A long term proposal to fix the market

We know we're in trouble and there will be a drop. How do we keep the market sane in the recovery?

Simple:

1. Entry level. That's FHA. It won't change (even if I want it too).
2. Mid level. 20% down. 10% down with insurance if your FICO is good. That's how it was a decade ago and it worked well.
3. Jumbo. Should be back to 20% down + the last year (or two) of appreciation as the minimum down payment. Its how it was in the 1970's. (No link, but all the "grey hairs" at work talk about this.)
4. Super-Jumbo. Congrats. You're rich. Pay cash or margin your stocks. Let's face it, if you're buying super-jumbo your stock broker greets you with a cup of coffee and a muffin whenever you stop by his office. He'll happily work with you on a loan package to ease your cash flow with your portfolio as collateral. That's how it used to be and should be again.

BTW, I love Buffet's old quote: "Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway." (Small correction in quote thanks to D.A.)

Edit: Saw the scariest begger on my jog this morning. (The path goes under a bridge where homeless sometimes sleep.) He was well kept, obviously trying to groom himself as best he could. His polo shirt (fabric had that polo texture even) was dirty, but not yet frayed... He was also wearing a tie, nice slacks, and had practical "work casual" black shoes on that weren't too old. In other words, he looked like an out of work engineer! Yikes!

Got popcorn?
Neil