My Fellow Americans

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(Note:  This is reprinted from my other blog, Black_Avenger_1, which is at LiveJournal, a blog I’m transitioning away from, since the Russians have purchased it.)  

The Housing Bust: My answer to the housing industry/foreclosure situation in the US isn’t going to work very quickly, but it should still work. Furthermore, it isn’t a cure-all; the federal government isn’t legally empowered to enact any such measures, anyway. It’s only a legal, Constitutional way to assist those that should be offering their assistance on this problem.

As we all know, Fannie May and Freddie Mac are the holders of the lions’ share of responsibility for the economic crisis the United States is facing, along with their complicit politicians, such as the utterly corrupt Barney Frank, Hillary Clinton, Chris Dodd, and even Barack Obama (link to politicians that took money). The politicians received great sums of money from them, which, ostensibly, was to keep them quiet about the things that were going on. Barney Frank’s gay lover was involved in cooking the books (link to this), and no criminal action was taken, even once that came to light.

Under my administration, a subpoena would be issued by the United States Attorney General to insure we got to know everyone that took money from those companies. A criminal investigation would be launched to determine who knew what, and when. An investigation would be opened into Bill Clinton, as well, who helped fan the flames of sub-prime loans to people that couldn’t afford them and pressuring banks to issue them under penalties of various threats (link evidence). I would order the AG to have anyone guilty of a crime charged to the fullest extent of the law and push for imprisonment.

With my dissolution of Housing and Urban Development as being unconstitutional (the federal government has no legal power to run such an organization), I would intervene in the only way the federal government could: through tax relief. 

Since the breaking down of the Federal Reserve (meaning the economy wouldn’t have interest rates determined by a centralized federal power), the Department of Treasury would work with people and banks through the IRS and tax cuts. 

Buy a new house? 

Get a tax cut based on the value of the house and current income. This would also count toward those getting a house built for them (either by themselves, or by a construction company). 

Selling a house? 

Get a tax cut based on the value of the house and personal income. For as long as the house remains for sale, additional annual tax rebates are available, with the additional modifier of time on market. 

Buying a house and selling one, simultaneously? 

Qualify for both tax rebates.

Renovating a home?
Again, a tax break based on the new, final value of the house once renovation is complete.

As for the banks, I would not allow any political influencing of them to pressure them into more sub-prime loans, and people wouldn’t qualify for any tax relief if they aren’t able to secure a loan from some lender. I wouldn’t provide tax breaks to banks that issue loans, but I would issue tax breaks to banks that get houses bought off. So, when someone finally pays their mortgage in full, the bank gets a tax break, based on the amount of the loan and length of time (how many years the loan was, including any re-financing). This way, the banks, while not being in the business to go into sub-priming, might be inclined to work more with customers, to insure they could get their loans paid, and not be too quick to repossess.

As for those that are looking at repossession, another tax break. This would be based on the current value of the home, as well as how far they were in the hole to their lender. This might not be enough to keep their home, but it might be enough to assist them in getting an apartment to live in. However, in some cases, it might be enough to pay off the arrears, or at least enough to get the lender to extend them additional time to get caught up.

I honestly don’t think this would suddenly break the housing freefall, but I think it should slow it. Also with the abolition of sub-prime loans, it would make it more difficult for those that shouldn’t have loans for homes that are beyond their means to get their hands on those loans, in the first damned place. People suffering because they’re not able to sell their home might find some relief, and it would make it a little easier for people to afford homes, without having banks and other lenders issue destructive sub-prime loans that are almost asking for defaults, repossessions and other headaches. Remember: the banks aren’t making money, either, when they’ve got a fistful of repossessed homes on their hands.

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~ by virusx on July 22, 2012.

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