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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: mek42 who wrote (1742)	10/1/2008 4:30:49 PM
From: DCzzzz	Read Replies (1) \| Respond to of 34328

I faxed this letter to my representatives today. ------- Senator Robert Casey Senator Arlen Specter Congressman Phil English October 1, 2008 Dear Representatives, Please rewrite the Economic Stabilization Act of 2008 to establish a Real Estate Investment Trust (REIT). Mandate all US institutions exchange all mortgage-backed security (MBS) for shares in this REIT. Sell 10% of the REIT shares to the public and list the REIT shares on the stock exchange. Distribute cash flow from MBS principle and interest as REIT dividends. Let the market determine the value of the mortgage-backed securities. This will enable financial institutions to use Mark to Market to determine the value of balance sheets. Most importantly, the government does not have to borrow any money. This is an American free enterprise solution and not a government bail out. Please take your time, keep it simple and do it right. Thank you. --------

To: mek42 who wrote (1742)	10/2/2008 2:02:55 AM
From: John F. Poteraske	Read Replies (1) \| Respond to of 34328

"Here's my humble idea to fix the mortgage crisis. Let the government wrap up all of these mortgages into one big REIT sort of thing and give each institution shares proportional to the par value held by each institution. Let the government keep like 1% profit for managing things or something and then the risk is equally spread out among everyone. No bailout, but the end result should be what is desired by creating a market for these things and setting a pricing structure." ------------------- Who purchases the mortgages, and leveraged vehicles from the institutions. Are you saying that the general investing public will then buy shares in this government run(managed) REIT. I believe that you are making the assumption that the general investing public will be able to determine a value for this? I'm not sure if this is realistic or not, and say that the institutions got .10 or .20 cents on the dollar-what kind of hits are we still talking about to each institution. And will this provide the liquidity? Either way-the government isn't going to go this route...they will throw taxpayer money with a bunch of pork thrown in to get this thru IMO, and worry about the cost later(ie debt).