I'm for this!

[Waterboy]

This is an email I received. Sounds like a very good idea.

Boy I'm for this



I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of
giving $85,000,000,000 to America in a 'We Deserve It Dividend'.

To make the math simple, let's assume there are 200,000,000 bonafide U.S.
Citizens 18+. Our population is about 301,000,000 +/- counting every man,
woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a 'We Deserve It
Dividend'. Of course, it would NOT be tax free. So let's assume a tax rate
of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends
$25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband
and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
. Pay off your mortgage - housing crisis solved.
. Repay college loans - what a great boost to new grads
. Put away money for college - it'll be there
. Save in a bank - create money to loan to entrepreneurs.
. Buy a new car - create jobs
. Invest in the market - capital drives growth
. Pay for your parent's medical insurance - health care improves
. Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who
lost their jobs at Lehman Brothers and every other company that is cutting
back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of
trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is
being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S
Citizen 18+!

As for AIG -
. liquidate it.
. Sell off its parts.
. Let American General go back to being American General.
. Sell off the real estate.
. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can 'never work.' But can you imagine the
Coast-To-Coast Block Party! How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 billion We
deserve the 'We Deserve It Dividend' more than the geniuses at AIG or in
Washington DC.

And remember, The Family plan only really costs $59.5 billion because $25.5
billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.



'Poor People have been voting for Democrats for the last 50 years,
.............and they are still poor.'
(Charles Barkley)

[dixiechick]

Not so fast...

I felt just like you when I first heard all of this. However, the media once again isn't telling every one the WHOLE story. Part of the reason why is because the way the mortgage industry is handle is very complicated.

When a mortgage or loan is given it is classified by the person/business credit rating. Let's say they are classified A for Excellent credit, B for good, C for fair, etc. These loans are bundled (all the "A" are bundled, B's etc.) and in order for the bank or lending company to come up with more money to lend it sells these bundles. Companies buy these loans on good faith they are worth what they are told. The banks get insurance on part of these loans via AIG or another company. If the loans fault, the get paid so they have money to pay off the loan.

Clinton came into office and felt like every American should be able to have their dream of owning their own home. He pushed to relax and deregulate a lot of the credit standards. Lowering these standards made more people able to qualify for a home. People who really shouldn't have. The corruption came in to place here when lending companies start giving out loans with variable rates.

Homes and auto prices have been going up so quickly over the years and peoples incomes were not keeping up with these rising prices. It was inevitable for the bubble to burst. This started as a market correction. The housing market crashed. People with variable rates started having problems getting out of these loans therefore faulting on them. Normally this shouldn't have effected our economy that much, but you add to it the increase of gas prices and other products. Sudden loss of jobs in the housing industry causing a ripple effect on the economy. Good people who don't deserve to lose there homes are now loosing their homes. Businesses are going under as well. These loans are now going bad leaving the lending companies to make claims on the loan insurance.... AIG is having to come up with all this money.

Back to the A, B, C.. bundles. When bundles such as A which was suppose to be the top rated credit have loans that aren't worth anything and the low-end bundles that might have some loans that are still being paid. It's left all these bundles and no one knows how much they are worth.

The banks can't sell off these bundles. Therefore they can't generate more money to loan to let's say Dave who needs a business loan for payroll to pay his employees. For us... we can't get the loan for our home or joe next door who wanted a new car. All of a sudden cash flow has stopped.

Meanwhile you have collectors who need their money to pay for their obligations wither it's payroll or light bill. Your seeing business who are having to cut back because the money isn't available. Some business are going under completely. People continue to lose jobs... of course you've seen what happens to the stock market.

The other thing the media isn't telling you. That $700 billion will be used to buy stock in these companies... AIG, Fannie, Freddie, etc. AIG's stock is worth lets say $3.00 a share. The government buys 80% of AIG's stock. Then 3 or 4 years down the road when the government sells that stock it could be worth much more. 5 yrs ago AIG's stock was worth $51 a share, so can you image what the government could make off this in the long run.

I don't know if you remember the S&L bailout in the 80's when all the savings & loans were going bankrupt. This is what the government did for them and then turned around and sold off the loans years later.

Yes, now that I realize more about what's going on. I am for bailing it out, because what will be worse is 25% unemployment rate when all of these people loose their jobs. Wore case will be another depression.

[deepsouth]

Re: I'm for this!

I'm with you "WB"- I could pay off all my debt with the maoney from my wife and I.

[quirkysmilin]

Re: I'm for this!

Wow - interesting idea!

[Waterboy]

Re: I'm for this!

DC, The Carter administration started the idea of affordable house for low income people back in the 80's. During the Clinton administration is when the rules were once again changed so that anyone should be able to buy a house. The mortgage industry took advantage of the situation lending money to people they knew didn't qualify for money. The found ways with "creative financing" to get them in a house.
Now that all of these people can't afford their house payments, the mortgage industry is failing from their greed.

I know it's a little more complicated than that, but that's basically it in a nutshell. Their greed has caused them to fail.
As far as a plausable remendy for this situation, don't bail them out, lend them the money. The Feds lent Chrysler several billion back in the 80's to save their compnay. Iaacoca repaid the loan off early.
Something has to been done to shore up the markets and banking industry, but I don't feel the American taxpayer should have to foot the bill for bad decissions made by them. A loan could be repaid say within 5 years with intrest. Thus the Feds would actually make a little money for a change, and not burden the taxpayer.

[trip]

Re: I'm for this!

the math is wrong

200 million into a billion is 5

1 billion into 85 is 85

425 smackers each

[dixiechick]

Re: I'm for this!

DC, The Carter administration started the idea of affordable house for low income people back in the 80's. During the Clinton administration is when the rules were once again changed so that anyone should be able to buy a house. The mortgage industry took advantage of the situation lending money to people they knew didn't qualify for money. The found ways with "creative financing" to get them in a house.
Now that all of these people can't afford their house payments, the mortgage industry is failing from their greed.

I know it's a little more complicated than that, but that's basically it in a nutshell. Their greed has caused them to fail.
As far as a plausable remendy for this situation, don't bail them out, lend them the money. The Feds lent Chrysler several billion back in the 80's to save their compnay. Iaacoca repaid the loan off early.
Something has to been done to shore up the markets and banking industry, but I don't feel the American taxpayer should have to foot the bill for bad decissions made by them. A loan could be repaid say within 5 years with intrest. Thus the Feds would actually make a little money for a change, and not burden the taxpayer.

Have you seen the "Burning Down the House" video on Youtube? That's all explained... pretty interesting isn't it.

[Waterboy]

Re: I'm for this!

Watched the video today. Very eye opening.