Hey Republicans you going to fix it?

[Slew Foot]

I dont understand number 10 on jadows list. Is he really saying the mortgage can be no more then 25% of your yearly income? So if you make 200k a year you only get a 50k house? WTF is this shit? Jadow is gonna sink the economy with this crap. How constipated would the money supply be in that situation?

It means if you want a govt loan the monthly payment can be no more than 25% of your gross monthly pay.

 

[Hayabusa Rider]

I dont understand number 10 on jadows list. Is he really saying the mortgage can be no more then 25% of your yearly income? So if you make 200k a year you only get a 50k house? WTF is this shit? Jadow is gonna sink the economy with this crap. How constipated would the money supply be in that situation?

I don't think so. The old rule of thumb is that a mortgage payment should not be more than 25% of your income, or one weeks wages out of a month. If you were to make 1000 a week you could afford a 1000 mortgage a month. That standard has long gone out the window with housing inflation.

 

[Zebo]

How I would fix it:

1. Institute 10% across the board cuts to EVERY federal agency including defense
2. Bring troops in Iraq and Afganistan home
3. After the 10% cut, institute a 5 year spending freeze for every federal agency, after that, limit their growth to inflation minus .5 %
4. For people under the age of 50, increase Social Security full retirement age to 69, modify formula so increases are based on inflation, not wages.
5. Increase the age for Medicare to 67 for people under 50
6. Modify Medicare prescription drug plan so it pays for generic drugs only (all drugs are generic after 14 years or so...)
7. Make Bush tax cuts permanent
8. Promote and pass a balanced budget amendment to the constitution, counting all long term entitlement obligations as part of the budget. Make the law effective in 2016
9. Though it won't have much any impact on the budget, kill the NEA and cut public broadcasting's budget in half.
10. Put hard restrictions on Fannie and Freddie, all loans they buy must have documented income for the past 3 years, and the mortgage can be no more than 25% of the gross income of the buyer.
11. Pass legislation to make bailouts of private companies illegal

This simple plan would stabilize our economy, give everyone a clear understanding of what the playing field will be like, eliminate all long term Federal budget issues without changing the American way of life, and put us on a long term path to even greater wealth and progress.

You would not "fix" anything but make it worse.

You can't Fix Unemployment and The Deficit, you can fix one but you have to make the other worse.

Lets say you slashed Deficit spending, 2/3 of Americans depend on gov't spending in one form or another to survive. Take 10% out of SS check or cut 10% of officers in the military or all of it as you say that's 10% less going making jobs.

We have to generate 3 trillion in additional debt each year just to service the 55 trillion.

 

[Zorkorist]

It can absolutely be fixed. Will it be painfull, yes it will.

In short it will require us to lower our standard of living, with all the consequences that entails.

But we made our bed, and now we must lay in it.

-John

 

[Zorkorist]

It's far better to do it now, rather than later.

-John

 

[dawp]

I aspire to be like you some day. Can you guide me to achieving such wisdom and serenity?

when politicians spend most of their time fund raising, yes all they care about is the next election. they don't like the system as it is now but will not change it because they might lose power.

http://www.newsweek.com/2010/10/31/klein-money-politics-and-the-2010-midterms.html

 

[dmcowen674]

It can absolutely be fixed. Will it be painfull, yes it will.

In short it will require us to lower our standard of living, with all the consequences that entails.

But we made our bed, and now we must lay in it.

Looks like Moonie and me asked the same question. I posted this first.

Anyway, why would anyone believe that Republicans that put us in this mess to begin with would all of a sudden change their ways?

They didn't for the 8 years with Bush and they won't under 8 years with Palin either.

 

[IBMer]

I don't think so. The old rule of thumb is that a mortgage payment should not be more than 25% of your income, or one weeks wages out of a month. If you were to make 1000 a week you could afford a 1000 mortgage a month. That standard has long gone out the window with housing inflation.

A lot of people couldn't even afford rent if that was the standard.