Introduction
Most market data point to the fact that the vast majority of financial instruments and property values have lost approximately 40% from their peak values. Starting in 2006 three facts took place: Real estate values started their decline, the Federal Reserve Bank began to raise interest rates and the ARM provisions n mortgages were becoming effective. These three facts made it almost impossible for millions of property owners (POs) to refinance their mortgages. Thus, these property owner mortgagors (POMs) were faced with much higher -after ARM adjustments- monthly mortgage payments, which they could not afford. Lenders proceeded to foreclose on the properties and eventually millions of POs lost their properties, with many millions more expected to follow the same path.

Many of these mortgages had been originated under predatory credit lending practices never seen before and excessively leveraged and creative lending programs, from negative amortization programs to ARM, “Ninjas” and many others innovations. These fiat mortgages could be created because the ultimate risk of ownership of them was transferred from the individual lenders to investors around the world by virtue of newly created instruments such as mortgage backed securities (MBS), assets backed commercial paper (ABCP), assets backed securities (ABS), credit default swaps (CDS) and collateralized debt obligations (CDO) which were sold at different risk levels and rates of return. When the high risk level portion of these instruments began to tumble, because POMs could not pay their new higher monthly payments, its domino effect spread out throughout the mortgage industry and ultimately the entire economy worldwide. As the banks started to write off their bad loans a liquidity crisis developed and lack of confidence spread in the financial industry all around the globe.

This situation has reached almost every major business sector and affected all branches of the
economy from employment to disposable income, to consumer confidence to industrial and commercial sales.There are several striking differences between what could achieve in the financial markets and the economy in general with the likes of TARP and HOPE NOW programs and the Economic Stimulus Plan and what it could achieved by supporting THE PLAN.



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