Private capital is sitting on the sidelines while private equity fund managers collect fees. If the Govt suspended those fees then those lazy managers would have to invest the money. Pre- Crisis the talk was about the investors were on the sidelines. They are still their. Look at the MADOFF scheme. They invested in his Private equity fund. He collected a fee. Thats 50 billion right there. times 15 more funds like his and we see that those private capital managers are hording assets and collecting managing fees. Eliminate fees for non investable assets and those assets will be used up. Use it or lose it. In the real world there are funds still available and private capital needs to raise a trillion dollars and buy those assets and recapitalize them at 40% on the dollar. The original post on this board is absolutely correct. We need a real solution. The Washington politicians need to step aside and allow wallstreet to police its own. Force Private equity to step up and problem solved. Take away the inactivity management fees and watch how fast they come back to the market. Also if they raised the short levels to 7 dollars we would have more liquidity in the market and less downward pressure. In the meantime write down all the assets at 40% loss today and get back to business and let the stocks trade.
"All you need to do is grant visas to 2 million Indians, Chinese and Koreans," said Shekhar Gupta, editor of The Indian Express newspaper. "We will buy up all the subprime homes. We will work 18 hours a day to pay for them. We will immediately improve your savings rate â no Indian bank today has more than 2 percent nonperforming loans, because not paying your mortgage is considered shameful here. And we will start new companies to create our own jobs and jobs for more Americans." http://www.timesunion.com/AspStories/story.asp?storyID=769392&category=OPINION&TextPage=1
If the numbers are right then immigration may work. It would make sense. I believe the bailout recipients should hold that debt forever. If you owe a mortgage note and your home gets sold then you should be held accountable for the difference after the home is sold. You broke it you bought it. Then the interest would be calculated on the balance. This is fair and even. I think the plan is overly generous and why should a person who defaults get away while the mortgage payer who pays their bill has to pay up the nose. Let those that can pay pay the bill. Also many immigrants don't have bank accounts. If they had social security numbers then maybe they could replace the money that Michael Moore stated was taken out of the system. The mattresses in American culture hold the key to the system recovery...
A partial but necessary longer term solution. Still doesn't address the jobs issues (without people with an income then Mr Mortgages's solution will be far less successful). http://www.ritholtz.com/blog/2009/02/mr-mortgages-guide-to-the-truth/
I was training brokers to become their own analysts in the heart of the dotcomboom. We need the venture capitals to start with new funding. Imagine if they took a realestate mortgage insurance company public that offered a 25% BUYBACK GUARANTEE OF DISTRESSED PROPERTIES BACK. iN ADDITION STRUCTURE IT IN A REIT WHERE 95% of income PASSed back THROUGH TO THE SHAREHOLDERS. With a yield that is taxable equivalent of 50% higher and a reinsurance component added they could resurrect this market with a series of these ipos. This would create jobs... The creation of new industries spur jobs. Imagine putting solar panels on electricty poles and having plug in stations at the bottom of these poles to charge your converted or new electro car. How much work would that be and in 20 years how much money would that save. The bozoz who call themselves reasearchers need to step aside. WHo needs a lithium battery when you can get a portable generator to power your car for 399. really- Take a look I just bought a generator that offer 9 hours of charge on 6 gallons of Gas. DO YOU REALIZE THAT IN 9 HOURS I COULD TRAVEL FROM NY TO VIRGINIA. ( Im no scientist but that makes cents) If America wants new ideas let new people in to tackle the new problems.
You have good helpful ideas, most importantly you get that the solution and the way that any stimulus can be most effective is to incentivize private money to get to work. My guess is that you aren't some twenty something advocating the end of the free markets while sipping on their Starbucks which they charged to thier mastercard while emoting on their apple notebook Mom and Pop bought them for Xmas!
I believe we are on the verge of financial meltdown and I just want to go on record as having tried to give some solutions. Like chicken little no one listened... check my posts going back since 2002. I have been righton over and over again. We turn to congress who are lawyers who rely on lawyers to figure out the problems. Show me a person who is willing to work for free and on a success basis called commission and I will show you someone committed. Judd resigned today because he could not bear to watch the democrats crush the economy... I think there should be so much more money put aside for attacking the markets head on. First of I would re hire all the unemployed workers in massive call centers and train them to sell stock while they collect unemployment. Imagine if you had new brokers who could sell America Stock we would create an entirely new work force. There will not be enough brokers around when this thing turns. Brokers manage risk. If your stock goes from 60 to 10 I have to wonder what where you doing. Hire the unemployed as brokers and make mortgage brokers pass the series 7. Regulate the Venture Industry and watch them run back to wall street...
I'm not sure if you're joking or not, but you do realize the average electric motor used in a hybrid is 15 HP, right? Your 399.99 compressor would explode after an hour or two. And have you ever driven a hybrid, even an extremely light hybrid like an Insight, with only the electric motor? 9 hours of driving might get you from NY to NJ. Keep up the research.
MY generator is 13 hp and as you say the hybrid engine is 15 hp. If you add a few alternators which are really conduit capicitors which reserve power for controlled consumption then you have reserve power. 9 hours on 6.6 gallons. The gas powers the Generator and the generator powers the engine. Its that lack of innovation that created the condition of american mental gridlock. 240 volts or 120 with a few modifications is the core of this concept. I don't hold an MIT degree but all I know is that I can run 9 hours of heavy duty equipment like compressors in a machine shop with no problem and therefore 9 hours is 9 hours as far as Im concerned. Power is Power its either off or its on. AT worst case scenario we could all find our self with a Fred Flinstone model. Just pop out the bottom of the seat and start with a feet to the floor approach. LOL... WE ARE AMERICANS.. EMPHASIS ON THE CAN. NOT AMERICANTS...... Im the kid who took the christmas car and made a boat out of it. WHo took the lawn mower and made a go cart. Its that innovation that America needs... I won't be the guy to make this but I am confident that we will get a solution once we find a way to not offend the Oil COmpanies..