Hello,
This
message drills the current financial crisis down to a quick and easy way to
understand the problem and identifies how we the people can fix this now and ensure
this will never happen again in the future. We guarantee that you will want to send this
to everyone that you know and take action now! Please do!!
America
wants to hold Wall Street executives accountable for the economic crisis that
we are currently experiencing. Unfortunately, for the most part we will find
that Wall Street acted in a legal manner and yet our financial system is on the
verge of collapse. How could this be?
Fannie
Mae and Freddie Mac are widely known to be the reason for the crisis we are now
facing. From 2001-2007 The Bush Administration put proposals before Congress 11
times to modernize the way that Fannie Mae and Freddie Mac operated since their
beginnings in 1967 and 1970 respectively, and to properly regulate these
quasi-governmental mortgage behemoths. In 2008 the Bush Administration did so again
17 additional times.
http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html
The
Democrats voted along party lines to keep Fannie and Freddie in its under-regulated
and financially unsound state. Now they arrogantly
proclaim that the Bush Administration and the Republicans caused this mess. The
Republicans voted the party line to shore up and fix this broken institution,
but were too weak to make it law and did not use the power of the media to let
the US citizens know what was going on. Barrack Obama, as he does many times on
important issues, did not vote. See this excellent quick recap video for more:
http://www.youtube.com/watch?v=3QBRIsCkGQ0
More
in-depth examination of one of the many congressional hearings on the
foretelling of the Fannie and Freddie failure:
Everyday
Americans are now awakened to the facts:
http://www.youtube.com/watch?v=N5KqzZn55WM&feature=related
Keep
reading, there is a way to keep this from ever happening again.
Fresh
new video from 17 Sep 08 that shows our politicians knew of the financial
catastrophe that was about to occur in 2005.
http://gatewaypundit.blogspot.com/2008/09/busted-ceo-of-fannie-mae-in-2005.html
Keep
reading, there is a way to keep this from ever happening again.
But
first, we must end the corrupting of our politicians for personal gain rather
that working for us as we have elected them to do. Our politicians are legally
bought off by BIG money because they have such loose ethics standards that they
themselves created. Look at the big money that bought or politicians from both
parties off in this Fannie and Freddie corruption issue:
http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
The
Solution to Prevent this from Happening Again:
We
must contact our politicians and demand an external investigation and possible
legal action against those politicians who are found guilty of corruption or at
the very least demand their resignation for failing to act when an emergency
situation was presented to them many years ago. We must also demand the end to
“buying our politicians” by ending big money influence at all levels of
politics and implementation of strict ethics standards therein. Take action now
and flood your politicians’ offices with emails, letters, faxes and phone calls
demanding political accountability. Also, demand that the new President,
whoever he is, puts an end to BIG money influence in politics. Here is a one
stop shop for their contact info:
http://www.usa.gov/Contact/Elected.shtml
The Media
Solution:
Our
media outlets do not report on the facts and do not keep us properly informed. You
now see this is true with this issue, but there are hundreds of others issues
that are misreported or blatant lies are spread by the media that we trust to
tell us the truth. We found out the facts on this economic crisis issue from 20
minutes of research on the Internet. We must demand that our media conglomerates
report the truth so we can make informed decisions. Send your favorite media
outlet this demand with the promise of activist boycotting if they do not
comply in emails, faxes, letters and phone calls. We can make a difference –
act now! Force the media to do their job! Here is there contact info:
http://www.mrc.org/MediaAddresses/mediaaddresses.asp
Excellent
source to contact media outlets:
http://www.congress.org/congressorg/dbq/media/
We
hope you are justly outraged at our corrupt political system and will take
action NOW! Please forward this to
everyone that you know and post it to message boards and forums.
To
keep a neat appearance, please copy and paste this message into your email
program rather than continually forwarding. This will eliminate messy headers
and long trails of email addresses.
But
wait!! Here are some alternatives to the now $850 Billion Wall Street Bailout
that Congress filled with pork and BIG money payoffs. See here for a few of the
451 pages of pork added to this initially 3-page Bush Administration proposal: http://hfdean.blogspot.com/2008/10/senate-bailout-bloated-by-pork-451.html.
Even if Congress passes this ill-conceived bill we can petition them to change
their minds and implement common sense solutions to the economic problem. Here
are some ideas that business leaders and economists favor:
An
excellent alternative to fix the “bad mortgages” instead of the government
buying them:
-
Adjustable
Rate Mortgage (ARM) initial teaser rates are about to end for millions of
homeowners and the current market rate is about to “kick-in,” and will cause massive
foreclosures. We can avoid this tidal wave of new bad loans by doing the
following:
o At the kick in date
for these ARMs extend the teaser rate for 40 years at a flat rate.
o Authorize early
payoffs and additional principle payments.
o This will maintain
ownership of the properties, so the lenders are not left holding foreclosed
properties and potential bankruptcy themselves.
o The homeowners will
enjoy the annual interest tax deduction and can pay their homes off early as
their income permits.
o We the taxpayers will
not held financially responsible for other people’s bad decisions.
-
Have
“fire sales” on the huge inventory of foreclosed properties with the following
conditions:
o 5% flat rate interest
for 40 years resulting in extremely low monthly payments.
o Current market value
of properties is on average 15-20% lower than last year so this will be a
bargain hunter’s paradise.
o Local municipalities
encouraged to devise local property tax incentives to encourage immediate migration
to foreclosed properties in their areas.
o Early payoff and
additional principle payments authorized.
o Zero closing costs.
The
American people will scoop these properties up over the next 6 months in a
buying frenzy, and the construction industry will realize a tremendous boom
next spring as orders for new homes will explode as the inventory of
preexisting homes shrinks. Credit will free up instantly and the American
people and the world will see us doing common sense fixes to this problem that
is palatable to all.
Another
look:
The
Common Sense Fix
(from
http://www.daveramsey.com/media/pdf/the_common_sense_fix.pdf
):
Years
of bad decisions and stupid mistakes have created an economic nightmare in this
country, but $700 billion in new debt is not the answer. As a tax-paying
American citizen, I will not support any congressperson who votes to implement
such a policy. Instead, I submit the following three-step Common Sense Plan.
I. INSURANCE
a. Insure the subprime bonds/mortgages with an
underlying FHA-type insurance. Government-insured and backed loans would have
an instant market all over the world, creating immediate and needed
liquidity.
b. In order for a company to accept the
government-backed insurance, they must do two things:
1. Rewrite any mortgage that is more than three
months delinquent to a 6% fixed-rate mortgage.
a. Roll all back payments with no late fees or
legal costs into the
balance.
This brings homeowners current and allows them a
chance
to keep their homes.
b. Cancel all prepayment penalties to encourage
refinancing or
the
sale of the property to pay off the bad loan. In the event of
foreclosure
or short sale, the borrower will not be held liable
for
any deficit balance. FHA does this now, and that
encourages
mortgage companies to go the extra mile while
working
with the borrower—again limiting foreclosures and
ruined
lives.
2. Cancel ALL golden parachutes of EXISTING and
FUTURE CEOs and executive team members as long as the company holds these government-insured
bonds/mortgages. This keeps underperforming executives from being paid when
they don’t do their jobs.
c. This backstop will cost less than $50
billion—a small fraction of the current proposal.
II. MARK TO MARKET
a. Remove mark to market accounting rules for
two years on only subprime Tier III bonds/mortgages. This keeps companies from
being forced to artificially mark down bonds/mortgages below the value of the
underlying mortgages and real estate.
b. This move creates patience in the market and
has an immediate stabilizing effect on failing and ailing banks—and it costs
the taxpayer nothing.
III. CAPITAL GAINS TAX
a. Remove the capital gains tax completely.
Investors will flood the real estate and stock market in search of tax-free
profits, creating tremendous—and immediate—liquidity in the markets. Again,
this costs the taxpayer nothing.
b. This move will be seen as a lightning rod
politically because many will say it is helping the rich. The truth is the rich
will benefit, but it will be their money that stimulates the economy. This will
enable all Americans to have more stable jobs and retirement investments that
go up instead of down.
This
is not a time for envy, and it’s not a time for politics. It’s time for all of
us, as Americans, to stand up, speak out, and fix this mess.
Sincerely,
US
Citizens Against Political Corruption
P.S.
for extra research, see here to see that there are politicians that were
planning this biggest expansion of the federal government in history even in
July 08 after they negated their duties to shore up Fannie and Freddie 11 times
since 2001. Eliminating political corruption was unacceptable to them. We must
demand it! They work for us!!
http://maggiesnotebook.blogspot.com/2008/09/video-campaign-contributions-to-fannie.html
P.S.S.
Excellent Reports on the origin of the Fannie and Freddie corruption issue:
http://beltwayblips.com/video/obama_ranks_second_in_freddie_fannie_contributions/
Canadian
Thoughts:
What
are our Canadian friends saying about this crisis that poses a tremendous
threat to their economy also? see here:
http://www.canadafreepress.com/index.php/article/5100
An
everyday American did an excellent job in putting together this video that
explains the 2008 Presidential Candidates dealings with Fannie and Freddie –
You won’t hear this in the press:
http://www.youtube.com/watch?v=AiEWCnpNnBQ&feature=related
The
most viewed 2008 Presidential election website that hits the most main issues
and key points of interest during this political season that go unreported on
the major media networks:
http://therealobama.synthasite.com/
