going off patten and the number of available drugs can’t support these multipes.  Personally I and about four billion people in the world are in support of socialized medicine the stocks have a large downside risk if things go any other direction than perfect adding to QQQQ’s loss.   The growth prospects in the U.S are shot.  Bulls only hope in my opinion is that Wallstreet begins valuing sustainability and rationalizes I higher multiple accordingly.  After all a company worth should be based on the long term rate of return.  Rather than the growth rate until the next blow up.  The market is resilent and the guys on wallstreet are the brightest.  I’m staying with the down trend and QQQQ is a pretty safe way to do that.   QID is a leveraged index to play stocks short for those with no other options to get short stocks.   I hope to post a few more leveraged funds for those that want to be a touch aggressive.
     Bill Seidman the man who fixed the savings and loan crisis in the 1980’s was just on CNBC saying the current situation has similarities to that of the 1980’s.  That should surely fuel the fire as more investors wake up to reality of a full blown recession.  Defaults  should keep rising, credit tightening, and the stock market being a forward looking indicator heading lower.  I will continue to go in and out the market shorting the market.    Steve Leisman pointed out today that software stocks are vulnerable in 2008 with 30% of Ceo’s saying they would cut back on CRM software if they needed to cut back on spending due to weakness in the economy.This article is for entertainment purposes only, not investment advice.  Do your own research and only make educated decisions when trading

Now you add in my brother in law works in the sector, and he said he was expecting a flat year for the sector.  Hardly a situation that a hi growth company can be overly successful in.

CRM could go up on the other hand because it has recently sold off, and is obviously the stock is over priced because investors pay for growth, and buyers/sellers set the current price.   Kramer did say the risks were 10 points up and 30 points down. That means it could go up 10 from here.   Always remember to look at the other side of the trade, and only take the best opportunities.  Rember this site is so you can learn from my mistakes as well as succeses. Good luck

January 11, 2008 Posted by | Uncategorized | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Economic policy to keep America strong in the face of a bear market

 Economic policy to keep America strong in the face of a bear market

The government needs to cut taxes, liabilities, and debt to stay competitive in the global marketplace. To pay for these tax cuts the government should offer to settle estate taxes early for those over the age of 65.  Also, possibly negotiate the settlement of retirement benefits to reduce estate taxes owed at death for the many retirees that don’t need the money. 

The rate of profit a business is expected to return in the future declines because competition around the world competes at higher capabilities.   The government currently carries idiotic large debt loads because of the inappropriate influence of money. The budget needs to balanced and idle money needs to be taken out of the market. Many municipalities and local governments will default at some point in the future with higher borrowing costs, high debt loads, and stagnation. 

The government should work to reduce medical payments paid out through government programs.  This can be done in part by expanding the number of specialized doctors around the country. To meet the growing demands our country has for medical care and ensure competition is competitive.

Greatly expanding the number of doctors in training admitted to doctoral programs is essential to making this happen.  The supply of specialized doctors has been limited by Universities whom I speculate have received large contributions from alumni to unconscionable fail to expand the number of doctoral training programs needed to keep pricing competitive, and pass along the gains our society has made to be able to produce highly educated citizens. Government intervention in any area that money inappropriately influences is necessary and key to a moral and efficient society.

Education is the most cost effective way to deal with all the world’s problems and is not something to be feared.  Education programs should be spread and kept affordable to help society reach our potential in life.

 As our capitalist society matures, private citizens have stored up large amounts of wealth, governments have high levels of debt/obligations, and much of the infrastructure we need going forward is already built. As a result, rates of profit will be lower, and the government needs to intervene to ensure moral as well as proper financial decisions are made.

The government can take passive ownership in large corporation or in real estate to settle estate taxes, and allow citizens to maintain control of the properties that they have obtained over their life time. The government can help facilitate business, and greatly reduce the costs of businesses to operate.

Reducing the money supply will take stagnant money out of the economy, and help society adapt to a more competitive environment. The economy can operate with lower margins as society becomes more efficient; additionally, continuing to add value to society.

The reasons why we need to take these actions 

  China is moving deliberately, appropriately, and swiftly to achieve advantage over the United States.   Much of the nation’s problems can be eliminated with the early settlement of retirement benefits, and the settlement of death taxes.   Restoring our competitive place in the global market and benefiting everyone.  The country would be aligning our national interests with all other nations in particular the Chinese, and greatly reducing the risk and or inappropriate reliance on wars in the future.  Trade balance between competitive nations’ are supposed to be equal. In economic theory a nation is supposed to export as much as it imports from a competitive nation.  Over time with the right policies we can find this balance with all nations as we should have been doing so in the past.  It is pure garbage that is our nation’s interest to keep operating with trade imbalances.  

    The Chinese government has recently moved from a communist society to one that is a 50/50 ownership between society and the private citizens.  I assume they chose the 50/50 rate to give both maximum flexibility and to target the best estimate of long run improvement in efficiency over a life time.   China is currently using a 15% rate of taxation on many of its enterprises because they own half of the large corporations. So they achieve the same tax revenue stream as the United States from businesses’ with one third of the taxation rate. This gives Chinese business’s a huge long term advantage that will compound over time. This could result in disaster for our nation if we are unable to achieve a comparable business model.

China has a lot of idle money in United States government securities compounding interest over time, and extending the competitive advantage of China to compete in the world economy.  We must negotiate with China and find compromise. We need to begin to settle these debts for assets reclaimed in the early retirement of estate taxes and become close allies of China working toward the common good.  We have lots of technology to share that will greatly benefit both societies in the long term.

  

We have made huge advances in solar technology, and salt water was recently made drinkable with the use of a special ray of light in a university lab. We need to move rapidly towards making solar technology and all energy saving a bigger piece of the solution.  Finding ways to share these technologies on our terms with other nations can be very helpful in promoting common welfare, economic growth, and sustainability.

A Capitalist model working together with a communist model has the greatest benefit for everyone.   Both capitalism and communism can work together to add the most value to society with the least risk.  A pure Capitalism system pits those with money against those without money looking for no common ground. A pure Communist system fails to account for individual needs and abilities. Pure capitalism produces violent economic cycles with all classes suffering. Pure Communism produces a less productive society.  Money also becomes isolated in pure Capitalism and leads humans to make inappropriate choices. You see this played out in our society as special interests have inappropriate influence over government officials. Causing politicians to neglect the best interests of the people they represent.  In the past, our nation has resisted renewable energy such as the sun, in favor of importing large amounts of oil overseas and causing unnecessary environmental damage, so a small group of people could get unbelievably rich. 

Many American corporations and citizens currently have large buying power, and will lose those benefits without appropriate intervention.    The cutting of taxes, reduction of current/future liabilities, and retaining of purchase power by our nation is in the entire countries best interest. As well as the world we live in. 

 United States runs a dangerous risk of ruining its credit rating at some point in the future, and can be particularly damaging considering will become more scarce in the future.  Sovereign wealth funds can become more dangerous if we become very weak.  Contrary to what you may have been told about a recent purchase of 7% of Citi group by a foreign sovereign wealth fund is it was made in preferred stock. If the company fails, the sovereign fund will own a much higher percentage than when it originally was reported to have taken a stake in Citi Group Corporation.  Keep in mind they paid cash, and if they become more aggressive they could take control of so much more of the world’s technology.  If we try to limit this investment we run the risk of being cut off of natural resources.  China has recently made a purchase into Black Stone group a corporation that specializes in corporate take over’s. This makes it very clear why trade balances are necessary to be balanced over time.  Isolation is not the solution.  United States corporations receive much of their revenue from foreign nations.  Finding common ground is the solution.

 Our dollar has stood as the world’s storage of wealth because of faith our government could always figure out the answer to any problem.  Well that view is being challenged in the mind of everyone because of poor choices, and arrogance.   The world has limited resources available and we need to be mindful of this.

  As the dollar weakens in a pure capitalist environment it would be in the world’s best interest to exploit this and take advantage of opportunity for their benefit.  We need to switch to a government policy model that seeks sustainability and quality of life for all to bring the world together.

 Humans breed like rats in conditions of poverty and that is arguable the most important reason it is in our best interest to make sure everyone in the world has a good quality of life.   Deals can and need to be made to individuals or nations to control the populations as seen in China.  Are poorest citizens having the most the children and our government subsidizes the problem with payments.  The problem grows and gets worse over time.  Instead we should pay the poorest not to have children and share technology in exchange.  The world can live happily ever after with proper planning and appropriate actions as our world become more advanced.

Conclusion

Taking responsibility with these aggressive actions will help us meet the challenges of the future.  By using the most responsible way to handle our debts, and deal with predictable problems that could arise from the financial burden of our debt we will greatly benefit. 

Corporations could better focus on meeting societies’ needs. All would benefit from the increased efficiencies of scale and sustainability.  It’s a simple change switching from that of a growth dominated society to one of sustainability.  The later should receive a higher valuation in the world market.   The reduction of government debt, entitlement payments, and government ownership is in the best interest of everyone.    

Handling these sensitive issues quickly would be prudent to show Americas’ ability to respond quickly to changing information.  This legislation can be spread broadly to individual states, and the nation.   Please share this idea to gain the support of all and find the best solution. The quality of life for the nation, the environment, and the world’s population depends on good judgment.  Please investigate my ideas, and pass legislation early to the benefit of all.  Any one in elected office can win any election with good policy judgment!

  

Resources

  

Trend Following by Michael Covel

2006 by Pearson Education, Inc.

Contradictions of Capitalism & an introduction to Marxist Economics by Lenny                        Flank      Red and Black pub. Aug 1, 2007 

                                            

  

Education

Excelsior College   Bachelors degree in the liberal arts of science with a major in economics and a minor in education

January 10, 2008 Posted by | American Politics and Policy Ideas | , , , , , , , , , , , , , , , , , , , | Leave a comment