Home » Categories » Business / Economy » Economic News » Some real suggestions for improving the economy.

Posted Saturday, January 19, 2008
View All Blog Posts submitted by Robert Melaccio, sr

This really isn’t as simple a task as we all may think because as a doctor might say they have let it progress too far. However, I will offer up a few basic immediate things I feel can make an impact right away. They cost no more to taxpayers then our leaders doing their job and leading. This will
certainly assist in giving more money to average and the poor right away when it is needed NOW!

 

We also know this is not realistic with the type of jobs average Americans now have, what they are paid, but more importantly what they take home after expenses. In my opinion it seems that the ones in power have been "indoctrinated"by their environment and just do not understand average Americans problems and concerns. Really, think about it, how can they?  

 

In using real life situations we can free real money almost immediately via a number of simple ways without much impact really on anyone. Yes, some "profits" may go down but they won't lose their homes over it.
 

The first suggestion involves what I have stated years ago was going to be the cause. Rhetorically,  I guess you have to start to choke before one loosens the noose? That is really reducing the rate of interest that Credit Card holders must pay to a fixed, not to exceed, 15%. We would eliminate all of those 31% interest and more rates, fees, charges and all laws that allow all credit card holders to do the same regardless if the person is late or not. That would immediately place additional money into the hands of people. This sum can be upwards of hundreds of dollars a month because their payments had jumped upwards and close to 100% on that huge interest leap applied when they were a day or even hours late. To boot the Card holder can collect an additional amount to get this, pay down the debt. Are they kidding. Who are the brainers that thought this up, those who want to introduce finacial accountability. Lets find out who they are and give them the boot. They more then anybody are part of the cause of this all.  How many really decent hard working average people has this hurt who had to charge for any number of reasons? Also, as I stated, do away with all the write offs and these companies will do it for us.

Next I would have all homes reappraised by those institutions that hold the mortgages at no cost to the person. Why, well here is an example. Here in Florida they say the retail price of a home went down 12 to 20 %. Lets use the higher number. If we say the home appraised at $240,000 one year ago its new appraised market vale is $198,000 based on that 20% drop.  That means your true retail value is really higher. So why is your appraised value at 170,000 or less? At a $240,000 appraisel the home value had to be 10 to 15% higher. Try getting that out of your local realtor.

 

Something smells here. Well it is the old Flip this Home trip in my opinion that started it all rolling. Yes, with all the worry about foreclosures do you see the mortgage holders rushing to help these people out? Do you smell the wolves at the door? Yes in my opinion the same ones who sold you the home, will now buy it back at substantially less, work with your friendly banker on a sweetheart deal while they hand the person a cardboard box. Yes and all the while the banker writes off the loss, perhaps they finance a foreigner who has the money, thats right 10 to 12 % of sales now go to foreign investors and it is a win, win for the money people. Why not they have our jobs? So in the  world of money and write offs there is always a way to skin the cat. The average American, well you know the answer.

 

So adjust all appraisals to match real market circumstances. Allow the mortgage holder to write off the difference now, where they are upside down on a home, and set a new term and rate. What will that do? In my opinion this is significant because it allows people to stay in their homes. It reduces the cost of their monthly payments thus once again placing real dollars into their pocket with the only loss to the Taxpayer the write offs. This in my opinion will be more then offset by the additional money flowing back into the economy.

 

An offshoot of the process is that it will also readjust homeowners taxes thus bringing additional help in real dollars to the Home Owner. It will lower Insurance replacement costs thus doing the same thing. Most of all it will allow banks to open up lending, thus stimulating building, and the sale of existing homes and it will allow local governments to set realistic budgets.

 

Last I would do away with credit reporting agencies which in my opinion are no more then a tool of the finance industry. It prohibits jobs, sets higher rates on much of what peole need to buy or attain and there is no recourse to the consumer when the data is incorrect except an appeal. An appeal by the way which in my opinion is worthless because the lender always has the last word. It is the death nail to many and it just may be in my opinion to those who use them?

 

Now the question comes down to will they consider and do this and that answer in my opinion is a resounding NO. Why, because of two things. One Indoctrination and the other, how many people are we talking about, 13%, a pretty good margin in any bean counters book. Rhetorically it could be something else called money or greed.

 

However that $500.00, given to average people, is going to go to pay past due credit cards, mortgage payments, fuel bills and then it is gone, back to zero all over again. Why, well go where the tire meets the road and ask.