In the letters sent out to President Obama, Bernanake and Gary Locke in April 21, 2009, it said the real estate market relied on the government support and the lending systems. At that time, the real estate market was under the limited effort in foreclosures. It drove down the real estate prices. Many properties were sold below the construction cost. If the banks continued on this practice to drive down the market prices, many economists and even the Nobel winner would predict the Great Depression would come again. The method, which suggested the second mortgage to level the loan principal, using the multiple years of calculation for mortgage interest, was sent out in April 15, 2009. Only if the property owners and banks could maintain the original value of the properties, and the home owners only had to just pay the mortgage interest without paying for the principal (just pay for the monthly maintenance fee). And let the unpaid balance turn into additional mortgage amount. With this method, the home owners can keep their properties and go through the difficult period, the financial crisis would be solved by itself. Very soon, the market prices would rise back to its original level. Both home owners and banks would not have any financial loss. The economy would be recovered. Eighty years ago, if the American government had employed the above mentioned method, the Great Depression would have never happened. YAO April 21, 2009 P.S. In April 10, 2009, Warren Buffett said the rebound in March 2009 a reverse of the square root. He would not buy any stocks in 3 years. In my letter in April 15, 2009, It was actually the V shape rebound. In April 12, 2009, Nobel economist Paul Krugman said that the Great Depression would come again. Nobody could save the world. In April 27, 2009, the American government announced the “2nd Mortgage Collateral”. It was truly my economic theories. It was also the end of the nationalized of the banking systems. In the same day, the Air Force One and 2 F-16 planes flew over the Statue of Liberty, the author believed that it was President Obama and YaoFu were working together. The confrontation between the Nationalism and Capitalism took place. Nationalism caused unemployment and poverty. In China, it happened in Year 1954. Many people were dead in 1960. Cuban experienced the same in 50 years ago. Many flew off the country. In 1929, it was the beginning of the Great Depression. Nationalism didn’t admit the failure. The author could only mention that the success of the politics and economy is based on policies. Bless the World Peace Yao Fu Huang September 15, 2013, New York
Posted on: Tue, 17 Sep 2013 12:57:31 +0000
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