House rejects $700 bln financial bailout – ALTERNATE PROPOSAL
Ok, maybe we have their attention. The feeding frenzy for kickbacks may have been tempered by concerns for electorial fallout with the elections upon us.
Before i say more, let me say that free market forces should prevail, the senior management, board members and stockholders should take the hit as a lesson to others to avoid this in the future. Either course of action seems to saddle America with to adverse outcomes, either hyper inflation with a bailout and a credit crunch and depression without a bailout.
Unfortunately, i think there will be some kind of bail. And if there is one, here is what I would propose :
BACK TO THE FACTORING : Buy the loans as a percentage of what the unlying real estate asset is currently worth based on current LIQUIDATION Value. Extent to the current holders of the mortgages a laon that amortizes over 10 years representing the shortfall that the Liquidation Value is from the Current Loan Balance. The collateral for the shortfall loan will be as many shares at the current value required to cover the initial amount of the shortfall loan. Taxpayers win as the shares appreciate as time goes by. Senior Management, Board Members and Stockholders are punished for their wreckless risk taking.
OTHER TERMS AND CONDITIONS:
A Federal Law is passed making it a crime for any politician or their subordinates to make any phone calls to interfere with the legitimate actions of Federal and State Bank Examiners.
The buyback is contingent on the current Board Members and Senior Management not holding any of these types of positions with a financial institution for the rest of their lives.
The current board members and Senior Management must pay back half of there income they recieved for the past 5 years.
ECONOMIC FAIRNESS PACKAGE
Any person who has had their house foreclosed on in the past 3 years, and said property has not yet been resold, can buy back their house at the LIQUIDATION VALUE by making three months of payments on calculated on a 30 amortization with a discounted interest rate.
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