The Worldwide DEBT is the problem.

The best solution for the present economic crisis would be a REBOOT or restart of the entire debt system for the ENTIRE WORLD.

1. A data base listing ALL DEBT, government, business and personal needs to be created. The list would need to list the debt and debt holder with a bank that could make an accounting of the debt. Included would be all national debt of all nations, all mortgages car notes and credit cards for individuals. All outstanding bond and other debt for corporations, The idea is to list ALL DEBT of any kind owed.

2 . Every government on the planet would need to call a special session of it’s legislature.
Using the same authority that governments have to use or create FIAT CURRENCY the legislatures and Central Banks need to authorize the creation of ACCOUNT CREDIT in an amount equal to all the listed debts in the world.

3. The Various governments and Central Banking Systems then need to make an accounting change equal to the debt in the form of an ACCOUNT CREDIT or CREDIT zeroing out ALL THE DEBT in the entire world, and crediting all debt-holders in the world.

The following day the economy of the entire world would restart and the Stock Markets of the world would react to the new renewed capital in the banking systems, the Capital now available to restart all business and the disposable income to the individual people would restart and grow the retail sectors and the manufacturing sectors of the entire world.
Allen Charles Report
http://allencharlesreport.blogspot.com/

Does this mean Senator Dodd is now willing to pay back Fannie Mae & Freddie Mac Lobbyist monies to the taxpayers had to bailout because of his lack of oversight? What about Senator Dodd's most favored mortgage fro Countrywide? No conflict of interests? No one questioning the ethics of it? No investigations?

Since when does FDIC have anything to do with mortgages or loans in general? I am very confused.

How is it an improvement to force the initial provider's of the mortgaged value to take huge losses to get something less than what they loaned out? How is it an improvement to further impoverish the public at large to guarantee against any default for these rewritten loans? Since when can my representatives make me liable for the obligations of millions of others? Why do we put up with this?

My idea of a cure is different. Let all lumps due come to pass. Remove all waste paper in the way of starting new fresh banks, commercial paper markets and so on as necessary. Reinstate Glass-Steagall. Have the government issue its own currency directly and end the Fed involvement. Remove or drastically tighten fractional reserve banking. Make the loaning institution directly responsible for the results of any loan - no repacking and selling on some other market. Reduce allowable leverage drastically where applicable, say by 50% in the most egregious cases. Repeal all government bailouts and direct involvement in businesses not justified by the Constitution.

It will be painful. No matter what is done it will be painful. But at least let us not shoot ourselves in the head or promise to shoot future generations as the current proposals do.

WHAT?!?! Are you crazy? So basically you are endorsing a one world economy and currency. For all the problems with capitalism, it is the ONLY decent solution to keep the world classes as equal as possible. We will always have the haves and the have nots, I think the sooner people realise this and can accept it we can all get with our lives and live life to its fullest in your INCOME BRACKET! This allows common people the fighting chance to get what they can in life. Regulation is the quickest way to corruption. If you are too lazy to get up off your couch and get an education then you deserve to live in your adjustable rate mortgage house that you CANNOT afford, with your driveway full of new cars because of your second mortgage. You reap what you sow, I live in my modest home that I can afford, I put 15% of everything into a can in the backyard and I live within my means and I constantly fight and strive to get more out of my career and life. This bailout of homeowners sickens me, the bankrupcy laws need to be tightened so that YOUR debt is your noose around your neck!!!! Not mine, here I am having to pay for all the stupid slobs that dont have a fiscal sense to buy only what they can afford.

1. Who is going to compile all of this data? First off no one is going to volunteer their personal financial data, I DO NOT want my personal nor corporate financial future being dictated by what some $1 an hour Indian or Pakistani that is typing into the database. Secondly no country in the world would fall for allowing the Russians or the Swedish (I use these arrbitrarily) maintain this information. It would make that particular country the most powerful in the world, and of course no one is going to let the US handle this. In a sense what you proposed there happened on Wall Street and that is why the world is in the shithole that it is in, the consolidation of money and data. And finally isnt what you are proposing what the IMF was created for, and look at the IMF the most corrupt and screwed up institution on the planet almost worse than Wall Street.

2. We have a FIAT currency, its called the US dollar, I personally dont want to see that change. Every commodity in the world is based on the US dollar and rightly so. And what would you have be the foundation of this new currency? Debt?

3. Basically your plan would ZERO out everything and all of the monies owed in the world would mean nothing. This would immediately start a HUGE spending spree that yes would drive the economy forward for years but would put us in an even bigger mess once Joe and Jill Homeowner have maxed out every card they can get their hands on and cant pay. What is required in this world is a responsibility that people havent seen since the 1940's where people bought what they could live with and didnt care if the Jones next door had a pool or boat or new Mercedes with 8 lcd TV's in it.

What is so hard about this and why do you need so much money ?

Simply go to the banks and tell them, Stop the foreclosures. We will rewrite any loans in foreclosure at 5% FIXED Interest and make the first payment due in 45 days to give them time to get a little cash saved up...

End of discussion.

Virgil
http://www.KeepAmericaAtWork.com

Thank you for this article. Mortgages can be frustrating and confusing. It's good to get as much information as you can.

After promising the 20 regional banks like National City 7 billion to recover, they gave it to PNC and said here is National City at one half their current equity. What a bunch of thieves and liars!! Please get the foxes out of the hen houses!

If the government is going to "guarantee" these mortgages, why did the banks/wallstreet need $700 billion dollars in the first place? WE're getting screwed??!! I know the gov't is bailing out more than mortgages, but come on! Aren't the mtgs the main reason we're in this sh*t hole to begin with? I've always thought there was a better way than giving wallstreet a blank check, which in essence is what this bail out is. Backing the mtgs first would have been a better solution, allowing the hurting to stay in their homes and continue paying on their mtgs at the interest rate that they started with (or before they started having problems). I thinking the hurting people that are losing their homes should have known better for sure, because I never would have signed on for an adjustable rate mortgage myself, so the homeowner AND the mtg companies can be blamed here. But if the FDIC is going to bail out the homeowners too with this "guarantee" plan, shouldn't they have done that first? This all baffles me...

So my biggest question is:
So the bad banks get bailouts, the people who bought homes who had no business buying them and those who bought on spec get lower mortgages and no foreclosures, but what happens to the average Joe, who works his butt off everyday, bought a home he could afford, lives frugally, where is our bailout???? Where does the middle class benefit from all this money laundering? They don't bail my business out when I am having trouble with money. Where is the money for the schools? They can bailout and pay bonuses to mortgage companies and banks, but they can't save the school system in this country??? What about healthcare, where are the billions for the healthcare system?, how about the money to close our borders and to protect us?? Does the government do anything, whatsoever, for the people who pay the bills?? I just don't understand what we get for our tax money? Our food gets tainted, the toys imported into this country have toxins in them, cars have recalls, they institute lotterys, but the money doesn't go to the educational system. Have everything that our government been doing, (not doing) just perpetuating a fraud on the American People? Enough is enough, we should vote out everyone who voted for the bailout and clean house, and gets some people into this government who know what "off the people, by the people, and for the people" really means.
This is a government of the politicians, "by the politicians, for the politicians". We really do like like fools in this world......Maybe it's time to throw the tea overboard?

I have heard that this program will offer a 3% fixed rate for five years for people who have gotten in over their heads. I purchased a house I could afford and after refinancing, I'm down to 5 1/2%. Perhaps I should have bought more house than I could afford. I would love a 3% rate. To all those afraid an Obama presidency would bring socialism to the US, I would say there is already much socialism in the US thanks to Mr. Bush. Subsidies redistribute wealth from tax payers to record profit reporting companies.

John, the only time the Federal Government reaches out to touch people like us is April 15th, when we pay our taxes. The other days of the year, Uncle Sam could give a rats #$#%^$ about us.

What should have happened is the Government should have given $200.000 to every tax payer and not bail out the financal market. If this would have happened then the people could pay off their mortgages( the money would go to the banks, losses would stop) pay off their credit cards(all high interest rates), pay off car notes.
What happens then, the tax payer would buy new cars, washing machines, or a number of other items. The working people would have to go back to work building more items and everyone would be back to working. This bail out is not going to work. People are still going to be out of work. This make me think that if I stick my hand in a fire and after I heal, I'm not going to put my havd back in the fire again. (Banks lost money and the government gave it back. Do you really think that the banks are going to do the same thing over again.?
Along with this cancel the NAFTA agreement and require that all business be owned by an American company. Stop foreign ownership.

John Wyatt said...

I am sure that you meant -Business owned by American Companies with their business's located in the USA.

I agree with your post - thanks

Of course noone is mentioning the fact that a very high percentage of these "homeowners that simply want the American dream" are illegal immigrants. Why is that I wonder?

I don't know who they are kidding, but banks aren't working with homeowners to keep their homes.
I know several people who have Countrywide as their lender and Countrywide won't help them.
Countrywide even had on their website a number to call if you needed help with your home loan. Guess what, the number told you to go to the website which redirected you right back to the number.
I had tried to help one of my friends to save her home, but when talking to cutomer service I was told by them that right now Countrywide wasn't really doing much, and what was done had a lot of fee's attached to it.
Customer Service even said it might be better to just let the house foreclose. WOW!!! Now thats service.
For the record, she was an older woman who had a hard time meeting her bills.

Hi. My husband is a banker/commercial loan officer/residential loan officer. He is a kind, ethical man who truly cares about people. He refers to the sub-prime lenders as the "banksters" southwest
WA state and parts of Portland Oregon primarily for over thirty years, the past twelve in residential loans only, my husband who has actually tuerrned qualifying 1st home buyers away, or rather discouraged them from the very loans which would earn him money (he worls now on commission only), becasue he felt that they were getting in over their heads - so would give them some financial counseling with no charge for his time and expertise - tell them "Come back to me in six months, or a year and do what I have told you until then - perhaps then you can buy your dream home without winding up with a tightly stressed budget and living in high anxiety. He would take a personal loss if by making aloan against his judgment as if each person coming through his doors are his family, before agreeing to a loan that would be too much to take on. Nevertheless, he was earning roughly ten thousand dollars a week in commissions for people who loans wouldn't pse any anxieties for. But even when the crisis began and loans were few and far between becasue of the backlash from sub - prime "banksters", he remained the ever caring man of the highest cruples one could be blessed to know. If a customer insisted on making the klloan with him of course - dhe didn't deny them - but he always went on record as having advised them otherwise. That said - After all the years of good work this man has done for so many both in commercial and home loans - we fear that we will lose our home...and we have had to make end meets by way of borowed money - exhausted oursavings first and then havingto turn to family members who barely are holding up themselves. @***This is al unecessary and a solution IF teh government REALLY cares is VERY SIMPLE IF our President lect who we indeed voted ofr is the man we thought him to be...now we are doubtful and terrified - however here is what he suggests with regard to the matter of keeping people in their homes and keeping the banks from buying back homes gone to foreclosure (which by the way is now costing banks a lto of money as those homes are not reselling and why? Each time ONE home is foreclosed, it lowers the value of every other home in the same area doing exponential dmage from one end of the sprctrum to the other for everyone involved. o re siggests this and every other person in his profession and evn those who are not but who are intelligent and have common sense is this: For a certain length of time, lower the interest rates across the board for everyone regardless of individually appraised home values - provide all mericans who are in a home and paying their mortgages, a very low interest rate and leave it there for two or three years and during that time, peole will heal, finaces for the middle and low income people will heal and as Obama proports, then indeed we will be fixing this country or begin to anyway from the ground UP on main street rather than from the TOP down from all street which is NEVER a reliable fit or fix for the middle class or lower income families still. This will be advnatageous to the wealthy fo it will apply to htem as well offsetting any anxieties about higher taxes although the higher taxes in reality will be miniscule in fact. WE are alarmed that after insisting that the Bush administration has not cared about us in the middle and lower income brackets, that he would see that real CHANGE wiould be the nbew song sung in this country - but he has gone ahead and actually appointed Bush economic ADVU+ISORS as a great part of his transition team and we are betting some if not all will receive permanenet posts. Personally, neither one of us has ever felt so betrayed in our lives and since following recent ppoliticla and economic news cannot bear to look at the face or listen to the voice of the man in whom we found so much of our faith in humanity - even in God, restored. I am sixty - my husband is six months behind me. I worked for nearly thirty years as a nurse in a major city comforting the dying and helping to bring new life into the world. I raised two children alone due to having married a man who unbeknownst to me was bi polar and very dangerous - He was gone by the time my 1st child was two. Asecond marriage to a lovely man ended in divorce, becasue as wonderful as he was, it turned out that one woman was not enough for him, and so that was that. But a second child came out of that marriage and without any biterness in my heart as I am very strong spiritually, I sallied forth and made many sacrifices to see to my children's well being - Today they are both fine young men - Likewise, my huband raised his son alone as a Mr. Mom while working full time also becasue of a very ill wife - a marriage with a sad ending after seventeen years. I developed sponylolisthesis - a degenerative disease of the spine and despite that I am in constant pain and have ben for years, along with having developed tic de la roux, after all my years of work - nevere once having taken a vacation and still have not I should add, I was denied disability and was forced to try to take any menail work for minimum wage and so attemptyed that but, becasue by then I was in my late forties, and due to my past career, nobody would hit=re me on, claim thatt I was over qualified and was a high risk employe - thee sort who would liely leave ina short time having been accustomed to ample wages at an interesting job with a good education behind me. I wound up wokring at a call center for a hotel chain making reservations fo rminimum wage and for each reservation I made I earned 15 cents bonus - this minisucle amount was taxed and the only reason I wwas hired was because inton offered employers a substantial and immeidate cash bonus for everyone on wlefare they got off of welfare by providing work for. But my company hired and fired people as soon as three months was up to make room for another batch of former welfare recipients to get those bonus of roughly 2400 hundred dollars a head. I alone earned that company 1.25 million dollars in reservations worldwide and when I no longer could endure the pain of sitting for nine hours and ten hours five days a week, I was let go and I had to go to court just to get my unemploymnet insurance - For the 1.25 million dollars I eared for them - a record at the time made by one employe and I should add a job I had never done before - I earned myself my name on a piece of construction paper in the hallway with a gold satr on it, plus a 29 dollar panasonic portable CD palyer. This is the TOP - DOWN ehlp I got and NO disability to this very day. I was told that everyone was denied and would ahve to apply three times over three years before their ccase went through - I had no stamina for fighting battles - I had done my hard time in life for a long long while and as hard as ait was I brought love and compassion to the hospital with me as a nurse, loving what I did so much that I would have to be reminded many times hwen it was payday...and then felt guilty being paid for taking care of people since that just seemed so right to be doing anyway ...WE are both good people in all ways and we thought that in Obama we saw the Light of Hope for better dyas and from a man who would not be swayed from his convictions. Yet in this short amount of time, we have been alarmed at how easily he is bending with compromise to thos ewhom he swore he would not fill the shoes of and in my entire life and in my husband's entire life, we have never felt so uuterly tricked and disillusioned. My husband an inteeligent and well ecuated man has a simple solution that would work, but of course he is a middle class nobody - too old and with ailments of his own including a short battle with cancer to become a plitician who would or even could change things for real - and yet he is only one of many people in our financial bracket who are bright and full of common sense....The compelxities the media puts out second only to the ridiculou complexities that are the stories of the hite House gae=mes and dramas with the one per cent who runs the show o fthis whoel worlld - even hob knobbing with our pororted enemies nehind closed doors - choreographing the start of warring in third world countries all becasue war is the biggest business there is - all of this is despicable and we thought that baack Obama knew this too and would approach his coming seat with a strong spine and standing strong with the promises he made to Americ and he is not. I feel raped and cheated and robbed as do most of our friends and family who supported Barack Obama ....from the bottom at main street UP we are to heal? YES - So why not listen to us? hame on you sir. SHAME on you - you;ve no idea the hearts and spirits you have broken - the same man who filled us with hope of someone enlightened being voted into office - you are no different after all, and we suspect that this gorgeoud panet and this species - the human race with so much pitential will be long gone - all of it before you complete fo=your first term. Had you been authentic this would not be so - but you were not and we are crushed.

PS from Shari - Please excuse the epidemic amt. of typos in my blog posted moments before - I am having terrible online troubles with aol in emails and typing in that the words do not appear on the screen half the time, and/or each character is delayed up to a fiull minute before they show, so I cannot see when and where to edit my goofs and am writing in the wee hours without my gl;asses that I've mispplaced and can't locate without wearing them! LOL I just didn't want anyone to think that becasue there are typos galore that I am not edcuated and by the way a spelling bee champ - I spekk perfectly but the ypos tell another story - You DID hear from someone with a good mind - it simpluy might not appear that way and so I felt I needed to explain why my blog is likely only going to readble with a secret decoder ring! :::sorry:::

Yours Truly - S