As of December 22, 2008
If you owe the bank 200K the bank owns you. If
you owe the bank 200 million then you own the bank. Lets own
some banks :-)
And now we have the failure of Lehman Brothers, and the sale of Merill Lynch to BOA
But you can bet your last dollar (which you may be
forced to do) that the government is not going to bail you out,
and no bank will buy you out. In fact, according to a recent
story, “The total amount of bonuses and perks given to 600
executives last year (and these were banks already going into the
toilet) would have covered the bailout costs for 53 of the banks
that got YOUR TAX dollars. Lets see if we can fix the problem
ourselves and do away with the middlemen who appear to be
interested only in enriching themselves at our expense.
Would it not be better to reduce the original mortgage by $50,000 to $75,000 and lower interest rates to the current rates? For some reason the banks bankers with seven and eight figure salaries do not think so.
If you are wondering just how much the Smith family is on the hook for. Well According to the above New York times article referring to the recent bail out of Fannie Mae and Fredie Mac: “Mr. Paulson refused to say how much capital the government might have to provide, or what the cost to taxpayers might ultimately be.”
There are no doubt many certified experts out there
who will tell you that neither I nor you had any knowledge of
these things and that we lack experience. The proper response to
them should be. What have you been smoking? Have you been asleep
for the last year? It is the experts with experience who have
brought us and this country to our current situation. It is not
likely that a plumber, carpenter, salesman or other ordinary
person like you could possibly have done worse. An incompetent
foolish person lacking common sense with 20 years experience is
still an incompetent foolish person lacking common sense.
Obviously, before this money is put into a fund, the appropriate corporate and legal framework will have to be put into place, and it will have to be done in such a way that people are assured of not losing their hard earned money. I expect that some of those in the first 10,000 will have the necessary skills to do this. If not than a small part of this money could go to hiring a reputable long established entity to act as an escrow agent. Perhaps large churches or charitable organizations. It should be understood that a small percentage, no more than 10%, will be used for necessary fees, accounting, and legal work.
If you think that you can contribute to the formation of the necessary legal and corporate entities, please contact me. I want protections in place that are much stronger than what exists for most people today. I also want complete transparency. And anybody should be able to leave the system at any time with at least 95% of their money unless and until they have renegotiated with the bank on their terms.
Once the appropriate entity is established, it will be able to do two things. One will be to negotiate with the banks to get better terms. The terms you get will be better for you, and better for the bank when considering the banks other option --- losing 30% or more of the value of the mortgage by going into foreclosure. Remember that 10,000 people represents about two billion in assets. That is the kind of money that gets noticed. The second thing that the entity will do will be to generate publicity so that, from ten thousand, we can grow to a million or more. Remember that a million people is less than a quarter of those who are even not in some state of financial distress.
For those interested in another, possible more profitable way to go, the following is open for consideration. Remember that the first way is the above described non-profit co-op to negotiate with the banks.
A second way may be to have a 6 month forbearance to be sanctioned by the government on all mortgage payments for individuals (NOT corporations) holding 6 residential units or fewer and whose mortgage is less than 500,000 each. For units larger than that, the amount of forbearance would be (mortgage payment amount)*(2-mortgage value/500K) So on a 600K mortgage you you would get a 80% forbearance (2-6/5 = .8)
35 million homes with mortgages, 1500 per month is 50 billion per month for 6 months is 300 billion. Less than the TARP that was given to wall street bankers so they could keep their jets, multiple homes and 100 million dollar incomes. This money goes right into the pockets of homeowners. And the banks loose only interest not principle.
Ten million dollars is what is needed to start my
other project, a new
way of doing real estate. You will be among the
initial share holders. I expect that among you will be some
talented people who can do the legal / financial stuff to properly
structure this company. REnew Freedom inc.
Email me at email@example.com