From: Raghu John Subject: Take Center Stage of issue with this Press Release for tomorrow
To: "Carlos Calderan" <@oas.org>, "Lautaro (Lot) Diaz" <@nclr.org>, "Melinda Willson" <@oas.org>, "J Dorsey" <@msn.com>, "Robin Read" <@womenlegislators.org>, "Jennifer Rosen" <@womenlegislators.org>, "Tom Espinoza" <@razafund.org>, "John Dunham" <@guerrillaeconomics.com>, "Satya Narayana Scott Grieger" <@about-online-trading.com>, "Love"
Date: Sunday, September 21, 2008, 11:46 AM
The following article is 5 paragraphs and one page long written up for a press release of your organizations: Women Legislators & La Raza Group.
Wondering if this would be something we could get your lady legislators to sign on to along with your foundation, the La Raza Group and OAS. This will allow your organizations to get your name out there on the biggest issue since the great depression in a way that would not step on any toes.
This makes the simple case that applying the same money to homeowners will help Wall Street too, but offer 5 times more economic impact. Its a fairly benign editorial, but likely to generate some media attention which we may be able to use to also introduce De-LETO. What do you think Robin & Tom?
Would your organizations be willing to sign on to this for a press release by tomorrow? With that, we have something of immediate relevancy to Congress and the public. There's no reason why you can not take center stage with this. You are the only one with the answer. lol
Raghu
Article:
Get 5 Times More bailing-out Homeowners then Wall Street
Foreclosing on a property sets the price for the entire neighborhood. What price do you want the neighborhood to be set at? Do you want it at the far lower price the investor will pay for a foreclosure or the much higher price at which the home owner is willing to refinance it at? To say we should let housing prices fall to the ‘free market’ level is to miss the point. It’s more a question of what market you want it to be. The investors market or the home owners?
Bailing out Wall Street and foreclosing on the home owner will leave us (potentially) losing the entire loan. Therefore, Wall Street can only get .20 cents on the dollar. In contrast, the home owner may only need a 20% reduction to be affordable to them again. The 80% difference is an inverse mirror between homeowner and Wall Street.
Reducing the home owner’s mortgage may only require a 20% write down while still maintaining a much higher price point for the entire neighborhood. This means all the other homes maintain more of their value so fewer of them are likely to walk away while getting higher prices when they do.
This also means the Fed can convert 5 home mortgages into income producing banking assets for every one of the ‘toxic loans’ the Fed buys from Wall Street. We can refinance $3 trillion in distressed home mortgages for the same $700 billion the fed wants for buying ‘toxic loans.’ This could cover double the 2.5 million homes now going into fore closer. We will have stabilized the real estate market for the same price as stowing away this first wave of foreclosures.
Reducing homeowners monthly payments will also improve the likelihood they continue paying on all their other loans and debts. This will hlep all the other industries now being squeezed by this crisis. Everyone from local and state gov’t s, to retailers, credit card companies and student and auto loans; all will begin to be stabilize as well. However, foreclose on an owner and they and their entire family stops paying on all their other bills. This will be on top of dropping the prices for the rest of neighborhood.
Who offers us the best deal for our ‘bail out money: Home owners or Wall Street? You decide.
By National Women Legislators, OAS Credit Union, La Raza Fund, Guerrilla Economics, ROOPA,
Written by Robin Read, Jennifer Rosen, Carlos Calderon, Sam Brunelli, Melinda Wilson & Raghu Giuffre etc….
Sponsored by De-LETO, a mortgage group for a new mortgage that reduces monthly mortgage by 50%. Taking this program to congress for approval.
