Here is an economic plan that will not require a bailout. Why don't the government take the balance of the TARP's rescue funds and any future stimulus funds, place it into a CD with each bank that has received a portion of the original 700 billion dollars bailout, negotiate a return of 5-10 percent return on the money. Take the earned interest amount paid each quarter have the disbursed portion of earned interest put directly into a separate payroll account managed by a payroll service provider (i.e. ADP) that will pay the payroll obligations to any company seeking to stabilize its business during this or any recessionary period. This will secure jobs, allow the companies to concentrate on its growth, create an infusion of cash to the banks so that it could free up the credit crunch and begin to lend money, stimulate consumers' spending and most importantly, the principle amount of the tax payers' money placed in the CD will not be put at risk. This type of action will create transparency and accountability which can be implemented on January 21, 2009. The problem is that President-Elect Obama and the transitional team does not know it exist because I am not in the inner circle with contacts or have the President-Elect's ear. However, you as the reader(s) can be the judge. If you determine that the attached plan can jump start our economy, preserve our investments for the future and protect the tax payers' money in the process, let me know, tell your neighbors, your friends, family members, the media and especially your congressman or congresswoman that this is a plan of action that should be given immediate consideration. The solutions for the Housing & Job Crisis by using small businesses to jump start the economy, which can take effect on January 21, 2009.
Stop & Prevent Foreclosure: Establish eligibility of loan modification within 72 hours and establish a safeguard procedure that will prevent the homeowner from re-defaulting on their loan modification agreement.
Stabilize Property Values: Retention of home ownership in order to prevent declining sale value and reduce inventory of foreclosed properties where homeowners are in possession or retain title of ownership.
Stimulate New Investments: Develop Partnership Investments. New tax structure to create incentives for high income earners above $250,000 per year which will create capital, job creation and business growth, without a tax increase.
Create Job Growth: The program will match employers with employees who are enrolled. The job placement program projects a minimum employment growth of 100,000 new jobs per month, 30 days after the implementation of this program.This will create the business model the government can use for the 21stcentury economy that will ride on the innovation of the Internet. For questions regarding this outline, please contact Allen B. Shay: Shayandassociates@hotmail.com (Email) COPYRIGHT © 2008
The Right Way Back
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The crisis in the financial markets elevated our economic problems to the lead issue in the campaign, and your victory is largely attributable to the trust voters have placed in you to take action—and get results. You campaigned on the need to bring change and reform to nearly every aspect of federal policy, including health care and Social Security. These are critically important issues, along with many others. But you cannot take them on all at once. You will have to prioritize, and in a time of economic crisis, the economy must come first.
As worrisome as the economic news has been, and as painful as the months ahead might be, especially for a middle class already squeezed by rising prices and stagnant wages, there is nothing like a crisis to mobilize political support for long-overdue reforms. You have a once-in-a-generation opportunity to create a package of bipartisan economic initiatives that are far more ambitious than anything we have seen in decades.
You will receive advice from many wise people on what shape your economic agenda should take. That's healthy. Listen to them all and then pursue the best ideas. As mayor of America's largest city, as a businessman who started a company 25 years ago with three men and a coffeepot, as a father of two girls who is deeply concerned about the future of their country, I thought I would offer a few ideas of my own—take 'em or leave 'em.
Infrastructure
Hurricane Katrina tragically highlighted our under-investment in infrastructure, but mayors across the country see it every day: in mass transit that needs building, in bridges that need repairing, in airports that need expanding, in water and sewage systems that need upgrading. Americans recognize the need for greater infrastructure investment, and from my experience in New York, they are willing to pay for it, if—and this is a big if—they can be sure their money will be spent improving their and communities, not improving some legislator's re-election chances.
You have rightly criticized the process of funding infrastructure through earmarks, and I cannot think of a better way to start your administration than by working with Congress to reform it. What a signal it would send to voters: you are watching after their tax dollars more closely and putting them to better use.
How to win congressional support? In exchange for legislation creating an infrastructure bank that funds projects based strictly on merit, agree to invest more money on the infrastructure our country needs most. And you should also demand more from the states and cities that get federal money: hold them accountable for building on time and on budget. Call it a "New New Deal": investing more, more wisely, and getting bigger returns.
A bold infrastructure plan will help put Americans back to work—plenty of good projects are ready to go, they just require funding—and it will build the infrastructure our country needs to compete in the 21st century. Remember: the construction projects of the New Deal didn't just help Americans survive the Great Depression. They built the foundation for a broader and more prosperous middle class that led America to new heights.
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