My plan to rescue the financial market!!!

Flat tax - 16%.

Period.

No sales tax or other taxes.

16%, period.

No deduction, expenses, etc.

16% of gross income, period.

Let the tax professionals, including accountants and tax lawyers, eat cake.
 
Quote from hajimow:

Just read and clap and bow for me :D

I believe every person who wants to buy a house and get a mortgage should pass a test (like citizenship test) to test his basic knowledge about market and interest rates and... To make sure that what problem he might get into when like the interest rates goe up from 5% to 10%.
Any one who applies for a credit card should also pass a test to make sure sure that he knows how he can get killed if he wants to pay 22% interest rate.
Both tests can be combined together and call it debt and credt test.
Now my question is if Bernake wants the government help the market fast, why he does not reduce the rate as a start?
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Have you ever been to a Walmart or Costco? No way, these people are way to simple.

I would bet as much as 50% of current homeowners have little to no real idea how the math of a mortgage works
 
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Good luck.
 
Quote from hajimow:

Just read and clap and bow for me :D

I believe every person who wants to buy a house and get a mortgage should pass a test (like citizenship test) to test his basic knowledge about market and interest rates and... To make sure that what problem he might get into when like the interest rates goe up from 5% to 10%.
Any one who applies for a credit card should also pass a test to make sure sure that he knows how he can get killed if he wants to pay 22% interest rate.
Both tests can be combined together and call it debt and credt test.
Now my question is if Bernake wants the government help the market fast, why he does not reduce the rate as a start?
More...

What if 99% of the population fails the test?
 
Quote from hajimow:

Yes it would be relevant. This test would give the person a little bit of understanding of what might happen if something might go wrong. Be it interest rate change, a $5000 emergency surprise cost,......
Believe me some people believe that If the rate is 5% and they are paying $1000 per month, if the rate goes up to 15% , they would pay $10015:p
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You can't force people to save, nor assume that they will have the cash on-hand to meet an unforeseen expense. Any more than you can guarantee you won't blow-out on your next trade if the market gaps through your stop.

The blame lies with originators and the banks. It's assumed the banks are more experienced and understand the risks better than Ma and Pa Kettle, but it didn't save their collective asses from writing off $50B, did it?

There are plenty of people who took 15-year IOs and hedged with GE or other STIRs; Euribors, etc...
 
Case in point. My brother took out a $4mm 15-year first-mortgage on his primary residence. He's never had a mortgage. He took the proceeds and shorted the HGX synthetically and took $300k to trade bear-reversals on Notes and STIRs among other trades.

He would pass the test, as would anyone who reads English. Again, what's the point of the test. How do you police stupidity?
 
Quote from turkeyneck:

What if 99% of the population fails the test?
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Some will fail so there will be no soup for them !!
How many people have failed citizenship test? They will study hard to get credit card or home mortgage.
I can ask the same question: What if 99% of people fail driving test?
 
Quote from atticus:

Case in point. My brother took out a $4mm 15-year first-mortgage on his primary residence. He's never had a mortgage. He took the proceeds and shorted the HGX synthetically and took $300k to trade bear-reversals on Notes and STIRs among other trades.

He would pass the test, as would anyone who reads English. Again, what's the point of the test. How do you police stupidity?
More...

Good points. But I believe we will have individual failures and not a nation failure.
 
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