Infinite Luxury Just for You

Let’s see, if I were a U.S. Senator or part of the new Obama Administration, my number one action would be to relieve the stress on the mortgage crisis by readjusting mortgages with major lenders to match the current home fair market rates.  My number two action would be to stimulate the housing industry by giving a $15,000 to $25,000 tax credit to new home buyers depending on the sales price of new or resale home.  Along with this, I would immediately recognize that the current proposed $7,500 tax credit is symbolic and political rhetoric.  My third action would be to stimulate jobs at the state and local level compared to the federal level.  Guess who will bear the costs at the Federal level?  Well, it might have something to do with wealth redistribution.  Sorry, Joe, no tax breaks for your small business this year, next year, the following year and so on.  My fourth action would be to instill economic confidence at the state and national levels–spreading the “doom and gloom” at the National level does not help and only hinders the recession we are in.  My fifth and constant action, until my reelection, would be to get us out of the recession we are in.  Lastly, and, yes the most important action would be to never let the Obama Administration and the National Security Team waver on our National Security of the homeland.  It is easy for Americans to forget 9/11 but there is a 9/11 waiting to happen every day so we must never let our guard down, ever.  We all know that New Year resolutions often fall by the wayside after the first 30 days into the new year but if I don’t carry out my first two resolutions on this list as a U.S. Senator (if you or I only were one), then I have failed to help my constituency in time of need that got me elected (same goes if I were a State Governor). 

     Where are the Bailout Initiatives for the Individual Home Owner?  From Wall Street Investment Firms, Banks, to the Auto Industry, everyone is getting bailed out except for the one individual that matter the most in our economy—“Joe” the home owner.  We hear the sad stories every day.  The other night on one of the local news channel, a homeowner had to move out of their home on Christmas Eve based getting foreclosed.  Who is his advocate on the steps of Washington Capital building? 

     The $7,500 tax credit given to first time homeowners is not enough to stimulate the housing industry—the U.S. Congress needs to double or triple this tax credit.  What about mortgage debt relief?  Homeowners “upside down” on their mortgage and facing bankruptcy with a $100,000, $200,000, or $300,000 deficit with regard to what their home is worth compared to their current mortgage is not concerned about the tax credit.  Yes, there needs to be a stimulus initiative to “kick start” the home sales industry again, but, the tax credit is only one side of the economic relief that is needed.  Immediate action needs to take place to help current homeowners facing crisis with an “upside down” mortgage.  Congress needs to pass legislation that will immediately correct current mortgages with current market appraisal home values and monthly mortgage payments should mirror the current home market value of the individual home.

     For the way forward, the tax credit should be built in to a dual purpose congressional package that considers both the current homeowners and future home owners.  The median price of a new home in Las Vegas dropped 10.8 percent from a year ago ¹ and since last month, there was a 180 percent increase in home sales from the same month a year ago. ²   So, it is true that there are some amazing deals for new and qualified home buyers, but, the foundation of an economic stimulus plan should include current home owner’s mortgage adjustment value that matches the current market appraisal as well.  I am not saying anything new here but it is time for our congressional leaders to take real action to help our individual homeowners in need.  We are a Nation that can unite in time of need as we have proven on many previous occasions throughout our history.  You can’t build a business without focusing on your business’ “bottom line—i.e., the customer.”  The “customer” in turning around our economy is “Joe, the individual homeowner.”  

     There is a lot of undisclosed content with regard to President Elect Obama’s stimulus package but if this stimulus package does not include the foundational element I highlighted above, we all need to write our congressional leaders and ask why.

¹.Las Vegas Review Journal, online edition, 24 Dec 2008. 

^2. Las Vegas Review Journal, online edition, 11 Nov 2008.