Home Mortgage Bailout by Uncle Sam

I studied the problem facing the US Banks and Fannie Mae & Freddie Mac over the issue of $700 billion loan to the Banks to payoff Fannie Mae & Freddie Mac and to allow the FHA to reorganize those Mortgages. If their plan works the problem will still affect the stock market adversely and foreign nations will still tighten their belts against US Interests. It became interesting as I had my own suspicion of why the problem occurred but it could be more severe when adding to it the reasoning the media says it occurred. I can offer only a meek solution for now which would be better than outright purchasing the bad Mortgages. I have no regrets of the plan U.S. Treasury Secretary Henry Paulson Jr. supported nor that it passed. I did want it to get started as soon as possible and offered a solution after the initial voting on the plan failed. I was shocked that certain failure on the voting process was quickly resolved as a outspoken moment in the speaker of the house position and prejudgment issue. Regardless eventually this plan for the $700 billion became law and has added more legal rhetoric to it that has become controversial. My idea for the solution however was to move through a new Bank Mortgage Commodity procedure one which endorsed a National Infrastructure Bank which would keep the Mortgages out of the stock markets and remove them from the control of Banks. Allowing for sharing the cost of the matter I felt that purchasing a commodity bond would then support funds that would be a relief to the Treasury and with those bonds the buyer could pay the ante-up fee which endorsed the billing process and turned the tab corner down as having a buyer while if sold the tab corner would be entirely turned down. In affect what all this did was not really important since the issue would be resolved with every sale. This National Infrastructure Commodity Bank was not a Commercial Bank and had no asset so it was not taxable and did not do business with consumer's, it allowed contacts and thats all since payments would be forwarded to either the Federal Reserve or the US Treasury and could then be paid in full.

Now the government plans to buy an ownership stake in a broad array of American banks for the first time since the Great Depression. This could be a fault issue since the backup is now changed from $100,000 to $250,000 insured accounts. A fault issue because the FDIC did not have a part ownership before the bailout issue. This I see as a external affairs taking the position it needs a internal affairs operating which would support the effort of the banks and this can be a good thing if you think about it, sort of having a co-pilot on board. Good idea

I find issue with a homeowner returning to repurchase the Mortgage as a FHA New Loan. Mainly because the homeowner could have lost their city/state legal residence making them ineligible to vote since in most states the terms are require a resident two years living in the state or city to vote. Initially the Banks should be paying a ten percent amount for the value of each Mortgage they claim, this can be re-alloted to the Banks years later. I gave thought to this and I figure now that to resolve the issue of overhead costs and that of legal residence problems that occurred the only real solution then and now would be to make every homeowner Mortgage pay a initial setup fee which is coverage for overhead, serves as a insurance pillow for the government money and then give the homeowner three months to make a payment (90-days) and if there is a residence issue present then the first payment should be collected nine months later (180-days). I think this is a fair approach to take now that the bailout has endorsed allowing homeowners to get a new FHA Loan and buy their property without any penalty involved. Just imagine how this coverage of insurance would initially work, a homeowner is given assurance that the bank will cover from any losses up to $250,000, The government collects $1,000 from each and reserves that money for insurance which is deposited into US Savings Bonds that have a maturity date therefore the National Debt decreases as a result of purchasing the bonds) the homeowner is getting a bargain. Now theres no need for a National Infrastructure Commodity Bank and buyers do not have to handle Commodity Bonds. The US Savings Bonds can then be sold to the Banks and replaces the money upon maturity which the Bank would have lost from a ten percent initial failed fee collection off each Mortgage. (more on this later)

I also felt that this issue went back as far as the issue that was brought up against lottery establishments in America over foreign origin. If you recall the problem was essentially that foreign lottery organizations brought their lottery and their own banking idea to America and (esp. in Florida) some of the loans which they obtained came from Banks that got the money from Fannie Mae & Freddie Mac. The gambling issue had begun in America, and if you also remember that states soon became interested in this exciting new enterprise which was turning cash at massive rates from location to location, the amounts being handled was so enormous that a Bank could not handle these funds and special agents from Fannie Mae & Freddie Mac would have to tend to the money matters. This certainly makes a loud voice to not get suspicious over the organized gambling issue from state controlled lotteries. No one actually knows the amount of money handled cause the pink slips were destroyed. Each move of money would actually build the asset into another Bank, at first it was foreign Banks in America. HUD gave 15 months to use the money or if not used HUD will take back the money and that is HUD's solution to the bailout issue.

PUBLIC LAW 110–289—JULY 30, 2008 122 STAT. 2851
Deadline:
Any State or unit of general local government that receives amounts pursuant to this section shall, not later than 18 months after the receipt of such amounts, use such amounts to purchase and redevelop abandoned and foreclosed homes and residential properties.
Title III of the Housing and Economic Recovery Act of 2008
Here's the catch they wrote into this HOUSING AND ECONOMIC RECOVERY ACT OF 2008 Plan:
5-YEAR REINVESTMENT PERIOD.—During the 5-year period following the date of enactment of this Act, any revenue generated from the sale, rental, redevelopment, rehabilitation, or any other eligible use that is in excess of the cost to acquire and redevelop (including reasonable development fees) or rehabilitate an abandoned or foreclosed upon home or residential property shall be provided to and used by the State or unit of general local government in accordance with, and in furtherance of, the intent and provisions of this section.

* * *
Course we can argue the effect of the bailout against the claims of Ford and General Motors whom are losing market points tremendously, but honestly no one like the types of high priced vehicles they plan to unload on car dealerships around America, esp. the Chevy Volt, their electrics and CNG vehicles are to high priced and offer to little for long distance driving on Interstate Highways. It makes me wonder why each have not coupled their ICE with a Air/Water Engine (AWE) where it is the water pressure that kicks up the air pressure to the highest piston pressure possible than to demand diesel or ICE Hybrid Engines of four cylinder or six cylinder in truck hybrids. General Motors nor Ford seem to know anything about a Diesel Fuel-Cell in applying the technological advanced knowledge and distribute a new product entirely and it depends on Green Algae Oil capability of use in the Diesel Fuel-Cell known as a CHP Fuel-Cell (image one, two the Reformer).