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A home owner must maintain insurance and pay property taxes. Depending on how marginal the participants in this scam were - it is  possible a percentage of the homes will be foreclosed no matter what. What that percentage is is unknown to me.

You can't save everyone, but you could - possibly - save the economy as a whole.

It would be the difference between controlled demolition and an uncontrolled implosion.

Part of the problem is - literally - the lack of control, which means that no one knows what the limits of the disaster are. The bailout plan is a finger-in-the-dyke attempt to plug some of the holes, and it's not bad as far as it goes - which possibly won't be very far.

It's the system of uncontrolled detached speculation which is the problem. The current proto-meltdown is an effect, not a primary cause.

Replacing explicit control would start to restore confidence by setting some firm boundaries.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Sep 26th, 2008 at 08:04:08 AM EST
[ Parent ]
Agree they're treating the symptoms rather than the disease.

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Fri Sep 26th, 2008 at 08:09:04 AM EST
[ Parent ]
Treating the disease is impossible without different basic political assumptions.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Fri Sep 26th, 2008 at 08:13:00 AM EST
[ Parent ]
That's part of the key point. But the other part of the key point is that the existing system is so obviously broken that even low info types are starting to notice.

So if there's going to be a political change, now is the time for it.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Sep 26th, 2008 at 08:20:49 AM EST
[ Parent ]
The kind of solutions the disease demands will only come from a new paradigm, visionary politic, supported by leaders who understand the vision.  Where those leaders are i don't know.

What we're achieving here in our discussions is a foundation which can be used by those necessary visionaries, that undergirds the courage needed to tell the truth and propose a way out.  This situation demands the equivalent to real entrepreneurship.  Many can write about or support innovation, but true entrepreneurship is very rare.  It demands the ability to stand up and say no, willing to walk away from a deal that does not really reflect what you seek... despite the deal being partly worthwhile.

So it is now.  The system is so broken, only those with the courage to actually say it can move us forward.  I too, like Grandpa, believe the global economic fundamentals are sound, only just not on this planet.

A National Investment Bank (internationally supported) has to be but a main gear in the drive train building a sustainable infrastructure.  Simple, except the dinosaur interests like the coal lobby are flailing with all their power to survive by crushing us.  An international Apollo program of sustainability, which begins with building insulation and the immediate re-channeling of industrial infrastructure towards wind and solar on a massive scale, is indeed our best hope.

But then there's GE's Wall STreet  darling, Jeffrey Immelt yesterday, calling on Congress to ratify the nuclear deal with India, and calling nuclear power " the safest, non-polluting energy generation technology."  I don't hear him pontificating about GE's wind turbines (decent but not particularly the heights of the industry), as they only make up some 3% of GE's gross.

But then i've been saying pretty much the same damn thing for decades now.  Sustainability is only tens of millions of purposeful jobs globally in an aggressive program to fix this civilization.  And windsmiths love their work, because it's satisfying working hard towards a dream.  "Hey man, i did 3 turbines yesterday, and climbed 5 times!"

/rant

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Sat Sep 27th, 2008 at 08:07:58 AM EST
[ Parent ]
we've done it before i believe, but we could have a diary about the program details of establishing a global sustainability infrastructure like Apollo or Gore's thing, so it all can be found in one place, perhaps even ongoing.

another thing, i have to report i'm certifiably insane.  Despite three decades of high-level fighting against the combustion of fossil fuels, i'm going to spend part of this gorgeous weekend in Germany watching the glitz and glamour circus of the fastest Benzin-burning vehicles in the world, now running under the world's biggest and brightest lighting system, as the Ecclestone ecstasy moves to that bastion of future capitalism, Singapore.  (OK, i dream of sponsoring Formula 1 cars running on renewably-generated hydrogen.)

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Sat Sep 27th, 2008 at 08:17:31 AM EST
[ Parent ]
Don't worry - those races don't actually happen in the real world.  They're all computer generated fantasies and special effects and the results are by negotiated and paid for agreement!

Vote McCain for war without gain
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat Sep 27th, 2008 at 08:25:08 AM EST
[ Parent ]
btw, fine diary and discussion.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Sat Sep 27th, 2008 at 08:40:12 AM EST
[ Parent ]
Thanks.  I still hope, some day, to write  diary that wins the supreme Oscar around here - a recommendation by the Crazy Horse!  Now that would be a collectors piece :-).

I'm thinking of doing one on the single malts of Islay....

Vote McCain for war without gain

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat Sep 27th, 2008 at 08:46:20 AM EST
[ Parent ]
you do it. as long as it can be drunk along with.

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Sat Sep 27th, 2008 at 09:26:00 AM EST
[ Parent ]
Well, Grasshopper, you still have a long apprenticeship to serve before you achieve the necessary state of enlightenment.....

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Sat Sep 27th, 2008 at 09:27:15 AM EST
[ Parent ]
Anything which reduces the pressures on holders of distressed assets will help - interest rate reductions, interest payment moratoriums, tax credits for interest payments etc.  It won't, of course, help the most toxic asset holders, or help banks to make bigger profits.  C'est la vie!

Vote McCain for war without gain
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Sep 26th, 2008 at 08:15:09 AM EST
[ Parent ]
And it won't help the small guy who has a pension of former blue chip stocks.

Treating the disease is impossible without different basic political assumptions.

Yup.


aspiring to genteel poverty

by edwin (eeeeeeee222222rrrrreeeeeaaaaadddddd@@@@yyyyaaaaaaa) on Fri Sep 26th, 2008 at 08:25:43 AM EST
[ Parent ]
A "Debt/Equity Swap" of mortgage loans into "Rental Pool" quasi REIT's will actually solve both problems.

For the Occupier, the "affordability" of reasonable index-linked house rentals means it's more likely that they can pay.

ie affordability = certainty.

For the Small Guy Investor, such property-based Units of index-linked rentals would provide a nice solid home for at least part of his pension portfolio.....

For the Occupier, it is a new "Rent to Buy" option where he can gradually acquire Units of rental values of land held by a "Custodian" (exactly as blue chip stocks are technically held by Custodians like State Street now) until the nominal income on his Units offsets the nominal rental due  in respect of his occupation.

ie he is "Paying it Forward".

And if times are hard, then Occupiers can pay rentals in saved Units, not $....

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Fri Sep 26th, 2008 at 08:55:01 AM EST
[ Parent ]

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