I agree
Voting is Disabled

-16 votes

I disagree

Rank30722

Idea#47

This idea is active.
Public-Private Partnerships »

Local investment, Our homes, Controlled through sound banks, Accountability for our actions, and benefiting all of our Livelihoo

Why Is This Idea Important?: It is a time to think outside of the box rather than following the same worn path to ruin. Whoever came up with the TARP must have been an acolyte of big banks and bigger salaries for bankers school of management. Rather than a large patch “TARP” (too big to fail philosophy) to fix our current problem, we need new thinking that focuses on rewarding institutions that for many years have held together communities with their sound lending practices and fiscal responsibility. Across this great nation there are thousands of small local banks that have intimate knowledge of local markets and the means to manage potential risk to loan management. Please give these small banks a chance to manage the mess (backed by our federal government) and our current moribund economy that in large part has been created by large banks and credit rating agencies. Big banks have and continue to exasperate and expand the problem of home loan management because of their nebulous debt and financial chicanery. Our money (government funds) has been used to bail out large banks that have proven to be poor managers of wealth and its accompanying risk. Their scales of economy have proven to be beyond the scope of regulation and management. As a guiding principal, only institutions with a history of fiscal due diligence and risk management should be considered for receiving government largesse and to give support to bad loans. It is paramount to let the big banks lose market share (fail) because of their own misguided investment policy and wanton ways with other people’s money. They have proven to be incapable of investing money and shouldn't be protected, while at the same time giving these wasters o f wealth our governments backing for more of the same. We need a system that benefits local communities by institutions that have maintained local ties and knowledge of how to do business from Fairbanks, AK to Tallahassee, FL. and from every between at least at the state level, but more appropriately at the county level. We need to stop the preference for large multinational corporations that donate millions to politicians and flee with profits to offshore tax havens. Rather big government should shift focus towards small sound local institutions, which only have political sway at the local level because they answer to their clients locally at church, community picnics, and in their communities where they live. That is real American accountability and that I think most Americans have faith in! Across the country there are many small banks that have not fallen into the trap of making bad loans and these small financially sound local institutions could manage a government program of a portfolio of bad local loans for sound local banks; rather than a “Bad Bank” as proposed in the Swedish model.

The Plan-in a nutshell

1. Federal Government sets up a program (similar to Social Security accounts but no benefits except an account system) that puts these foreclosure loans in the hands of local institutions that have proven track records of financial responsibility. These assets should be managed by people who have a stake in their communities. Not only will these local bankers be able to put financial pressure where it is needed, but maintain social pressure and have more concern for maintaining the local economy. Make defaulting something that is locally not a responsible act. Big banks can’t do this and don’t care to do this.

2. People who default and have their loans cost us tax payers should have Social Security benefits and future wages taxed or garnished, now and in the future. More bite to declaring bankruptcy and loan default and our government needs to act now or all of property values are going to go down the drain. If the government pays for lower interest rates for borrowers who are at risk for default these people should have an extra amount tagged onto the end of their loan, which will be paid back with interest to the government. We need this to prevent a total melt down and it makes it fair for those who follow the rules and abide by their contract with their mortgage. Moral hazard needs to not only follow those who default, but also their lenders.

3. Some will fail, but those that have a sound board of directors, strong business ethics, and financial restraint will rise to the top. These are the tenants of our current financial system and we should continue on this path and not veer towards the belief that larger is better because it is too big to fail (a Bush Policy that should not be followed or believed and is pure and simple bull).

4. Have a government sponsored plan for those who are out of work to receive mortgage payment benefits similar to student loan deferrals. Interest accrues, but you don’t default on your loan.

Benefits of plan: Investors will be able to invest in these institutions that prove their worth, are allowed to grow and not suffocated by these oversized multinational institutions that grew too fast and played with all of our money like they were in Las Vegas at a craps table.

Tags:

Submitted by Unsubscribed User 2 years ago

Vote Activity Show

Comments (1)

  1. Unsubscribed User said:

    PUT THE GOV AND CHILDREN TOGETHER SO OUR CITIZENS WILL KNOW HOW TO RESPOND TO GOV AT AN EARLY AGE,HAVE A SPECIAL CLASS CHILDREN CAN GET CREDIT FOR AND GET MORE KNOWLEDGE ABOUT THEIR GOV. THIS WAY THE CHILDREN CAN GO HOME AND TELL THEIR GRANDPARENTS AND PARENTS HOW TO HAVE AN IMPACT ON GOV.AND HOW TO DO IT.

    2 years ago
    0
    0