Livinglies's Weblog

• I’ve been working on this problem for over a year. 
• No act of prescience or brilliance was required to know that if you pour water from a pitcher, eventually it will be empty even if you splash some more in from time to time. There isn’t enough money in the world to save us from a crash. 
• The ONLY thing that save our economy and the many other economies of the world that are tied to our fortunes is by consensus: 
• Stop the foreclosures and evictions, 
• redo the mortgages with incentives for people to stay in their houses, 
• create a payment pattern that is possible even if it is not ideologically congruent with your philosophy, 
• restore CDO values as close as possible to par, 
• enlist the culprits who created this mess because they are the ones with the open channels to get this done, 
• add to the recent moves to accept CDOs at or near par for valuation purposes (thus increasing capital reserves and allowing the release of billions in loans that are waiting to be made), 
• change the rules of civil procedures in each of the states on foreclosure to stop or slow them down, 
• change the rules of civil procedure on pleading to force the foreclosing party to state its case more clearly — especially as to ownership of the loan, 
• change the rules of civil procedure to stop or slow evictions, and 
• change the rules of civil procedure to require mediation after the issues are joined, thus providing some breathing room for this all to get worked out. 
• Legislation can’t do it, executive leadership won’t do it. That leaves the rest of us and hopefully the judiciary, without sacrificing due process and protection of property rights. 
• It can ONLY happen with consensus. Without agreement, this will crash, inflation will destroy what is left of the middle class and a good part of the upper class and drive the U.S. into third world status before you can say “$30 per gallon.”

Filed under: bubble, CDO, community banks, credit unions, currency, education, Eviction, foreclosure, foreign relations, GTC | Honor, inflation, interest rates, Mortgage, Obama, securities fraud, Uncategorized | Tagged: credit crisis, Federal reserve, fraud, housing, inflation, neighborhoods, stock market |