Comments on: Can Barack Obama channel Teddy Roosevelt? Wed, 16 Jul 2014 00:47:01 +0000 hourly 1 By: Bagwa Sun, 11 Sep 2011 16:32:04 +0000 I just read an article about Obama channeling Franklin Delano Roosevelt. If I am not mistaken, and I am only going by the information provided to me in school, both Franklin Roosevelt and Teddy Roosevelt are dead and channeling is described as : the practice of professedly entering a meditative or trancelike state in order to convey messages from a spiritual guide. This article confuses me more than enlightens me.

By: Avatar21 Sun, 11 Sep 2011 06:18:28 +0000 I agree with your assessment, but there is a way out of this mess using a mortgage swap program directed at consumer homeowners directly.
The Fed wants to stimulate the economy, but has to do so without creating inflation. The Fed could create a fund only available tp Fannie Mae and Freddie Mac (F&F) F&F would then create a fixed 4.5% 30-year mortgage available to everyone, but rolled out by zip code, from those zip codes with the least mortgages to the most. A homeowner would surrender their original loan and be immediately granted the new one. The homeowner would pay no fees of any kind. F&F would pay off the original loan in full, minus any early termination fees. F&F would then be free to sell the loan into the market and use the money to refill the mortgage buyout fund. At the end of the program, F&F would pay the Fed back in full.

This program would have the effect of satisfying every loan in America. This would immediately clean up the balance sheets of the banks, domestic and foreign with holdings in America. Securities based on the original mortgages would be satisfied as the loans were paid off, reimbursing investors in full, and relieving mortgage insurance companies of their obligations (CDOs) allowing companies like AIG to get free of their obligations. Outstanding foreclosures and those in process would be effectively rest for 2 years, allowing the economy time to heal. If this plan is carried out, the economic disaster effectively comes to an end immediately.

As I understand it, there is a plan to extend the term to 40 years so real estate investors could recoup their loss interest. If this is the deal with the devil that’s required, then so be it. Plans like HARP will never work, as they require those with the most to lose to willingly take a loss, which is about as anti-capitalistic as possible. Of the 800,000 homes already foreclosed on, an assessment program could be created to review these properties to determine which have economic worth, and which should be demolished. Independant insurance adjusters could be used to review the properties for repair costs. Those requiring more money to repair than they would be worth would be “totaled”, just like cars. Blocks of urban housing would be consolidated to form 1 acre blocks for redevelopment. The increased value of the new homes, or reduced need for social service would pay for the program.
Leadership requires being both benevolent, and a dictator. If we are going to survive these times, we are going to have to get both creative, and, at times, destructive. By the way, while the times require a reboot of capitalism, the money lost in the transition will not compare to the money earned once the system is back on-line.
Love the Theodore Roosevelt reference. He knew both how to keep robber barons in check, and how to save them once they destroyed capitalism.

By: SamuelReich Sat, 10 Sep 2011 15:41:34 +0000 Since about half the US has a few years wages in urban residential real-estate, a nation wide real-estate bubble is too big for the government to fix once it busts. All it can do is create demand (by spending) to replace spending the imaginary wealth. One objective which Feds should have is fix residential mortgage rates so average housing remains a fixed multiple of average wages. It never had that power responsibility. Asking the poorer half of nation make good over evaluation of residential real-estate by the richer half that have it is unjust.

Samuel Reich

By: Goldenbarstewrt Sat, 10 Sep 2011 13:20:21 +0000 Facing reality is difficult for all of us at times. We buy and borrow over our heads, never thinking about the day of reckoning that will eventually come. So who is going to save us from ourselves? We look to the government to solve the problems that we ourselves created. If I buy I huge house that I cannot afford, should the government come to my rescue? Or should I suffer the slings and arrows? The government may come to my aid with its various programs, but the fact remains that the problem is mine. Our government is no different than any individual – borrowing beyond our means to repay can only lead to disaster – and it is on its way. We have to embrace reality and allow those who have acted irrationally to suffer the consequences – that includes the politicians who seem to be living in a world of make-believe, beyond reality.

By: Mavenwood Fri, 09 Sep 2011 17:02:53 +0000 I believe it was Joe Nocera in the NYT who identified 55M mortgages that are current but stressful. I’m one of them: 800 credit score but unable to refinance as my income is investment related. I have a large mortgage and could save several thousand USD per month. Nocera wondered why the Natl. Real Estate Board or whatever it’s called wasn’t lobbying hard to get something done.
I was waiting for comments last night but as you so aptly pointed out, they just weren’t there….. Thanks.