My Crystal Ball and How to Recover the Economy Quicker

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3 Responses to “My Crystal Ball and How to Recover the Economy Quicker”

1. Dixie Morse Says:
   February 6th, 2009 at 2:05 pm

   Well said, I enjoy your blogs, thank you for taking your time to do this.
   And the question is, how do we get you to sit in front of congress and voice our opinions!!

2. CHARLES DENCH Says:
   February 6th, 2009 at 6:46 pm

   I think helping small business through the sba is a good idea, but besides that there are only (2) items needed in a stimulus package.

   1) 10% tax credit for hiring new full time employees by Sep 30, 2009. The 10% credit would be on the first (2) years of payroll for new employees with maybe a limit of $ 50,000 of pay per year per employee.

   2) 10% investment tax credit for purchases of new equipment for businesses and the purchase needs to be made by August 31, 2009. Credit would decrease each month for purchases after after Aug.

   It only costs the taxpayer 10% of the benefit paid by the business. Where when the government hires an employee it costs the taxpayer about 120% of the actual payroll to the employee.

   Sincerely,

   Chuck Dench

3. Joseph Rott Says:
   February 6th, 2009 at 9:02 pm

   You have some good comments, but keep in mind that the problems with the economy started with housing and to fix the economy we need to fix housing. Here's what we need to do:

   1) Since the government is bailing out the banks they need to re-adjust the interest rates on ALL home loans to 4.5% - the banks will not like this, but the survival of the American economy is more important than what they want.

   2) The federal government needs to require that ALL banks hire enough staff to handle the workload of borrowers who are requesting loan modifications - since short sales cost banks an average of 19% of the value of the home and foreclosures cost 40% of the value of the home, one would think bank leaders (supposedly good business people) would act by applying cost/benefit analysis - however this does not appear to be the case - so the banks need to be required to adjust loans up to an 18% reduction in monthly payments - it's simply good business sense to do so! The fines for banks which do not voluntarily comply with this need to be so expensive that they will have no other choice.

   All of the bank executives and government leaders who were at the helm when all the banking problems occured need to be fired - how cna the idiots who let this get so bad be expected to know what the solutions are?

   The old rule of 10 loans per real estate investor need to be re-instated. The current across the board policy of limiting investors to 4 loans is a huge mistake as it further limits demand in an already extremely weak housing market. It is foolish to punish all investors for the problems associated with those who had poor credit and should not have received loans in the first place. As the saying goes. "don't throw the baby out with the bath water."

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