We The People! A way out of the current morass is possible. 

Let us as a people, recommend to our Government that they should go to the roots of our problems, the sufferings of our people. This country was founded on rights of the people. Our rights, dreams and hopes are in dire straights due to the selfishness of a few.

A quote from one of our founding fathers is appropriate at this time, Thomas Jefferson once said:

'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.'
Thomas Jefferson 1802

And he said it 206 years ago.

  With this warning in mind I would propose the following remedy, which would bring back our economy without any harm to the people or the Government. Bear in mind that this is a rough sketch of what could be done, with more detail needed in terms of how to implement these ideas naturally.

1. Step one is that the Government would purchase all mortgages for private residential property owners who are in jeopardy of loosing their homes. Those who are truly in need, but also a consideration for those who apply for relief even though not yet in harms way. One trillion estimated would be needed. This would directly help each and every American who is in jeopardy of loosing their home now or in the near future. The stability of home ownership is paramount, it is the foundation on which our economy is built. We must have a strong foundation.
    
2. Banks, institutions and other Lien Holders would be offered a buy out of their mostly worthless paper at a fair discount of perhaps 10% to 15% of the payoff amount. Payoffs would eliminate all high interest rates and terms of existing contracts. All Lien Holders should be contemplating their losses otherwise if these properties continued to devaluate, this would be a way out for these Lien Holders  and fast cash for them to recover as well. It would restore confidence in America by Foreign investors also, who have bought up a large share of these bundled loans only to see their investments deteriorate.
    
3. The Government could then arrange plans for Freddie Mac, Fanny Mae or HUD etc… to do the note servicing. Drop the high interest rates down to a low of 3% to perhaps 4% flat for each account. Stretch out the loans for a 40 year fixed time period if needed. Over time the Government, or we the people, would recover our money with interest. Security is in the land we own.
    
4. The Government would not be giving away Billions or Trillions of dollars with no accounting or control of such spending. They would actually have stable collateral for this expense as realized in Real Estate holdings.., or real property.
    
5. A family could then own a home for no more than they would pay for rent. Confidence would return and productivity.

As simplistic as it may seem, this 5 step plan could be done virtually overnight. The key is not where the money comes from.., that has been established. The key is that we already have the ability to service such debt with Fanney Mae or Freddy Mac and other financial institutions that are already in place. – Banks, Investors and other Lien Holders would not loose out, but be made whole again with the cash buy out of their real estate holdings. Politics being what they are.., it would seem most probable that special interest groups and pet projects would find their way into such a plan. That is yet to be seen.

Don Leske II
Real Estate Broker
Grandfather to seven