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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (41716)	10/23/2008 5:56:17 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217838

The McCain festival of treats would certainly be costly. It would cost $15 trillion to socialize the US residential mortgage market. $12 trillion for outstanding mortgages and $1.2 trillion for mortgages already in foreclosure. Typical overhead cost would make up the remaining $1.8 trillion, assuming everything runs efficiently. Having socialized the mortgage market, the welfare portion of the program depends upon how generous Santa Clause intends to be. Real estate prices need to decline an additional 20% nationally, for $2.4 trillion plus half of the existing $1.2 trillion in foreclosed property and $1.8 trillion for administrative costs - a total of $5.4 trillion. But this excludes current unrealized losses on the $12 trillion, before an additional 20% decline restores normal valuation. Let's just guess that the total welfare program would cost perhaps $7 trillion, or half of the socialization costs. But we certainly would not want to exclude commercial property owners from the festivities. And no doubt he will want to prevent a slight to renters when providing assistance to those who own 7 or 8 homes (even if they can't recall the exact number). Likely a free 20% down-payment for each renter gives everyone the gifts they're entitled to - and at the cost of only another $1 trillion, say a total of $8 trillion - essentially doubling the national debt. But what is $8 trillion when it buys you the votes you need with this trifling sum. But many will fall into debt quickly again unless the McCain Christmas plan also includes credit card debt. That should be brought down to easily managed levels. The total costs there might be only . . . Free money is so very popular. .