FIRST:
Create Super Bank CD! Get funds into the marketplace, NOW!
Create a
"SUPER BANK CD" at $25,000,000 (25 million)
each from the remainder of
the "bailout" funds for the immediate deposit
in major selected banks. Funds taken in by banks as
deposits must
be returned into the community as loans within 90 days, or face stiff
tax penalties. The bank avoids penalties by
issuing a "commitment letter" for a loan to
a borrower.
This policy keeps banks from parking or hoarding deposits, and
forces them to offer loans, sometimes at reduced rates to avoid
penalties. This is an old policy that has worked for many decades.
These laws are already
on the books in all states.
If Congress allotted just a mere 50 billion of the 750 billion
in Super Bank CDs at 25 million each, that would mean
that 2,000 banks in the U.S. would have each received
25 million dollars to invest directly into their communities within
90 days. Awesome!
Ok; too much, make it a 12.5 million Super CD, and thats 4,000 banks.
This is real money, it will work, and the
economy would be on Turbo with several banks in each
major metro area competing to give out loans.
Take the top 400 metro areas getting the 12.5 million CDs for 4,000 banks,
averages 10 banks for each of the top 400 metro areas.
Prescott AZ with a population of less than 35,000 is at the very end of
the top 400 markets.
All smaller markets
will get the "trickle down effect" as lenders will be offering
incredible offers to avoid penalties after the 90 day time limit.
And if you assign 100 of the 750 billion dollars
(or 13% of the bailiout)
you double the figures and deposit 25 million dollars to 4,000 banks!
WOW!
And Yes Virginia, this will really work!
THE BAILOUT HAS NOT WORKED AND HAS
EVEN BEEN ABUSED!
HAVE YOU SEEN ANY
REAL POSITIVE EFFECT?
IS YOUR BANK OFFERING GOOD DEALS ?
HERE ARE SOME FACTS OF THE
ABUSES:
The recent news of the purchase
by one of our "bailout" banks of another
bank in Singapore, and not as a loan to
the community, is proof that the bailout funds went into the
operating funds, and not into the U.S. housing and loan market.
Further, this mid-January, another arrogant bank just "ordered"
a $50,000,000 (50 million dollar) corporate jet. Does this
sound like a bank in trouble, requiring a "bailout".
Think about it; that translates to 100 housing loans at $500,000
each, or 200 home loan mortgages at $250,000 each. Or funds to
prevent foreclosures to 200 to 400 homeowners for refinancing.
So much good could have been accomplished if our elected
officials gave half of the "bailout" to cover provable operating
funds, and half as a Super Bank CD, those deposit funds would
already be in the market place, with the banks offering mortgages
and auto loans without delay. Perhaps by also offering a toaster or
a tote bag.
This is further proof
that the above simple, logical and practical procedure was not done!
| THE SUPER BANK CD IS THE REAL
"STIMULUS BILL" THAT WOULD WORK!
| | |