GloriousNationalPartyBriefing02/25/2009
- 00:09:56
- YouTube
GloriousNationalPartyBriefing02/25/2009
What a vague, piece of crap speech you gave last night, Mr. President. The Market spoke, and went back down 170 in response. We want specific solutions. And I AM proposing we do the following, Sir: 1.Nationalize the Banks. NO NEED TO DO THIS. 2.Bad Bank, print Trillions to buy toxic assets at the prices set my Chase, etc. This ignites inflation, bad idea! 3.Four Banks today: Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo, and some others as well. 4.Create separate bad banks for each of these four institutions, and finance them by having the government assume an amount of each good banks corporate debt equal to the value of the troubled assets put into the bad banks. 5.Each CEO will be given one chance to sell any assets to a new bad bank owned entirely by the government. Assets will be conveyed at year-end, audited book values, not at some inflated price. 6.Right now, those assets are illiquid and depressed, but the government can hold onto these assets until they regain value, with complete transparency. 7.Government pays for these assets by not printing new cash, but by taking an equal dollar amount of each banks liabilities, notes, bonds and other obligations. Government, not the banks, chooses which liabilities it would take responsibility for, notes and bonds with maturities of 3 to 10 years. Government pays down these liabilities thorough the cash flow that will be generated from the troubled assets themselves 8.Government hires professional money managers to oversee the liquidation. (Note of Disclosure, this is what my firm does best, getting the most money I can from the folks I work for, in this case, You, and the American People, Mr. President.) 9.The Banks retain strong assets bases, no longer have toxic securities, and will start to extend credit again. 10.Insurance companies benefit exchange weak debt to securities guaranteed by the Treasury. 11.The program must be mandatory. Government should also get stock warrants, the ability to purchase stock in the future at a guaranteed price. 12.These banks become the four best capitalized and cleanest banks in the world. Government could sell the warrants to private parties, another bonus for taxpayers. Private investors exercise the warrants, infusing even more common equity capital into the banks. 13.The Four Banks will have a clean balance sheet and the best capital ratios in the world, and start making new loans. 14.ALL NEW MORTAGE LOANS WILL BE MADE AT NO HIGHER THAN 8% INTEREST, AND WILL BE MADE 15 OR 30 YEAR FIXED, WITH THE FIRST PAYMENT DIVIDED EQUALLY BETWEEN PRINCIPAL AND INTEREST. 15.After the Recovery, Mr. President, you will have the political capital to convert Federal Reserve Notes to a New United States Currency, backed 33% in silver and gold, in exactly the following manner The U.S. Treasury WILL ARRANGE FOR 1.Loans in freshly created U.S. Paper Currency to Banks to bring their cash reserves up to 100%. All currency labeled United States Notes will be recalled and burned. 2.Banks would pay 3% interest to the Treasury on these loans. 3.Fed borrows from the Treasury the new currency to bring their cash reserves up to 100% to cover their demand deposits plus all government funds against which checks are being drawn by the government. The amount of U.S. Securities held by the Federal Reserve would be credited against these borrowings, canceling an equal amount. 4.15% flat tax ACROSS THE BOARD, CORPORATE AND INDIVIDUAL.
YouTube | February 25, 2009
