The Bush Administration is in the process of completely usurping powers not given it by the constitution and (as of this writing) it seems that the Democrats may just roll over for them.
Since it seems to be a blank slate at far as writing the laws go I thought I would put together a list of laws that would really benefit the people of America. I exclude no one, including the filthy rich that are lining up at the government trough as we speak. Though I suspect that they would reject my list
This list includes provisions not only for the things that led to the mortgage mess and the side-effects that we see today but it also includes things that are also eating the people of America alive. I have included such topics as mortgages, the stock market, banks, insurance companies, credit card companies, infrastructure, utilities, fossil fuels, privatization of government functions, health care. There are quite a few.
If you have a few moments, jump over the fold and take a look at the list.
The list is by no means complete and by no means intended to be other than some things for folks to think about. If we really want to get the economy in order for all Americans this list covers many of the bases. There are losers - and we know who they should be - if this list could happen. If we let Bush and Company get away with their proposal we know we will be the losers.
The United States government should:
- Temporarily seize all mortgages in the United States.
- Sever all leveraged products from the underlying mortgages. Those holders of those leveraged products likely will experience a total loss.
- Package the loans in blocks for a product that has a fixed rate of return not to exceed 2 percent over the fed rate. The lien holders make the difference between the actual rate and the underlying percentages paid.
- All variable rate mortgages are converted to fixed rate mortgages.
- Foreclosure laws are enacted to prevent the seizure of homes where the interest and taxes are being paid. Partial payments that exceed the interest and taxes will be applied to the principal and the load terms are extended. This can be limited to a period of not more than 5 years.
- Bankruptcy laws must be changed so that firms and funds that participated in this Ponzi scheme cannot discharge all of their losses and they will be obligated for 5 years to pay on the outstanding balance. The United States government must be placed first amongst all creditors for these firms.
- Loss Carry-Forward provisions of the Tax Code should be amended to prevent firms from not paying tax obligations in the future by being able to write off this gambling debt.
- The Department of Justice should be tasked, in conjunction with other relevant departments and agencies to determine if any of the multiple leveraged mortgage products at any time were issued when the seller knowingly would be unable to pay the obligation. Prosecution for fraud along with the RICO statutes and the associate conspiracy charges are to be undertaken.
- Managers of funds that involve 401Ks and the like, Money Market, IRA, and Government funds at all levels that knowingly invested in products that were unlikely to be able to meet the obligation of that product are to be prosecuted under all available public trust statutes at all levels.
- All individual and company participants including their officers and other employees (but not all) found to have engaged in illegal activity to be barred from corporate boards, civil government where fiduciary responsibilities exist, and participation in any financial markets of any kind. Any assets relating to financial instruments or derived through those ill-gotten gains are to be seized. With a provision for the individual to retain an amount equal to the cost of a home at market average price.
- Any government official at any level that knowingly participated in these activities is to be removed from government by existing legal processes. They will be barred from all future elected office.
- All U.S. banks to provide limited service for a short period of time. During this period withdrawal of deposits will be limited. Payments of bills will be allowed. Transfers of funds not for paying bills are limited or restricted. This time will allow for an assessment of the capitalization of the bank.
- All U.S. banks will be required to recapitalize using profits while providing that the dividends paid do not exceed U.S. short term Treasury notes. A floor or minimum recapitalization amount is to be established for each entity. Dividends for such firms cannot exceed 10 cents per share. Using the formula of Profit-10 cents per share equals the recapitalization requirement. The period of recapitalization is not to exceed 10 years. After 10 years all firms that have not reached capitalization requirements will be auctioned to firms that can meet the capitalization requirements. Set a national limit on ATM fees not to exceed 25 cents.
- All U.S. insurance companies will be required to recapitalize using profits while providing that claims are paid. All recapitalization provisions for banks apply. All insurance company products where investors can buy interest in blocks of policies that will effectively act as fixed-rate bonds that carry an interest rate not to exceed 2 percent over prime.
- Establish a national ceiling on credit card rates. This rate should not exceed 1% per month compounded. Eliminate all late-fees as the interest rate is the risk premium.
- Implement a per transaction tax on all security and related product transfers for both buyer and seller.
- Implement commodity trading rules that require a buyer to have the facilities, owned or leased, to accept delivery of that commodity. Prohibit all commodity buyers from having an interest in any firm that will ultimately handle that commodity.
- Eliminate all "open market" utilities where consumers are at the mercy of profiteering. In return for monopoly status these companies are required to provide the service, maintain the means of production and delivery, and be required to have sufficient staff to reduce the multiple day outages that are commonplace across the nation. Companies are obligated to reinvest in infrastructure rather than to wait for it to collapse. These companies may not profit more than 2 percent above cost.
- Petroleum, natural gas, and coal are to be produced, processed, and sold at not more than 5 percent over cost. All domestic supplies that are exported are subject to the same limits. Thus it is likely that the maximum amount to be obtained from exporting is less than the world market price for those commodities.
- All outstanding leases with the federal government or states that are hold by companies that do not act on their obligations within 5 years will forfeit those rights and they will be re-auctioned. All sales or trades of those rights are subject to the 3 year provision and do not extend the time limit.
- Under no circumstances can a citizen of the United States be forced into Bankruptcy for obligations due to medical care. For profit corporations will be barred from providing healthcare where it is to the detriment of patient care or a citizen’s need for or access to health care. All for profit medical care companies, including insurance companies are limited to 5 percent profit. All medical facilities and equipment will be depreciated for time and patients will only pay for the per annum depreciation amount of the facility or equipment used plus the 5 percent maximum profit to the manufacturer. All medical devices and equipment manufactured can be sold for at most 5 percent over cost of manufacture. The same applies to prescription drugs and vaccines.
- Construction of schools can cost no more than 5 percent over the cost of labor and materials.
- Construction of roads and bridges can cost no more than 5 percent over the cost of labor and materials.
- Construction of Sewer and Water facilities can cost no more than 5 percent over the cost of labor and materials.
- The construction of homes or the remodeling of existing homes cannot cost more than 5 percent over the cost of labor and materials.
These last 4 provisions are meant to prevent contractors and companies from using low-cost day labor and pocketing the profit and increase wages in the construction trades.
- Privatization of government functions at all levels to be reversed if the cost exceeds the amount the government entity would pay if it were to equip and employ the people to perform the same task. Private companies will be allowed to participate provided they accept the contract at the same cost basis as the government entity. Collusion between government officials and private entities are to be prosecuted with all parties subject to a ban from any government position or contract for life.
- Companies that appointed minorities and women, in name only, to allow them to benefit by the advantages provided under government preference for minority and women owned firms should be prosecuted under the fraud statutes. All companies and officers of those companies to be banned from any government contract for life.