AN ALTERNATIVE TO THE WALL STREET BAILOUT!

The abuses by corporations such as AIGs $450,000 junket to Hawaii for executive officers plus a pheasant hunt in England with taxpayer's bailout contributions, gives thought that an alterative to the Secretary of the Treasurer's hand out of vast sums to CEOs to meet their "needs," might be in order.

Since the corporation's failure was the result of the CEOs use of policies and decisions that failed, giving more funds to the same CEOs using the same policies sounds indefensible. Perhaps the government should send in a "Business Team" to freeze operations, cancel all unnecessary operations, change the policies that caused the failure, and start up operations again using the new policies. (We could call this Chapter 11.5) If only 50% or 60%
of funds are available to pay necessary operating costs; pay those costs with the funds available, and issue "Emergency Fund Claims" for the remainder. These claims could then be redeemed from the "Emergency Bailout Funds" held by the government and charged against the account of the Corporation that issued the claims. When the Corporation recovers to the point of paying 100% of operating costs, debts (including the account to the taxpayers) should be paid by the corporation. When all debts are paid, the government business team leaves and the corporation resumes operations under regulations that will have been established by the government to prevent future failures of this nature.

The second part of this alternative plan addresses those that have foreclosed mortgages. Give each mortgagee that was duped into "balloon mortgages without adequate equity" the option to renegotiate the mortgage at the initial rate. Mortgagee to pay legitament amount owed with available funds plus an "Emergency Fund Claim" that can be redeemed from the "Emergency Bailout Funds" held by the government and charged against the mortgagee issuing the claim. The mortgagee remains in the dwelling with an arrangement to repay the fund claim (plus the same low interest charged to banks) over the term of the renegotiated mortgage. Regulations should be enacted to require proper equity for the issuing of future home mortgages.

DO WE NEED AN ALTERNATIVE PLAN OR IS A WALL STREET HAND OUT ACCEPTABLE?