1120 2011 Discussions and feedback from the OWS folks in early October

Over a month ago out of curiosity, I had my first encounter with the Occupy Wall Street folks on-line. Although the majority of them seemed to be quite hostile to anyone who do not share their extreme left-wing oriented views, there were a few others that did set themselves apart from the madding crowd by showing some intellectual capability.

Now that they have been kicked out from occupying Zuccotti Park, I think they clearly need some intellectual leadership in setting some clear actionable goals in an OWS 2.0 movement effort next. Trying to solicit sympathy alone will most likely get them no where and offer really nothing to remove the crony establishments out of our system.

As far as our recommendation of actionable goals goes, how about trying to bring housing finance from the crony hands of Wall Street back to the common people on Main Street? That will immediately create many jobs that they could occupy themselves with, let alone getting a decent shelter for themselves, back on Main Street.

For a detailed plan, here again is the link to our public response officially submitted to FHFA, the regulator of the Fannie and Freddie, from PeoplesAlly Foundation in early September. http://www.box.net/shared/hpfqqajd1aremco716lr

Here below are some excerpts of our blog post exchanges on their site that I would like to give them an equal chance to voice their views to readers of our site.

============
Oh, I see. PAF makes the mistake of living in utopian-capitalism-fairy-land, and judging others from atop the throne in his ivory tower there – all the while just dividing himself from the common ground and letting himself be conquered by oligarchs who would laugh at him behind his back …

My short message to all the Mises / Libertarian crowd:

I know that the current system is not the “capitalism” you regard religiously as near-utopia. But how in the hell do you not realize that the real world that people are living in today could not be brought to your free-market utopia for many, many, many years? How do you not realize that the money powers will not ever give you your utopia? This system is a one-way ticket to permanent, institutionalized, oligarchical collectivism. Oligarchy for the elites, collectivism for the masses.

Free-marketeers: you will be disenfranchised in the near future the way this system is going. Your idiocy is useful in think tanks and editorial pages when it comes to encouraging or justifying neoliberal economic globalization, or the latest privatization scheme, but your pesky idealism and your essential anti-authoritarianism leaves little room for you in the future of real capitalism – the capitalism of the real world. You need to realize that you are part of the 99.9% too, and you have to act on common ground with the rest of us now before we are divided and conquered into oblivion.

The unrealistic progressives are in the same boat as you are, and if you won’t help them now, they won’t be able to help you in the near future when Big Brother starts coming to oppress you, you unrealistic libertarian. This is about putting the brakes on a runaway capitalist machine heading for total fascism.

Why are you so paranoid that the Occupy Wall Street movement is more dangerous than the status quo? I too have grave reservations about what may come of nationalizations. The solution must be to come to the table and stand up against any tyranny that may come from any socialism that we enact to break the power of the big banks and the modern big politicos.

We don’t want to become the tyranny we despise. We don’t want to create a worse system. But the system right now is selling us out, totally abandoning us, and it will abandon you too. You won’t get your utopian free market capitalism from the status quo, ever. Just hold onto your highest ideals of liberty, opportunity, and justice and come to the table with us, and demand an end to the political bribery system, and an end to the power of the massive money-lending institutions known as the big banks and the Federal Reserve.
…………….

Okay, I checked out your website for the first time.

I see you are pitching a new way of home-ownership. By all means, continue your business and continue trying to convince people who have jobs or savings that your business is a better way for them to own a home.

Your system, which pretends that the dollar won’t collapse, and pretends that “equity” isn’t just debt-based dollar ponzi speculation, is woefully inadequate to re-empower the people. As long as money only comes from debt, the banking money cartel will be the true government of governments and of corporations.

The “free market” is predicated in large part upon rational individuals using their money, their savings, or their capital to make free economy. It requires a fair and just system of law. But our very system of money is too far corrupted at this point to pretend we can use a free market to save ourselves. Likewise with our system of law.
………………..

But I do respect your attempts to engineer something more fair for the common, Main Street people. Maybe your ideas will come into greater utility after we break up the money cartel and the Federal Reserve System.

Filed under: Economic Viewpoints, FARJHO, Federal Government, Housing, Mortgage, Occupy Wall Street, PeoplesAlly, SwapRent, Amped, Fannie, Federal Reserve, FHFA, Freddie, GSE, Housing finance, Libertarian, Mises, Occupy Wall Street, OWS, OWS 2.0, Zuccotti Park

1003 2011 Let FARJHO and SwapRent bring housing finance from the sleight-of-hands on Wall Street to the common people on Main Street – Food for thoughts for the Occupy Wall Street protesters

The Occupy Wall Street protesters’ movement seems to be gaining steam and momentum but what do they want to accomplish?

How about telling Wall Street to stop meddling with our housing finances? Furthermore, the angry protesters that occupied Wall Street seemed to be only able to focus of what have been stolen but they are definitely out of touch on what is about to be stolen again by the very same thieves while they are risking their lives physically protesting to on Wall Street.

First, the best economic solutions and/or new economic systems could be totally ruined if left in the wrong hands again. We need more people’s active participation and the support of PeoplesAlly Foundation to further our causes of FARJHO and SwapRent for the benefits of the people on Main Street. Let’s work together to keep Wall Street big banks’ dirty fingers off these new democratic solutions.

Second, we will need to prevent another financial heist like those happened in 2008 from happening again. In Russia and other third world countries the oligarchs have to make some special efforts to steal the national assets behind closed doors. It would actually be a lot of hard work for them and perhaps a few investigative journalists would have to be poisoned or murdered along the way. Here in America, they do it right in the open by spinning the media with wrong information and manipulating the public sentiment with political influence. They did it times and again right in front of our eyes and there was not a thing that we, the folks on Main Street could do about it. The case in point is FHFA’s current plan to sell the REOs (foreclosed homes) that they own to privileged private sector firms.

The distrust of the federal government’s housing plans is not unwarranted. Remember when the financial crisis first emerged in 2008 and the federal government came up with their first solution that left many of us flabbergasted? While people are losing homes and jobs left and right everywhere, the first thing they did was to come up with a plan to use tax payer’s money to give more than one thousand dollars to the mortgage servicing firms owned by their crony friends for each of the loan mods that they worked on? (Goldman Sachs used to own a major mortgage servicing firm Litton Loan Servicing and only sold it in June this year after many robo-signing scandals.)

You may also have seen how “housing experts” or securities analysts from the investment banks such as Morgan Stanley etc. keep spinning the story on TV and in the press media that the federal government has no experience in running the renting business as the sole reason why GSEs/FHA should sell their REOs to the private sector firms in bulk at discounted prices. It would be another big feast, if not steal, for their crony friends in Washington DC and on Wall Street again while being empowered by the almost zero cost of fund to build up their war chest, thanks to Bernanke and the Federal Reserve Board. It is like hitting another Super Jackpot again!

Let’s hope the cronies would not get it their way to buy in bulk at deep discount our national assets owned by the GSEs/FHA again. If they get it their way, they would become the new serfdom landlords to millions of working class people on Main Street. It will turn America into an oligarch state without a middle class. Can you imagine United States of America is about to become a nation of renters to a few handful of oligarchs!

The availability of the information of FARJHO and the services to the GSEs/FHA may have a chance to stop these pending thefts if more information is made public and understood properly by people on Main Street on what kind of financial heist is about to happen all over again.

Don’t wait to protest after it has happened again. Protest to stop it from happening at all!

Filed under: Cash Flow Sharing, Economic Viewpoints, Equity Sharing, FARJHO, Federal Government, Housing, InvestorsAlly, PeoplesAlly, REIDeX, SwapRent, Affordable housing, Cash Flow Sharing, Equity Sharing, Fannie Mae, FARJHO, FHA, FHFA, Foreclosed homes, Freddie Mac, GSE, housing affordability, Lease option, Occupy Wall Street, Property management, Rent to own, Renting, REO, RFI, Shared Ownership, SwapRent

0910 2011 Our response to FHFA’s RFI – FARJHO and SwapRent from PeoplesAlly Foundation and InvestorsAlly, Inc. – A letter to the Fed, the Administration, GSEs, HUD, SEC, CFTC, other Agencies and the State Governments

Here below is a recent update letter to many of my academic friends who possess well established expertise in economics, economic history, finance, derivatives, laws, mathematics, housing, housing finance, urban planning, real estate, business studies, public policy and political science in various leading universities around the US and in selected foreign countries. I thank them for the various feedbacks and support through the years.

Transparency in our federal government’s policy making process is always a good thing for our country and for our democratic society. As one public figure recently said, the best way to keep a secret is to do the right thing.

============
Dear AcademicAlly,

How are you?

Here below is the latest development regarding our efforts to help solve our nation’s housing-led economic crisis. As you know I have been in touch with many of the government folks regarding FARJHO and SwapRent on an academic basis within the past few years since 2007. Please feel free to let me know if you would like review some of their earlier feedbacks. Yours and your colleagues’ academic input and critiques on our proposal would be highly appreciated.

We have provided our FARJHO and SwapRent solutions to the FHFA and submitted our response to their August 10th RFI project (see below) from both PeoplesAlly Foundation ( http://www.PeoplesAlly.org ) and InvestorsAlly, Inc. ( http://www.InvestorsAlly.com ). The non-profit will provide the educational services and the counseling of home owners which we have spent tremendous time to build and to create a political voice within the past year. InvestorsAlly will focus on providing the technology platform for the FARJHO matching services at http://www.farjho.com as what it was always set up to do since the inception.

For a thorough understanding of the new FARJHO methodology to own homes one home at a time, here is the link to my draft paper on FARJHO ( http://www.box.net/shared/yfhkjbqre4idf1kgrtc4 ) which is to be published by the housing finance journal HFI in their upcoming September or December issue as a sequel to my earlier article on SwapRent ( http://www.box.net/shared/v24qtqip4hlgff5l1646 ) published in the December 2009 issue.

Please note again the link to a copy of our response is at http://www.box.net/shared/hpfqqajd1aremco716lr . There could be many area that you and your colleagues could help improve this project. Your active participation to further fine tune our proposed methods, the deployment channels and delivery procedures would be very welcome. It is all for saving our country’s economic future. Let’s work as a team.

Let’s hope that these unwise policy decisions made or to be made by our federal government, intentionally or not, will not turn our country into an oligarch state without a middle class soon. Your active participation may help change the course of history. Please feel free to let me know if you have any questions. Thanks.

===============
Date: Sat, 10 Sep 2011 11:54:07 -0700
To: Email addresses suppressed
From: Ralph Liu <ralph.liu@investorsally.com>
Subject: Our response to FHFA’s RFI – FARJHO and SwapRent from PeoplesAlly Foundation and InvestorsAlly, Inc.

Dear Federal Reserve Board Chairman, Regional Presidents, Administration, Treasury, FDIC, HUD, GSEs, SEC, CFTC, Congressional Staff and Other Relevant Agency Officials,

cc. State Governments, State Housing Authorities

How are you? I would like to give you guys an update on the latest developments of our FARJHO and SwapRent efforts.

On August 10th FHFA, the regulator of GSEs issued a RFI asking for ideas from the public on how to deal with their REOs portfolios. Here is the link to their original request. http://www.fhfa.gov/webfiles/22366/RFIFinal081011.pdfrding

We have submitted our public response to FHFA from PeoplesAlly Foundation and InvestorsAlly, Inc. in early September. Here is the link to a copy of our response for your kind review and comments. http://www.box.net/shared/hpfqqajd1aremco716lr

The advantages of our FARJHO based proposal are:

1. It eliminates the need to let privileged private parties have access to and engage in quick short term buy-low-sell-high flipping activities at preferential bulk sale discount prices to profit from the potential privatization of our national assets owned by the GSEs and FHA.

2. It helps avoid the federal government, the elite private equity firms in DC or hedge funds on Wall Street from becoming new long term serfdom landlords to low income working families on Main Street by allowing renters to become partial co-owners of the home properties through FARJHO LLCs.

3. Potential wealth created from a future recovery of the US housing market will be able to be channelled through FARJHO back to small town investors, mom’n’pop’s self-directed IRAs, state, county and local pension funds, church groups, non-profit endowments etc. on Main Street to fix the local government’s pension liabilities and budget deficits by investing on a more level playing field with other elite institutional investors on Wall Street who already have exclusive access to the use of leveraged low cost of funds as a result of the Fed’s loose monetary policies to profit from the potential price appreciation.

4. Through the new Borrow-Pool-Buy (BPB) member level borrowing concept that replaces the old Pool-Borrow-Buy (PBB) property level financing practice in other conventional equity sharing schemes, future foreclosure possibilities could be totally eliminated once and for all in this new FARJHO home ownership structure.

In addition, I would like to take the opportunity to invite your attention again to the applications of SwapRent as a new economic policy management tool that goes beyond its initial objective of creating housing affordability. A successful implementation could provide the governments with a new way of economic stimulus method similar to how governments have been managing the countries’ economic activities by adjusting the interest rate levels at the moment.

Since 30’s and 40’s Keynesian economy and 50’s and 60’s Monetarism could not function well in a technologically very different modern world in 2011 where hot money flows freely and instantaneously across borders, a new economic policy management tool has to be created so that the stimulus money could have “the stickiness effect” and stay in local communities to have the desired economic stimulus objectives of creating local jobs for the domestic economy. That is exactly what a new SwapRent market could deliver.

For an introductory description of how this could work please kindly review Chapter 6 of the SwapRent article published at the December 2009 issue of the Journal of Housing Finance International published by International Union of Housing Finance (IUHF) at http://www.box.net/shared/v24qtqip4hlgff5l1646 . The following two blog posts also explain how this could be done in local communities through championing by local politicians on a free market basis without relying on any handouts from the federal government.

http://peoplesally.wordpress.com/2011/02/19/02202011-it-is-not-keynesian-it-is-not-monetarist-perhaps-we-could-call-it-swaprentism-any-better-suggestions/

http://peoplesally.wordpress.com/2011/08/02/0802-2011-implementation-strategies-of-farjho-and-swaprent-good-economic-stimulus-public-policy-or-cornering-the-real-estate-market-by-investors-for-profits/

All information contained in our proposal to FHFA are non-confidential in nature and therefore are free for public distribution. Please feel free to share with us your thoughts and comments. Thanks.

Ralph Y. Liu
Managing Director
PeoplesAlly Foundation
23 Corporate Plaza Drive, Suite 133
Newport Beach, CA 92660
Tel: 1-888-456-8881 x 888
Fax: 1-888-315-3831
Direct: 1-949-371-9139
peoplesally@gmail.com
http://www.PeoplesAlly.org
http://www.twitter.com/SwapRent
http://SwapRent.com
http://www.linkedin.com/in/ralphyliu

Filed under: Cash Flow Sharing, Economic Viewpoints, Equity Sharing, FARJHO, Federal Government, Housing, InvestorsAlly, PeoplesAlly, REIDeX, Section 8, SwapRent, Affordable housing, Bulk sales at discounted price, Cash Flow Sharing, Equity Sharing, Fannie Mae, FARJHO, FHA, FHFA, Foreclosed homes, Freddie Mac, GSE, housing affordability, Lease option, Oligarch, Property management, Rent to own, Renting, REO, RFI, Serfdom, Shared Ownership, SwapRent, Tenanted serfs