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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 the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


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?

But, hey, this is politics - not economics or equity - and specifically the politics of envy, which flourishes in inverse proportion to prosperity. Look for more of the same as times get meaner. Bad times are the health of bad ideas. And false choices.

Which candidate will settle for nothing less than victory on what he considers the central front in the war against terror, whether Iraq or Afghanistan? Which foresaw and fought for the adoption of a new and successful strategy in Iraq, and does that matter if it's Afghanistan that's the real central front? And how realistic is it to reduce American strategy to a choice between abandoning one or the other?

Which candidate has a strategy for the future, and which is more interested in finding scapegoats? Speaking of which, has George W. Bush - come to think, he's still president of the United States - ever done a single thing right in his life? Like preventing another major terrorist attack on these shores for the past seven years, or seeing the war in Iraq through to the cusp of victory despite many a terrible blunder, or ending Saddam Hussein's genocidal reign there, or giving his secretary of the Treasury and chairman of the Federal Reserve a green light to do whatever's necessary to stop the current economic slide - or are both presidential candidates so intent on separating themselves from an unpopular president that they dare not acknowledge all that?

Which candidate would risk saying a single unpopular thing in this campaign for no better reason than he believes it?

As this election grinds on, voters will have their own questions to pose. And they'll doubtless be as rhetorical as mine.

Rhetoric is one thing, reason another. There are times when John McCain seems to be running against an unpopular Democratic leadership in Congress, with its earmarks and toxic twins (Fannie Mae and Freddie Mac). There are other times when Barack Obama doesn't seem to be running against his opponent but against George W. Bush, who isn't on the ballot this year.

Logic has little to do with politics, especially in an election year, when winning tends to become the only goal. In the mounting urgency of a campaign, who's got time or energy to waste making sense?

Another presidential debate is over. Another awaits. So does History.

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I Don't Believe This Was Ever An...
...actual race as even with the stone silence of Obama's past we have still found it and will expose it to the citizenry...and we don't do Communism here;

Obama Signed a Contract with the Chicago Socialist Party
"The fact is that as recently as 1996 Senator Obama was an active member of the Chicago Democratic Socialist Party"
http://yidwithlid.blogspot.com/2008/10/senator-obama-signed -contract-with.html

Why Obama's Communist Connections Are Not Headlines by Paul Kengor
http://www.americanthinker.com/2008/10/why_obamas_communist _connectio.html

Barack Obama and the Strategy of Manufactured Crisis by James Simpson
http://www.americanthinker.com/2008/09/barack_obama_and_the _strategy.html

The Obama File - Barack Hussein Obama
http://www.theobamafile.com/BarackObama.htm

Investigators Release Reports on Obama's Communist Connections: http://www.usasurvival.org/ck05.22.08.html

How Obama Applies Alinsky's Rules http://ibdeditorials.com/IBDArticles.aspx?id=3069771415830 41


In the Tank
Forget it Chris. The MSM is in the tank for Obama and it wouldn't matter what he did, who he associated with or what he believed. I haven't seen this much journalistic self censorship and apologetics since at least the Clinton-Lewinsky scandal.

But journalists are fickle and have short memories. Bill and Hillary were surprised to see the MSM turn on them amd embrace Obama so quickly. After all weren't they the with it couple who had the media in their back pocket? Sorry Bill and Hill but you are yesterday's news. Before too long win or lose the election Obama will go the same way. I wonder who the MSM will be supporting next.

"It's the People, Stupid."
No, I would not say that "Subject" to anybody. No, that wouldn't be nice. Yes, I would think it.

In fact, "It's the economy, stupid," might have been beginning of the end -- and so many bought it. Well, it wasn't. Maybe now it is. No, not even now.

That's a nice column, Paul Greenberg. In total, it reminds me of the of the comic's line, "The moving finger writes -- in water."

"Michael Corleone did dis, Michael Corleone did dat, yes, I made it all up because I knew that's what you wanted to hear."

Out of fiction and movies, the American people are now known.

How funny, because Michael Corleone actually did those things -- in the movie.

Marcus Aurelius tried it one way, Diocletian tried it the exact oposite -- both failed. Aurelius was murdered in his bed, Diocletian went home and tended cabbages.

There's also something written about "cabbages and kings."

accountability.
Greenberg seems to be thinking Americans will be consumed by grandiose questions this fall.

They will be consumed by questions allright, but not the kind Greenberg thinks.

With Americans' nest eggs gone or radically diminished, and with the bitter residue of an unpopular war still hovering above them, Americans will be questioning the policies responsible for those developments.

Do they want a continuation of such policies?

Or are they rejecting them?

It does not take a rocket scientist to answer that one.

Who was in charge of the federal government...including appointing officials to regulatory agencies tasked with overseeing a financial industry at a time when what Americans have worked for all their lives has disappeared before their very eyes?

McCain's people are desperately trying to make the case that even if he is a Republican, his maverick status immunizes him from the stigma associated with the party.

That is an uphill fight.

And even Iraq is not a clear winner for McCain.

In light of the recent financial meltdown which is adversely affecting the overwhelming majority of Americans, the costs of the war are a problem for McCain.

His constant reference that he was right about the surge only serves to remind Americans of the unpopular war itself, and the 600-700 billion dollars it has cost thus far(soon to reach 1 trillion).

Americans will ask questions allright.

Pat Buchanan had it about right.

He said something to the effect that we invaded a nation that never attacked us..to destroy weapons it did not have.

And for only 700 billion, not counting the human toll.

No amount of spin on a surge can overcome that.

The candidate that repudiates the policies of the past 8 years is the presumptive favorite.

.

I want another Saddleback
I think it is the best way to learn about the measure of the man.

Each question should be individualized and responded to.

For McCain...

1. After you secure the borders will you deport the illegals?
2. Will you bring back the in line veto to get rid of the pork.
3. Will you explain your conduct in the Keating five and how you learned from that error of judgement?

For Obama

1. Will you explain your relationship with Raila Odinga and is this the model for the citizens army you talked about?
(for info on Odinga see this video on utube)

http://www.youtube.com/watch?v=S8QcpdUtxNQ

2.If you're a democrat can you explain your involvement with the New Party and why you signed a contract with them?

3.Will you produce your birth certificate and college records for independent examination as John McCain has?

4. Will you release your college thesis?

5. When you went to school in Kenya were you adopted by your stepfather because Kenya didn't honor dual citizenship and you couldn't got to school there unless you were a Kenyan citizen at that time.

Conclusion: It'll never happen since Obama has SO MANY skeletons in his closet that MSM has kept hidden from the public

McCAIN PALIN 08

Don Juan
McCain's choice as vp also makes him disqualified but just as bad is ...


McCain's Top Foreign Advisor

"We already know that in the years just before the invasion of Iraq, Randy Scheunemann, now John McCain's top foreign policy aide, was part of the circle of advisors and operatives around Ahmad Chalabi, the Iraqi exile who used bogus intelligence to sell the war. Over the last few days we've spoken to associates of Chalabi's and Scheunemann's from those years to fill out the picture of the working relationship between the two men."


and then, see his finger in the recent Georgian fiasco.

"While Aide Advised McCain, His Firm Lobbied for Georgia
Campaign Dismisses Timing of Phone Call, Contract"

http://www.washingtonpost.com/wp-dyn/content/article/2008/0 8/12/AR2008081202932.html

McCain Victory Easily within Grasp
I’m an organizational psychologist and pollster. Notwithstanding what the MSM reports to demoralize and deactivate Republicans, I assure you that this is a VERY CLOSE race; it’s two points in either direction after adjusting for (1) the Bradley Effect and (2) and what is likely is exceptionally high McCain-Palin turnout based on fear and loathing of Obama’s radical socialist ideology, Chicago machine origins, terrorist connections and black separatist church roots. This second factor CANNOT be captured in the current sampling frames. Bottom line, if the McCain-Palin registered voters participate at a 75% level, the election is ours.
Stir the turnout motivation by speaking directly to everyone about how an Obama presidency would be a disaster for America through legislation, executive orders and judicial appointments:
X A massive tax increase on small business owners sucking the life out of an already weakened economy and sending us to the brink of a depression
X Increases in capital gains rates—another economy-killing measure
X An end to any reasonable prospects for offshore drilling for oil and gas to create energy independence
X Open borders, subsidized college tuition, social security and drivers’ licenses for illegal aliens
X Unfettered far left policy making power in the troika of Obama, Pelosi and Reid
X Reinstitution of affirmative action and racial quotas
X Increased federal funding for abortions
X Restriction of the Bill of Rights with union thug card-signing intimidation and imposition of the inappropriately labeled Fairness Doctrine
X A weakened defense and foreign policy , including derailing the Reagan Strategic Defense Initiative
X Appointments to the Supreme Court, Courts of Appeal and District Courts that distort the Constitution.

Edna
Not a bad idea. Some of your questions though are just a bit bogus and sound like they come from Jerome Corsi, a very anti-christian man, whose book is chalked full of lies.

Barack Obama the Communist Baby Killer!
Barack Obama and his friends and family and reverend hate the United States of America. If they have to scream it any louder, I'm gonna recommend a hearing aid to some of you. Barack hangs out with known terrorists and the "God Damn America!" crowd. Barack wants to raise taxes on YOU during this "economic crisis". Barack thinks there are 58 states in this country. Barack says, "my muslim faith" and "I will stand with the muslims should the political winds shift..."(Barack Obama,"Audacity of Hope")but, the media says he's Christian? Barack Obama thinks it is okay if a doctor takes a live, screaming, kicking, crying baby and drives a wedge into its skull ruthlessly killing it. Then the doctor takes the freshly murdered baby and wraps it in a trash bag and throws it into the dumpster. Is this okay with you Obama supporters? Do you support the murdering of children like Barack Obama does? Kid killers? Good luck with your derranged, anti-American, muslim, terror-friendly communist, folks. This oughta be a fun ride.

Taft, we're on different sides
of the fence but Another Saddleback is needed, Those would be MY questions, you're welcome to your own too it's a free country
I've never read Corsi's book or any of the others bashing either candidate. I do my own reference checking.
And I'm not anti christian or anti religion in general except I have a problem with Islam.
I'm anti socialism and destruction of our country.

The Bradley effect
Is a contingent but this isn't 1982. Views on race have change a lot since then.

Dr. Chaz
A "massive" tax increase for small business owners? I thought it was at only for those over $250,000. And, from all I've read about Obama and his economic team, they are level headed and would certainly adjust for current economic realities.

better than most here, but
Greenberg deserves credit for focusing his questions on the more fundamental issues for the President in the next four years. But his rhetorical slants border on the silly.

Why does he talk as if Obama has not already given a tax proposal that shows how he would accomplish his rhetorical goals?

Can one raise taxes on the rich while leaving the middle class untouched or better off? Of course, we saw this in the '90s. As it turns out the rich did quite well because they benefit more from people buying their products then they do from tax cuts.

These are certainly the issues that the canddiates should be talking about. And it would be nice to draw them out past their prearranged talking points. But obviously it would be better if the moderators were not trying to slant the questions ala Greenberg above.

$.02
Mr. Greenberg poses some pretty interesting questions in his article and his implied answers favor the one candidate over the other. Two questions, however, go unasked.

1. Is it wise to expect the same government that caused the current disaster, due to their sheer ineptitude, to correct that very disaster and to expect a positive outcome?

Were it not for their incompetent intrusion into the financial markets by forcing certain mortgage policies on the banking industry, we would not be having these conversations today.

2. Is it really any of their business to meddle in things that are not of their calling as spelled out in the Constitution?

While I make no claim to Constitutional scholarship, I do firmly believe that there is no allowance in the Constitution for the government to instruct as to how much water my toilet can flush, how much electricity my light bulbs can use, or how much gasoline my automobile can consume, among a great many other unconstitutional intrusions.

Today’s presidential candidates can stand on their soapboxes and promise everyone everything that their little heart’s desire, but are quite limited in the delivery of the same. Jonah Goldberg’s latest tome’ brings ample light to that fact. The president can promise the world but they are limited to what will pass the legislature, however incompetent said legislature may be. As well, these promises must pass constitutional muster (why Supreme Court appointments are so vitally important).

Sen. Obama claims that the Constitution is a “living” document who’s meaning changes with society (shades of Al Gore). At the same time Sen. McCain certainly has no problem pressing through legislation that is clearly unconstitutional (“Congress shall make no law… abridging the freedom of speech…; re: McCain-Feingold).

Either way, I hold that the United States is in grave danger.

Obama's policies
It’s quite clear that Sen. Obama has read many socialist instruction manuals and is applying what he has learned. I would suggest to him a close and careful reading of “Atlas Shrugged” and to consider how major corporations would react to his suggested policies.

It would please me no end to see just how the left would react if Atlas did indeed shrug.

Taft
I agree.

Scheunemann was a paid lobbyist working on behalf of the Georgian government. In fact, he had to register as a foreign agent. His advice to McCain on foreign policy is skewed.

But then McCain wants to perpetuate the neocon policy of the early Bush 43 years, so it's no surprise McCain would listen to Scheunemann.

Another McCain confidente is former Senator Phil Gramm.

Many people blame Gramm's legislation in the late 1990s as being the catalyst that created a deregulatory frenzy in financial markets that hastened the financial crisis of today.

So with McCain, we get the doublewhammy:

1. Paid lobbyist(Scheunemann)who represent foreign nations and foreign interests, and who must register as foreign agents, advising McCainn on foriegn policy, and

2. Extreme deregulator(Gramm)advising McCain on domestic matters, especially the economy.

How could it get any better than that?


taft
$250,000 is a tax on the rich? My father was a small bus. owner most of my life. He was a sole propriter. He grossed between $300,000 and $350,000 year. He lived on about $40,000 to $45,000 per year. He paid taxes on all of it. That is SS,medicad, medacare, and fed tax. Now you tell me how this won't raise taxes on small bus. men.
Kirk

Another $0.02 worth.....................
The last debate was a show of 'promises not to be kept Vs a Plan, is what I saw and heard.

Apart from the niceties, Mccain would give a plan and tell them like it is, Obama, would say no he's wrong and promise the audience anything they wanted to here with nothing to back it up, then pounded that air waves with ads say Mccain would raise your taxes 4 trillion dollars worth over the next 4 years??

This and all of his lies are ignored by the media and its supporters.
McCain/Palin'08

extend rights to others but not our own.
Obama has problems too, in my opinion.

He wants to do so many things. Refurbish our physical infrastructure, remove seniors from the taxrolls who make less than 50 grand a year, increase budgets for education, provide health care for more Americans, etc.

How is he going to pay for all that?

Don't get me wrong.

McCain and the GOP are dead wrong on lots of issues too.

Look at the disaster of the last eight years, be it domestic or foreign affairs.

And Mccain wants to continue down that same road that got us into a ditch.

Bush and presumably McCain buy into this nonsense that Iraq has a "right"to be free. Bush has repeatedly said we are in Iraq to guarantee freedom for Iraqis. He has said that ad nauseum.

And McCain thinks the same thing.

If Iraqis have a "right" to freedom, and that "right" is brought into existence thru the sacrifice of American soldiers, and thru the expenditure of money from the U.S. Treasury, why would not own people, the American people, have a "right" to health care, for instance?

Iraqis are not paying us to provide for their freedom. In fact, we are stupidly paying them(Sons of Iraq).

If our government policy is to guarantee a foreign people their "right" to live freely, why in the hell can't our government policy guarantee our own people a "right" to health care?

Oh, the koolaid swiggers begin screaming "socialism".

Better our own people go without, I guess, and the money we could and should have spent on our own, we spend in Iraq.

Makes sense to me.


McCain plan indefensible
What will McCain fight back with?

Gen. Patreus just said that McCain's plan for Afghanistan was off base at the Heritage.org. meeting.



The problem is that McCain has no experience with economics and proclaimed as much about a month ago. He wasn't worried because the fundamentals of the economy were great. (Ms. Palin sounded so vapid saying that McCain meant he was talking about the American Worker, I was waiting for the punch line) Relying on friend and former sen. Phil Gramm , the king of deregulation law, he proved that he is out of touch with the working American. The script was written and can't be changed. The tax breaks are for the elite of our country. In a nutshell, Joe sixpack doesn't see himself in this indefensible platform of McCain and Palin. This is besides following up the worst president in modern history who reamed the Joe Six Pack with trillion dollars of national debt. Joe Six pack will not bend over again.

Mod_Mark; a response...
“Certainly CRA has played a role in the current mess.”

Yes, the CRA does play a role, but more than just a role. It is the root that began the whole mess, and the seed from which it derives is borne of a leftist ideology. That being, that all have a “right” to homeownership. I disagree with homeownership being a “right”, but that it is more a privilege. First a borrower must show the means with which to pay, an ability to pay, and a willingness to pay, which means to uphold their portion of the mortgage contract. More simply, a borrower must prove his/her worthiness. CRA removes that requirement. The banking industry had in place, policies that worked for a long time and were quite successful. Along comes the CRA and its leftist roots and now, years later, we have a grand financial crisis that is sending ripples worldwide.

In terms of regulation, I believe the available record is an accurate source for detailed information. The record shows that the Republican Party has consistently been on the side of more oversight to prevent this mortgage calamity, and the Democratic Party has been in favor the position of non-attention. My guess (and I am only guessing here) is that the Democrats are up to their eyeballs in shady deals with the various institutions involved.

On the issue of contracts, the only time it is necessary for third party intervention is when one party or the other defaults on the contract. In this case the borrowers defaulted. Now the question is: should the regulating party (read the Federal Government who fashioned the contractual rules in the first place and has a strong track record of making an utter mess of anything they put their hand to) be the ones trusted to correct the mess? I don’t think they are at all equipped for this sort of thing. The popular solution is, and has always been, to throw even more money at whatever mess they’ve made. The good people of these United States can no longer afford to fund this level of incompetence.



credit default swaps
Credit default swaps are marketed as a type of insurance, but unlike true insurance(which is regulated), credit default swaps are unregulated.

An investor buys a bond from a company, but worries over the company's ability to pay off that bond.

So the investor turns to a third party who, for a fee, agrees to pay the investor the value of the bond in the event the company defaults on it.

That protection, or arrangement, is called a credit default swap contract.

These transactions are "over the counter", meaning they are not regulated.

Since these "contracts"(from companies who issue credit default swaps)are not technically considered insurance, the companies that guarantee the bonds are NOT REQUIRED to keep enough capital on hand to pay them off in the event of a default.

This non requirement is just one example of no regulation.

These swaps have imbued those who obtained mortgage backed securities with a false sense of security, as well as encouraging more reckless lending.

Bradley effect
Conservatives tend to keep their mouths shut around strangers because so many of the leftards go into rants. Is this tendency factored in as part of the Bradley Effect, or is it just not addressed?

I Think The Audience Was Dead
Sorry, but the people in the audience of the second debate weren't even alive, I do believe. They didn't move. They didn't show any emotion. They didn't sneeze, cough, smile, chuckle, or blink! Their questions were written down as if scripted and they had no emotion in their voices or behaviors! Good grief, show some emotion - let McCain get mad about the economy - the REAL people - not those who are instructed how to act on TV during the debate - are MAD AS HELL AND THEY DON'T WANT TO TAKE IT ANY MORE and the candidate should be, too!

Re: Rose
Hmmm, sounds like you want a Springer audience at the debates. That would certainly make them more entertaining but would it make them more informative?

re: Lon @9:48am
Hmmm, actually in the 90's what I saw was anybody who made 25k or more per year classified by the President as super wealthy. Because their taxes went up and Clinton swore he was only going to raise taxes on the super-wealthy and people like you keep claiming he kept his word so 25k must be super wealthy. Oddly when Bush took over and lowered taxes the family making 25k stopped paying taxes at all. Because they were considered working poor. Hmmm, from one administration to the next from super wealthy and thus a target for governmental looting to being one of the working poor who have a hard enough time without the Federal government picking their pockets. I expect the same kind of reasoning from Obama. Heck he's even using the same figures as Clinton who promised only to raise taxes on the wealthy who made over 250k per year. So given that Clinton goofed by a factor of 10 how badly do you think Obama is going to miss the super wealthy mark? Hmmm, I'm guessing he's going to revenuers pulling the fillings from people in old folks homes after his daughters need tennis lessons and somebody has to pay it's so hard getting by on the 300k the missus makes and that paltry 400k the office pays per year.

RIGHT ON PAUL
WHEN I LOOK AT OBAMAS PASTOR OF OVER 20 YEARS,AT HIS FRIENDS AYERS,REZKO,LOUIS FARAKKAN,SAYS HE IS THE ONE THE WHOLE WORLD NEEDS WITH THAT WIERD SMILE OF HIS FACE I SEE HIS VOTING RECORD ON ABORTION,ON NOT WANTING US TO OWN GUNS,ON HOW HE YELS HE CAN FIX ANYTHING,WHEN I SEE ALL THE RADICAL LIBERALS THAT SUPPORT HIM,AND WHEN I SEE THE NEWS MEDIA TRY TO FORCE US TO LIKE HIM,I KNOW IN MY HEART TO VOTE FOR MCCAIN-PALIN.

Plan to Repair Housing ...
Q1. Simply speaking, what is The Plan to Repair Housing in America?

The “Plan” is a program designed to address the current situation in the general economy by specifically targeting the housing market and mortgage payment issues. The “Plan” assumes that the “burden of the debt”, and, secondarily, the “cost of the debt”, are the problem in housing today. At this time, the plan does not consider the impact of the “amount of debt”. By burden, I mean monthly payment rates. By cost, I am referring to the interest rate. Payment rates and interest rates are somewhat related, but there are differences. Based on my real world experience, the homeowners who are having trouble with their mortgage payments have seen their monthly income drop by 20-40%, or more. We need to reduce mortgage payments in a dramatic fashion, without dramatically discounting the value of the mortgage asset. My plan does this.

The plan allows for a “fair” rate of interest, but, since it incorporates a discounted payment schedule, the monthly burden is dramatically reduced in the early years, and scheduled payment increases are spread out over time to allow homeowner’s the opportunity to grow their income. Essentially, the plan restores affordability to the general household monthly budget, and buys time for the economy to heal.




Plan to Repair Housing ...2
The purpose of the plan is to stabilize home prices and neighborhoods, and to allow the economy to begin to perform in a more normal manner. As home prices stabilize, and perhaps even grow, there will be a positive effect on the various balance sheets of the many affected financial institutions.

It is my opinion that, at the current crisis level, it is impossible to value any of the real estate, the mortgage assets and balance sheets effectively. We need my plan to be able to make quality decisions based on reliable and clear data.


Plan to Repair Housing ...3

Q3. Still, shouldn’t people have known better?

Sure, many should have known better. A lot of really smart folks missed it. Currently there are states and municipalities experiencing budgetary shortfalls, and they have professionals whose job it is to forecast revenues and to manage the budget efficiently…and they couldn’t do it. The FDIC, the agency who manages and insures the banking system, in a 2005 study, did not see this crisis coming. They predicted stagnation in the housing market. And, they have a really good staff of economists and number crunchers.

Congress has oversight with the mortgage industry through OFHEO, and thereby, Fannie Mae and Freddie Mac, and they sure missed it.

Wall Street…boy did they miss it…and they created much of it.

So, are we going to really hold the 8-5 worker on Main Street to a more accountable standard?


Plan to Repair Housing ...4
Q4. You mention Congress…but isn’t the problem really about deregulation and greed?

The root of the problem goes back to 1992. Ironically, out of the S & L crisis of the late ‘80’s and early ‘90’s, came our current crisis.

There are good and bad regulation efforts…and there are good and bad deregulation efforts.

During the early to mid 1990’s, there were regulatory efforts to correct the abuses of the 1980’s. Some of this was probably good. However, during this time, an effort was begun to transform the mortgage industry into a social welfare program…with the belief that expanding housing opportunities was good for America. This was a noble intention, gone sadly wrong.

It was bad legislation…combined with flawed and veiled miss-regulation, stirred by a lack of adequate oversight from those charged with the responsibility of protecting and managing the process, which has necessitated the sort of dramatic response now required to correct the sins of the past.

Everyone in authority should have known better, because we have been here before. As Yogi Berra once said, “It’s like deja vu all over again”.


Plan to Repair Housing ...5.1
Q5. So, you’re saying Yogi Berra could have helped???

I’m not sure if he could have helped…but he was right about the déjà vu part…we have been here before.

Let me address the dynamics of the lending abuses in the 1980’s which led to THAT crisis…the S & L debacle, as it is called. Setting aside fraud, which I am not attempting to account for in the model of my proposed solution, the real issue was credit manipulation by lenders, allowed by regulators, and financed by investors on Wall Street. Does this sound familiar?

I met my first subprime lender in 1980. I assisted in the development of what we now call the option ARM, in 1983-84. The first “no doc”, “stated income” programs that I saw were visible in the marketplace in 1984. None of these programs or concepts are really new…and their performance history should be a matter of fact. Many, both in government and in the media, believe that these ideas were spawned after 9/11. Wrong.

The point I am making is that lending in the 1980’s, not counting the fraud issues for now, allowed for increasingly flexible credit underwriting, which artificially expanded the demand side of the market, thereby distorting market values in real estate. This began around 1983, and continued until around 1989-1990. At this point, after lenders realized that approximately 90% of the borrowers who took out the “no doc”, “stated income” loans….had lied, they withdrew the programs and, in effect, collapsed the housing market. Does this sound familiar, too?

With the development of the Fannie/Freddie AUS (automated underwriting system) systems in the mid-to-late 1990’s, credit underwriting began to expand…only no one could really see it…because it was veiled by the curtain which was the DO/LP AUS process…like the little man behind the curtain in The Wizard of OZ, Fannie and Freddie could now move the market as they saw fit, or as directed.

Plan to Repair Housing ...5.2
Credit underwriting, as was the process in the 1980’s, became an accordion-like process…expanding and contracting to the beat of the regulatory direction they received.

My point is that none of this is new…those at the top of the system ignored the history, and they repeated the sins of the past. Or, they knew the history, and didn’t care. Or, they were greedy.

Bad regulatory legislation…abuse of the credit underwriting process…lack of regulatory oversight…and Wall Street greed and financing…sound familiar?

Plan to Repair Housing ...6 & 7
Q6. How would you select the homeowners to be included in your plan?

All homeowners with mortgage debt would be eligible. Whether they are current with their payments, behind or in foreclosure, everyone who wants into the plan is allowed to participate. No investor owned properties, and no second homes are allowed…only primary residences.

I would also require that lenders, on any properties held unsold in their REO inventory, offer this process to the previous homeowner who was foreclosed on, on a right-of-refusal-basis.

Q7. Why would you include foreclosure homes and the previous owners?

First, to stabilized home prices and the economy, we must get these home off of the market. Lender owned homes create a false market and there for by removing as many as possible, the market is allowed to return to some level of normalcy.

Most of these disadvantaged homeowners should perform adequately with the discounted payment plan I am proposing.


Plan to Repair Housing ...8 & 9
Q8. How would those want relief be qualified?

Because there are serious time constraints at this time, all of those wishing to participate would be automatically approved for the loan modification. Remember, these borrowers already qualified in some fashion in the past for their current. Many have suffered recently and now have diminished credit scores and income. With time, and good payment histories, their scores will rise again.

Consider this, how many of our financial institutions currently have good credit…and we are granting them relief, without which they would fail. We need the same thought process for the homeowners as well.

To reprocess credit, income, appraisals, etc, would just take too long and become too daunting. This process need to be quick, clean and simple.

All homeowners in trouble, now or in the recent past (completed foreclosures), together with any other concerned or worried homeowners who want help, are allowed into the process. All they have to do is to raise their hand and ask for help.

Q9. You advocate a “one size fits all” approach. Could you explain what you mean?

We do not have time to discuss mortgage options with each homeowner looking for help, and we do not have time to go through risk assessment and make various offers with various terms…there is not time.

All of those seeking help and relief would get the same loan, at the same interest rate…with the same general structure. Many homeowners will see their interest rate and payments be reduced. Some homeowners may see their interest rate go up and their payments go down.

When complete, all of the distressed homeowners and their mortgages, together with those who are worried and concerned, will have the same mortgage. They will all be in one basket. It will be easier to monitor, to manage and to value.

Plan to Repair Housing ...10, 11 & 12
Q10. Who would process the paperwork, and what would it cost?

All lenders and servicers currently have huge loss mitigation staffs. All of these staffs are set up to do one thing…process current payoff information and process paperwork.

There is more than adequate staff available at this time, and they are set up to process paperwork. We just have to give these workers new instructions and direction.

There would be no lender fees allowed to be charged. All pending fees, attorney fees, foreclosure title fees, etc, would be the responsibility of the lenders.

The homeowner would be responsible for closing fees…escrow/attorney and title, recording, etc., back taxes, if any, and insurance.

Subordinate debt obligations would be required to re-subordinate or be wiped out.

Q11. How long would the process take?

I believe that the process could be completed in 4-6 months, and be divided into two phases: the Opportunity Phase; and the Modification Phase.

The Opportunity Phase : My plan would require that a period of time…30-45 days, for instance, would be allowed for those homeowners seeking relief to enter the program. This would be a hard window, and once closed, it’s closed.

The Modification Phase: All lenders would then process the new modification paperwork with the intent to close the process in 3-4 months.

Q12. What happens to the participating homeowners scheduled payments during the modification phase?

During the processing period, there would be no required payments from the participating homeowners, as these payments would be financed into the modification payment.

Plan to Repair Housing ...13 & 14
Q13. What about the value of the real estate? Many homeowners have negative equity. Can you comment on how you would deal with this issue?

While it is possible to appraise a home at this time, it is not practical, other than of academic purposes. First, there is the time issue…we need to move quickly. Second, it is unsound to attempt to set values while in the midst of a crisis. Admittedly, values are lower today that say they were in 2005. However, just as many consider that 2005 values to have been artificially high, there are many that think that values today are artificially low. We need to return the value question, and the negative equity question, once the crisis has softened and we have returned to a more normal market.

It is simply not the right time to address this issue. Homeowners who have concerns about their equity position can walk away. In a manner of speaking, this is a simple game of Deal, or No Deal.

Once the market has stabilized, and calm data is available to quantify the problem, then we can address this issue.

Q14. In your plan, you ask for all foreclosures to be halted by the court system. Why?

If housing is to be stabilized, and if my plan were to be implemented, there is no reason to proceed with the foreclosure process until the plan has been fully realized. We are trying to calm the market, restore confidence in the general public, stabilize the financial system and grow the economy. I would like all lenders and servicers to voluntarily cease the foreclosure process, but, if they will not, then I would ask the US Supreme Court to do so.


Plan to Repair Housing ...15, 16
Q15. How does your plan work with the legislation passed last summer, or the recently passed Housing and Economic Recovery Act of 2008?

As for last summer’s bill, much of the money which was to be paid out to organizations such as Hope Now can be saved, as can a lot of cost that would have been incurred by lenders as they attempt to restructure mortgages. It was complicated legislation, and not well targeted to resolve the core issues.

The current Act will provide the standby funds needed to either collateralize or purchase the modified mortgage packages created by the participating lenders. My plan would require that the lender participate in the Plan’s modification process to have access to any of the financial benefit of the Act.

Q16. Why shouldn’t homeowners use the current crisis to cram down the lenders and lower their debt, through whatever means they can?

First of all, a deal is a deal. One of the public criticisms or the bailout is that individuals and institutions should be accountable for their decisions. The problem has so pervaded the economy that action must be taken for the greater good, or risk greater evils. Still, I am willing to let a deal be a deal, at this time.

By that I mean, I am not going to put that option, the opportunity to cram down the mortgage amounts, in play today, given that fact that we are still in the crisis. I feeling is that if more work is need to balance the process, then we will have to deal with that later. I find it exceedingly difficult to determine stabile value at this time.

One of our problems in housing has been the rather cavalier nature in which value has been wiped from the books…by accounting practices…by mortgage servicers in their deal making and foreclosure process…some of this is borderline criminal behavior.

Mud_Mark, you seem to have zero grasp of
economics and politics. Of course most of the loans now are outside of CRA, CRA did its part to create these new type of loans for poor people that should never have gotten a loan for a bicycle, but once created, then the banks decides that as long as house prices kept rising, they could make more money providing the same type of loan to people with higher incomes. The people were too stupid to realize that they could not afford those homes and should be punished for their foolishness. If fraud was involved, that is against the law and those commiting fraud should be punished as well.

Greed or the desire to better oneself is the driving force behind all advancement of the human race. You can't even get a consensus on what would constitute "excessive greed". Some regulation is good, "excessive" regulation strangles inovation and productivity.

And yes, a rising tide lifts all boats, while taxing corporations will certainly make them want to stay in the US and not outsource the entire corporation.

Plan to Repair Housing ...17
Q17. There was a proposal outline in the Wall Street Journal recently which sounds a lot like your program. Would you care to comment on it?
The article, by Glenn Hubbard and Chris Mayer, of Columbia University, was the first dialogue I have seen on this topic which I feel is heading the right direction…towards a real, workable solution.

Entitled, First, Let’s Stabilize Home Prices, it differs in several key areas. First, it focuses in the interest rate and the amount of debt. They propose lowering the rate to 5.25%. On this subject, my payment rates are lower.

They envision re-qualifying the borrower and the property, and I differ there. There is simply not enough time to complete all of the work and the analysis, and it would be too costly.

They would also have the private sector profit from this process, and I differ there as well. The lenders have already invested in their loss mitigation staffs, and we can use them to process the paperwork.

The real difference, though, is in the monthly payments. The payments on my plan will be 10-15% lower initially, at a time when both the homeowners and the economy needs the most help. My plan does not address that amount of debt at this time, as I would wait to see where housing values are when the market calms down and returns to somewhat of a normal range.

My plan should be less costly to implement, will produce a more dramatic effect and should serve to restore health to the economy more rapidly.

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.


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.

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