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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (14872)	11/22/2008 11:26:37 PM
From: Rolla Coasta	Respond to of 71475

>> If anything, the problem is more with the stability of the USD, rather with it being strong or weak. << By looking at the way USD skyrocketing, the currency is no way in stable condition. Thus, no way to get anything going for the US to establish any sustainable manufacturing.

To: Don Earl who wrote (14872)	11/23/2008 12:48:22 AM
From: Gary Mohilner	Read Replies (1) \| Respond to of 71475

I'd like to suggest a solution to the worlds economic problems, as I see it if done in the U.S. alone it would help here, but not the remainder of the world. Our problems are worldwide, the solution should be. What I propose is for all, not just distressed borrowers, its for residential loans, commercial loans, virtually all loans that the borrower wishes to convert. What it amounts to is for a period, say 3 to 5 years, the loan as it exists is frozen, the lender for a period of times agrees to turn it into a low interest, say 3%, interest only loan, this should be reasonably profitable for banks when you consider the low interest rates the FED and other similar agencies are offering, and the fact that at this sort of rate virtually all the foreclosures should quickly go away. More importantly, all of a sudden all in the general population would suddenly have a lot of money to spend, even large corporations would suddenly have money to spend they never thought about. In order to spread the wealth down to those leasing properties, be they residential or commercial, half the savings on the mortgage would be passed to the renter. Now this wouldn't only benefit the people, it would benefit the govts. of the world. Why, because all the mortgage interest that's normally deductible would be roughly halved, so not only would the govt benefit from all of the economic stimulus such a move would make, they'd benefit from the added taxes people would pay because of so much less interest. The key to this working would be the all the money it would put into circulation spurring the economy. For those looking for additional capital, they could refinance under the low interest rates, but only to the point where there payment wouldn't exceed what they were previously paying without bank approval based on their ability to pay. I know I'm no economist, but I welcome criticism, why couldn't this work. If it could work, why shouldn't it happen. Gary