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The Great Bail Out- Let's Come Up With Our Own Bail Out!

the great bail out

The Great Bail Out- Let's Come Up With Our Own Bail Out!

I don't think it would come as a surprise to any of you that read my blog that I am a small business owner, that I am an entrepreneur, that I am a Realtor and that I have a total of 8 children, 6 of them I gave birth to. Knowing that, it is fair for any of you to assume that I am NOT in favor of this bail out that wall street is begging for from our hard earned money. I say, let the chips fall where they may. After all that is what we as small business owners do every day we wake up and go to work! If we fail, we pick ourselves back up and start another business. This is the way of the Capitalist and I am a true Capitalist and proud of it. no to the bail out

Will it be painful if Wall Street decides to react in a bad way? Will it be painful if our interest rates go up? Will it be painful if more cushy execs lose their jobs? Of course it will be painful. But that may be just what the doctor orders. Perhaps it is time that we learn what the word FRUGAL means. Perhaps we need to learn not to spend on credit all the time. And I and my neighbors don't want the people on our street who can not pay their mortgage to get their mortgages reduced while we are still paying top dollars for ours. There is something profanely unfair about punishing the responsible people who pay their bills much less have us carry the burden of the cost of theirs.

So I thought about sending Congress a bill for our bail outs!

no to the bail out

Please feel free to add to the list in your comments.

Since they are going to be printing a ton of money; while they are at it, let us add what we, the people want to add to the bail out bill since we are going to have to pay for it anyways! We might as well have fun while we are about to get the shaft of the century!

1. If you own a Real Estate Brokerage with less than 25 agents and staff, ( that includes us), and you can show a loss for 2006 or 2007, 2008 or 2009; you will get a government guaranteed loan which if you don't pay back, well, it was worthless paper anyhow.

2. If you can run your business into the ground and have losses you will get to leave with a severance package of $15,000,000. no bail out

3. If you pay your mortgage on time every month no matter how many jobs you get to do it, no matter what comes your way; you are entitled to a government rebate of 1/2 of your principle.

4. If you make your spouse the Union boss of your company the government will guarantee your Union boss a position on all the oversight committees.

5. If you have worked as a community leader in any capacity then you can claim yourself as a politician and in so doing, you will forever be exempt from any FBI investigations and you will never have to pay back any money that was contributed to your cause.

6. Instead of giving the money to Wall Street that is in this bail out plan; just give it back to the people so we can pay off our mortgages and that will solve the mortgage crisis! Not only will it do that, it will also invigorate the real estate market!

7. In the bail out bill; require the banks and note holders to streamline their short sale process and start paying real estate agents bonuses to do short sales, start accepting short sales instead of foreclosing. That will get the real estate market moving again.

OK, that is what I have come up with so far, how about you?

You have a blank check, so start writing! no bail out

Contact Nestor Gasset and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida and Port St Lucie Florida. We are accepting referrals.

Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

To view all the Wellington Florida Luxury Homes For Sale Click here and then click on Search For Homes We know Palm Beach County and St Lucie Country; we will help you get your home Sold if you need to Sell your home and help you buy your Wellington Home or Land ; call us today.

Disclaimer:The information provided herein is supplied by several sources and is subject to change without notice. Wellington Homes Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on Wellington Homes Blog represent the opinions and ideas of the author(s). Wellington Homes Blog does not express the views of International Properties and Investments, Inc or those of the broker.

P.S. If you are listing your home as a short sale in Palm Beach County Florida and Port St Lucie Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 561-753-0135 to find out more about Palm Beach County Short Sales and Port St Lucie Short Sales.

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes on 09/27/2008 09:21 PM

Comments (49)

Bail Out a Joke in the ActiveRain Channel

no to the bail out, bail out, economy, capitalism, small business, politics, humor, funny

Originally posted at: South Florida Real Estate and...: The Great Bail Out- Let's Come Up With Our Own Bail Out!

Post is included in group: Around The Water Cooler
Post is included in group: Blatant Politics
Post is included in group: Politics And Real Estate
Post is included in group: Silent Majority
Post is included in group: The Optimist

49 Comments on The Great Bail Out- Let's Come Up With Our Own Bail Out!

SEP

2008

I've been trying to get some people to look at Dave Ramsey's suggestion. It's the last post on my blog so I won't link here, but I mean really, I can't even get my head around $750B!

On the subject you are talking aobut...my wife and I have decided to spend out next 6 months mortgage payments on a nice boat and then ask for a federal bailout on our home...fairs fair, right?

I love it! Every person I have talked to is against this bailout and though I will not claim affiliation with any party, what kind of idiot would choose a $700 billion dollar bailout as the FIRST option ? Retarded.....thankfully he can't be elected again.

Kelli- It goes way deeper than "he". This started in 1995 when President Clinton signed the bill that allowed these chumps to run their companies into the ground. Both parties are at fault here. No one has clean hands in this mess. That is why I say, let them all fail. We are a resiliant people who will rise out of the mess a better and wiser people and more prosperous. Nestor and I have always done well during downturns in the economy. And I don't believe that there will be a depression like the one before. I say investigate all the corrupt politicians who took bribes donations from Freddie mac, Fannie and Lehman. Hmmm, one of the candidates is at the top of that list. Oh and then they let Dodd be in charge of this bill? Hmmm, of course he is trying to NOT have any investigative powers given so he can skate free! Katerina

I like it!

But, lets increase the dollars so that the hidden kick backs don't stand out! You wouldn't mind taking part of an extra hunderd billion so we could slip a few billion to Acorn would you?

Bill

Bill- Better yet, lets get together and buy out ACORN! Then we can enjoy all those hidden billions under the table:)

Ron- Sounds like a plan! I mean after all the neighbors bought Hummers with their refi money and went on cruises. I did not get to go on a cruise! Hmmm, something wrong with that picture!

I know your list was tongue in cheek, but it makes more sense than what they are doing in Washington.

Katerina - You have my vote as the next Secretary of the Treasury! I was just telling my husband this week about doing what you suggested in #6 of the items that should be added to the bailout.

Randy- I think so too! It is time for a TEA party!

Donna- That would make sense to give it back to us, we can pay taxes on it, then pay off our mortgages and stimulate the economy! Hmmm, novel idea. But then again, they have not been for the people in a long time.

Katerina: In regards to #4, I nominate MY hubby to be the UNION BOSS and oversee it ALL! He is a master with finance and cannot believe that we'd even contemplate such a bazaar bailout. This does not have to be done overnight--Congress needs to take their time with this because I fear that the bailout could backfire and we're going to wind up in worse shape than we're in right now.

AND, I'm in favor of dividing up the funds and giving it to those who have WORKED for it and are struggling now--like say, those in the real estate profession!!

Nestor ... I agree with you on many things you have chosen to write about. You are a smart and conservative guy, and I like that. But I disagree with you on this. If the US government uses up to the $700 billion to buy the bad loans and other such assets from the banking industry, the government has an opportunity to make money on this deal. The government will pay less than face value for the loans, probably no more than conservative appraised value of the real estate, and then sell the assets at auction or set up company like Resolution Trust in 1988 (which recovered lots of money for the USA). This will not be the bailing out of the companies, but rather an opportunity for risk based investment. Let's wait and see how it works out. Harrison

Katerina, have you heard New Ginrich's ideas? He suggested suspending the accounting guidelines from 2002-2007. He said that if a home sells for $90,000 in a neighborhood but all the other homes the bank has loans on in that neighborhood are worth $110,000, the bank has to write down all the other homes. When they do this their liquidity is artificially deflated and they have to go out and raise more capital to be within the guidelines. I remember that something like this was done when the third world countries defaulted - can't remember all the details, but I believe they suspended the loans and did not write them down for some years. Bottom line: Newt's ideas would not cost the taxpayers one cent!

If we do bail out these companies, then they should have to pay us back. Giving the money to people to pay off their mortgages sounds good but it doesn't give the banks any liquidity to lend money so that more new mortgages can be made. That is part of why it is so hard to get a loan today. Don't get me wrong, I am not happy about this, and you are right, both parties are involved in this.

I also think the people who ran Fannie and Freddie into the ground should be investigated, tried and convicted if fraud was committed, and return the money.

SEP

2008

Harrison- Thank you for your explaination and viewpoint, it is much respected. I must say though, this is Katerina talking, I am the one who writes on our blog. Nestor's view point may not be the same as mine. His opinion on this matter may be more in line with yours or someone elses.

If the bill were just what you are saying that is one thing, but it is not just that. It has Union stuff in it, it has ACORN in it and who knows what else! That is the part of bills I can not stand. Why all the sneaky crap, lets cut to the chase and be upfront with what is written and Congressmen and women stop sneaking in stuff into the bills that have nothing to do with the bills.

Debe- You are right, it does not have to be done overnight. The world is not going to fall apart if we think things through.

Sharon- I don't agree that any government should be telling the banks that they have to write it all down so I am not sure I would agree with Gingrich either. So that would mean that the rates already set by lenders are subject to change if the real estate market goes down? What happened before when people defaulted, what happened before when values went down?Why would banks want to give loans if they have to lower rates and values? I mean, are we not messing with free markets when we do this sort of stuff? I by no means am a student of banking. Thank you for your input. Lots to digest and learn more about, always a good thing.

Katerina - Sorry if my post was confusing - the interest rates were not what he was talking about. It was suspending accounting guidelines (that dictate how much liquid capital a bank has to have) so they didn't have to write down the value of their loans which would result in mandatory raising of capital.

We are most definitely messing with free markets. We have been messing with them for quit some time. I do not like the situation we are in either. I just think it's interesting that there is someone out there proposing something that won't cost us so much money.

Katerina, you need to change the name of your business to Wellington Florida Bank and Luxury Homes. When you make money, you get to keep it! When you lose money, the Government will bail you out.

Katerina. Community ORGANIZER. Community ORGANIZER.

I don't recall the term "LEADER" even being claimed. The very premise of being a Community ORGANIZER is to reach out and help identify community LEADERS. Leaders have to be of the community.

The movement from Community Organizer to National Leader is, in my mind, the stretch of the century.

Hi Katerina, I like #6 and #7 of your plan. I do believe that this mess is more complicated than a lot of people realize, and that they should be taking their time figuring this out, so the solution is in everyone's best interests- not just the corporations, their top management, the lobbyists, the special interest groups or the wealthy. Have a nice weekend.

Hi Katerina - I love line item #7! Boy would that be a dream come true. Fat chance though...way too logical.

Hi Katrina. I received an email from a cousin that suggested taking the $700 billion and divide it equally among every adult (18 years and up). The numbers were a bit exaggerated but would offer a great stimulus to the economy. Homeowners would be able to pay off their existing mortgages, people facing foreclosure would be completely bailed out, and those who do not own a home would be able to purchase one. Wouldn't that solve the housing problems and move inventory off the market? lol

KATERINA FOR PRESIDENT!

I agree with all of it. Small business owners pay a large percentage of the taxes in this country, and for that One of our presidential candidates will call you rich, and want you to pay more.

I'll start working on #2 and I'll be waiting for the severance package LOL. Yesterday I heard on the radio that if the $700 billion was divided to all people in the US that have drivers licences, they you all be able to have free gasoline for a year, that would be nice. ~Rita

It makes perfect sense. Give folks an Chance to pay back their debts.

Hi Katerina..It's a huge Mess, what's more of a problem is the lack of decision right now, Stocks are tumbling etc, Buyers are holding Back, Banks are in trouble for lending to unqualified people...the world is on the edge of collapse financially with this mess. I'm not one for funding bad loans from tax payers pockets. However the Big boys like Exon and other have the resources, let private industry fund a bail out, especially from the huge oil profits at the moment..indecision is fear and fear breeds contempt and so on, right or wrong sitting and waiting will do more damage than making the wrong choice.

Thanks for sharing!

Katerina, I am not sure I can come up with anything else but I especially like numbers 6 and 7. I actually just thought of one that I'd like to see. How about freezing the Credit Card interest rates at 8 % instead of allowing the crazy rates... I know a lot of hard working people who pay them on time but have had to use those stupid checks and the rate is like 21.9% UGH! Thanks for a nice post.

That blank check isn't a WaMu check, is it?

Amanda- LOL!!!!! I just went online to my Wamu account and it says, welcome to JP Morgan Chase!

At least at Chase, we get all our short sales through in record time!

Katerina ~ 96% of Americans are paying their mortgages. You mean to tell me 4% of foreclosures are gioing to bankrupt this country?

I will return to comment. If you'll excuse me for now, I'm in a hurry to put this at the top of our Optimist board!

Katerina,

The National Taxpayers Union agrees with you as do I. Here is what the NTU has sent to the members of congress. A good and important read for all of us.

http://www.ntu.org/main/letters_detail.php?letter_id=633

While the big Wall Street types get a bailout the homeowners try to get a workout - well maybe its more like a workover!

HI KAT!

It looks like you've got it covered! I like #3!! Have a great week!

Hey Everyone! They are making a deal. At least the republicans refused to sign this with ACORN all over it! The PORK was trimmed! We finally got ACORN off the Bill! Too bad there is still more PORK to fry!

FYI- I love the Forbes magazine, a must read if you are a business owner. Steve Forbes made a great statement. The 1929 wall street crash before the depression was NOT the cause of the depression! It was President Hoover and Roosevelt's bad policy that created the depression.

Read this book: The Forgotten Man: A New History Of The Great Depression by Amity Shlaes to gain insight into the causes of the great depression.

Thanks for all the comments!

Katerina - I particularly agree with #7 - let's require banks to make a decision on a short sale within 7 days - and let's require short sale sellers to submit their financial before putting their house on the market, and give the lenders 7 days from that time to approve the seller short sale - then later they get their 7 days to yes/no an offer.

Here's a thought! Just tell the banks that the 7 day deadlines for short sales were part of the bailout and see if the LM rep buys off on it just long enough to make at least one deal happen faster.

Sharon Simms- I Love that idea!

Amanda- LOL! That would be a great laugh if we could pull that one off!

Katerina - I think we have to start with failure being an option. Unfortunately others prefer socialism and so we are doomed - for a while at least

Katerina ~

Congratulations this post is now featured in the Blatant Politics Group of Active Rain.

SEP

2008

Simon- Even by the 'conservatives' up there, do they not know what they are ushering in? The very thing our forefathers fought for so long and hard is being ignored and out of panic those making decisions are not seeing what re-precautions this may mean to the future of our country.

Thank you for the feature.

Hi Katerina. This did make me laugh, but I am still so angry about the whole thing that I can't comment.....I may just go on and on and on...........

And both parties are too blame for this. It isn't just the democrats or republicans. They could see this was coming back in 2003. :)

Wow! This woke everyone up and got us talking. Everyone is making some great points that I find very interesting. I'm certainly not a financial expert so I don't know what the solution is. All I know is I pay my mortgage and bills on time and no one is bailing me out.

Katerina- Once again you make excellent points. I always find some nugget of value when I read your posts.

Best,

Scott

Great points. I like the idea of an economic stimulus package with tax payers getting the payments! We could sell some houses then.

SEP

2008

Great post Katerina! I couldn't agree with you more! I love what you said about letting the chips fall where they may...that is exactly what needs to happen.

Katerina,

Here is an email I received today, and while it is a bit far-fetched, I am thinking, "Why not? Why do the institutions (via our politicians) that got us in this mess in the first place deserve a bail-out?" Why not bail us out? They knew in 2004 that we were headed for a breakdown...

Heck, yeah!

We Deserve It Dividend

I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a ʽWe Deserve It Dividendʼ.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child.

So, 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion. That equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife have $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage- housing crisis solved.

Repay college loans; what a great boost to new grads.

Put away money for college; it'll be there,
Save in a bank, create money to loan to entrepreneurs.

Buy a new car, create jobs.

Invest in the market, capital drives growth.

Pay for your parent's medical insurance; health care improves.

Enable Deadbeat Dads to come clean or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.

And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( vote buy ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG,- liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can never work.

But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend, more than I do or the geniuses at AIG or in Washington , DC .

And remember, The plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Think of it: Most of us would be able to pay off our mortgage balances in full. Those who could not afford a home would be able to purchase one. Credit cards would be paid off. Heck, let's make that a part of the package: all money goes toward paying off mortgages and credit card debt first! The rest would be available to jump-start the economy again, meaning purchasing goods and investing in the stock market or investment properties again.

AND since there wouldn't be very many mortgages left, the banks and lenders who were still standing would have money to lend to those in need. Most of the banks and lenders who are failing will be bought up by some else. This way, we can start all over with a clean slate.

I know, I know... Most of this bail-out has nothing to do with the American citizen. It is to let the powers that be rape the American citizens, once again legally by the government with no repercussions, and stabilize global markets for those folks that don't give a rat's you-know-what about America or its citizens.

Sorry this is so negative, but it is what it is...

Katerina: You hit the nail on the head. I laughed when someone said Katerina for President but after thinking about it we need people like you in the world to lead us instead of some politician's just focused on there image and getting there pocketbooks full from organization's swaying there votes.

I'm so glad that the American People stood up for what is right. Hopefully we all can band together and make an impact. Forget this crap about change. The People of America need to force the right change.

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