them to public exposure and we are continuing on to investigate the foreclosure crisis and we're very fortunate to have back with us howard bono of the financial revival group by my own financial know my financial revival dot com i'll get that you got it yes howard welcome back thank you very much this time we're talking about policy and nothing but policy it's national policy it's with this is the debt debate and housing and i want to go to the financial revival website because you're talking there about the  and the housing market itself does it relate oh absolutely how so absolutely you know when when we look at the amount of money that our federal government spends versus the amount of money  that that we actually bring in as a nation you know that amount of money that we have to borrow every single month in order to survive as a country that money comes from the same pool of money that you and i used to borrow money to buy houses with and so just because interest rates are low right now doesn't mean that you find it easy to borrow money the government's taking a huge chunk of that money out of that pool of money that we borrow money from as well well let's go to the u clock now we're going to go to the first graphic and you know there's a lot of numbers up here so so let's kind of hone down just a little bit let's go to this next one here's the u s national debt at the time this was done was i don't know what is that number it's fourteen trillion dollars and then that dead person isn't dead person as it is forty seven thousand and the debt for taxpayers one hundred thirty one thousand now the thing that people need to understand if you do go to u debt clock dot org what you'll see is that number of total u s debt that number spins and it increases by a hundred thousand dollars every three and a half seconds it actually gave me a headache just watching absolutely well let's go back to it because we need to hone down some more on those numbers ok so let's go to the next one here let's click on to the next one here this is where we spend money on medicare medicaid and social security those two really are tied to aging right they are big stan the important thing that people need to realize here is when you're looking at the u s national debt where we see that it's forty seven thousand dollars per person in this country that doesn't include the additional debt that we have for social security prescription drug benefits medicaid it doesn't include any of those that's all additional debt that on top of the fourteen trillion dollars that we as a country oh all right well let's actually go to the next part because we're doing now is is these are this is the assets and you know this is a little bit smaller to see the small business corporations household assets is a big thing and then total national assets but i want to i want to hone in on that last part let's go here we are assets person isn't two hundred fifty thousand dollars or two hundred fifty one but liability per taxpayer a million dollars yes we're backwards yeah but we could solve this problem pretty easily if if you and i and everybody else if we just cut the check for a million dollars you write your check for a million or write my check for a million if we as a country if every citizen in the country wrote our check for a million bucks and gave it to the government we'd be ok what is housing is role been in this you know housing's role has been over the last decade or so really has created a lot of for lack of a better term imagined wealth we are consumer society the government gets  a term that a good friend of mine uses a veg the government gets a big a little piece of everything that we do you get a paycheck the government gets a big you buy something the government gets a very big you use your cell phone which raises the bill the government gets a big you rent a car any anything that you do is taxed right but i get services back so i'm ok you do when the government gets a big on all that little stuff right so so what happens is when housing prices were escalating people were using that even if they weren't borrowing money out of their houses to spend money they felt like they were progressing up the financial scale so they were buying more things they were going to dinner they were going to buying new appliances or new carpeting more taking vacations and doing all of those things that people aren't doing now well i have everything that i want what we've realized that now you know i read something but we're also an older population true i read something about ten years ago that said if americans had twenty percent more than what they had you know if they could lose that last twenty pounds or if they were a little taller or if the was a little bit longer or if they had a newer motor home or whatever it was that they would feel successful so that's what we always strive for now this is the attitude in our country more and more and more of what i see is people are saying you know i'm really ok right where i'm to the state did clock by the way the u s debt clock dot org has also a division for state here so we're not looking real great on that either well this is the part that i find interesting in terms of the state of washington because we hear on the news that we have a two billion dollar shortfall that was the latest thing that just came out or a billion to or somewhere in there they're going to call a special session to cut another billion dollars out but if we look at that graphic up there  how much money we spend so look at that where you see revenue fifty five billion dollars that one only has nine zeros fifty five billion dollars and spending of seventy one billion dollars that looks to me like a sixteen billion dollar hole in the budget for going not so are these numbers accurate or are we it is our legislature state legislature using accounting gimmicks and tricks in order to say well we've only got a billion dollars that we need to fill what is the answer i believe the answer is that they're using a lot of accounting tricks for example the last time that the they got together to cut a bunch of money out what they did was they took up pension plan a pension payment that they needed to make and instead of making that payment on june thirtieth they made it on july first so that they could count that as a budget cut thirty seconds have people go to my financial revival dot com will they learn anything absolutely our whole goal is education what we want people to do i believe people are inherently smart if they get good information they'll make good financial decisions and if they're in a hole right now it's probably because they didn't get good information and they made decisions based on that information we want to educate you go to exposure we are investigating the mortgage foreclosure crisis and a crisis it is indeed and this time we're talking about jobs and how jobs relates to housing we're with howard bono who is with the financial revival group the website is my financial revival dot com you know i will eventually get that there were just a little bit about you though how do you know so much about finance and i mean you were a mortgage broker i was a mortgage broker for twenty years and so that gives me a really good background in finance and i'm just a student of economics and so i read constantly i'm always looking for the story behind the story i'm always looking for how does this piece over here interact with this piece here one of my favorite books is freakonomics and if you've ever read that book you'll see that they take very unrelated issues and put them together and to help understand a particular situation and i just have a knack for that country it's september twenty eighth two thousand and eleven as we were cord to show and president obama recently gave a speech about a jobs bill and he has as we speak the jobs bill hasn't passed let's talk about some things that you think about this particular jobs bill let's go actually to the financial reviv website and the american jobs act same song different span let's go the first quote this is from president obama he says and everything in this bill will be paid for everything really absolutely not what what they're going to do this is again a political trick and everybody uses it the democrats and the republicans so let's not try to figure out here just to show says obama absolutely not he's my president and i'd love for him to be successful but i don't think he has a shot doing things the way that he's doing it there's no way that you can increase the spending most of the spending in the jobs bill is designed to increase two groups public employees and union employees and that what he wants to do is to borrow a bunch of money to put more teachers in the classroom and to rebuild infrastructure so there's no way that we can borrow money like that and have it be paid for without some kind of accounting tricks that that if we used in our personal budgets we would end up in jail let's go to the next quote because president obama's got a lot of them they have will not add to the deficit for simple explanation of a deficit is is in a year a budget year when the government spends more than they bring in in that year that is a deficit so if they're going to borrow money to try to create jobs now there's no we're already running a huge deficit in our country there's no way that we could increase the amount of borrowing that we do to fund a project like this without increasing the deficit at least in the first few years there's no way it mathematically doesn't work let's go to the next quote on quote from president obama everything in here is the kind of proposal that's been supported by both democrats republicans including many who sit here tonight yes so he'll take little pieces here and there for example he wants to raise taxes  order to raise taxes on the wealthy in order to do that the republicans have said time and time again they're not going to do it the reason the republicans are saying no that they're not going to do it frankly i think that the problem is is that they want to tax anybody that makes more than two fifty a year a married couple those are normal working people in new york for example you know raise that two million bucks a year and tax those people higher if you're going to do that let's take this argument off the table there are definitely tax loopholes that need to be filled in order to do it the reason the republicans won't agree with this is because the democrats i should say that what i should say is all the politicians once you give them more money they will spend it all right let's go to the next quote from president obama in his speech on the jobs bill passed this jobs bill and we can put people to work rebuilding america hey i'm ready you know i am i am too ready to put people back to work but the republicans are looking at what he wants to do and he wants to increase public employees and he wants to increase really the money's going to the unions and the public employees and so how do we want our money spends to do right right but how do they get paid they get paid from  it's like it's like the cow providing his own feed paying for his own feed for example if you have a new public employee that makes fifty thousand dollars a year yet the taxpayers have to come up with the fifty thousand dollars a year so maybe that public employee pays five thousand dollars in taxes and net loss in the deficit forty five thousand dollars granted we do get energy and labor and those kinds of things from that group whereas if the private sector created that job at fifty thousand dollars a year or even forty thousand dollars a year there's no drain on the taxpayers in order to do that let's go to another quote from president obama in the jobs bill and to help responsible homeowners we're going to work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near four percent and going i believe that the housing market has gotten as i don't believe it i know it housing project the housing market has gotten us out of more financial situations than anything else it's been proven that for every house built it generates about ninety thousand dollars in taxes over the life of that property well that's a lot for every house built two full time jobs are created for roughly a year to build a house so and then you start adding in the real estate agent you start out again the finance people and the inspectors and all of those things the housing market really brings a lot of people in play it's people all of that kind of stuff and so the idea here is to spend more money on housing to create jobs one sentence of his entire speech was dedicated to housing and there was a there was a giveaway in there of why it's not going to work he said responsible homeowners that are upside down in their house should be able to refinance their house so now what he's saying is if you're upside down in your house you should be able to refinance that would be great if we could do that but he's going to go back now and say what is a responsible homeowner and so the ho irresponsible home owner has been blamed through the media for this entire mess people who bought too much house are the problem that's what the media has been saying i disagree with that completely so who's going to make the decision about whether they were a responsible homeowner or not this will be another government program that's not going to accomplish anything right here in public exposure we've been talking with howard bono who is a next decade of stimulus yields big debt that's right on your website by the way does it really well so far what we've seen is we've seen all of these government programs that are really designed to stimulate our economy or to stimulate this sort of stimulate that it's really that kind of extension of the tax code the tax code is twelve thousand pages or something and geared to help those who made so much money off of it i frankly cannot tell the difference between paulson and g because they all came from from goldman sachs yeah they did all right let's go to a bloomberg article that a column actually that you talked about and it's the decade of fiscal stimulus yields nothing but debt this according to caroline bob and she's got she says this the budget control act of two thousand and eleven as they are required well they save nine hundred seventeen billion dollars over ten years is that right so what so what ok so was a bad enough money well let's break it down right now the federal government brings in about two point two this year this fiscal year that ends well friday whatever the end of september is going to bring in about two point two billion dollars they're going to spend three point eight trillion two point two billion three point eight trillion so we're going to we're going to borrow from china england and japan primarily one point six trillion dollars to make that budget work you know forty cents out of every dollar the government sent spends is borrowed from another country so we're going to borrow all of that money and then over the course of the next ten years we're going to cut out ninety billion dollars a year so instead of borrowing one point six call it one point five that we're going to borrow well but we're going to be ok though because there's a bipartisan committee this is part of the budget control act bipartisan committee is going to have to cut one point two trillion dollars over ten years over ten years and these are course are the same people who can and couldn't cut anything before so that's why the laughing graphic up there i mean is it just a joke on us yeah pretty much because if you went and looked at the way baseline budgeting works of the federal government let's say they spent let's let's issue simple round numbers let's say that they were going to spend a thousand dollars this year on their budget so next year what happens is they're going to spend one hundred you know a thousand seventy listen you get a seven percent increase so they can spend a even though we're spending more money than we spent last year so it's like going to your kid and say if your kid says dad i get ten bucks a week for an allowance and i want fifteen and you say well how about twelve and he says you can't do that that's a cut you're cutting my allowance that's the way politics and and that financing works so they're going to cut one point two trillion dollars out of something that's even more than we're already spending now the other point that i really want to make is i was watching on c span the other day that committee there are twelve of them they sit up in this big huge area all twelve of them sitting like this they don't even look at each other how are they i envision them sitting around a big table and talking with each other about how they're going to solve the problem they're talking at each other they don't talk with each other and they don't even look at each other when they're talking because of the way that they've structured the room i don't see how they get five point seven trillion dollar budget surplus we do seem to be relying on the congressional budget office a lot and it apparently has proven it's not reliable not enough so it is a political organization and so depending on who's in power you know the whole game back in washington d c is about who's in power and whose influence gets garnered by an individual because no matter the cvo for example they work for whoever happens to be in power at that particular point  time and who's in power now that is a good question there are i think that there's a bunch of puppet tears that are out in the wings that are pulling the strings here and i'll leave it up to your your viewers here to determine who those people might go back to the bloomberg article the next quote from the blue murder article itself it is medicare outlays have risen nine percent a year for the last thirty years in a period of stable demographics the automatic spending cuts outlined in the budget act would limit were duction in medicare expenditures to no more than two percent a year so already just we're going to be backwards because of that oh absolutely because what happens is the way that medicare spends money it's all broken down in the money's given to the states and the states deal with it so all the federal government's doing is they're saying we're going to cut back the amount of money that we are distributing for medicare in the states are going to have to figure out what they do so the take it's still going to be you know it's going to continue to increase so there trick for medicare is they just pay the doctors less so you're seeing more and more doctors that won't accept medicare patients you're seeing more and more doctors that are going to a situation where they want even accept insurance payments did because you could get a doctor visit for twenty or twenty five dollars if you just pay them on the spot because they don't have to deal with all the  we've got a minute left in this segment and we've got to solve the tax code let's go back to the bloomberg article ok and we could do that in a minute the tax current tax code is burdensome inefficient and costly to administer you know tell us some we don't know former treasury secretary paul o'neill says it's cost the treasury an great it really should but what happens is they can't do that because the power in the government is in the tax code so they can give favor to whoever they want to give favor to and they can penalize people that they want to hours here talking with us about is our financial recovery especially in light of the mortgage foreclosure crisis and howard this whole segment is about one thing and so we're going to put it to you ok you got one year and one year only to fix this economic mess what do you do well i have two ideas but let's go to the one that i really like the most and i think that we might have missed the window for this but housing has pulled us out of many major crisis in the past because of the fact that it generates jobs it generates income and more importantly it generates that feeling of prosperity for individuals and then we take that feeling and we go out and spend money so  if it were within my power here's what i would do i would refinance every house in america with a mortgage on it i would refinance it at between two and three percent i would have the federal government subsidize for a five year period the difference between that two percent mortgage and the four percent that you could get a mortgage for today i would refinance those without regard for income or jobs or any of that stuff because we're going to have huge amounts  of defaults coming anyway we're not going to get rid of those the goal is though if if most people had a house payment that was was at two percent interest regardless of what they'd have to do their house payment would be low enough that they're saying i'm stay in i'm staying put i'm going to make my payments and i'm going to stay put what that's also going to do is for a lot of people is going to put a little extra money in their pocket they're going to buy appliances they're going to buy new carpeting they're going to start to work on their houses again and put money back in the head in the hands of those people at the home the home stores right they're going to they're going to do that ok to say home depot ok well no they're home depot low does though that is so so critical is the problem that we have now is the banks have this huge problem because they transferred all of these loans incorrectly i'm not going to say legally they transferred them in core of course it was listen because of the  there and there are no hard time verifying that they really have the right to that to foreclose or to deal with that so that's going to take all that away because we're going to recreate all of that then the mortgage pools that they sold all these loans into that s and p and the other rating agencies rated incorrectly we could go back and we could actually rate these new mortgage pools correctly wall street will buy them if they're rated correctly if they know that had  this has a much higher opportunity for default much more likelihood for default so we need to be able to make more money on that because there's going to be more risk right now wall street and actually pension funds over the world that have invested in these don't really know what they have they think they bought mortgage backed securities really they just bought paper because there's really not any mortgages that are backing those so you could rebuild all of those pools so now you've got wall street investing in something that they really understand what they have you have the american consumer that is now has a little bit of extra money and is saying i don't care if my house is upside you know forgive me howard but i'm not here and paulson gardner have ever said anything like this you didn't come from goldman sachs did you know you know i certainly didn't they probably wouldn't take me from the mortgage business i came from the mortgage business i'm a working guy i go to work every day and  what i'm looking at is just common sense solutions the reason that this didn't happen is because we as individual homeowners don't vote as a bloc we don't make huge campaign contributions as a block goldman sachs does bank of america does citibank does all of those groups that got these bailouts they gave the bailout money to the people that that the politicians can influence they gave our away gave our money they need to give that money back in the hands of the individual consumer and if they do that the rest of this works itself out while so why would a bank not say you hey this is a great idea because they w flowing again i don't know why they wouldn't say it was a great idea but i doubt that they would like it because they're going to make fees on every one of these refinances you know all these people in the real estate business you could even extend that to say if you buy a house during this time period which will probably take more than a year but if you buy a house during this time period you're going to get the same deal two percent interest rate government's going to subsidize for the next five years so with the banks like that probably because they could make fees back on mortgages that they really knew what they had and right now they're able to borrow money from the fed at zero percent interest so they're going to make money exactly wow who would want to guarantee like that i don't you don't even you don't have to sit in a room anywhere and come up with a strategy as to how we're going to make money get it seems to make sense to me i floated this idea three or four years ago i talked to you know our local and our elected officials here in the area and basically  nobody they didn't really give it any any kind of serious consideration at all i think it's i think it's a plan that would work because it solves many many issues and and i've always been an advocate for the working guy working america and i've talked to people about this and because people we coach all the time that are upside down in their houses and i said if your house payment was you know where would it have to be for you not to worry about whether your house is upside down what if my house payment was here i wouldn't care because i like my house i like my neighborhood and i could afford that house payment even if i i wasn't back to making as much money as i used to make so i just stay put so they could solve the problem in one fell swoop they could have done it with the first stimulus program because i did some rough calculations and it's about us between five and seven hundred billion dollars is what it would cost total for the program over a five year period and what it takes the power that we've talked before about the power in washington lies in the tax code it takes the power out of washington puts it into the hands of the people and you have to trust the people that then are going to be able to move forward and do something with it i have one more thing that i'd like to throw in on that you've got to be quick you can even go one step further and to tell people you could defer your first six payments on your house if you did one of two things if you put it in a bank account that you didn't touch for a year or if you used that money to pay off credit card wow makes too