Great Thought (Maybe) in a few words (Maybe)

Thought Number 1

Perhaps the US should forbid the importation from Europe of social, financial, or banking ideas. They don't seem to work too well over there. And besides, we have enough "entitlement ideas" of our own and they don't work so swell either.

Thought Number 2

What more proof do we required about the basic need for personal incentives in the national financial mix? Just look at what's happened to the Chinese and Russian living standards since they included more personal incentives in their finances. Or look at the difference in life between South Korea and their northern brothers. Or study East Berlin since they joined the west. Why, then, do some people in the U.S. want to de-incentivize those who seek to better their lives???

Thought Number 3

Is it true that, deep down, those who borrow dislike those who lend? Or that those who receive unearned largess dislike or suspect those who gave it?

Thought Number 4

Because of the economic demise of 2008 many many tax payers have carryover capital losses that can only be used against capital gains (except for $ 3,000 per year). With no capital gains to be had in the current year, why doesn't Washington decree that taxpayers can deduct 1/3 of their total carry-forward loss (versus the $ 3,000 allowed now) provided all carry-forward losses are completely used up in say 3 years? The tax savings would increase consumer spending and confidence almost immediately. The funds would go into consumption, savings, debt reduction or investment -- all stimulating job growth and/or real estate values. Just what we need.

Those are my thoughts for today. Steve Jobs 'thought differently'. We need a Steve Jobs in Washington.

Now Here's an Idea.

History has shown us that our Nation, eventually, meets every crisis with creative new ideas and bold action.

Here is an idea that will reduce the national debt while stimulating the economy, creating jobs and helping banks get their house in order. And yes, it is possible to achieve both.

The Idea: Government encourages home mortgage owners to take advantage of historically low interest rates by refinancing existing mortgages to cut monthly outflows of personal cash. The Government encourages this with a Cash-for-Cash 2011 Tax Credit or, a government direct Grant for the closing costs up to a fixed percent (so banks can’t raise fees to extract the value of the program).

How to pay for it: The mortgage owner would re-pay the grant (or tax credit) over a ten-year period plus a small interest payment.

Protecting against unintended consequences: This program would be limited to the remaining balance on the mortgage. No leveraging up or using it to speculate.

Who wins:

• The homeowner wins: They don’t have to come up with the capital to re-finance and they get lower monthly costs. This gives them more money to spend which drives the economy.
• The Government: We (the government) get lower defaults because people don’t walk away from homes. We get our Grant or Tax Credit back over time, with interest secured by homes with people actually living in them.
• The Banks win: They get fees (fairly priced), and the mortgage now on the books (probably shortly sold) is of higher quality because the payment is lower

There ARE things we can do to navigate this crisis. We need new ideas and clear thinking in lieu of career politicians maneuvering for advantage. If you have ideas, let your elected officials hear them. Push them into thinking about the power of new ideas. When leaders aren’t leading, the population must come forward…..