Saving the Economic System Free Market Style I am way out of my depth here and this project will need a lot of help.
This could be seen as a solicitation, which it is but only sort of since I really do not know what I am doing. Here are the basics: There are over a million homes / homeowners in some form of financial distress. At 200,000 each that is two hundred billion dollars. I have come up with a new ***FREE MARKET *** way of doing real estate that would address that, get most of the homes out of foreclosure, put the foreclosed upon back into homes and restore some of their lost equity. The method would reduce the cost of owning a home and of moving from one home to another.
On the principle that the company doing this would be entitled to a fee of one to two percent of the value of each home serviced, we are talking a few billion dollars net profit here. Now besides grabbing the attention of the country for saving its sorry ass and saving the housing market without a bailout or tax breaks to bloated incompetent dick heads (There would be tax breaks to --- lets call them "pre buyers of homes" --- and other low to moderate income people) the libertarian small government movement would now have at its disposal the kind of money that makes policy and gets people elected to office.
Yea... Several hundreds of millions of dollars can do that.
I need legal talent, finance talent, time share management talent (there are some elements of time share involved) and lots of other talent. Of course it would require an initial investment of 10 to 50 million dollars. Over which, I might add, I would have only limited control -- as a major stock holder in what would be a fairy public company.
I have been working on this for six months, and of the twenty or so people who have seen it, none has said it is not doable or would not work. They just did not know how to get it started.
So I am appealing to a pool of talent here to look at my idea, and either tell me why it can not be done, or devote some time and money to doing it. Oh... And you get to make a profit, help people (besides home owners screwed by the current mess, we will also provide housing / ownership for low income people who before could not afford to buy) and in general be an all around good person. If you want to pitch in, be aware that almost all decisions will be done -- not by vote -- but by consensus if at all possible
So ... Look at this as a chance to stop thinking about banking and the economy and to actually do something about them.
Please visit this web page. http://www.dnusbaum.com/Crisis.html
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Your plan could do some good for geographic mobility but not for social mobility. Although big ideas are a good start this does not change the underlining problems with the way we deal with real estate in the overall which is what is needed. Your idea wouldn't work because of the cost of logistics that would be required and the small amount of profit that would actually be able to be distributed to shareholders. It is a good not for profit idea if you could find home owners that are willing to share their living space which already exists for free through services like craigslist and managed by those that already want to participate. When I went to New York last year I rented someone apt. while they were in SF. It was a great arrangement.
Read 'Economics facts and fallacies' by Thomas Sowell - to get some ideas of your fallacies. The problem lies in the appraisal practices and land use practices that over inflate our real estate to the point that people can't afford them and prevent true supply and demand from working in a real 'free market'.
Third party intervention that tells people they don't know what is best and others that trumps anything an individual thinks is good for their own life.
Without these changes any ideas oustide this overall ideology only help those that already have something not those that have nothing.
Cynical is correct... This already happens on a grand scale and would be impossible when you have to compete with those that already have an interest and the only ones you can intise with this already do it in some form and make a lot of money off of it. Why would they help out for nothing?? Not to mention all of the companies that participate in investing this sort of investment to begin with.
Basically nothing new to the concept other than less money for the shareholder, which is the number one reason it couldn't work unless presented as a not-for-profit.
You sound like everyone wants to help out others. Well that is why the rich are vein. Ask Donald Trump.
Good luck keeping JP Morgan out!!!
Nothing wrong with solicitation, but I don't see what you can do that some investment companies aren't doing already.
And really, the market is as free as it gets, if anything, it's unnecessarily freer to the average buyer (and unfair to other Americans).
There are companies and groups set up to explicitly buy up foreclosed homes at auctions and "flip" them later (in fact, that's exactly what smart and rich people do).
"The government should be afraid of its people, not the other way around".
Well, you did not understand what you read, and you did not read my entire plan. I have shown this to over two dozen people and none of them came to the conclusion that you did. So you are either way smarter than they are, or you are missing something.
For one thing, I am not flipping, I am not buying at auctions, and i work with more than just foreclosed properties. So of the three items you mentioned, you were wrong on... well all three.
The computer revolution originated largely in the U.S. Much of the funding for early computer science has come from the U.S. government. Funding a Revolution shows the interactions among players in academic circles, government and industry.Funding a Revolution is extremely well written, by many contributors. I recommend it for self-education or classroom education.
James
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