Obama has a Plan for the Economy. What would Your Plan Be?
By: Dr. Phil Taverna
After Obama comes back from his needed vacation, he is going to hit us with the plan of all plans. I betcha you canâ€™t wait. He can!
First off he needs to apologize without being so condescending. And he needs to apologize for promising those shovel-ready jobs that he just couldnâ€™t deliver. He laughed about it but in essence he lied about it to the American people.
â€œLet me make myself perfectly clear, I didnâ€™t have a plan then, and now I dooo. And even though I didnâ€™t have a plan, if it wasnâ€™t for those damn Republicans you know those losers that had no say for the first 2 years of my administration, I still didnâ€™t have a plan. But if you folks had just given my stimulus a chance and the Tarp money I spent a chance it all would have worked out in errâ€¦. 6 or 8 years. Everyone knows that I understand you are impatient. I felt your pain while I was parading around the Midwest with my 40 cars and buses caravan. And donâ€™t forget about all the air cover with my helicopters and my F-16â€™s zooming overhead to keep me safeâ€.
â€œSo my plan is simple. First I am going to tax everyone. Donâ€™t get angry it gets better. I figure with all that money we can have one hell of a stimulus. I will put everyone back to work with a $10 trillion dollar stimulus package. Start rolling those printing presses! I will make it real simple. For those of you who are not working or you donâ€™t like your job just raise your hand. Now hold your hands high! This is what I am going to dooo. For all those people raising your hands we will give you a check or a bag of cash (American) for $2.5 million dollars. No questions asked. Heck you illegals can get in on this as well. Maybe you will take the money and get the hell out of town before we deport you. And by the way donâ€™t forget to take those damn anchor babies with you.â€
â€œYou will still have to pay taxes on the money. Figure about 60% to be fair. So right off the bat we get over $5 trillion dollars back. I told you I was the smartest president ever! My poll numbers will go through the roof. The unemployment will be essentially zero until November 2012. And the economy will be flush with cash. And that is my terrific plan. I donâ€™t want to hear any crying from those fiscal conservatives. We will worry about 2013 when we get there. For now letâ€™s party like itâ€™s 2012!â€
This sounds pretty stupid on all accounts but isnâ€™t that what Obama did with the first stimulus. Then when all the money ran out his economy, not the President Bush economy fell into the toilet. It has fallen and it still canâ€™t get up.
So we need a plan. The first step of the plan is to tell the people the truth. Most people donâ€™t understand this stuff. And they really need to know that the commie/socialists have driven this economy into the ground. Rangel said just the other day that no presidents including Obama have accomplished anything in the inner cities. Amen to that brother. So after spending trillions of dollars we havenâ€™t accomplished anything. Can I let you in on a secret Charlie, if you donâ€™t get rid of the drugs there is absolutely nothing you can do for the inner cities!
So the plan is very simple. The Democrats in 2008 (August) sand bagged the housing industry. They lowered all appraisals by about 23% so they could win the election. This has brought the economy to a standstill. They won the election because of it, but they have no clue how to fix the problem.
If the bank or who ever had the power to lower the appraisals in 2008 by over 23% then the bank or whomever should have the ability to put it back where it was in July 2008. If tomorrow they would accomplish that, then all would be well. The family that is paying a mortgage on a home that is worth less then the payoff amount of the mortgage will feel a lot better about investing in their house. And they will be building an asset from which they can use the money to pay down debt or buy things for sale in the US economy.
Close the borders and kick out all illegal immigrants and their anchor babies who have been here since a certain date. No exceptions. They can always apply to come back in as a citizen or a legal worker.
Eliminate all corporate taxes in companies over a certain number where all employees salaried or not pay all their income taxes to the United States. This will encourage businesses to create millions of jobs.
Letâ€™s discuss the mortgage problem. Because of the foreclosures and short sales and all the other garbage going on, this allows the banks to drive the cost of real estate even lower.
So if you are sitting in a home that was worth $100,000 on July 2008 and you took out a mortgage for $90,000. You find out since August 2008 for no justifiable reason your home is now worth $75,000. With a little bit of bad luck, you also find out thanks to Obama your utilities, energy, gasoline and real estate taxes have gone up! The average person would not feel real good about paying a mortgage on a house that is only worth $75,000 and with Obamaâ€™s economy who knows what it will be worth next week. For every house in your neighborhood that the neighborhood bank forecloses on, this brings down the value of your home. At least thatâ€™s what the tainted appraisal will reflect.
So if Obama allowed or signed an executive order that brought all the appraisals up by 23% or more, all these problems will go away. No more foreclosures. And this does not increase the national debt one dollar! And the economy picks up immediately. People who need extra money can now refinance their homes. Many people will be more apt to stay in their homes. People will be more willing to sell their homes for a fair price. And more people will be willing to buy homes because the appraisals would allow them to borrow more. No matter how you slice it, itâ€™s a Win-Win situation.
Some loser will say that this would artificially change the housing market. That would be true. But they artificially brought down the market in August 2008; why not artificially put it back where it belongs! The banks will win and lose. But mostly they will win. It will make it more difficult to foreclose on properties because the borrower will have an option to refinance on the house which is worth what it should be! The bank will make money on the deal. The bank will lose out on all the money they would make on the foreclosed properties that still had any asset value. So all these houses that are owned by the bank will now be worth more and easier to sell. There would be fewer houses on the market. And the bankers, who are stuck with reverse mortgage deals gone bad, will be able to recoup their money.
The only catch is that congress will need to pass some kind of law that would prohibit politicians, Wall Street and the government from ever stealing from the citizens by artificially lowering the value of the homes in the United States. There was no bubble that went a bursting, it was greedy and crooked err â€¦Folks.
Derivative related to housing mortgages should not be owned by Wall Street, or foreigners. Ownership of derivative shares should be limited to Citizens of the United States. Not many citizens owning homes would be betting on the derivatives to lose value. But some shrewd businessmen like Buffett and Soros might like to make billions while the Americans pay!
So which plan do you like better? One that you know will work or Obamaâ€™s plan where only 27% of the people hope it works and why not give it and Obamacare a chance for another 6-8 years. Can you afford to live in the Obama economy for another 17 months? Most Americans canâ€™t!
Dr. Phil Taverna owns and operates his own website.