RobertsJim

Winter's Coming for the Boomers: Part 2

If a Crisis is imminent, with its destructive qualities besetting us for maybe 15 to 20 years, might not technology minimize its impact and shorten its tenure? Sensible government spending programs, sustainable energy, medical advances, information assembly and transmission, transportation improvements come to mind. Admittedly, the future looks grave but, if cast as a collection of problems, solutions will be found. I am a concerned boomer, but an optimistic one.

The Coming Depression: See It Clearly Through Historical Eyes

If the Obama Stimulus Plan is the wrong medicine for what's ailing our economy, what's the right cure?

Gold: Now Demonstrating Trust in Obama

One way to create an instant stimulus, stop collapsing home values and to shore up many hurting banks is for the government to pay down every existing home mortgage by 80%.

Result: Affordable mortgages for all. Foreclosures are virtually eliminated. Falling housing values are abated if not stopped in their tracks. Banks are made more solvent, and our consumption based economy is invigorated by millions and millions of home owners who--having had their mortgages refinanced to 20% of its market value--have billions and billions of bucks with which to spend and save (which is merely deferred consumption, after all).

Cost: T'won't be cheap. For sure it will be in the same realm as all the other trillion dollar solutions to stoke America's engine so her train she can start a-movin again.

To recoup this massive investment by Uncle Sam in lots of real estate (75% of all homes have a mortgage), he'll need to place a lien on these houses so, when they sell, our generous Uncle can be made whole.

Radical Solution to Housing Mess

Government ownership can work if lenders stuck with deteriorating homes--

(a) assign the deeds to their crack houses in-waiting to local governments which are poised to promptly

(b) transfer them to area non-profits and to pre-qualified (i. e., experienced landlords) individual investors to restore and rent.

The deeds for these derelict properties can come with a lien requiring some form of equitable profit sharing for the original lender.

Use this technique only in communities blighted with a disproportionate number of abandoned homes.


On Feb 09 06:58 AM MauiJeff wrote:

> The government owned public housing in your city should show you
> how well people take care of what is not owned by the occupants.
> The US would be one big project, crack dealers living 3 bedroom 2
> bath tract homes. Go back to the golf course Bob.

Ben Stein Watch: December 28, 2008

Wow. Felix Salmon is really reaching for something to write about. Surely there are better topics to address besides taking pot shots at Ben Stein's story telling.

For the record, I like Mr. Stein's talent giving a human dimension to the economic crisis de jour.

Perhaps he takes to much literary license from time to time, or conducts too much research into claims that he should have recognized as phony from the get-go, but that's all part of his charm.

His critic, Felix Salmon, is a half-empty-glass guy who will find persuasive fault with the Gettysburg Address.

Damage Report 2008: Household Wealth Down $10 Trillion

When did saving become evil, an act that will deepen the recession?

Intentionally placing your hard earned money in a bank saving it for the proverbial rainy day creates credit available to small and large businesses.

With the savings entrusted to it, the bank has to rent this money to creditworthy borrowers.

Savings is the fuel for economic growth. Don't fear it; foster it.

It Might Be Impossible to Stop the Decline of Housing Prices

Problem: Let's get creative about drying up the enormous oversupply of houses now driving down home prices, a basic supply-demand mis-balance that will continue to drive prices south until the mis-balance is rectified.

Solution: Establish a new, sharp source of demand by adding to to eligibility criteria for immigration the requirement to buy a house, perhaps via rent-to-own deals that require modest down payments (i.e., option payments, non-refundable except in certain instances).

No home purchase contract; no green card.

I.O.U.S.A.

There are three ways out of this mess: reduce spending, increase taxes or both.

I.O.U.S.A. Movie Is Well-Done and Informative

There are three ways out of this mess: reduce spending, increase taxes or both

Buying Up Foreclosed Single-Family Homes - Smart?

If Silver Portal can acquire houses the average cost of which is $150K renting them for $1900/month, then they'll do well especially since their ownership costs are forecast at unreasonably high levels.

I'd say Silver Portal's biggest problem will be finding enough good renters.

And You Think Today's Gas Prices Are High?

The foregoing comments were all educational despite several taking excessive issue with the author's simple declaration; that is, high price of gasoline notwithstanding, we are living rich lives compared to our grandparents.