The People's Solution to the Financial Crisis

The solution to the financial crisis does not reside on Wall Street, or in Washington D.C. It lives in the living rooms of the American people.

The plan to get us out of this calamity is simple.

Problem

The banks, insurance agencies and brokerage houses cannot asses the value of their bonds because the falling housing values and the more that 5 million homeowners that will soon default on their mortgages. As they can't assess their value, no one will purchase their bonds or any other financial products that the institution offers.

Solution

Reassess the value of the at-risk, Adjustable Rate Mortgages by reducing their value by 30% and refinancing the mortgages at a fixed rate of 6%. Anyone who took out an ARM loan in the past 4 years is eligible.

This means:

• The banks (IE., Wall Street) will absorb the loss and move on, now able to value their assets. If each of the 5,000,000 homeowners take an average of 30 percent off of their mortgage it will approximately cost Wall Street 500 billion dollars.
  
• Treasury Secretary Paulson has asked for the authority to spend 1.2 Trillion dollars.
  
• The Peoples Plan saves the country 700 billion dollars.
  
• The 5 million at-risk homeowners will stay in their homes.
  
• The tax payer won't bail out the corporations.
  
• Life will go on.

Let us know what you think. If you are at risk of loosing your home let us know if this plan works for you.