when the markets are falling, prices are rising, and credit is tightening, it’s a uniquely affordable indulgence. – Walter Kirn, What’s a Depression, Daddy?New York Times Magazine, Nov 9, 2008
Tag Archives: Economics
Sanders Votes “NO!” on the Bailout
“The bailout package is far better than the absurd proposal originally presented to us by the Bush administration, but is still short of where we should be. If a bailout is needed, if taxpayer money must be placed at risk, if we are going to bail out Wall Street, it should be those people who have caused the problem, those people who have benefited from President Bush’s tax breaks for millionaires and billionaires, those people who have taken advantage of deregulation who should pick up the tab, not ordinary working people.”
Sanders proposed a five-year, 10 percent surtax on families with incomes of more than $1 million a year and individuals earning over $500,00 to raise $300 billion to help bankroll the bailout. Senators, however, set aside the amendment on a voice vote. Continue reading
Making Lemonade out of Fannie Mae and Freddie Mac
The government recently took over Fannie Mae and Freddie Mac, two huge mortgage lenders. I thought the government owned them all along. After all, Freddie Mac” is the Federal Home Loan Mortgage Corp. and Fannie Mae is the FederalNational Mortgage Assoc. But they were privately owned, essentially bankrupt, and in need of a bailout. For more background, see Web of Debt, by Ellen Hodgson Brown, The source of the bailout funds will be my tax dollars, and yours. This gives us the right to a voice on how to execute the bailout. I had a long conversation with Mitchell Kitroser, Esq. , an attorney based in Florida. Kitroseris focused on Real Estate, Probate, Elder Law, Medicaid Planning, Guardianship and Estate Planning.His plan willstimulate the economy,put more money in the U. S. Treasury, and helphomeowners and taxpayers.
As the old saying goes, “If you have lemons, make lemonade.” Here’s my recipe for lemonade. Let’s use the banks we just bought to get us out of the real estate mess those and other banks created, and at the same time, to help American homeowners – to help ourselves. We will stimulate the economy and provide the government – our government – the government “of the people, for the people and by the people” – with a revenue stream. We will even help homeowners stay in their homes.
Since our government just went into the mortgage business, it should start doing refinances. Every American who wants to refinance their primary residence should be permitted to do so, through our new government owned banks, Fannie Mae and Freddie Mac. These mortgages should be at very low rates – 2% or 3% per year. The savings on the traditional 30 year fixed mortgage, using a $200,000.00 at 6% interest refinanced to $200,000 at 2%, would be almost $450.00 per month. The savings would be about $225 per month on every $100,000 of debt.