Hi Friends . . . . . I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a “We Deserve It Dividend.”

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child.

So 200,000,000 might be a fair stab at adults 18 and up.

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a “We Deserve It Dividend.”

Of course, it would NOT be tax free.

So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife team has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads.

Put away money for college - it’ll be there.

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs.

Invest in the market - capital drives growth.

Pay for your parent’s medical insurance - health care improves.

Enable Deadbeat Dads to come clean - or else.

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And, of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…we’re going to do a $85 billion bailout, let’s bail out every adult US Citizen 18+!

As for AIG - liquidate it. Sell off its parts.
Let American General go back to being American General. Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion “We Deserve It Dividend” more than do the geniuses at AIG or in Washington DC.

And remember, This plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh…I feel so much better getting that off my chest.

Kindest personal regards, Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic.

PS: Feel free to pass this along to your pals as it’s either good for a
laugh or a tear or a very sobering thought on how to best use $85
Billion!!

Mortgage rates dipped last week to a two month low. But we will likely see them bounce back up in response. Additionally, there is no indication they will go down any further. Inflation is the key driver here, and it is not letting up as the summer gets into full swing. We recommend getting a rate locked now, as they are still historically low.

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Bankrate
When the stock markets lose triple digits and mortgage bonds don’t blink, it’s a pretty good sign we have greater odds for less bond demand — and higher rates. Still no indication that rates are breaking out of the channel they’ve been trading in for weeks. In a phrase, it’s the underlying value of the assets to which mortgage bonds are attached.

Rates fell last week, but they’ll bounce back up. Inflation hasn’t gone away, despite the weak economy. Mortgage rates respond to inflation.

HSH Market Trends
Mortgage rates staged a minor improvement last week, with HSH’s Fixed Rate Mortgage Indicator (FRMI) sliding by six basis points, landing at a flat 6.50%. The FRMI includes rates from conforming, jumbo and the new “expanded conforming” loans. Hybrid 5/1 ARMs also dipped, shedding five basis points to land at 6.11%.

Conforming 30-year fixed rates declined by eight basis points (.08%), while jumbo 30-year FRMs shed seven basis points for the week. It is strange to say, but we should be cheering the lousy growth pattern. If the economy was moving upward, the additional demand would push inflation and interest rates higher. At present, all we can hope for is that the economy breaks inflation before inflation completely breaks the economy.

Overall mortgage interest rates managed a little improvement last week, surprisingly. More or less, rates have been generally flat for weeks, and that stability is a welcome stance in a weary market. Not much likelihood of a huge movement this week, but we may see rates rise a couple of basis points or so.

Mortgage Commentary
The Conference Board started this week’s economic releases with their Consumer Confidence Index (CCI) May. It showed a weaker than expected level of confidence with a reading of 57.2 when it was forecasted to stand at 60.0. This was the lowest reading in 16 years, indicating that consumers are not very optimistic about their personal financial situations. This is considered good news for bonds and mortgage rates because it usually means consumers are less likely to make large purchases in the near future.

April’s New Home Sales data was also released today, revealing a higher level of sales than was expected. However, today’s report also revised March’s sales lower. This means that sales were weaker than thought in March, but the month to month increase was fairly large. This is bad news for bonds because a weak housing sector usually translates into weaker economic conditions in general.

Tomorrow morning we will see April’s Durable Goods Orders data. This report gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket products. It is currently expected to show a decline in new orders of approximately 1.5%. If this report shows a stronger than expected reading, we should see mortgage rates rise because it indicates manufacturing growth.

>>Apply and lock today to secure your low rate.

If you have found the right home to buy, secure your financing today.

If you have an adjustable rate or need to get cash out of your home, don’t wait for rates to go up even more.

Subprime Mortgage Defaults Still Rising

The default rate within the subprime mortgage market has jumped 170 basis points to nearly 19.5% in October, according to Friedman Billings Ramsey Investment Management. A weaker job market and declining house prices are the primary causes of rapid credit deterioration in credit performance - not resets.

The default rate on nonagency securitized subprime mortgages jumped from 17.7% in September to 19.4% in October.

The default rate on Alt A Mortgage Market jumped 75 bps to 5.4% in October. “These substantial changes in a single month suggest that labor market conditions are worsening broadly across the United States,” FBRIM managing director Michael Youngblood says in the report.

“Indeed, we continue to believe that these conditions are characteristic of a recession in economic activity.” The managing director of fixed income research noted that subprime mortgage resets of adjustable rate mortgage were not responsible for the October jump in default rates. However, the upward adjustment of mortgage rates “may drive the default of hybrid ARMs higher in the year ahead,” he said.

The report also shows that 8% of subprime mortgages and 2.5% of alt-A mortgages are in foreclosure.

The default rate includes loans that are 90 days or more past due, in foreclosure, or real estate owned.

Today’s Current Mortgage Interest Rates December 13 2007. Fixed mortgage rates are UNCHANGED from Wednesday December 12 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is UNCHANGED and 15 Year Fixed are UNCHANGED - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates are UP. The 10 year treasury bond is UP to 4.15%.

Today’s Current Mortgage Interest Rates December 11 2007. Fixed mortgage rates are DOWN from Monday December 10 2007, while adjustable mortgage rates are DOWN - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is DOWN the 3/1 ARM Mortgage Interest Rates are UP. The 10 year treasury bond is UP to 4.11%.

Today’s Current Mortgage Interest Rates December 6 2007. Fixed mortgage rates are UNCHANGED from Wednesday December 5 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is UNCHANGED and 15 Year Fixed are UNCHANGED - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates are UNCHANGED. The 10 year treasury bond is UP to 3.98%.

Mortgage Reset Plan To Be Unveiled Later Today

Hoping to prevent a tidal wave of residential foreclosures, the White House will unveil its mortgage rate “reset” plan Thursday afternoon, according to industry officials.

Details were sketchy at deadline time, with two major issues still undecided: whether subprime ARM rates would be frozen for three years or five, and what specific criteria would be used to determine which home owners are eligible for a rate freeze.

Commenting on some of the proposals being bandied about, one investment banker said: “How do you freeze the subprime rate and tell the conventional guy who has been paying steadily that he doesn’t get a rate freeze?”