How To Save Over 6 Hundred Billion $$$$$

I Heard This On The Radio This Morning. The Guy Said We Have Three Hundred Million People Living In The U.S.A.----- Not All Own Houses But We Will Asume They Do And We Will Asume They Are All In Default. So If We Give Each Person In The Country One Million Dollars They All Pay Off Thier Loans-----Problem Solved And We ( The Taxpayers ) Save Over 6 Hundred Billion On This Bogas Bailout

I like it. Ever think about running for President? Oh, wait a minute! Sorry - you can't.

I like it. Why should the taxpayers care about the companies that give their failed CEO's tens of millions of dollars to go away and retire.. but then expect the government to pay for the mess..

Just to put this in perspective, if every person in the US got a million dollars, think how inflationary this would be, everyone without any financial restraint would start to spend it on everything they ever wanted,, the cost of fancy cars, boats, planes, and houses would sky rocket.. PURE run-away inflation.

So if spending this money would be dangerouslly inflationary, what would spending 900 Billion in the bailout do for inflation??? The dollar is at record low values, it could get a lot worse..

Greg L

LsFarm wrote:So if spending this money would be dangerouslly inflationary, what would spending 900 Billion in the bailout do for inflation??? The dollar is at record low values, it could get a lot worse..

Greg L

You & I rarely (if ever) agree on a non-coal related subject Greg, but if I read you correctly, we agree here in being against "socializing" this greed.
We are all a pretty self-sufficient group here &, on a different thread, I suggested we need to go out & buy a few staples: More coal & plenty of ammunition!

Like this..

Instead, I’m in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend".

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend".

Of course, it would NOT be tax free.
So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads Put away money for college – it’ll be there Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs.
Invest in the market – capital drives growth. Pay for your parent’s medical insurance – health care improves. Enable Deadbeat Dads to come clean – or else. Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it...instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .
And remember, This plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

I believe 1million times 300 million = 300 trillion. If I am right, your math does not work and paying $1 million dollars to 300 million people will cost us 300 trillion dollars.

Manny

WNY:

I don't think your math adds up either. 85 billion divided by 200 million = 425.

Manny

chabbo wrote:I believe 1million times 300 million = 300 trillion. If I am right, your math does not work and paying $1 million dollars to 300 million people will cost us 300 trillion dollars.

Manny

Dam Those Decimal Points

That math didn't work, but how about this:

There are, as of 2006, 111+ million households in the US. Not all are owned homes, not all are mortgaged, certainly a relative few are part of the subprime issue or are in danger of foreclosure. But for the sake of argument, lets just say they are all owned homes and all have been mortgaged in the last 15 years and are potentially part of the subprime mess. Estimates are that roughly 5% of all the mortgages out there are in danger of foreclosure at this point. This 700 billion figure for the bailout was generated on the basis of it being 5% of the debt instruments at issue, in danger of defaulting.

So... 5% of 111 million is 5,550,000. Lets say we, as a nation, are willing to help out by giving each of these trouble households a $100,000 check to pay off mortgage or home equity loan debt, that's $555,000,000,000, aka $555 billion. That is probably enough to pay off most of the low income area sub prime debt. We will be buying lots of families their homes, fee and clear in depressed urban and suburban areas. They will probably be able to buy iphones for their family too. And for the high cost sub prime loan homes, we don't "care" as much about them the rich SOBs, the $100k should be enough to pay of a sizable chunk of principle and renegotiate for a long term fixed interest loan at today's low interest rates. And we save ourselves $145 billion dollars. And we get the undying gratitude of poor urban and sububan minorities that are most impacted by this whole mess on the low income side. No doubt Sharpton, Wright, Phleger, Jackson, and Frahkahan and the rest of the race baiters of the nation will close up shop and go fishing for the rest of their lives.

Sarcasm aside, consider that according to the Center for American Progress (a lib think tank, so consider these the most favorable numbers toward the working class, poor, and minorities), only 2.2 million homes are currently at risk of forclosure, not the 5.55 million I used above. Using the same $100K scheme that's only $220 billion instead of $555 billion, or a savings of $480 billion compared to the current $700 billion plan. This either means that the $700 billion plan is buying up 2.2 million bad loans with an average value of around $318 K each, or we'll be buying a lot of stuff that is not residential mortgage related, or it has lots of already defaulted properties that don't show up in that 2.2 million figure. All three potentials are cause for concern. And even though this simple $100K scheme is a direct and permanent loss (as opposed to the bailout where some amount will be sold back into the private sector), the $220 billion total is entirely within the realm of what the taxpayers may be left holding on the bailout plan once all is said and done 10+ years down the road.