There have been increasingly more feedbacks and comments which has made it more and more difficult to keep track them all and summarize in the blog. Here are a few representative recent posts.
========== On not to let Wall Street and Washington DC elites turn our country into an oligarch state without a middle class:
Comments:
Great ideas! You are right, qualified and educated investors are needed. There’s a lot out there who can produce the 20% as the occupying partner because they can not get a straight conventional loan because of foreclosures and short sales. I will follow your company and learn more about it. You are brilliant!
Response:
Thanks. We need people who could share the visions with us to actively participate and make this a reality together, especially from the grassroots level in local communities on Main Street without the reliance on the federal government or big banks on Wall Street.
It is all for the good cause at http://www.PeoplesAlly.org and we’ll need to make it happen as Realtors ourselves together. Small investors could pool together their funds through IRA or other savings so that they could get to enjoy the wealth from a potential recovery of the housing market. The wealth will then be kept in Main Street America.
We can’t simply let our federal government sell their REOs owned by GSEs/FHA to a few Wall Street players to turn Main Street to become a whole bunch of renters to a few privileged landlord oligarchs in our country going forward.
Realtors’ work will then mostly be reduced to leasing jobs if that is the case. Let FARJHO help the small investors on Main Street to keep a piece of the capitalist’s pie for themselves and Realtors continue to do their main jobs to sell homes.
============ On the need to divert free market capital to the working poor:
Comments: …. Using tax payers money for the Section 8 occupier does not seem like such a good deal for the tax payers …..
Response:
…. Sec 8’ed FARJHO program does not use any of the tax payer’s money itself, it only makes the tax payer’s money already committed by your local congressmen work more efficient through turning renters to become partial home owners in order to improve local neighborhood stability and enhance social harmony …..
…. We are simply trying to educate the investors and let them know the credit risk could be considered lower than putting their money in other regular FARJHO projects so that there will be free market capital flowing into the low income housing sector to have the working class enjoy their fair shares of the economic benefits of capitalism.
In fact, after running the test market program for over a year at our commercial side at http://www.InvestorsAlly.com we have had trouble to even get investors’ interest move out of the premier coastal markets in Orange County to the less prestigious Inland Empire area.
Money seems to love the glitz, glamor and bling, bling. That seems to be how Bernanke and his cohorts at the Federal Reserve strongly believe in to make the rich even richer by flooding them with money at almost no cost to them. They are indeed similar to the elephant seals that I referred to in one of my related old blog post below:
I hope you could understand that while we could do just fine to let the free market capital go chase the bling bling, our social conscience has directed us to set up a non-profit and try to convince the investors that there could be money to be made there with the low income working poor as well! That is the mission of PeoplesAlly Foundation.
The fact is when money flows into a certain area, the property appreciation and economic prosperity would become a self-fulfilling prophecy. On that concept, please see my blog post on “cornering the market or good economic stimulus policy”. Thanks.
=========== On how Keynesian economy and Monetarism no longer work properly in a technologically very different modern world
Comments:
Hi Ralph, I discussed at our last financial crisis 2009 with Representatives of our National Bank. I’am sorry, but they are not aware that their old Instruments don’t work any more. One fact is, that global capital reacts too fast to the real economy. Financial markets became independent of the real markets. A second fact is, that technology is not considered. Fast growing companies/products make some markets rapid obsolete. Complete markets die. We have no more stable competition (accounting can be made in India, with much lower costs, therefore employment is destroyed in Germany for example) This leads to critical societies, where riots occur. We need incentives for the finance market, which correlate with real economy. This is, what you are right. Let us work on stable societies.
Response:
Bingo! I am glad to hear that you had spoken out on this concept before. Very few economists seem to have focused on this crucial issue. Old “national economic policy management tools” don’t work in the modern economic societies. The world has become much more integrated in terms of easy capital flow. Hot money has no borders.
The problem is that some of these old school economists in power may continue run our Western economies to the ground by stubbornly sticking to their old knowledge and hiding in their cocoons. Somebody should step up to tell them to either wake up or step aside!
============ On how Sec 8’ed FARJHO works
Comments: Very interesting…I like it and want to hear more…out of curiosity what would your underwriting standards be for a Section 8 recipient?
Response:
…. Basically the FARJHO part should not become such as issue since the criteria for Sec 8 assistance is based on income levels, not assets, as currently set by the sponsor. Whether the potential JPIs (joint property investors) have any special “underwriting requirements” or personal pet peeves it would be strictly between them and the AHO (aspiring home owner). This is the new peer-to-peer financial services business model to cut out the unnecessary financial middlemen in order to save money for the consumers. Look Ma, no more banks!
Our Internet portal www.FARJHO.com simply provides a matching service like match.com or eHarmoney.com would for marriages. We would simply match the boys and girls together but whether there is spark between them is purely up to them. We would not want to intervene, dictate any terms or force a relationship. If there is no chemistry between them we would simply try to match them with other potential suitors. Whenever there is a match, we will then handhold them to help them walk down the aisle together.
Please feel free to contact us directly if we could do something together. Those who can make it happen in real life in your own community and write a new chapter in the affordable housing history would be the heros to millions of low income working families and be remembered as such for years to come!
Filed under: Cash Flow Sharing, Economic Viewpoints, Equity Sharing, FARJHO, Housing, InvestorsAlly, PeoplesAlly, Section 8, SwapRent, FARJHO, Keynesian economy, Monetarism, Oligarch state without a middle class, Sec 8'ed FARJHO, SwapRent, SwapRentism
Innovation Trio: SwapRent, FARJHO & TARELV 