The U.S. is undoubtedly in the worst financial and economic crisis since the 1930s. Home prices are falling rapidly across the nation, which has resulted in more than $2 trillion in losses in the last two years. The declining stock market has wiped out trillions more. These tremendous losses have created a vicious downward spiral that requires government intervention to avoid a 1930s-style economic collapse. This problem is affecting both Wall Street and Main Street.
We have done a ton of research, talked to a lot of important people and come up with an independent and objective set of recommendations to fix housing, backed by facts. In our new research-driven report, we assess the current situation and provide our recommendations to save the U.S. economy from collapse.
To stabilize home prices, we believe Congress needs to do four things in conjunction with the Federal Reserve and U.S. Treasury Department. Some of our recommendations have already been accomplished, but many of them have not.
- Stabilize The Banking System – Save local businesses by saving the local employers’ bank.
- Continue insuring deposits up to $250,000 and unlimited amounts in payroll accounts
- Close all poorly managed and undercapitalized banks ASAP
- Keep lending money to stabilize the best and largest banks
- Properly dispose of bad loans, RTC-style, instead of the way it is currently being done
- Finance new banks to create competition for good loans
- Continue supporting commercial paper liquidity
- Continue liquidity guarantees on new bank debt
- Stimulate Job Growth – Bring more jobs to the economy with short-term stimulus and smart government spending.
- Fund infrastructure projects to create jobs
- Stimulate short-term spending while recognizing that long-term saving is also needed
- Allow companies to utilize their current losses to recapture taxes paid over the last 4 years so they can keep enough cash in the bank to meet payroll
- Create government–backed initiatives to help banks lend
- Stimulate Responsible Home Buying – Stop home price declines by stimulating home buying by responsible individuals, to bring demand and supply back into balance.
- Keep mortgage rates low
- Keep Fannie and Freddie lending and FHA insuring
- Temporarily provide a down payment match to all home buyers
- Temporarily double the mortgage interest rate deductions for all homeowners
- Support Responsible Loan Modifications – Stop home price declines by helping keep responsible people in their homes.
- Provide financial incentives for loan servicing firms to modify loans
- Create a vehicle to buy loans that have been responsibly modified
The full detail behind our recommendations is available in a PowerPoint, a white paper and a 30-minute webinar format at the following link.
Click here to view the webinar
Many of you know a lot of very important people. Please pass this on to anyone who you think has the ear of someone who can make a difference.