SOLVING THE BAILOUT PUZZLE!

The first bailout was a total failure of understanding of the complexity of the Banking Derivates War Games. The American Investment Banks and American Banks entered into a Global Banking Derivate War Game. The Investment Banks lost the game and the American Banks are
trying to find a way out of the Game. The problem is that the Game was greater than the banking system. The American taxpayers are being used to get the American Banks out of the Game by paying a high exit fee. The exit fee is $700 Billion to remove the negative derivates from the balance sheets and Federal Reserve will have to pay another $700 billion to increase the money supply of the Banks.
Consequently, the solution is to buy your way out of the game. The real estate market can be saved by using a tax credit the is worth over $15,000.00 per taxpayer. Congress can pass
a New Real Estate Reform Bill that will increase the tax credit for homeownership and use this to add provisions to create foreclosure and bankrupcy protection for the taxpayer. This will begin the stabilization of the real estate market and create a tax incentive to investment in real estate.
Finally, the Federal Reserve needs to lower interest rates by 2 basis points. We need low interest rates to encourage greater turn over of homes and creation of new demand based on
qualified home owners. This should be over the period of two years. The macro-economic
reality is a two year period of intense deflation leading to stag-deflation and prolonging the recession until 2012.

ONE MILLION FOR EVERY AMERICAN TAXPAYER

The shadow banking sytem has created a $700 BILLION TO $2 TRILLION Bailout which will pay 67 cents
on the dollar for assets really worth 24 cents. The banking system will only lose 1/3 on their existing assets and
this will cost the taxpayer the remaining 2/3 of the debt. The problem is that $1 million dollars should go to every taxpayer in the United States. The current use of taxpayers money is now being used without benefiting the taxpayer. The $1 million dollar amendment should be added to the agreement and allow taxpayers to pay down their debt and invest the difference in long term index funds. This can be financed by having the taxpayer
buy Treasury Zero Coupon bonds which will reimburse the Government. The taxpayer would receive $1 million dollars and would have $100,000.00 deducted from the One Million and the taxpayer would buy Zero Coupon bond.
The Treasury Zero Coupon bond would be owned by the Federal Government and the Federal Government would receive their money back in 30 years and the taxpayer would have the current use of $900,000.00 to pay debts and invests the difference. Any accured interest on the Zero Coupon bond would go to the Federal Government.Taxpayers would be required to pay taxes on the money and the money would be taxed for the
2008 year. All taxes must be paid on the due year and extra penalties would be added to any late payments.

American Style Derivates War Games, 2008

The final chapter of the great derivates mystery has been written by the the Federal Reserve and Treasury department. The end game seems to be a massive infusion of capital to stop the loss from the private contracts issued by the derivates players. They played a form of
Derivates War Games that led to a massive leverage on an international basis with other Global banks. They executed these private contracts in secret and played the game with the intention of using the real estate assets as a pawn on the playing board of the Derivates War Games. They launched their secret derivates rockets into the financial universe and created a massive fall out and not a zero sum game. The goal of the Derivates War game was to create a zero sum game where the derivates would cancel out each other and create a interest gain from the entire
game. The Investment Banks played this game to win but they could not find the investment rubric which would value each transaction. The consequence of this game is the creation of an
American recession and Global recession which will last from 2008-2011. The Derivates War Games still have not been regulated and will exist has a potential disaster for the future players of this game.