No, I did not get your email yet, but I will be looking for it, thank you.

I am not adding the 2 Trillion or so, to US Debt but taking it away from corporate profits or balance sheets really.

Let’s take that 2 Trillion or so defective mortgage loss to the banks not the government, that results in monthly savings for roughly 11.2 million homeowners and use it in the economy or in savings accounts, doesn’t that help the US economy as well?

To do my plan of refinancing roughly the 11.5 million underwater homeowners over a 4 year period would create approximately 500,000 temporary jobs including but not limited to, processors, underwriters, appraisers, title searchers, attorneys, closers, accountants, regulators.

These employees would be earning money able to save, spend and pay taxes, all which will be stimulating the economy and increase government revenues (they wouldn’t be draining our resources in unemployment or other forms of aid and some of them would be homeowners as well).

The gorilla is the governments change to protecting the banks to protecting their US citizens by mandating that all underwater homeowners must be corrected to present day market values.

The gorilla will come when, the governments realization comes that the financial industries can not substain the economy of the USA, and there needs to be other industries created and fostered that can maintain and grow the work force of the USA including manufacturing.

Another gorilla, is the public’s realization that savings and living within their means which is currently being done and still changing, will result in less frivulous/unnecessary money being spent in the economy has resulted in contracting overall other industries (supply and demand, layoffs).Protection of their own household wealth and budgeting.

Another gorilla ,is it won’t matter that credit is freed up, the majority of the public doesn’t want unlimited access to credit and it won’t get unlimited access as it has in the past boosting the economy’s GDP, they are afraid, Confidence.

As I stated before, all previous issued guarantees issued to the financial sector will be withdrawn. New guarantees will be issued on NEWLY issued loans including student, auto, business,and mortgages that are underwritten with prudent lending decisions for a limited time.

As in any budget, both or either increasing the income (revenue) and decrease the spending (aid and employees) must occur to balance. While my plan does not address the entire global picture, it does help with one aspect of it, housing.

Gorilla has to be something that generally threatens them in one form or another. Threatening with “poor economy” threatens the people, not specifically TPTB. To them, poor economy only means printing more money, indebting the people.

Let’s take our current situation. Obama wants a trillion in stimulus, the states want their trillion and the budget has a trillion short before anything. That is the starting line up. That three trillion divided by 113 million households comes to over $26k per. Figuring that Obama is going to end up a trillion short every budget adds another three trillion, giving us a grand total of 52k per household of new debt.

We still have to add your 2 trillion or more to “fix” the mortgage mess. That totals 9 trillion or around 70k per household indebted at the national level in the next four years.

The BIS says that 60% of the worlds savings went to fund the US deficit prior. With the world down, there will not be that level of savings. More so with the rest of world trying to fund their own bailouts. This means direct monetization, but we still have to pay the money back or default on our debt. Since every year we need “help” again, all we are going to do is build until our debt becomes a joke and subsequent fail.

Darn, I seemed to get sidetracked off of gorillas! I asked Mr. M to pass my e mail off to you a while back. Did you get it?

Gorilla= something to Fear

Your right, my gorilla is still the government with its ability to change/mandate the consumer protection rules.

The little gorillas you asked about are 1-Frugality of the average citizen, 2- increasing unemployment and 3-the recession are all working in favor of my plan versus a substained recession or should we call it the next depression coming.

Our government should be fully aware that the middle class, homeowners represent 69% of the population, this includes most of your private businesses which account for almost 70% of the working class.

The more they disregard the homeowners, the more citizens save their money, the more money that is not spent, the more layoffs, the more the economy contracts, until what.

My plan is not a cure-all but it is a start or aid creating over 500,000 temporary (3 to 4 yrs) jobgs until the stimulus package actually takes effect, but bottom line it does protect housing from decreasing further given time for “changes” to be made in jobs in the USA created.

We are the same, but I obtained a GED.

Oh and then some college and a nursing degree. Obviously you obtained something too.

I want to thank you and invite you to see your responses to your posts to me, I really appreciate the insight. It is at the bottom of MR. M’s invite about modifications working or not.

My gorilla is consumer protection for the underwater homeowner with total withdrawal from governmental bail out to banks and investors including guarantees. Putting capitalism to work.

Please obtain my email from Mr. M with my permission to receive a complete copy of the proposal. I will also be amending it, hopefully reducing the 46 pages to less than 15.

Till then take care and again thank you for your insights.

Susan

I wonder if Chase is so stubbornly naive as to risk my taking a walk because I realize that w/o – being able to offer seller financing – I will have no competitive advantage.

My original Big gorilla was the government.
With a back up of capitalism.

Now I see, maybe I will have to use the economy as the Big gorilla. I will have to give this some more thought to expand on it though.

But I still believe most of our government would be in favor of letting the banks take their own losses (capitalism) with some guidelines (consumer protection of all underwater homeowners) and persuasion (incentive of 3x tax writeoffs and balance sheets for principal reductions), especially after the fall out from the initial 700 Billion Dollar Bail Out.

The economy (people) are not confident in spending, when their assets are losing values, their jobs on are the brink and other than gas prices are not decreasing, especially since for the past few years borrowing against our future is how our economy was fueled. The USA does need a stimulus plan but also a stablization plan from housing values over-correcting.

Basically it is like this. You are presenting a plan asking them to change. The motivator of that change will be the gorillas, not the plan, the cost of not acting. They may be aware of all the gorillas, but it does not hurt to remind them. You can probably come up with some gorillas that they have not even considered.

Bottom line it is going to be the gorillas that sell the plan.

Here is an example of the gorilla in the other room, it is a side by side of Bush. In both speeches he paints the gorilla.

http://www.thedailyshow.com/video/index.jhtml?videoId=186052&title=clusterf#@k-to-the-poor-house

The gorilla was used with Bernanke and Paulson when they went before congress, using technical language to give them expertise power, giving them total control and throwing the gorilla behind it.

Bill Gross used the gorilla in saying that “I am going to tell my customers not to buy treasuries.”

What is the gorilla if the government does not go along with your plan?

Truthfully my proposal started as a letter (Rant) to S.T.Paulson about not giving the banks a bailout to correct their mistakes, let them fail. The proposal was written in September, prior to most of the financial meltdowns.

The gorilla was the federal government.

Unfortunately, you are right with your post about the government siding with the banks, but nothing is permanent except death. There can be change.

The “liquidility” given to banks was and can still be the gorilla. As you stated, the gorilla holds the purse-strings and the legal framework to change laws, rules and regulations.

The proposal was “modified” to reflect REQUIRED conditions on ALL forms of the liquidility being provided. (lenders particpation in the massive refinancing needed by hiring additional personnel,the allowance of tax savings on writedowns/losses up to 3x, reduction of ALL management personnel in salaries and the elimination of all bonuses while any company was benefitting from liquidility or tax savings from the taxpayers.)

The government still has the capability of being a HUGE gorilla with all of its laws, rules and regulations availability plus the purse-strings.