How to solve the financial mess, or Las Vegas here we come.

To quickly, but not painlessly, solve several of the underlying financial problems facing the US right now I propose the following:

1. Don't begin with the first problem, begin with the closest. If a snake coiled to strike don't grab it by the tail, chop off its head. Credit default swaps and some other strange pieces of paper are the latest crisis and are not investments or insurance, they are gambling debts. Therefore they are unenforceable agreements in a court of law and recognition of this, (or congressional action to declare them unenforceable) would practically eliminate these liabilities from the economic picture. Whether banks or ins companies would use enforcers to collect the bets is another question but these things are no better than a bet on the races.

2. Then, address the mortgage question by resetting all housing notes to a maximum of 5% interest and allow any homeowner, or investor in three or less houses, to re amortize the note over at least 20 years. This would reset payments much lower in nearly every case and still give mortgage note holders a greater return than treasury bills.

3. Allow legitimate mortgage holders (banks) who want out of non performing notes to sell a 55% interest to the government, and allow the government to resell its portion of the note or the property itself. If the property were sold, the proceeds would be split in the same ratios.

4. Pay me a great deal of money (executive compensation) for these ideas and I demand a 1.5% override on all property sold. These three simple proposals would sort out the default swap and non performing mortgage mess in short order with far less smoke and mirrors required than the bailout proposal. In lieu of the 1.5% windfall, I would accept the difference between the cost of these actions and $700 billion dollars.
Mrknowitall, Sr.