Careful Change Makes for Long Term Progress

Bernie has recognized the inequities that has littered our landscape since the trickle down 1980's.  But he has been in Congress for the past 20 years and not gotten any meaningful changes affected.  So I have research to see why.  

Bernie puts out all the "Eye Candy" that looks shiny & new but it unattainable at the price you have to pay.  Free college sounds wonderful but their are costs involved, the question becomes Free to whom and who actually pays.  There are countries that have Free college but it is paid for by higher taxes:

1. Brazil: Brazil’s universities charge registration fees, do not require regular tuition.(Corp tax 34%  Individual 27.5%)

2. Germany: has 900 programs in English, and is eager to attract foreign students to tuition-free universities due to the country’s shortage of skilled workers. (Corp tax 29. 6%  Individual 45%)

3. Finland: doesn’t have tuition fees (Corp tax 20% Individual 62%)

4. France: does charge tuition – but normally around 200 dollars at public universities. (Corp tax 33.3%  Individual 66%)

5. Norway: including foreigners studying in the country, do not have to pay any college tuition with harsh winters & high cost of living. (Corp tax 25%  Individual 47%)

6.  Slovenia: has 150 English-language programs, and only charges a registration fee (Corp tax 22%  Individual 50%)

7.  Sweden: over 300 English-language programs, college is free, cost of living pricey for foreigners. (Corp tax 22%  Individual 50%)

As for Higher wages: Even if the sitting President raises minimum wages to $15 that only apply's to Federal Employees.  Each state can set their own minimum wage and there are many with a NO minimum wage: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee is $0.  Georgia & Wyoming are a whopping $5.15 an hour.

Breaking up the Banking System:

The Banking system permeates our entire lives from buying diapers to our retirement funds.  We need more regulation & safeguards to allow for safe less risky behavior on their part.  Laws that would implement jail time for lawbreakers would insure behavior for the Fiduciary Relationships the Banks & Investment Brokers have with all of us.  

Most of our mortgages are held and serviced by large banks who can hold the loans in pools with some higher risk and some lower risk.  The only way to keep interest rates at historic and affordable low rates is by bundling portfolios that are attractive to investors, that is how the mortgage world works.  Without the investors we have NO loans to be had.  Only the VERY wealthy will own homes leaving the Middle Class without the only way they can accumulate a net worth. We will also be at the mercy of those investors with Rents going sky high bringing them even more profits.  Our “Recession” was due to Deregulation in the 1980’s & ‘90’s allowing these Unregulated mortgage brokers to make very Risky Loans outweighing the Healthy Loans in those portfolios.  They talk about “derivatives” being the Root of all evil, NO, just a piece of the puzzle once the Risky Loans were generated & sold with High Risk for High Profits 

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. Fluctuation was the killer.  

The loans were negative amortization loans.  The "base interest rate" would be 7% with a year one rate of 2%, the difference in the interest rate on the unpaid balance (5%) would be added to the balance monthly.  Example: $200,000 Purchase Price & loan amount $0 Down. Then you have the added blow of including NO Income Verification Loans to the mix, you could buy almost any price home you wanted, just state how much your income should be to qualify.  Here is the result of those in Washington he Deregulated but apparently feel not enough.  They want more deregulation of the Banking Industry along with that of the Agencies that protect our water & food supply the result was the Mortgage Bubble and Flint Michigan.

$1330 vs $738  Payment $592 P&I less

Month 1 $1166 % at 7% $333 Interest at 2% Difference $833 Negative

Loan amount goes from $200,000 to $200,833

Month 2:  $1171% owed at 7% $334 % at 2% Diff $836 Negative

Loan amount from $200,833 to $201,669

Month 2:   $1171  $334  $836  $201,669

Month 3:   $1177  $336  $841  $202,510

Month 4:   $1181 $337   $844   $203,354

Month 5:   $1187  $338  $849   $204,203

Month 6:   $1191  $340  $850   $205,053

Month 7:   $1196  $342  $854   $205,907

Month 8:   $1201  $343  $858   $206,765

Month 9:   $1206  $343  $861   $207,626

Month 10: $1211  $346  $865   $208,491

Month 11: $1213  $348  $865   $209,356

Month 12:  $1222 $349  $873   $210,229 

During the mortgage crises values went down while mortgages went up.  With a decline of 10 to 20% the this home would be:

$30,229 under water, at 20% $37,229  

On a good year with $210,229 Owed Value at 3 appreciation $206,000 $4229 an owner would still be "Under Water"

 We cannot go back to the 2008 era and have everything pulled out from under us.  The wealthy don’t need mortgages so they survive well but we Need the very things the GOP threatens to take away.  They want to give us guns and take away our ability to afford housing or have Clean, healthy water and food.