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
Video from the BigThink.com's economic forum
The Right Way Back
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MEMORANDUM
TO: The president-elect
RE: The economy
FROM: Michael R. Bloomberg, Mayor of New York City
Video from the BigThink.com's economic forum
The stock market has plummeted. The credit markets are frozen. Unemployment is rising. Housing foreclosures are skyrocketing. Consumer spending is weakening. Manufacturers are cutting production. A global recession is in the offing. Welcome to the White House, 44. You're sure you wanted the job, right?
The global financial crisis has prompted countless comparisons to the Great Depression, and no doubt members of the media will soon be asking you to detail your agenda for your first 100 days, expecting you to pursue a legislative sprint as fast as Franklin D. Roosevelt's in 1933. My advice: ignore them. Your first 100 days in Washington will be better spent preparing for the 1,360 days that will follow.
FDR's first 100 days achieved what the Bush administration and Congress have been trying to do for the past 60 days: restoring confidence in our financial institutions. By the time you take the oath of office, the worst of the bank panics should be behind us. And while the economy may well be in a full-fledged recession, leading the country out of it, and laying the foundation for a new century of growth and prosperity, can't be done in a few short months—and it can't be done with regulatory reform alone.
Reforming the structures that govern financial institutions will likely be the hot topic of the next Congress, and that's long overdue. But it is critical that you not allow Congress to confuse regulatory reform with an economic agenda. The long-term health and strength of the nation's economy depends less on the shape of federal regulations than on the country's capacity for growth and innovation.
Over the past decade, as you well know, our status as the world's economic superpower has been challenged as never before. Thanks largely to America, capitalism has triumphed around the globe, and now everyone wants to beat us at our own game.
This is a competition we should relish, because we continue to enjoy all sorts of advantages: the best universities, the most advanced factories and health care, the most entrepreneurial workers and the best quality of life. But like a champion who has gotten complacent and sloughed off on workouts, the federal government—paralyzed by partisan gridlock and special-interest pandering—has let America slip out of top fighting form. Getting back into shape will not be easy or pain-free, but the alternative—losing ground to China, India, Korea, Japan, the European Union and others—is simply not an option.
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