Economics
From Changesandiego
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[edit] Transportation Corridors
IT, Telco, and Green companies are looking for office space close to their high skilled workers. The high skilled, in turn, demand access to amenities including transportation to and from work.
The San Diego mid-city neighborhoods that cluster along Adams, El Cajon, and University could become the genesis of new economic growth in the city.
In the past, these areas boasted a trolley infrastructure that served the residents and businesses well. This should become the focus of governmental investment in the area. Along with trolleys will come the cafes, art venues, shops and other cultural attractions that make a place truly livable.
When this is coupled with changes in zoning and business licensing that encourages investment in start ups lining these corridors, San Diego will attract the next wave of knowledge workers who are loathe to live in ugly car-centric Silicon Valley.
Rather, they can live in Normal Heights and North Park, visit the shops and restaurants of City Heights on their lunch breaks from small companies run in the new cooperative entrepreneurial model of Google and other successful highly networked and global companies. Families are an important ingredient in this talented and highly educated workforce, and creating an environment where they can walk to work as well as schools, take efficient and economical public transport to and from attractions like Balboa Park, Downtown, or the Beach, allows families to spend more time together experiencing what makes San Diego so special.
As energy consumption, transportation and housing become more problematic, San Diego can lead the way in transforming itself into something both old and new. Revitalizing the neighborhoods at the core of the city, especially by investing in transportation and enterprise corridors, may bring us the opportunity to lead the region out of economic hard times. TWFred 17:52, 14 November 2008 (CET)
[edit] Housing
My thought is that residential real estate is at the center of most all of our financial pain so here is what I would do if I were Sec of the Treasury.
For the next 18 months, offer a 6% fixed rate mortgage to anyone that currently owns a home based on two conditions. The loan cannot be for more than the home is currently worth and you have to have the income going forward to pay the new 6% mortgage. The company or bank making this new loan would earn a fixed fee for originating it. I am thinking something like $1,000 to cover their processing and profit. We have a million out of work mortgage people that could be immediately put back to work.
This would accomplish several things. Anyone that owes more than their house is worth would need to agree on a current value with their lender. Yes, this bails out some who bought a home with a stupid loan. The upside is the stabilizing affect this would have on home values which helps everyone including the homeowners that were more prudent as even a prudent borrower will suffer if his home goes down in value 50% or more.
Banks don't really want to foreclose on these people as it costs them so much more to kick the people out and find a new owner. Yes, the lenders would have to make decisions about the current values but at least they would be getting close to 100% of the current value to offset their existing loan on the home. The lender is certainly better off as is the owner that can now stay in their home.
The government could have Fannie and Freddie "buy" these loans and pool them based on their loan amount and origination date.
Since all of the loans would be 6% fixed, each pool would have a loan "history" 12 months down the road and if the default rate at that point on these new loans are 2%, then at least the pools can be properly valued and there are many investors that would invest in these loans if they knew they would earn 5.7%+. The government could even make them tax free initially.
Another benefit of this would be that the "investors" that have bought these original Collateralized Mortgage Obligations would at least recover a larger percentage of their investment than if the lender has to incur the legal expense, commission expense and time value of money costs of going the foreclosure route. The problem would go away so much more quickly.
What I do not understand about any of the current solutions being proposed is how will the financial system deal with millions of foreclosures.
What is the cost to our society to have millions of families displaced spending money on relocating rather than on their domocile?
Without a program like this, I forsee people who have not made a mortgage payment for 5 months living in their homes for another 18 months because the foreclosure process in the courts is so backed up, few people are getting to the point where the foreclosure process is complete.
Greg Siebenthal
[edit] Employment
Hey we have the sun, we need better paying jobs, why not build more solar panels, Photo Voltaic and Hot Water, as well as openable skylights for passive and passive box style heaters? And did you know with the heat you can even cool your house, that is how large industrial sized coolers work.
Now we need to move SDG&E, the County, the City of San Diego, and other municipalities to push and fund more alternative energy jobs, projects, and requirements. Remember it's our money.
Daniel http://www.FreedomPlease.org FreedomPlease.org
[edit] Public Debt
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