Bufford Warren Homes

An Idea To Jump Start Our Economy

We in America are experiencing a very depressed economy as a result of mismanagement of our credit markets. This has started a domino effect that has spread throughout the business world. I have stated in the past that in order to get markets and business back on track we need to address the issue of the excess inventory in housing and this I still believe.

Banks have now got to the point where they are refusing to loan money. I and many others have been under the impression that the reason banks were not lending money was that they did not have the money to loan. I no longer believe this to be the case. The Feds have lowered the discount rate to levels that have not been available for decades and the treasury has made a lot of capital available. We need an answer to this problem before business can again start providing goods and services. I do not believe in big government but there are times that their power should be used for the good of all. If the banks do not want to do the job that the business world needs to survive we may need to put them into a situation where they either perform or be nationalized.

Our government has invested a great deal of money in Freddie Mac and Fannie May and I believe that this investment should give us the ability to shape policy. We are essentially guarantying all the loans under these two entities. I suggest that this position be used to dictate that the interest rate on a Thirty Year Fixed rate FHA mortgage at 4%. This would calculate a monthly payment on a $200,000 mortgage to be $955; an affordable payment for most households. I also suggest that second home buyers and investors be offered the same rate but have to put down a minimum of 10%. This will bring buyers back into the market and absorb the inventory of homes in most parts of the country.

 

 

Does Obamas Plan Change Our Government For The Better ???

The social engineering that Mr. Obama has planned for this country's future scares the heck out of me. When you study his plan, his past actions and listen to what he says, it tells me that he wishes our government to emulate many of the countries in Europe.

I am a Senior Citizen that has worked all my life and I am still working full time because my retirement income will not stretch far enough to provide for those to whom I am responsible. I see some tough days ahead for me and my family but I do not want this country to become another Sweden.

The Social Democratic Party that controls the Swedish government has instilled a cradle to grave existence but at a very big price to its citizens. The Health Care industry is the country leaves much to be desired. A relative of my wife needed an operation on her feet. She was on a waiting list for 18 months, (Socialize Medicine). An uncle needed a gall bladder operation and elected to go out of country for the surgery. He worked in the USA for many years and could afford the flight for better medical care.

Taxes on income in Sweden range from 28% to 59.5%. But what most people outside the country do not know is they also have a Value Added Tax (VAT). The value added tax (mervärdesskatt or moms) rate in Sweden is 25%, with exceptions for food and services like hotel room rental fees (12%), and for sales of publications, admission tickets to cultural events and travel within Sweden (6%)^[1]. This tax in addition to the price of the product has made many products unaffordable. The result of VAT is a very thriving black market industry for many products.