REDUCING RISK OF INTEREST RATE INCREASES, RESOLVING THE FORECLOSURE - UNEMPLOYMENT - POVERTY CRISIS

It Is Time To Foreclose On Fannie Mae And Freddie Mac 

We have a flaw in our economic policies. This flaw continually helps to widens the wealth gap between the impoverished, and the riches 1% of our country.

The flaw also eliminates competition between large, and small businesses by eliminating small businesses during down turns in our economy. This condition allows large businesses to control a larger and larger share of the market, giving them the resources to influence our political representatives.

We are in a national economic slump caused by national policies! We must change national policies to resolve national problems.

Main St., the middle class, the working class, small businesses, and people in general have been financially decimated by the current financial crisis. Their disposable income , and confidence have been decreased.

This financial crisis has created one of the longest down turns in US economic history.

The vacant, and abandoned homes that are in our neighborhoods are similar to food that is rotting in the fields. We can do better than this for our citizens, when you consider that so many families need better housing.

The buzz on the housing market is: Sell the foreclosed homes to investors. Rent the foreclosed homes to previous home owners and tenants. Sell the homes with underwater mortgages by short sale, to deal with the foreclosure crisis.

Let me ask you, Do we really want an economy based on investors, and renters? A nation of landlords and peasants.

Short sales are OK, and renting is appropriate for some people, but we need to help the majority of people stay in their homes, if at all possible, to maintain the American Dream of home ownership.

Sure we made mistakes this time, but wise people learn from their mistakes, and make the necessary corrections to stop repeating the same mistake we have been repeating for the last 100 years.

Lately there has been talk about a national refinance plan that would help heal the primary home market.

Federal Reserve Chairman, Ben Bernanke, and Elizabeth Duke have made speeches in favor of the government doing more to stabilize the housing market. President Obama mentioned a national refinance plan in his 2012 State Of The Union speech.

Let the Bush tax plan expire. The working people, the middle income, homeowners, renters, and the poor will be helped more by increasing their disposable income by restructuring their credit obligations, without it costing the taxpayers a dime, or increasing the deficit.

We need to go beyond just a refinance plan. The economy needs a principal reduction plan to quicken recovery. We cannot wait 30 years until all the underwater mortgages are paid off, the homes are foreclosed, or abandoned.

The private financial sector needs to step-up, and help resolve the foreclosure, and unemployment crisis they helped create.

Every qualified homeowner with an underwater mortgage must be included in the national refinance plan, and the principal reduction policy. Which is approximately 25% of current homeowners.

The economy needs a principal reduction plan to unload the burden that the Big banks, Wall ST. and the government helped create to increase their profits, and tax revenues. 

Homeowners are not innocent, but the working, and middle class should not be the only ones suffering to clean up the mess the “BIG BOYS” MADE. 

The Committee For Economic Reform and A Better Economic Future has developed a PRIVATE SECTOR SOLUTION TO JOB CREATION AND ECONOMIC RECOVERY. 

WE CALL IT “THE PEOPLE’S ECONOMIC RECOVERY PLAN”. 

The Plan has basically two parts. Get the economy on a healthy path to recovery, and change the policies that helped create the financial crisis.

To help prevent another financial crisis from occurring, we need to stop relying on the Federal Reserve to slow the economy down, when it is getting out of balance, and the amount of money, and credit that is being created is growing too fast. Instead we need to use the income tax to control inflation psychology, and excessive hard capital asset appreciation. 

We believe that the financial sector, investors, and the people will embrace the “PLAN”, because it will help heal the economy, and the primary home market. Improving the primary home market will decrease the unemployment, and the foreclosure rate, without increasing the deficit, like a government jobs program, or another government stimulus program will do. 

We do not want to leave our children, our grand children, and our great grand children a legacy of debt to pay off with higher taxes, or an inflation tax, which will make us all poorer, create more poverty, and more government social liabilities. 

You are correct, if you believe the foreclosure crisis will not correct itself quickly, without direct action. There are three things we can change, to speed up recovery. 

1. Change the bankruptcy law. 2. Increase aggregate demand, without increasing the deficit. 3. Change the guiding policies (income tax policies) of our enterprise economy. 

Let’s get started with changing the unconstitutional bankruptcy law that violates the “equal protection under the law” clause of the Fourteenth Amendment, Section one of our Constitution. 

People should have the same rights as businesses to have their mortgage terms, and unpaid balances modified by a bankruptcy judge. Businesses are not better than People. Businesses, and Corporations are not People! 

This video of a speech Reps. Rep. Earl Blumenauer of Oregon made in front of Congress, explains why we need to change the bankruptcy laws. In fact Rep. Earl Blumenauer of Oregon would like the Occupy groups, and Tea Party members to support the needed changes to the bankruptcy code. http://www.youtube.com/watch?v=J7YPR_p7DYQ/ 

Change only comes about when you have a “Plan” which benefits all parties that are involved. The individual person can see how it will help their situation, and they are willing to stand up for themselves, and unite with others to be heard. 

We need to convince the financial sector that it is to their benefit to make changes to their mortgage terms, and the bankruptcy laws to prevent more foreclosures, and improve the economy. Banks are only as financially strong as their customers. Their customer can be a government, or a homeowner.

Greece, and the other PIGS countries are a perfect example of this. Their government debt problems can crash the world’s banking system if their government debt, and their citizens debt obligation are not restructured as soon as possible. To have a healthy economy both forms of debt must be restructured at the same time. Governments cannot pay their debt unless the national economy is good. The national economy cannot be good unless the export market, and the consumers’ financial condition are in good condition. 

I agree with Reps Blumenauer, changing the bankruptcy laws would be a good constitutional cause, that the Occupy and Tea Party groups should support. Both groups support our Constitution, and want the economy to improve. They both want to protect our rights, and our freedom. 

Changing the bankruptcy law would empower homeowners to be able to modify their mortgages, in court. With the availability of the bankruptcy court option, it would increase the home owner’s ability to have their mortgages restructured when dealing with the banks, if the financial sector failed to accept responsibility for what they helped do to our economy, and to millions of people’s lives.

Reducing principal balances would be a way to help the economy to re-balance itself, and for the financial sector to pay for the damage it did to our economy. 

The 26 billion settlement, arranged by the State’s Attorney Generals with the biggest banks, is only tiny portion of what is needed to repair the damage that has been done by the banks and financial sector. The “Plan” is different. It includes all current home owners and new home buyers. Those families that have lost their homes illegally should receive a direct payment for damages. 

Who knows, the way the economy is going, you may wish that you had helped correct this unconstitutional bias law, to restructure your debts, to save your home from foreclosure. 

Another thing we need to consider changing is our single family home rental policy. The market for single unit housing should be made by primary home buyers. Investor in the single unit primary home market is a destabilizing factor in the primary home market. Investors have no connection to a home like a homeowners do. During the Great recession investors have abandoned tens of thousands of homes creating blight in our neighborhoods. As investors move in and out of the primary home market they create large swings in the price of homes as in commodity prices. Investors have many opportunities to invest in multi-unit housing . The deduct-ability of expenses for single unit rental housing should be eliminated. This change in our housing policy would increase our multi family housing stock, and maintain affordability in the primary single family home market. It would increase home ownership in our country.The repair deduction that investors currently have should be allowed by homeowners to encourage people to maintain their homes. This change would increase economic activity, employment and prevent neighborhoods from deteriorating. 

WE ALSO NEED TO INCREASE TOTAL DEMAND IN OUR ECONOMY, WITHOUT INCREASING THE DEFICIT. 

In a recent poll released by CNN, of the businesses contacted, over 60% of them said that it wasn’t taxes, or regulations that was holding them back from expanding their businesses, it was a lack of demand for their service, or products. 

The way you increase aggregate demand in an economy is by increasing people’s disposable income, with employment, tax decreases or an interest rate reduction.

Raising, or lowering taxes is not a good idea, to my way of thinking. The “Plan” does not increase the deficit, or affect the Social Security fund. 

How the “Plan” increases people’s disposable income is by making available, to all qualified homeowners, and home buyers, a mortgage with new terms. Terms that they can succeed at, unlike the previous mortgages that created the collapse of our economy. 

The new mortgage terms would be similar to other mortgages that are available to home owners. It starts out at a low interest rate, but, and this is important, the Ascending Interest Rate Mortgage is not indexed after a few years. like the current 5/1 Adjustable Rate Mortgage is. 

The Ascending Interest Rate Mortgage has a starting interest rate of around 3% or lower, based on the ten-year US Treasury Note. Currently the 10 year Treasury Note is lower than 2%. That would make the interest rate for the first year lower than 2.75%. The interest rate would increase .25% per year. The interest rate would stop increasing at 5%, or at the 30 year fixed rate interest rate, whichever is lower at the time the mortgage is originated. 

The down payment on new mortgages would be 10%. A lower down payment would require mortgage insurance, or mortgage payment insurance. Mortgage payment insurance would be the better choice, because the mortgage payments would continue to be paid if something happened to the homeowner that made it impossible for them to make their monthly mortgage payment. The home does not need to be foreclosed, for the bank, or investor to receive their money back, as with mortgage insurance, that you pay to protect the bank, or investor from a loss, if you default on your mortgage. 

A person wanting to make a new purchase of a home, or refinance an existing mortgage, that is not current with its payments, would have to qualify at a 5% interest rate, or the current 30 year fixed interest rate mortgage rate, with a 3%, or lower starting interest rate, so we reduce the chance of new defaults.

A homeowner who has kept their mortgage payments current, even if their mortgage is underwater, would be sent a letter, which would change the terms of their mortgage without having to qualify at the 5% interest rate or 30 thirty year fixed interest rate mortgage rate. Nor would they need to have their home appraised. 

When homeowners refinance, or restructure their mortgage from a 6% mortgage interest rate to a 3% mortgage interest rate, their disposable income is increased. If their interest payment each month is $1500.00 at the 6% interest rate, after their mortgage interest rate is reduced to 3% their interest payment drops to $750.00. Their monthly disposable income is increased by $750.00. If you multiply the $750.00 by millions of households, you increase aggregate demand on Main St. by hundreds of times. 

What will homeowners do with the increase in their disposable income they receive? The homeowners will spend it on their families. 

What could you do with an extra $750.00 dollar of extra money each month? If you don’t have a mortgage, don’t worry. When the homeowners spend the money, it will go out into the economy, just like a tax cut would. Be ready to earn your share. There is no way Congress can give the working, and middle class a $750.00 per month tax cut, or anywhere close. 

The “Plan” increases productive growth, and consumption, which will increase employment in our economy. This will reduce our governments social liabilities, and increase tax revenues.

Are you concerned that investors will be losing purchasing power because of the refinancing of the mortgages at a lower interest rate. It is no different from when interest rates where decreasing in the 1980s from 21% to 7%. People, and families were refinancing their mortgages then, as they need to do now. Nobody was concerned that the investor was losing purchasing power. We called it prosperity, and growth. 

Investors invest their cash buying up all the homes that families have lost through foreclosure. Or, maybe they will be in the commodities market bidding up the price of food, energy, and the materials for production with their extra money. 

Fannie Mae and Freddie Mac would need to start offering to purchase the new mortgage from mortgage brokers, and the banks. This is the only way the new mortgage will be made available to the public. 

The Occupy groups should demonstrate in front of Fannie Mae and Freddie Mac The Occupy Wall St. groups need to put pressure on them to change their policy of no principal reduction, and to change their mortgage terms. These changes will help the economy improve, and reduce foreclosures by stabilizing the primary home market, and increasing employment. 

If Fannie and Freddie Mac do not agree to offering to purchase the new mortgage, and lower principal balances, then we should pressure President Obama, and Congress to foreclose on the over 160 billion they owe the taxpayers. We would then be able to offer to purchase the new mortgage to improve the economy. Purchasing the new mortgage, or lowering principal balances should not cost the taxpayers a dime. 

LEARN HOW FREDDIE MAC HAS BEEN BETTING AGAINST STRUGGLING HOMEOWNERS

http://www.npr.org/2012/01/30/145995636/freddie-mac-betting-against-struggling-h…/

Fannie Mae and Freddie Mac have no problem securitizing the 5/1 ARMs, and selling them to investors. With the tax code changes I will be talking about later, to stabilize long term interest rates, the Ascending Interest Rate Mortgage would be no different to the financial markets than if all at once all homeowners wanted to purchase, or refinance their home with an ARM, that started out at a low interest rate. In fact they would like the new mortgage more, because, unlike an ARM, or a US Treasury Note, the interest rate increases .25% a year, until it reaches the 30 year fixed interest rate mortgage rate. 

The home buyer, or the homeowner will like the new mortgage terms, because they will know what their housing cost will be for years to come. With predictability comes confidence in taking on the responsibly of a mortgage. 

To solve the underwater mortgage problem, underwater mortgages should be reduced an additional 33% of the current monthly principal, and interest payment each month until the value of the home equals the unpaid balance of the mortgage, or up to 10 years whichever occurs first. Taxpayers should not be made responsible for any reduction in principle balances. The financial sector should take full responsibility for the cost of principal reduction, because of all the illegal things they did before, and after the financial crisis. Also for the damage they did to people’s lives. 

By lowering the unpaid principal balance monthly, instead of all at once, the home owner has hope that sooner than later their mortgage will equal the selling price of the home. They will not add the home to the foreclosure inventory. 

The financial sector will like the Ascending Interest Rate Mortgage, and monthly principal reduction policy, because the loan will remain a performing mortgage asset, and will maintain it’s highest possible book value. 

Both the lender, and the homeowner will give up a little for economic recovery. The borrower has lower payments on a faster declining mortgage balance. The bank, and investor are receiving mortgage payments on a larger mortgage than if they foreclosed on the home, and sold it in a depressed housing market.

When demand for homes increases, and prices are increasing, 1 to 2 percent a year, and with the unpaid balance of the mortgage decreasing 1 or 2 percent a year, the unpaid balance of the mortgage, and the value of the home will meet somewhere in the middle of the two factors.

The financial sector will save billions of dollars in foreclosure cost, and legal fees, they would otherwise be paying for investor law suites, mortgage buy backs from the GSEs, and government housing agencies, and homeowner law suites. Not to forget all the money that it cost to foreclose on a home, and the money lost selling the home in a depressed real estate market. 

We should start offering these terms to primary home buyers who want to buy a foreclosed home, to eliminate the foreclosure inventory. We should make the new mortgage available to all conforming priced homes after the maximum amount of the mortgage the government will guarantee is lowered. These terms would only be available to owner occupied single family homes. 

We cannot wait 30 years until all the underwater mortgages are paid off, foreclosed, or the homes are abandoned. We need an economic recovery NOW,…NOT LATER!! Each day that passes, kicks thousands of families with their children, to the curb. 

To increase aggregate demand in an economy you can also increase employment opportunities. Many of our jobs have been outsourced to other countries that have lower wages, less worker protection regulations, and environmental protection laws. President Obama wants to create a level playing field, more job opportunities, and make sure everyone is paying for the cost of providing the needed infrastructure for companies, and people to succeed. He also wants to eliminate the tax benefits for companies that move their businesses to other countries.

We must do more than eliminate the tax benefits to create a level field for production cost. To accomplish these goals the importing companies must help create that level playing field. If an company uses a country which pays less wages, does not have the same worker protection laws, or environmental protection regulations, the importing company should pay the differential in the cost of production between the two countries. This fee should not be retained by the importing country. The fee should be sent back to the exporting country, and then distributed to the workers, and environmental protection agencies of the exporting country to create a level field of production cost. Or, if there is a trade deficit it could be applied to reduce the debt between the two countries.

The other thing we must ask ourselves is: Why do we have these recurring cycles of deep recessions, higher prices, and economic bubbles about every eight to ten years?  Reducing interest rate increase risk. 

If you go back, and examine our recent economic history, you will find that since 1952 our economy has experienced a recession about every 8 to 10 years. Some times we experience a recession in a shorter period of time, like when the “dot com” bubble imploded. 

Eight to ten years is how long it takes for our economy to become over leveraged with credit obligations before the Federal Reserve “takes away the punch bowl” as they say. 

When the Fed tightens the control of credit, the resulting higher interest rates causes our economy to return to the recession cycle. It also devalues current debt by the precentage of increase in interest rates. If a person, or company has invested in a mortgage, or any debt with a fixed interest rate term, and say a 3.87% interest rate, which a majority of homeowners prefer, and the the Fed causes interest rates to rise 1%, the mortgage resale value can decrease by as much as 25%. This fact can create a crisis in the mortgage financial sector, similar to the crisis that destroyed the savings and loan companies of our financial sector. The Ascending Interest Rate Mortgage solves the higher interest problem we will be experiencing in the near future, and the income tax change that I will be discussing shortly will help prevent the risk of interest rate increases. 

The financial crisis, and the resulting Great Recession was caused by over-leveraging credit in our economy; be it derivatives, or home mortgages. They are both leveraged purchases, because they both control a large amount of monetary liability with a small amount of money. 

The financial sector does not know when to stop, nor does it want to stop, creating the product (credit) they produce. They will continue to make loans, creating money, as long as people are willing to walk thru their doors, or get on a computer, and are willing, and able to take out a loan, or use a credit card. 

When a factory produces too much product it becomes unprofitable to produce more product. When the financial sector creates to much of their product, it becomes more profitable. Too much credit creation causes prices to rise, and hard capital assets to appreciate. Therefor larger, and larger loans can be made, and larger fees, and more interest can be collected. 

Relying on the Fed to control credit formation, and inflation expectations with higher interest rate policies is a flaw in our economic policies. By relying on the Fed to control inflation expectations, we keep repeating economic history every time there is a recession, or the Fed does nothing with a credit bubble, and the credit bubble bust, like the primary housing bubble, which creates a very deep recession. 

Free markets are not perfect, as many people claim, especially financial markets. Financial markets have all types of people, and loads of money in them. The two things that are necessary to make a market, but both of them can corrupt a market. 

The financial sector created the financial crisis, even when they knew better. They had Congress change laws, and deregulate the financial sector, all in the name of free market theory, before they could put their plan into action, so they could maximize their profits, and not be charged with a crime.

Economic bubbles, and high inflation are caused by the excessive use of credit in our economy. The economy becomes unbalance by to much demand (credit), which is money, being created in the economy, insufficient competition, or not enough goods, and services are being produced by the economy. 

The question is, What is the best way to re-balance the economy, higher interest rates used by the Federal Reserve , or the income tax?  

My vote goes to the income tax. 

The Zero Inflation Taxation Policy will make our economy more productive, and more efficient in preventing poverty. It will help lower the amount of taxes needed to support social programs. It maintains demand more closely to the production capabilities of our economy, and maintains normal consumption demand during the economic cycles of inflation, and recessions. 

Instead of waiting for the Federal Reserve , the US government, or State governments guessing how to balance the economy with higher, or lower interest rates, changes in the tax code, or other policies, which are all monetarily, or politically motivated, the economy itself would automatically self balance, and tell us, the people, when it needs more money (demand) in the economy, or less demand (money) in the economy. 

The Fed has enormous power over our enterprise economic system. It controls the means of exchange of our economy. By tightening the money supply, it can kill an economy, or if it is too lose with its money controls, it can cause havoc in our economy. 

By using the income tax to control inflation, and inflation expectation, the people regain control of their economy again. The Policy prevents the necessity of the Fed to raise, or lower interest rates, which is very old tech, and very destructive to small businesses, the working, and middle class people of our economy. 

If the economy had excessive demand occurring, the excessive demand would be reduced from the top of the economic ladder with the income tax. Currently demand is reduced from the bottom of the economic ladder, with higher interest rates, when inflation is occurring, which increases the cost of the medium of exchange, which the enterprise system needs to function. 

Higher interest rates increase unemployment, and bankruptcy in the small business community, and in people’s lives. When small businesses go bankrupt this allows big businesses to get bigger, and gain more control over our economy, and our political representatives. 

With excessive demand reduced from the top of the economic ladder, by the income tax, normal production and consumption can continue without raising cost, and the price structure of our economy. Higher interest rates in turn reduces the competitiveness of our products in the world markets by increasing cost, which causes prices to increase. 

Higher interest rates increase poverty, government interest cost, and social liabilities. which increases our taxes, as more people become government dependent because of the increase in the unemployment and bankruptcy rate caused by the higher interest rates. 

The Zero Inflation Taxation Policy would work like this. During a recession, or normal economic times, the income tax code would remain as it currently is. Except to lower the rates as our economy became more efficient, and more people are included in the private sector of the economy. If inflation started to occur, based on a true consumer price index, that included a more complete basket of goods and services, the interest deduction would be reduced based on the inflation rate. At the same time the inflation rate. This policy would pertain to all businesses, and people, just like higher interest rates do. As inflation subdued, the percentages would change back to 0%. This would maintain the balance of the economy, without creating a recession as higher interest rate policies do when used by the Federal Reserve. 

People at the end of the year would correct the balance of the economy by paying a little less tax, or a little more tax based on the how the economy was operating and how their money was invested.

The balance of values between money, and hard capital assets would remain in closer balance each year instead of having a recession to re-balance the values every 8 to 10 years, as we are going through now, with the Great Recession of 2008. 

Using the income tax to control inflation, and inflation expectations will help raise the standard of living of all our citizens, decreasing poverty, and closing the wealth gap, by allowing people at the bottom of the economy to maintain the little piece of pie they have worked so hard to obtain.

In real estate you may have heard the saying, “Location, Location, Location!” In macro economics the saying is “Timing, Timing,Timing! 

Our timing for economic policy changes has been out of step with the economy for a long time.

We need to change economic policies based on how the economy is performing not on political whims. Congress cannot act fast enough to change the stimulus policies they have enacted during the recession cycle, to prevent those policies from becoming destructive to our economy, during the inflation cycle. This is why the “Policy” is guided automatically by how the economy is operating.

To create an economy that doesn’t create deep national recessions and national cycles of high inflation we need to end the Federal income tax code, and replace it with a State Gross Product Flat Tax to fund the federal government. The tax would be the same for all States. The State income tax form would have a line on it for the filer to pay a certain percentage of their taxable income to the Federal Government. We could there-by limit the amount of money the Federal Government can take out of the economy, and eliminate tax policies that cause a large majority of the people in all the States to do the same thing at the same time. 

This change in our tax system would empower the States, and the people of the state with the power to provide the needs, and services they wanted from their government. There are some things that the Federal Government should be responsible for to facilitate a better union, but when the States joined the union they became “indivisible”, not “indistinguishable”. 

The diversity of our people make our nation stronger. It is no different for our economy. Strengthen the differences of the states, to strengthen our national economy, and society. One size does not fit all. If each state adopted the Zero Inflation Taxation Policy, we surely would return to a “land of opportunity” again. All the states would not go into the cycles of inflation, and recession at the same time. Our economy would once again be the people’s economy. Creating a balanced national economy that would maintain the opportunities for people to stay employed, start businesses, and prosper by working at increasing, and maintaining their standard of living. 

To have these policy changes enacted the people must join together and focus on them alone. All the members of Occupy Wall St, Tea Party members, the Unions, and members of the working, and middle class must join together and support these three changes to our economic policies. 

We need to increase economic opportunities so the working class, and the middle class can work to improve their financial condition, and improve their standard of living by being able to maintain their accumulation of wealth thru the cycles of high inflation and deep recessions. Thus helping to end the misery of poverty, and decrease the large wealth gap between the impoverished, and the riches 1% in our economy. 

We would still have a long term capital gains tax rate to reward productive investment, and to encourage risk taking. The value of money would increase during the inflation cycle, just like raising  rates do, because of the decrease in the tax rate on savings and money (debt) investments, without increasing cost of production and consumption.

When the tax rate on saving, and money investment is at the same rate as investments in hard capital investments, the of money (debt) as an investment will equal an inflation expectations investment. This automatic change in our tax code will allow production the time it needs to balance supply with demand, reducing inflation expectation investments which causes prices to increases, and higher inflation rates. 

Leonard C. Tekaat, aka First Occupier is an economic scholar, author, and retired small businessman with over forty years experience in home financing, and real estate investment. He has been working on changing a flaw in our economic policies, that continuously widens the wealth gap, since 1981, when he wrote the book , “Inflation The Economy Killer”. He is Chairman of a special Committee For Economic Reform and A Better Economic Future and a former candidate for the California Congress. 

For more information go to: www.foreclosurecrisissolved.wordpress.com or www.recoverygovforthepeople.wordpress.com/

ARE YOU UP TO IT. DO YOU WANT TO CREATE AN ECONOMY WORTH OCCUPYING FOR YOURSELF AND YOUR POSTERITY? WHERE YOU HAVE THE OPPORTUNITY TO SUCCEED. LET’S NOT JUST SAY,…NO,….. LETS SAY… YES!!!

Remember what I said, “Change only comes about when you have a “Plan” which benefits all parties that are involved. The individual person can see how it will help their situation, and they are willing to stand up for themselves, and unite with others to be heard.”

We must demonstrate in front of the local branches of the big banks, and the head quarters of Fannie Mae and Freddie Mac. We need to make the message load, and clear by carrying signs demanding the financial sector adopt the Ascending Interest Rate Mortgage, and the monthly principal reduction policy to restructure all the primary home mortgages in the country.

To get the message out, demonstrations must be publicize by the news media to increase our voice. Call the media to let them know when, where, what you are doing, and why you are doing it. Make it very clear what you want the financial sector to do. Explain to the media that the restructuring, and principal reduction should not be paid for by the taxpayers. The financial sector should absorb any reduction of the principal balances, because of what they did to our lives, and our economy. Also, the financial sector will be saving billions of dollars in foreclosure, and other cost due to selling a home in a depressed housing market. The financial sector will also be benefiting from an improving primary home market, as the foreclosure inventory is sold to home buyers.

Hand out a flyers, so people can read it later, and have information about where they can obtain more information.

GOD BLESS AMERICA……. AND GOD BLESS YOU!!

Leonard C. Tekaat, aka First Occupier is an economic scholar, author, and retired small businessman with over forty years experience in home financing, and real estate investment. He has been working on changing a flaw in our economic policies, that continuously widens the wealth gap, since 1981, when he wrote the book , “Inflation The Economy Killer”. He is Chairman of a special Committee For Economic Reform and A Better Economic Future and a former candidate for the California Congress.

For more information go to: www.foreclosurecrisissolved.wordpress.com or www.recoverygovforthepeople.wordpress.com/

Search for Occupy Fany.Fredy on facebook to locate our facebook page. Join our open Occupy Fany&Fredy Group Search Leonard Tekaat on facebook.com

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