Novel idea?

The Liberals GOP Twin wrote:

jmc wrote:

The Liberals GOP Twin wrote:

jmc wrote: OOPS! Never saw that.
Great minds?

For a second... I thought the abstract and study was written by you.

Not that good.
What do you think?

I already mentioned that I don't really understand squat about these more complicated financial stuff. I'm smart enough to read something, understand it may pertain to the topic of a thread and clip and paste it here, but my opinion would be totally uninformed.

So what else is new?

jmc wrote:

The Liberals GOP Twin wrote: Foreclosures Draw Private Equity As U.S. Sells Homes

Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery.

Creating more single-family rental properties is one of a series of programs introduced by President Barack Obama’s administration aimed at reviving the housing market.

Private equity funds began focusing on these investments in September, after the administration asked for proposals to sell the government’s inventory of foreclosed homes -- about half of all houses seized from delinquent borrowers.

The Federal Housing Finance Agency, which oversees Fannie Mae (FNMA) and Freddie Mac, plans to complete initial transactions in the first quarter of this year, offering some of the 180,000 foreclosed homes in their inventory to private operators as rental properties, Corinne Russell, a spokeswoman, said in a telephone interview.

http://www.bloomberg.com/news/2012-01-3 ... gages.html

Those big bad equity firms.

Big dodge, what do you think?

I told you I don't quite understand all this. I've discovered that many public and private unions have parts of their benefit portfolios invested in private equity firms. This seem also to be the case with many private companies' investment portfolios and right down to the private investor. I see various figures on actual returns from these equity firms, and most of those figures show a healthy return to the portfolios.

If I am to give an opinion on what I've read equity firms on the whole do a good job doing what they do. I read a report (I'm trying to find it right now, I guess I didn't bookmark it) that indicates the job losses generated by equity firms on the whole are no more or less than the over all job market.

Here's another report discussing the idea of how equity firms could benefit federal government programs.

http://www.economics21.org/commentary/p ... n-programs

jmc wrote: So what else is new?

JMC... the game is not working today. I was trying to have a conversation with you... you simply want to argue. I'm out.

The Liberals GOP Twin wrote:

jmc wrote: So what else is new?

JMC... the game is not working today. I was trying to have a conversation with you... you simply want to argue. I'm out.

I wanted posters ideas on the pluses and minuses. The right wingers have no imagination to solve problems, just cliches from your handlers.
Wimping out when the discussion gets intense is no excuse.
I am all about solutions.

jmc wrote: If the Gov. needs to act more like a biz.
LETS SELL EQUITY!
They only sell debt today why not IPO the gov (10-15 % of valuation) Assets are strong and appreciating. Biggest IPO ever.
Retire debt with the use of proceeds and pay a dividend. Variable rate.
I'd buy it. The States could do it too. A separate exchange , limited voting rights.
Overnight the deficit would be gone. Think about it but I know this too smart for the regulars. My expectations are low.
If it sells out ,I only want a small commission.
No sources my own idea.

We have sold equity. All U.S. government debt held by foreign interests is backed with the land, minerals, etc of the U.S. as collateral. If the U.S. defaults on our foreign held loans, then the holder of those notes owns the U.S. The property owner citizens/businesses will then be disenfranchised of private or public ownership.

Our loans were once backed by the gold at Ft Knox. No longer.

Arlen wrote:

jmc wrote: If the Gov. needs to act more like a biz.
LETS SELL EQUITY!
They only sell debt today why not IPO the gov (10-15 % of valuation) Assets are strong and appreciating. Biggest IPO ever.
Retire debt with the use of proceeds and pay a dividend. Variable rate.
I'd buy it. The States could do it too. A separate exchange , limited voting rights.
Overnight the deficit would be gone. Think about it but I know this too smart for the regulars. My expectations are low.
If it sells out ,I only want a small commission.
No sources my own idea.

We have sold equity. All U.S. government debt held by foreign interests is backed with the land, minerals, etc of the U.S. as collateral. If the U.S. defaults on our foreign held loans, then the holder of those notes owns the U.S. The property owner citizens/businesses will then be disenfranchised of private or public ownership.

Our loans were once backed by the gold at Ft Knox. No longer.

Sorry Arlen, you missed it, Selling debt ( even with collateral) is not selling equity. I am suggesting an exchange that buys and sells stock in the Govs. of the world. No obligation to pay except a dividend funded by cash flow. It would discourage deficits. The dividend would not be an obligation like debt. Businesses do it all the time.

Sorry, jmc, but equity is value minus debt. I do not know that we have value over debt.
To date the government has not shown a profit. Don't we run a deficit every year?

You "idea" is a no-starter.

Arlen wrote: Sorry, jmc, but equity is value minus debt. I do not know that we have value over debt.
To date the government has not shown a profit. Don't we run a deficit every year?

You "idea" is a no-starter.

The value is not just cash flow. Assets matter.Retire the debt with equity.

We have mortgaged our assets, as I mentioned previously. If you retire the debt with equity, then you and I will have to rent our homes from the Chinese because they will forclose on our homes.
Your "idea" has no merit.

If you get rid of the debt, the Govs. cash flow is positive, quit worrying about the foreign investors . they would be paid off by the proceeds of the offering. Think creatively. Businesses do it all the time.