I want to share with you my thoughts on this bailout situation. We don't need seven hundred billion dollars to repair this problem. In fact, we don't need any money at all. This is why...
1. We should renegotiate all of the loans that are sub-prime and get rid of the ARM forever. All of the loans that are delinquent, or borderline should be extended so that the borrower can meet the payments. In other words, if it takes more than thirty years to repay a loan at three hundred dollars a month, as oppose a fixed thirty year loan with payments of nine hundred, then restructure the loan so that the person can make the payments.
2. Identify all loans and the circumstances that are presently making the borrower delinquent in payments - resolve it by one of two ways. Re-finance the loan terms in such a way that the borrower can make payments, or place that loan at high risk for further evaluation and resolvement.
3. Those mortgage lenders that stretched the parameters for making loans to borrowers that were marginally qualified should be prosecuted for fraud.
4. No golden parachutes for CEOs and administrative officers that were at the helm of companies that failed - retroactive. In other words, if the culprit is gone, go get him! Limit the retirement package for all CEOs.
5. No money to investment banks that are going under.
6. Re-instate the regulations that were withdrawn with the Commodity Futures Market Act of 2000. Increase the transparency of all markets wherein there is the possibility for speculation - oil, electricity, etc. Severe penalties for violators.
7. Institute national projects that would create jobs (bridge and road repair, technical skills) Setup centers dedicated to the re-tooling of the job market so that individuals can make themselves employable. Make it a goal to reduce the pollutions of automobile by setting the bar for carbon reduction and using the money that was accepted by the auto industry to retool that industry.
8. Re-structure the tax code so that the taxes for those making less than fifty thousand are not taxed as much as those making between fifty thousand to one hundred fifty thousand, and those making more than one hundred fifty thousand will pay a little less than those making more than one hundred fifty thousand. Let's rebuild the tax structure in the shape of a vase - small at the bottom, fat in the middle, and somewhat bigger than the bottom at the top.
9. Increase Social Security taxes by raising the taxable group to those making two hundred seventy thousand.
Those in a position to set policy should began to understand that this economy is not trickle down, it is trickle up. The reason that you don't have cash flow is because the work force is reduced and can't spend enough money to support a substantial cash flow. With a reduction of the people that were making fifty to sixty thousand dollars a year, we lost cash flow.
We should, all as one, resist the notion that if we don't do something tomorrow, the world will cease to exist as we know it. The Bush administration has used 'fear' tactics more than enough times to let me know that it 'ain't so' folks. Bush lied about WMDs in Iraq. Bush lied about Al Qaeda in Iraq. He has not kept his promise to get Osama Bin Laden. The Bush administration cannot be trusted with seven hundred billion dollars just before they walk out of the door. Personally, I think Bush and Cheney and the rest of the gang are seeking their severance pay (golden parachute) before bailing out.
Here is your cue... the banking system was supposed to have crashed last weekend - it didn't. It was supposed to crashed on last Monday - it didn't. Now it is supposed to crash on this coming Monday (September 29, 2008); my prediction - it won't!
Don't believe the hype; we don't need a bailout! If you agree with me, send this letter to your Congressional representatives in both houses asap!