Tag Archives: Pull-Back Economics

Claw Back Housing – EMPOWERMENT RESOLUTION 2015

imageFor some reason, housing issues don’t stay on the radar screens of hopefulness for very long. People just don’t seem to know what to do with those banks, government-supported finance institutions and realtors who took – and continue to take – so selfishly of most average people’s foundations of wealth.

I have a suggestion, and it’s related to my recent positing of 15 Empowerment Resolutions for 2015 (see below). It’s number 2, actually, though order isn’t really that important. I’m writing on them as I can with the hope of having a year’s discussion on realistic models of change.

Anyway, hEre is what I wrote as my #2 2015 resolution: “EMPTY HOUSES – Income equality ties us to financial institutions to buy and maintain a house and a home. Why not force proactive investments from the banks to prioritize living stability?”

First, if you need a good overview on the issue, read what Bill Moyers posted on the issue, one of President Obama’s big errors. (Read this piece folks, it’s enlightening!)

Here’sResolution page 1 how an EMPOWERMENT mentality would fix the housing criminality that occurred and that must be rebalanced.

We need to require that banks or real estate investors who sit on empty property – often in blighted neighborhoods – reset their prices for these places back at pre-meltdown appraisal levels. Then they must be made to give commensurate loans to individuals that include a right for owners past, present or future to “claw back” unreasonable forces that seek to hurt or exploit their investments over a period of five years. The banks are profiting massively from incentives to force people out of their homes. Why can’t we get TARGETED gifts of our own to right their wrongs? (Do you know that the bank service agents, as incentives to derail foreclosure adjustments, we given gift cards from Target to derail the efforts of consumers to rescue their homes? No kidding!)

But it even forcing this kind of pull-back economic provision isn’t enough. To ensure that the banks and financiers play fairly, they must be made to identify Neighborhood Impact Zones (since they and the government like these kinds of designations) that are designated to receive any artificial profits that happen from finance game playing while the region resets it’s fairness. Such steps, by the way, are not that different from CLAW BACK provisions in sophisticated corporate contracts when cheating occurs.

I think an approach like this would have the impact of creating countervailing force against the tendency of housing/home profiteers to divert away investment benefits in affordable housing districts. See, we know simple ownership doesn’t provide an automatic voice in the housing agreements once consumers are on the hook. Developers normally come in, invest, and drive locals and affordability away, and the banks literally give their employees gifts to favor profits for them over home stability.  My proposed rates pull these forces back under control.

It will take some smart thinking, but it will work. Don’t believe me? Prove it. The market is fighting to put social and community purpose into financial spreadsheets. It’s called Impact Investing. Why can’t our otherwise empty neighborhoods be the proactive players in using these interests to recapture their own?

HERE ARE THE REMAINING 2015 Empowerment Resolutions:

Resolution page

Pull-Back Economics – A model for STUDENT DebtLESSness!

Just half of ADDED annual wealth increase pays down 50% of ALL American student debt! PULL BACK JUSTICE

Just half of ADDED annual wealth increase pays down 50% of ALL American student debt! PULL BACK JUSTICE

Except as a campaign hate line, no one thinks Trickle Down Economics worked. If anything, it’s chief effect has been a massive up-flow of wealth to those who hardly need it.

To address this critical and potentially explosive situation, we need a new economic model — a fancy academic justification for a new strategy that favors bringing money justice back down to our streets! It’s simply past the time for the brains of change to build us all better economic equality trap.

I favor a multi-step roadmap toward something called Pull-Back Economics. Such an economic strategy for re-establishing money justice (which makes this idea PBJ!), has yet to be outlined, but it’s logic seems sweet!

We simply need to show that when the consumers and buyers of capitalism are treated fairly, they enjoy the benefits of capitalism in reasonable proportion to their need to be in the game of financial success. Even the best of the wealthy won’t enjoy a teeter-totter of there is no up and down balance. Pull-Back Economics would provide the credibility for this truth to be once again understood.

Reagan pulled the wool over the nation’s eyes with greedy selfishness; it might be time for a progressive HilLiz (think either Hillary or Ms. Warren!) to write her own script to uncover our visions.

A quick example of the idea and need in action: Pull-Back Educational Debtlessness! That’s debt-LESS-ness, not indebtedness.

In 2014, America’s Billionaire Boys – if you believe Forbes – increased their wealth by some $270 billion. In just one capitalist season.

Or put another way, they gained an amount equal to have of the country’s entire student debt in one year, over and above the too much they already had.

President Obama – thanks O Glorious One!! – has suggested one way to effectively counter this. He wants the nation to offer free community college. Except it is just a proposal going forward, and it only works if his recommendation can be passed; and, of course, if the banking and finance interests don’t just shift the costs of this effort back to us under the disguise of these same conservatarian foolery that protects trickle down failures.

With a credible Pull-Back Economic model, we can be more direct — and act more like a dentist during an extraction! We simply need to establish that half of the GROWTH of billionaire booty for two years goes directly to paying down student debt. Then th same for a second year.

And magically, no more student debt. In that time – as community college becomes free – we would have taken a huge leap toward righting the academic economic foolishness that underlies the Reagan and Bushtakes.

I’m telling you, come up with some thinking like this and I might for the first time willfully volunteer to enroll in an economics class again — a Pull-Back Econ class!