Home › Forums › Financial Markets/Economics › My vote for QE3
- This topic has 26 replies, 16 voices, and was last updated 12 years, 5 months ago by
moneymaker.
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July 19, 2012 at 12:03 PM #19987July 19, 2012 at 12:11 PM #748428
CoronitaParticipantGive anyone with a credit score 750 or higher who is well qualified for a loan on either primary home or rental home(s) and/or both 0.0% APR fixed rate loan for 15 years and allow those well qualified people to take out as many loans as their income can support, with the caveat that
(1) The loans only given to U.S. citizens and permanent residence.
(2) The loans would go through extensive screening, checking and verification such that liar loans are nearly impossible.1. Housing market problem goes away
2. Keeps the stock market pumped up (since no one will want to buy fixed income)
3. Put’s this country’s finances in the hands of the more qualified and more responsible people in this county.But most importantly…It would benefit people like me the most.
July 19, 2012 at 12:46 PM #748431spdrun
ParticipantNothing. Let the chips fall where they may — lower asset prices will benefit the competent vs the idiots who overspent.
July 19, 2012 at 12:53 PM #748432Hobie
Participant1 year tax amnesty on US corporations profits that are earned/deposited out of country if they bring them stateside.
July 19, 2012 at 1:33 PM #748438The-Shoveler
Participant0% 5 year loans on all durable goods.
July 19, 2012 at 1:42 PM #748439poorgradstudent
Participant[quote=flu]Give anyone with a credit score 750 or higher who is well qualified for a loan on either primary home or rental home(s) and/or both 0.0% APR fixed rate loan for 15 years and allow those well qualified people to take out as many loans as their income can support, with the caveat that
(1) The loans only given to U.S. citizens and permanent residence.
(2) The loans would go through extensive screening, checking and verification such that liar loans are nearly impossible.1. Housing market problem goes away
2. Keeps the stock market pumped up (since no one will want to buy fixed income)
3. Put’s this country’s finances in the hands of the more qualified and more responsible people in this county.But most importantly…It would benefit people like me the most.[/quote]
I like your idea, but let’s change it just to first time home buyers with good credit. Because it would benefit people like *me* the most. We don’t need more rental properties, especially in San Diego.July 19, 2012 at 1:48 PM #748442CoronitaParticipant[quote=poorgradstudent][quote=flu]Give anyone with a credit score 750 or higher who is well qualified for a loan on either primary home or rental home(s) and/or both 0.0% APR fixed rate loan for 15 years and allow those well qualified people to take out as many loans as their income can support, with the caveat that
(1) The loans only given to U.S. citizens and permanent residence.
(2) The loans would go through extensive screening, checking and verification such that liar loans are nearly impossible.1. Housing market problem goes away
2. Keeps the stock market pumped up (since no one will want to buy fixed income)
3. Put’s this country’s finances in the hands of the more qualified and more responsible people in this county.But most importantly…It would benefit people like me the most.[/quote]
I like your idea, but let’s change it just to first time home buyers with good credit. Because it would benefit people like *me* the most. We don’t need more rental properties, especially in San Diego.[/quote]That wouldn’t help in a sustaining way. For QE3 to work, you need a constant stream of economic activity. The only way that happens if you continue to allow folks to buy things.. There aren’t enough first time buyers that would qualify that would be able to sustain a steady stream of purchases.
July 19, 2012 at 1:53 PM #748444briansd1
GuestIf we want to put more money into the economy, a good way to do that is to automatically lower the interest rates of homeowners who are current on their mortgages but cannot refinance because of bad credit or lack of equity.
Those guys are current so they are of minimal risk of default.
July 19, 2012 at 2:35 PM #748447moneymaker
ParticipantI submit that my idea allows all the above to occur. Most people with significant 401K’s have good credit, many are underwater, most that are under water would love to refi, the loans/withdrawals(your choice) are in essence interest free, as the interest goes back into the 401k-minus the yeary maintenance fee(if a loan occurs). I personally would not benefit a lot, but it would give me the option to withdraw money so that I could invest in specific stocks(and not be limited to what’s in the plan), and maybe the best reason of all is it would be by choice, if you don’t want to take it out, then don’t. It would also be a tax cut because the IRS would not get that 10% penalty fee. Ok I guess Hobie’s idea would not be met
July 19, 2012 at 2:49 PM #748449ParticipantWhy not actually encourage savings and thrift, instead of discouraging savings in favor of borrowing? Is it really a good thing to keep 95% of Americans on the slave-treadmill, in hock to the company store? Bad idea in the 1800s when there were company towns. Just as bad now.
I have a different idea: mandate vacation time and working hours in line with most of the civilized world. Reduce productivity per worker, so that more workers reap the benefits of employment.
Let home prices fall to where they’re affordable on one to 1.5x the average income in an area.
July 19, 2012 at 3:07 PM #748451CoronitaParticipant[quote=spdrun]Why not actually encourage savings and thrift, instead of discouraging savings in favor of borrowing? Is it really a good thing to keep 95% of Americans on the slave-treadmill, in hock to the company store? Bad idea in the 1800s when there were company towns. Just as bad now.
[/quote]Majority of the people do not have to be in a slave mill, if they do things accordingly. It starts from early on with the proper education and proper selection of what they will do. If that is not done correctly it spills over to later years and then later years and later years. And eventually it catches up.
[quote]
I have a different idea: mandate vacation time and working hours in line with most of the civilized world. Reduce productivity per worker, so that more workers reap the benefits of employment.
[/quote]Sure, tell that to our global counterparts and tell that to the CEO’s that try to move opportunities overseas because those folks there work 7 days a week.
[quote]
Let home prices fall to where they’re affordable on one to 1.5x the average income in an area.[/quote]Tell that to all the existing homeowners, then good luck getting re-elected.
We should encourage responsible investing. Basically ,we should discourage loose lending and only allow lending to those who have the capacity to digest loans. In the right hands, leverage allow some people to build wealth.
You’ll never be able to create meaningful wealth through pure savings alone, especially these days with a weak USD policy.
July 19, 2012 at 3:27 PM #748452ParticipantWrite down the existing homeowners’ loans to current fair values. Permanently, no restrictions on re-sale or renting. Hell, make the new mortgages assumable. End of story. Real estate bubbles aren’t wealth creators. And development for its own sake is deleterious to the environment.
As far as working hours, plenty of places that are doing well economically (Germany, Australia) have restrictions on hours and vacation time. We shouldn’t aspire to be China or Japan, where people commit suicide from overwork.
BTW – wealth creation via inflation or encouraging people to buy more of the same trinkets made in pestholes with no labor or environmental standards is a f**king sham. If anything, we should be aiming for genuine innovation combined with environmental sustainability.
I’d be all for “free” money for clean-energy projects, ranging from solar, to wind, to new nuclear plants. The goal should be to phase out fossil fuel use inside of 20 years. This should be combined with a tax on fossil fuel energy that starts small, but doubles every year or two. The carrot and the stick, make it so that in 20 years, using fossil fuels for power generation, heating, or driving will be prohibitively expensive, while clean sources will become cheap as economies of scale grow.
July 19, 2012 at 3:44 PM #748453all
Participant[quote=flu]Give anyone with a credit score 750 or higher who is well qualified for a loan on either primary home or rental home(s) and/or both 0.0% APR fixed rate loan for 15 years and allow those well qualified people to take out as many loans as their income can support, with the caveat that
(1) The loans only given to U.S. citizens and permanent residence.
(2) The loans would go through extensive screening, checking and verification such that liar loans are nearly impossible.1. Housing market problem goes away
2. Keeps the stock market pumped up (since no one will want to buy fixed income)
3. Put’s this country’s finances in the hands of the more qualified and more responsible people in this county.But most importantly…It would benefit people like me the most.[/quote]
Would that 0% interest be tax deductible?
July 19, 2012 at 4:46 PM #748457an
Participant[quote=flu]
[quote]
Let home prices fall to where they’re affordable on one to 1.5x the average income in an area.[/quote]Tell that to all the existing homeowners, then good luck getting re-elected[/quote]
It might be true for your average homeowners. But for me, as a current homeowners, I’d love to see price fall to 1-1.5x the average income in the area. That would mean I’d be able to pick up an average SFR in MM for between $80-120k. I’m sure you’d be happy with that as well.For that matter, that mean I can buy a my move up house in Del Mar (just your average house in Del Mar) for $170k-$255k. Or maybe I’ll shoot higher and get an average house in RSF for $200k-300k.
July 19, 2012 at 5:03 PM #748462sdrealtor
ParticipantPonies for everyone to solve our reliance on foreign oil.
Vermin Supreme for President!
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