Ideas for Obama
Yes We Can
! With new ideas.
The ideas presented here are presented with the concept of
what will serve the greater good.
1) Mortgages. Mortgages were very secure when home prices were
going up but as they come down the issuers of them want a way to deal the the
risk that they take on when they issue them.
Time to set up a mortgage in a new way. If we look at most
homes the value rarely goes below 50% of the replacement cost or 50% of the
purchase price, which ever is lower. Let this be the type "AA"
mortgage. It can be set or at an adjustable rate. The type A caries with it
virtually no risk that can not be covered by home owners insurance.
Then we get to the next 20% which can be classified as type A,
which has very minimal risk but can be set at a higher rate depending upon
relevant variables. This portion of the mortgage should have some sort of
repayment insurance. The insurance on this will be very low as well as the
interest rate.
Then comes the next 15%, type B, which has some risk and needs
additional repayment insurance and may have a different interest rate than
part A
The final part is the last 15% which is type C and has the
highest risk of all. The mortgage repayment insurance for this portion
can be adjusted according to variables that are unique to the property. This
portion of the mortgage has a different rate depending upon the amount of down
payment and other factors that may be relevant.
The cost of implementing this is minimal because of the use
of of computers for transactions. The legal structure for these is in
place. In California A first, second and third deed of trust (mortgage) has
been used many times.
When banks have problem mortgages, part of the solution is to
convert them to these multi level mortgages.
2) Alternative Energy. It is well known that corn is not an efficient
material with which to make ethanol. There are alternatives that work
including sugar and hemp. For the USA a more practical plant is hemp. It is
also useful for newspaper and clothing. There are different varieties of hemp
and at least one is not useful for getting high.
By switching to using sugar and hemp for ethanol production,
the price of various foods that are corn based including meat, will come down
in price.
3) The government needs lots of $$$, some will come from new
sources. A new tax many would not object to paying is a Marijuana tax. Right
now the drug lords add their mark up and build their mansions. This revenue
stream can be transferred to the U.S. Treasury.
At the present time crime syndicates are growing marijuana on
National and State park land and the multibillion dollar business avoids taxes
except some sales taxes that are paid to purchase equipment.
This new tax, would bring in billions to the US Treasury and
the change in the law would reduce prison costs by up to 30%.
4) Employment. Having the government create jobs by building
infrastructure is a productive long term project that creates jobs. In order
to have jobs that sustain after the new infra structure is built, it takes
private sector growth.
The most productive way to have the government involved in
creating new jobs is by offering a substantial R&D tax credit to companies
new and old. Another way is through a program like DARPA, which is well
known in defense and non defense circles for seeding jobs that grow into
sustaining businesses and eventually new businesses in the private
sector.
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