We are in an eye of a hurricane; we have been hit with the first wave of the storm. This represents the past, the 700 Billion in foreclosed mortgagees, bad credit swaps and the miss management of the world money supply. This was not a consumer generated recession. This recession was bought on by the financial neglect of banks, Wall Street and the lack regulation of the banking system by the federal government. The money supply has been tainted with infectious money and we are lining up for the second half of the storm. Now consumer spending has paused and soon the next wave of the storm will cause financial chaos.
The real problem is that America is over burdened in debt. Incomes have not increased and America, its businesses and people, need a quick restructuring to create a “continuous” cash flow to ignite spending to support businesses. Without consumer spending, this recession, will quickly turn into to the biggest financial disaster this country has ever seen.
The fastest and most effective way to correct the damage to our economy is to offer low interest loans to consumers to refinance their homes and debt. Credit card companies need to restructure credit card debt into long term low interest non revolving instruments. Mortgage companies need to be able to offer low interest (3 to 4%) 30 year mortgages for refinancing. Once we restructure the debt load and create this continuous cash flow, banks should revert to sound lending practices to prevent this mess in the future.
Once we restructure the debt loads, disposable incomes will be on the rise and spending will commence. The quicker we restructure debt, the faster the economy rebounds. If we don’t restructure debt, bankruptcies will prevail. If I were an investor, I’d rather get 3% back than loose everything.
Rusty Austin
· 12 months ago
I have no doubt that President Obama is smarter than any of the ankle biters, such as Boehner, nipping at his heels. I predict his first term will be a smashing success. After all, even with all the economic pain we are in right now, we still have one of the best economic infrastructures in the world. It's just a matter of finding a smart, ethical, and pragmatic leader to synthesize the best of conservative and liberal policies to take advantage of our, for lack of a better word, advantages. Obama hits on all 3 criteria.
Lisa P
· 12 months ago
When Obama preaches change he is not calling for a simple change from one administration to another. He is not merely saying that Washington is broken and needs change. His intended change is meant to change America, as we know it. Like it or not, America has spoken. And America says it's time for a change.
We have now discovered who our next head commander is. Congratulations, Mr. Obama on becoming America’s 44th President of the United States of America. Your endurance through the 22-month campaign is highly admirable. However, your journey has just begun. You have been chosen to become the decision maker for all Americans to resolve the major issues in our economy. First and foremost, the financial system and the faltering economy must be stabilized and we understand that you have proposed a number of different stimulus packages in recent weeks regarding this matter. Your plans to temporarily exempt seniors from having to make annual withdrawals from their IRAs and 401 (k)s after the age of 70 ½ and to temporarily exempt the unemployed from having to pay tax on their unemployment benefits will most likely have you score on both sides. Nevertheless, the biggest focus should be on keeping the bank bailout/credit repair that started on track, reduce real estate foreclosures and change the position of financial regulation. To sum up, you have all your objectives laid out for you, Mr. President-Elect.
All Comments
If we don’t act now, jobs will be lost, homes will be taken (i.e. http://www.BuyMyHouseBeforeTheBankTakesIt.com) and business will fold at record levels.
The real problem is that America is over burdened in debt. Incomes have not increased and America, its businesses and people, need a quick restructuring to create a “continuous” cash flow to ignite spending to support businesses. Without consumer spending, this recession, will quickly turn into to the biggest financial disaster this country has ever seen.
The fastest and most effective way to correct the damage to our economy is to offer low interest loans to consumers to refinance their homes and debt. Credit card companies need to restructure credit card debt into long term low interest non revolving instruments. Mortgage companies need to be able to offer low interest (3 to 4%) 30 year mortgages for refinancing. Once we restructure the debt load and create this continuous cash flow, banks should revert to sound lending practices to prevent this mess in the future.
Once we restructure the debt loads, disposable incomes will be on the rise and spending will commence. The quicker we restructure debt, the faster the economy rebounds. If we don’t restructure debt, bankruptcies will prevail. If I were an investor, I’d rather get 3% back than loose everything.
We have now discovered who our next head commander is. Congratulations, Mr. Obama on becoming America’s 44th President of the United States of America. Your endurance through the 22-month campaign is highly admirable. However, your journey has just begun. You have been chosen to become the decision maker for all Americans to resolve the major issues in our economy. First and foremost, the financial system and the faltering economy must be stabilized and we understand that you have proposed a number of different stimulus packages in recent weeks regarding this matter. Your plans to temporarily exempt seniors from having to make annual withdrawals from their IRAs and 401 (k)s after the age of 70 ½ and to temporarily exempt the unemployed from having to pay tax on their unemployment benefits will most likely have you score on both sides. Nevertheless, the biggest focus should be on keeping the bank bailout/credit repair that started on track, reduce real estate foreclosures and change the position of financial regulation. To sum up, you have all your objectives laid out for you, Mr. President-Elect.
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