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To Catherine Cortez,
Pam Bondi,
Kamala Harris,
Eric T. Schneiderman
Attorney Generals of the States of Nevada, Florida, California
and the State of New York

Thank you for standing firm on not settling with the banks, and the others that have damaged our lives, and our economy

Please consider the new mortgage terms, and principal reduction policy outlined in this paper, before any settlement with the servicers, and other parties involve in the fraud case the States have filed against them.

Please forward this information to all the AGs that are participating in other lawsuits in other States.

If at all possible please confer with President Obama

Thank You
Leonard C. Tekaat, Economic Scholar

RESOLVING THE FORECLOSURE AND FORECLOSURE CRISIS

We are in a national economic slump caused by national policies! We must change national policies to resolve national problems.

Main St., the middle class, the working class, small businesses, and people in general have been financially decimated by the current financial crisis. Their disposable income , and confidence have been decreased.

This financial crisis has created one of the longest down turns in US economic history.

The vacant, and abandoned homes that are in our neighborhoods are similar to food that is rotting in the fields. We can do better than this for our citizens, when you consider that so many families need better housing.

The buzz on the housing market is: Sell the foreclosed homes to investors. Rent the foreclosed homes to previous home owners and tenants. Sell the homes with underwater mortgages by short sale, to deal with the foreclosure crisis.

Let me ask you, Do we really want a nation of investors, and renters?

Short sales are ok, and renting is appropriate for some people, but we need to help the majority of people stay in their homes, if at all possible, to maintain the American Dream of home ownership.

Sure we screwed up this time, but wise people learn from their mistakes, and make the necessary corrections to stop repeating the same mistake we have been repeating for the last 100 years.

Lately there has been talk about a national refinance plan that would help heal the primary home market.

Federal Reserve Chairman, Ben Bernanke, and Elizabeth Duke have made speeches in favor of the government doing more to stabilize the housing market. President Obama mentioned a national refinance plan in his 2012 State Of The Union speech.

I believe the private financial sector needs to step-up, and help resolve the foreclosure, and unemployment crisis they helped create.

We need to go beyond just a refinance plan. The economy needs a principal reduction plan to quicken recovery. We cannot wait 30 years until all the underwater mortgages are paid off, or the homes are foreclosed, or abandoned.

Every qualified homeowner with an underwater mortgage must be included in the national refinance plan, and the principal reduction policy. Which is approximately 25% of current homeowners.

The economy needs a principal reduction plan to unload the burden that the Big banks, Wall ST. and the government helped create to increase their profits, and tax revenues.

Homeowners are not innocent, but the working, and middle class people should not be the only ones suffering to clean up the mess the "BIG BOYS" MADE.

WE; Have to change that! The Big Boys got the "Gold Mine" WE got the BILL!!

The Committee For Economic Reform and A Better Economic Future has developed a PRIVATE SECTOR SOLUTION TO JOB CREATION AND ECONOMIC RECOVERY.

WE CALL IT "THE PEOPLE'S ECONOMIC RECOVERY PLAN.

The Plan has basically two parts. Get the economy on a healthy path to recovery, and change the policies that helped create the financial crisis.

To help prevent another financial crisis from occurring, we need to stop relying on the Federal Reserve to slow the economy down, when it is getting out of balance, and the amount of money, and credit that is being created is growing too fast. Instead we need to use the income tax to control inflation psychology, and excessive hard capital asset appreciation.

We believe that the financial sector, investors, and the people will embrace the "PLAN", because it will help heal the economy, and the primary home market. Improving the primary home market will decrease the unemployment, and the foreclosure rate, without increasing the deficit, like a government jobs program, or another government stimulus program will do.

We do not want to leave our children, our grand children, and our great grand children a legacy of debt to pay off with higher taxes, or an inflation tax, which will make us all poorer, create more poverty, and more government social liabilities.

You are correct, if you believe the foreclosure crisis will not correct itself quickly, without direct action. There are three things we can change, to speed up recovery.

1. Change the bankruptcy law. 2. Increase aggregate demand, without increasing the deficit. 3. Change the guiding policies (income tax policies) of our enterprise economy.

We need to convince the financial sector that it is to their benefit to make changes to their mortgage terms, and the bankruptcy laws to prevent more foreclosures, and improve the economy. Banks are only as financially strong as their customers. Their customer can be a government, or a homeowner. Greece, and the other PIGS countries are a perfect example of this. Their government debt problems can crash the world's banking system if their government debt, and their citizens debt obligation are not restructured as soon as possible.

Purchasing the new mortgage, or lowering principal balances should not cost the taxpayers a dime.

Reducing principal balances would be a way of helping the economy to rebalance itself, and for the financial sector to pay for the damage it did to our economy. The 25 billion is only tiny portion of what is needed to repair the damage that has been done by the banks and financial sector. The "Plan" includes all current home owners. Those families that have lost their homes illegally should receive a direct payment for damages.

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