If we stop cringing in the corner of the closet and hiding under the bed we can Fix the financial mess we find our selves in.

First rather than the erratic search for a cure that we witness daily as performed by the would be geniuses of our time that helped to create this mess. Lets pause, take a deep breath, review the problem form it;’s beginning, and recover by going through the maze of mistakes backwards.

1.The beginning of the financial crisis was when the government decided to base the country’s financial security of 30 Year Fixed Rate Mortgages rather than Gold.

That in itself was not the problem, the GDP, was expanding and the amount of gold was insufficient to represent the amount of wealth the country had in play.

2.Next the government, in an effort to make the American Dream available to all Americans, asked the banks and other lending institution to relax their lending requirements.

With this innovative stroke of government intervention came Greed and dishonesty on both sides of the understanding.

The temptation to take advantage of the governments encouragement to open up the market had many bad repercussions. Another was that it unleashed an attitude of unrestrained use of credit.

3.Then there was the practice of selling, and reselling the 30 year fixed rate mortgage, in bundles and packages caught fire as a way to immediate riches.

4. The last component in this catastrophe came form a different economic sector. Using the Enron model, of how to gain riches by fraud, and the Enron Loop hole, proffered under Bush One and ignored by the Clinton Admin. Big oil set the demise the American Economy in motion by charging excessive amounts for gas, through speculation.

The over charging for gas almost singlehandedly brought the economy to a halt till the congress threaten to enact legislation to reign in speculators.

Now we are looking down the barrel of a economic shot gun, poised to blow our brains out.

The way out of this mess is back the way we came. The secret lies in the housing market and how it should operate in the future.

1.First Using a new component to adjust the value of current so called bad mortgages take the pressure of the broken mortgage market.

E M P P, Extended Mortgage Payment Plans, Simply put it means that the 30 year fixed rate mortgage is extended to a forty year or in the case of new home buyers that are in there early and mid-twenties, 40-50-and even 60 year mortgages.

The E M P P, adds value to the mortgage because it means more interest rate fees. The average home, the sells for $85,000, will net a gross value of (3 X $85,000.00 = $255,000.00) this at an interest rate of roughly 8.5%. So extending the life time of the mortgage loan will increase the profit yield. This increase in the potential profit margin should relax the demands on the market.

2.Second understanding, that since every American is on the hook for , $38,000, as a result of the, $850, billion dollar, bail out; every American desiring to purchase a home in the future should be automatically eligible qualify with no down payment to buy a home.

3.As was announced today since the government won’t just take over the banks that refuse open the credit market back up then buy in in to them and taking a controlling interest in the day to day operations will hel p take the squeeze off the economic situation.

4. Close the Enron Loop hole and make speculation on critical resources like Gas illiegal.

5. Finally pushing a 4 day work week, to help reduced the amount of gas used by the average household for purposes of going to work.

6. Encourage more tele-commuters/ people who, work form home, for business. The reduction of space needed to operate the business as well as the overhead that goes with bricks and mortar businesses.

This is not the prefect recipe for recovery but it is sound and if implemented could help resolve the problem.

If you have better ideas or can refine what you see here feel free to offer them. In thirty days we will see what we got and compare it to what the brains are doing.