The headline below says it all. I’m glad that big executives and business leaders have taken hold of what I have been promoting for two years. It’s a really proud moment for me.
PIMCO’s Gross Calls for Massive Mortgage Refinance
(Reuters) – Influential bond investor Bill Gross dispensed more policy advice than the U.S. Treasury bargained for on Tuesday, calling for a massive program to refinance mortgages at low rates to boost the flagging economy.
Everyone reading this knows I have been promoting a massive two-step program to refinance ALL Americans’ debt if they choose to opt into the program I am suggesting. Note: this does not cost the government a dime. Here are the facts: the government is on the hook with a $5 trillion guarantee to Freddie and Fannie. The government is on the hook with TARP. This is a fact! Consumers, vital to our recovery, are in debt already. This is a fact – credit addicted or not! Interest rates are at an all-time low, but 46 million consumers have credit scores under 600, and 70 million with credit scores under 650. They are credit unworthy today and financial reform will make that worse. Therefore, they have little chance to get those great rates, refinance or borrow.
So we are here with massive spending and guarantees by the government and Main Street twisting in the wind. Well, there will be no sustainable recovery until we attack the root of the problem. PEOPLE CAN’T AFFORD TO PAY THEIR BILLS! The plan is so simple it makes me wonder why it has taken so long for the “big dogs” to step it up a notch, and thank God they are. I’m suggesting that we redirect up to half of the government’s $5 trillion guarantee to support the program. Not a dime of money needs to be spent and they are already on the hook, as I said before, so it is just taking the same guarantee and splitting it up.
Take the guarantee to all banks that want to participate in the program, and most will, to offer a ONE-TIME refinancing of debt for every American, rich or poor, or small business. If you opt into the program, you can reduce your monthly payments up to at least half of what they are today by gaining access to those great rates. However, if you opt in, you will have NO CREDIT AVAILABLE! That’s right, you cannot pay off your credit cards and use them again, and you are still on the hook for everything. You will not GET CREDIT for two years.
That’s the methadone we need to take people off of credit addiction and into a cash mentality again. People could more easily afford to pay their bills and therefore cost the government less in having to bail out Freddie and Fannie and buy more bad debt from the banks. The root of the problem is people can’t pay their bills. If we help them afford to pay without having to borrow and spend any money from the government, this would add tens of billions of dollars of disposable income into the pockets of Americans to fuel the economy that is 70% driven by consumption. The banks would have to create hundreds of thousands of jobs to implement the program. So would mortgage brokers, title companies, insurance companies, the housing industry, auto industry – you name it. In fact, every single American and every single industry in this country would feel a huge impact.
It’s about time that our leaders buy in to programs like this. I was wondering how long it would take.
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Finally a Financial Heavyweight Understands My AMERICAN REFINANCE PROGRAM
The headline below says it all. I’m glad that big executives and business leaders have taken hold of what I have been promoting for two years. It’s a really proud moment for me.
PIMCO’s Gross Calls for Massive Mortgage Refinance
(Reuters) – Influential bond investor Bill Gross dispensed more policy advice than the U.S. Treasury bargained for on Tuesday, calling for a massive program to refinance mortgages at low rates to boost the flagging economy.
Everyone reading this knows I have been promoting a massive two-step program to refinance ALL Americans’ debt if they choose to opt into the program I am suggesting. Note: this does not cost the government a dime. Here are the facts: the government is on the hook with a $5 trillion guarantee to Freddie and Fannie. The government is on the hook with TARP. This is a fact! Consumers, vital to our recovery, are in debt already. This is a fact – credit addicted or not! Interest rates are at an all-time low, but 46 million consumers have credit scores under 600, and 70 million with credit scores under 650. They are credit unworthy today and financial reform will make that worse. Therefore, they have little chance to get those great rates, refinance or borrow.
So we are here with massive spending and guarantees by the government and Main Street twisting in the wind. Well, there will be no sustainable recovery until we attack the root of the problem. PEOPLE CAN’T AFFORD TO PAY THEIR BILLS! The plan is so simple it makes me wonder why it has taken so long for the “big dogs” to step it up a notch, and thank God they are. I’m suggesting that we redirect up to half of the government’s $5 trillion guarantee to support the program. Not a dime of money needs to be spent and they are already on the hook, as I said before, so it is just taking the same guarantee and splitting it up.
Take the guarantee to all banks that want to participate in the program, and most will, to offer a ONE-TIME refinancing of debt for every American, rich or poor, or small business. If you opt into the program, you can reduce your monthly payments up to at least half of what they are today by gaining access to those great rates. However, if you opt in, you will have NO CREDIT AVAILABLE! That’s right, you cannot pay off your credit cards and use them again, and you are still on the hook for everything. You will not GET CREDIT for two years.
That’s the methadone we need to take people off of credit addiction and into a cash mentality again. People could more easily afford to pay their bills and therefore cost the government less in having to bail out Freddie and Fannie and buy more bad debt from the banks. The root of the problem is people can’t pay their bills. If we help them afford to pay without having to borrow and spend any money from the government, this would add tens of billions of dollars of disposable income into the pockets of Americans to fuel the economy that is 70% driven by consumption. The banks would have to create hundreds of thousands of jobs to implement the program. So would mortgage brokers, title companies, insurance companies, the housing industry, auto industry – you name it. In fact, every single American and every single industry in this country would feel a huge impact.
It’s about time that our leaders buy in to programs like this. I was wondering how long it would take.