So have been watching the price of gas/petrol drop continually here in the states. It was declared that the price is now at a five (5) year low in the US. The highest was reputed to have been four dollars and eleven cents ($4.11). With just under a three dollar ($3) difference per gallon, the only thing I can think is WTH! (What the hell!).
The three main car company’s are now at the door of the US Government asking for money to stay alive. All of them arrived in their private jets and seemed to be very unhappy to be asked what will they give up to make it work? What a concept, how much do you want to succeed? How much will you give up before you spend my money to pay your salary as I am pretty damned sure the assembly line worker will get the notice they have no job well before the CEO!
So folks, in my ideal world which I am the leader of, my solution if simple. Let the car company’s get the funding they need from the oil company’s who screwed them in the first place. Logic would dictate that if the car company’s go belly up those supplying gas / petrol will notice a hit too. You can’t tell me we are not seeing this with the prices right now? Pairing the oil company’s with the car company’s, would it work, could it work, have we just have placed the devil in bed with his evil twin sister? Who knows? If nothing else we could sell the rights to HBO as it sounds like a great idea for a Sitcom!
So my next rant here folks is the mortgage crisis. My buddy Scott and I worked this out. Of course when Scott and I have time we like to solve the worlds problems, but we are not going to tell the world that, as all they will do is get into trouble again. However on this occasion perhaps we can share just once!
If you look at this problem we have a couple of scenarios in this mess.
- Those who bought a first home and are now in over their heads.
- Those who speculated and wanted to make a fast buck and helped screw the rest of us with inflated mortgages.
- The developers who got greedy and helped to drive up the cost of homes.
So here are the correct courses of action as far as I am concerned.
1: You bought your first home on an ARM and your now losing everything. First off, cry me a river, you took an ARM folks. This is called an ARM for the simple reason it was simpler to sell than an ARM and a LEG mortgage, which was originally branded Deal with the Devil or Give up Your First Born! Did your parents not tell you that anything too good to be true was a scam? This was certainly way too good!
However, you took a risk, bought your family a home and wanted to make a real home. This I can admire and respect. I bought my home during the frenzy, but I did get a fixed one folks. So here is what I say. If you bought a home at $200,000 and it is now only worth $150,000 the bank gives you a mortgage plan for $150,000 and eats the $50,000 loss for being a shower of money grubbers! You keep your home, they get money and we can stabilize the market. Why so harsh on the financial groups? They helped to hype this issue and had no safe guards in place. They also had no regard for how this would hurt the community at large.
What if you have been evicted and have no home? Well here is another stretch, what organization has a huge list of homes they just chucked people from? Yes the financial folks. If your home has gone for whatever reason, they put you in a new one and work a deal. They have 120 days to figure this out. If they fail to put you in a similar or better house if needs be they pay your rent in somewhere suitable for your family until they can make it right. They pay the rent on somewhere your family is safe and secure, not some tenement dive. The fun part here they also kick in whatever you have paid in rent off the mortgage you agree with them. So they discount it to cover the cost of your housing elsewhere so you get that equity you would have had if you were still in the home.
In addition, yes there is more it is after all almost Christmas they kick in 5K in cash. Merry Christmas! They can help as they screwed enough folks. Hey wish we could do this, some of you got seriously screwed and deserve a break.
2: You were prospecting and already own your own home and were trying to catch a fast buck! I respect the risk you took and guess what, you lost. Belly up to the bar now and be a man. Don’t cry on my shoulder and expect my tax dollars to bail you out. If you have a $200,000 mortgage and it is now worth $150,000. Hey guess what you now have a $175,000 mortgage, the financial folks now eat $25,000.
You speculated and lost. You drove up house prices, you stimulated this crock we are now swimming in. So you get the rewards of risk, you are upside down in your mortgage. The financial folks gave you the money as you were speculating and knew it. No social responsibility here, they get to eat some humble pie too!
Perhaps your only escape now is to sell the house at a loss and then we let someone else have a home for their family they can afford. You and bank get the share the loss and someone else wins for a change!
You house flippers get 120 days to sell the property, the banks forfeit the 120 days on interest and someone else wins.
3: You develop, you speculated, you calculated and now there is no seat in your pants. Sorry dude you lose! Eat the loss move on. Sell the homes for an affordable price and you and the financial folks, well eat crow!
You developers get 120 days to sell the property, the banks forfeit the 120 days on interest and someone else wins.
In my head I may even run for President some day! I will now keep quiet! So remember Reverend F for President in 2012!!