Catapulted by a series of failures in mortgage financing, never before in modern times has the U.S. been in such serious economic peril. Unprecedented times call for unprecedented action.
The nations economy has been deflated by the real estate market, much of which has been in recession for more than a year, suffering double digit deflation in many markets. Law enforcement agents and investigators are digging through the mortgage mess, originally started by a series of newly developed creative financing programs.
Over zealous lenders and traders on Wall Street produced a financial storm of monumental proportions by changing the very nature of the mortgage business, trading mortgages on Wall Street like commodities to produce record profits. The financial crisis sent stock prices to new lows across the world, and housing prices downward in the majority of markets.
The artificial appreciation triggered by the free wheeling unregulated mortgages has resulted in an economy that now suffers from a recession, according to a majority of economists. The crisis has made a major impact on the U.S. economy and threatens to develop into an economic depression unless major actions are taken to halt the growing threat.
The United States is a Democracy and in times of peril the betterment of all the people should be of utmost importance. In his famous Gettysburg Address, President Abraham Lincoln said, “government of the people, by the people, for the people, shall not perish from the earth”.
It is with this history that we call on the Federal Reserve Board of Governors to take an unprecedented move. We ask the Fed to purchase or arrange a purchase of $100-billion in mortgages from lenders, who are unable to resell the securities to aid the U.S. economy in this time of crisis. This move will help to rebuild the very economic foundation of our nation, and strengthen some banks and other financial institutions.
The action may be seen as a bailout by some. But for the betterment of “the people” as a whole, this is the only step we see at present that will help to aid the business markets and restore financial stability to the market place. To do otherwise will send the nation on a path of economic destruction.