Can Saving PMI Also Save the Economy? Cramer Thinks So

RE:Can Saving PMI Also Save the Economy? Cramer Thinks So

Carlos — Wed, 23 Jan 2008 13:00:00 GMT

Open Letter to George Bush and to anyone who will take time to read this!

The Honorable George Bush -President of the United States

Dear Mr. President,
It's with respect for the office of the presidency, I write this letter. I believe, as well as many others, who are of the same opinion, that the stimulus package which you proposed a couple of days ago could possible have some merit, if that stimulus created an incentive to get people to work. Created meaningful jobs. not the minimum wage type, but real paying jobs.

Putting the nation into more debt without any sizeable contribution to growth can lead us unto more unemployment, and turbulent times not only for us, but also the entire world community.

It's important to keep us out of recession. It makes no sense to put us in more debt, without creating a real stimulus package to put people to work, and grow the economy. Too much debt, takes it's toll, ultimately it may create pandemonium throughout the world's economies.

We have far too much debt, in order for the United States to be in the growth mode, it needs real teeth in an economic stimulus package is to create real Jobs. To point out a few examples of this:

1. Americans are losing good paying jobs to foreign countries, as of such, why not put before congress a tax rebate or credit that rewards U.S. taxpayers forÂ buying products that are made up at least 51% that are produced here in the United States.

2. Energy efficiency should be rewarded to taxpayers in the form of a credit or rebate as a stimulus to reduce our dependency on foreign oil.

3. Credit those automakers that Increase the Standards for fuel efficiency vehicles, ultimately increasing the mileage per gallon, thus reducing fuel consumption, as well as tax credit or rebate those taxpayers who purchase energy efficient cars and trucks, beyond the current credit or repate now being paid as a deduction.

4. Credit energy companies for Research and develop crude oil and natural gas here in the United States, as well, as explore other fuel alternatives to shake us from foreign oil interest.

5. Increase the Conforming Loan Limits in states like California, which exceed the average median home prices that of states like Alaska, Hawaii, and the Virgin Islands. It makes no sense to why Mr. Lochard is refusing to acknowledge that California is a high cost state. The conforming loan limit for FannieMae and FreddieMac is set at $417,000. California median price has been more than $500,000. Most of the lenders that have been affected by the so called credit crunch, subprime debacle really stems from actions by the Federal Reserve acting to slow in adjusting the fed funds rate, hanging out to dry many lending institutions, such as countrywide for example.

Now that the federal reserve has lowered the Fed Funds and Discount rate by .75 basis points, the only thing stopping the economy from moving foreword is the raising of the Conforming Loan Limits. This should get the country back on the positive track.

I am forwarding this letter to the Federal Reserve Chairman, as well a few Congressional leaders as well as a few key senators. I thank you in advance.

Very truly yours,

Carlos R. Arvizu Sr.

RE:Can Saving PMI Also Save the Economy? Cramer Thinks So

Andrew Snyder — Wed, 23 Jan 2008 13:00:00 GMT

I had just mentioned this looming problem yesterday in a comment I posted regarding the the Fed's emergency rate decrease... Thank you for posting this, the American public needs to know what Washington insiders are not telling them.

RE:Can Saving PMI Also Save the Economy? Cramer Thinks So

Peter — Wed, 23 Jan 2008 13:00:00 GMT

Government (meaning taxpayers) should take the loses so that the banks and insurers that hoarded multibillion billion dollar profits by reckless lending / insuring practices can get of the hook? Let them go out of business. Painful, but will avoid a similar bubble in the future. These bubbles are happening all the time precisely because big business thinks it is too big to fall. Yes, give instead lollipops to people.

RE:Can Saving PMI Also Save the Economy? Cramer Thinks So

Monique Bryher — Wed, 23 Jan 2008 13:00:00 GMT

I completely disagree with you and Cramer's solution, which is a bailout for lenders such as Countrywide, WaMu, etc. These lenders engaged in reckless, irresponsible loan-criteria behavior. The very last thing I want is for them to "get back" to lending. Some of them need to "get out of business" (go bankrupt or be bought out) and some others need to face civil and criminal prosecutions for fraud. There's a funny thing I've noticed about many advocates of the "free market": when they do well, they're ready to rake in the rewards of capitalism, when they fail, they pay low-lifes like Angelo Mozilo $115 million for the economic chaos they create and then want taxpayers to bail them out. Let Mozilo bail out Countrywide now that he's sucked it dry.