A State of Confusion. The Leadership of our Country is beyond confusion and comprehension.
What Fed. Chairmen Bernake said that the Country needs a stimulas to keep us out of recession, is true, However, the political leadership in office, and the wantabe'e are all opportunist without rationalizing the damage that they would be doing to the country if they gave a rebate to everyone.
Four or Five years ago, President Bush gave a credit of a few hundred dollars to everyone on the tax rolls, all it really did was push us into more debt. Rebates or credits should be a stimulus for Job Creation and Growth Opportunities for the country.
Look at the cost. Let's say a credit went out of $800. to 150,000,000, thats' 120,000,000,000. that does nothing but put us in debt. You want a stimulus do this:
1. Since we have an Automotive Manufaturing base in the United States that have Jobs tied to it, give a credit to the taxpayers who invest in buying cars that are made in the United States. Granted that there are foriegn companies already providing us with automobiles that are partially made here in the United States, any auto manufacture that has at least a minimum of 50% made in the USA, consumers of those vehicles would be entitled to receive a credit or a rebate. At least it provides Jobs here, instead of being outsourced.
2. Energy conservation is another form of producing Jobs and reducing our dependancy of foriegn oil. Create a credit that a taxpayer would be entitled to receive a tax credit for insallation of energy efficientcy within their homes. This helps the building trades create more Jobs.
3. Get real with the Corming Loan Limits that FannieMae and FreddieMac are authorized to purchase on the secondary market. In states like California, which is the third largest state in the country, which is and has always been a high cost state, over and above Hawaii, Alaska, and Guam.
The California economy is 20% of the nations income. When President Bush's appointee, James Lochard, who is the director incharge of the Federal Housing Enterprise Oversight Committee, refues to raise the conforming loan limits above the $417,000 treshold, he is leterally causing the United State and California in to bankruptcy.
The Conforming Loan Limits that FannieMae, and FreddieMac are allowed to buy on the secondary market helps the flow of money into circulation, which is why the Federal Reserve System can manuver it's two key interest rates to help keep us out of recession and keep inflation in check.
The system can not work efficently without the flow of money, the way it's intended to be, our entire Economy is affected and at risk from bankruptcy, from the builders, to the guy who cuts your hair at the local barber shop, people rethink their buying decisions, when consumer confidence is shaken.
When people can't make ends meet, and have to struggle just to survive, this is damaging to the country. People who are unemployed, don't produce. The very fabric of wealth of the United States economy is in our homes. Countrywide, and other lending institutions are having problems, because the money supply is dried up, and without a revolving flow of capital that the secondary market provides.
Carlos R. Arvizu Sr
562-755-3856
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