Boomer's IRA's, pensions, & saving are following them. Provide safe rational investments that could solve some of the current financial woes
Boomers are retiring in droves, we are saddled with IRA's & other finances that need to be invested safely. Boomers have no expertise in this. There are many sharks that seek patsies to fleece. Stocks & bonds are not safe, Banks are questionable, The FDIC that guarantees the system may fail. Inflation eats chunks at an alarming rate. We need safe, protected, and rational investments to put these resources to work. How about lending money to existing home owner's that can't get loans though the banks? Take some of the foreclosed properties off the market. How about offering banks a simple payoff, at a 30% discount, & then allowing the defaulted owners to remain in their homes. They would initially pay the new loans at a higher than market rate, to keep the boomers happy. Then they could be allowed to refinance within a fixed period. How about keeping the money in the community where you live? How about changing the Securities laws to allow me to invest in a community sponsored solar electric plant for my neighbor hood or an system for industrial user. Have the SBA sponsor KEVA style loans for local small business that can't get funding through the banks. Conservatives will argue this is the Gov't meddling in the market. I say it's a chance for the little guy to invest in his community, & make a profit. I've lost more than 50% of my retirement, $80K gone, most losses were mutual funds managed by professionals? If I'm going to put capitol at risk I'd rather do it local. How about Bonds from municipal gov't that pay a decent rate & only allow small local investors? These funds could pay for infrastructure improvement & be guaranteed through property taxes or use taxes. The trick here is to keep the wealth local. Help the immediate community to prosper. One proviso; find a way to make the process transparent & non-political. Form a Board similar to a Grand Jury to foster projects, locals asked to volunteer, limited tenure. Let's say 1 year & pay them for their time.