- Mortgages will be purchased at a 30% discount off face value as of 12:00:00 a.m. EST September 15th, 2008.
- Each purchased mortgage must be accompanied by current, verified contact information of signer of mortgage documents.
- Purchases will be made until we have exhausted funds equal to $500 Billion.
Mortgages will be held for a period by the Federal Government and will be paid for by funds raised by:
- Lowering corporate tax rate to 22.5% for a period of 36 months from passage of bill.
- Lowering all capital gains taxes to a rate of 10% for a period of 36 month from passage of this bill.
Money raised by these measures will be calculated as the YTD difference of these taxes collected as of 12:00:00 am EST on the final day of each month as compared with corresponding months of 2007.
Warren Buffet will manage this quasi-government venture for a period of 36 months from date of passage of this bill. His duties and compensation will be as follows:
- Hold assets until such time as he can re-market them at or above purchased face value or for any profit after holding them for a period of 12 months.
- He will be compensated exactly 5% of the profit for the sale of said mortgages after cost of funds of 0% APR.
- Warren Buffet will agree to take no other compensation or financial gain for his service in this operation.
At the end of the 36 month period all Mortgages will be sold in bundles to any investment group, private individual, or bank willing to pay then current fair market value minus 5%.
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All in favor say "I" those apposed "Nay".
5 comments:
I think if the institutions trying to get rid of these bad assets were to offer to the public market the exact same deal as the bailout bill offers, American individuals and corporations would buy them up in larger numbers than the proposed amount.
phillip, that is probably the best plan that I've heard.
Let's keep government out and just invest individually for 30 cents on the dollar or whatever the rate was in the bill. I agree that the amount invested would exceed the proposed amount.
I would love to have the option to invest like phillip is saying while retaining my inalienable right to make that choice for myself.
GREAT COMMENTS! So does the Gov't need to be involved at all? If it can be done at a profit wouldn't someone like Buffet form a corp and just start buying and selling the bad paper? Would he need a gov't infussion of capital to start it? What can the gov't do to get the economy stabalized? Maybe just cut corp and cap gains taxes for a period to boost investment? That makes this law even easier.
2008 Economic Confidence Act
We the people in order to reestablish public confidence in our national economy propose that congress initiate the following tax cuts for a period of no less than 36 months and no more than 60 months from the date of passage of this bill:
1. a reduction in Corporate Income Tax to a rate of 22.5%
2. a reduction in Corporate and personal Capital Gains tax to 7%
Something like that.
Dave in your gadget do you have a copy of the 2nd ammendment?
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