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Monday, October 13, 2008
Paul Greenberg :: Townhall.com Columnist
Q and A - How Would You Answer?
by Paul Greenberg
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Will Congress pass Obamacare by the end of the year?

Either presidential debates are getting more civilized, or my standards for them are falling. The second one seemed a marked improvement over the first, a three-way bicker among candidates and moderator. This one sounded more reasonable, less rote. Practice may not make perfect, but perhaps it makes better.

Maybe it was the town-hall format that did it, encouraging the candidates to speak directly to a real live person rather than a television personality or the camera's eye. Whatever the reason, politics seemed to don a human face for a nice change. The fairest and most relevant observation of the evening may have come from Barack Obama who, almost in passing, noted that "nobody's completely innocent here." It was a precious moment of candor. (Politician Recognizes Original Sin!) But then the mutual finger pointing resumed.

It wasn't the answers but the questions that lingered after Tuesday night's debate:

Which candidate is more prepared to step in and be head of state, chief executive, and commander-in-chief of the armed forces come January 20, 2009?

Which one would give the country more hope - which is the best kind of fiscal credit?

Whose election would assure the country and the world, and which one would enter the White House an unknown quantity?

Would it be better to elect a president who isn't all that predictable, or one who is entirely too predictable?

Consider some possible scenarios:

If the markets continue to slide, whose policies would contain Wall Street's collapse before Main Street goes, too? Which candidate would get credit flowing and the economy moving again? Which one would lay down the best basis for long-term economic growth, and which one offers only short-term fixes that would make the future even rockier than the present?

Which one will reward labor, investment, innovation and honest investment, and which one would discourage all of the above?

The challenges facing the country aren't only economic. Both candidates have come out foursquare against genocide in the world. But which one, as commander-in-chief of the country's armed forces, would do something about it, and where? And still recognize the limits of earthly power? Is this country supposed to take action against genocidal threats only after they have been carried out? Or prevent them? If so, how?

Speaking of which, in the next few years, Iran is likely to proceed unimpeded toward becoming a nuclear power, despite all the UN's empty resolutions. In turn the Israelis, who have learned to take threats to their existence seriously, are just as likely to take military action to destroy or at least delay Mahmoud Ahmedinejhad's dangerous ambitions. Just as they destroyed Syria's nuclear installation not long ago. When that happens, whom would you rather have sitting in the Oval Office?

Is the best way to revive the economy to cut taxes for all or to raise them just for the rich? (As if the rich were too dense to find tax shelters for their income.) As a practical matter, can that be done? How expropriate capital without affecting labor? Can we really draw water from only the other fellow's side of the bucket? And how define The Rich anyway - those one tax bracket above ours? Continued...

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Plan to Repair Housing ...19
Q19. Do you have any final comments?

I have contended now, for well over a year, that we need to address the housing and mortgage issue with a simplified, one-size-fits-all, solution. There is too much confusion, congestion and inconsistency in the current loss mitigation process and it is leading us nowhere.

I have also contended that the problem is monthly payments…and that we need to create a discounted payment program to deal with the current crisis. We do not need to discount the interest rate…that’s the function of the market place, nor do we need to discount mortgage balances at this time, given the non-market driven, depressed nature of housing values, influenced by non-market forces.

My Plan to Repair Housing in America was constructed to address the key issues: getting payments down to a manageable level for those households in trouble or worried, thereby affording homeowners some much needed room in their current household income; controlling interest rates and removing the “ARM reset” headlines from the media; removing excess housing from the real estate market; and calming the economy.

The loan program I am advocating is the ONLY one which can accomplish the task at hand, for the good of America.


Plan to Repair Housing ...18
Q18. You said that this boom-bust process happened before in housing, why won’t it happen again? I believe that the American public wants reassurances for their $700 billion dollars and related sacrifices.

In the beginning of the interview, I made the case that this is really the second time in my 30 year career that this credit binge-purge process has occurred, and this has to be the last. The credit process cannot be allowed to be treated in an accordion-like manner…expanding for fun and profit, and contracting in panic and profit.

I contend that the binge-purge is not a market function, but a function of greed and ignorance. Income, credit rating and interest rates are the key variables in underwriting.

In part 2 of my plan, I address the future of mortgage credit and underwriting. I believe that credit underwriting guidelines need be so structured as to have minimum levels required of all lenders, which would satisfy those who wish to see housing opportunity expanded. Then maximum tolerances would be defined. What you would have is a well articulated lending landscape, in which the market participants would define themselves. Lending needs to have a clearly defined playing field, and there is simply no abuse or alteration to be allowed. It would be fair, clear, inflexible and ruthlessly enforceable.

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