User:GreySmith Institute/SRF Plan

Socially Responsible Funding Plan
Socially Responsible funding is meant to be a financial system based on securitization of vertically tuned financial documents. Essentially a target market like research or housing is identified, and as long as it has the potential to make money over the long term, a vehicle is built that will spread the financial costs so that it is affordable for the target market.

How it works, is that a Junk bond is created and target market people/organizations/corporations subscribe to the junk bond by borrowing money from SRF. Who pays it by buying the committment to pay the terms of the bond at a slight discount, and with some interest attached. The bonds then become an asset of SRF.

Next, SRF starts up a Mutual Fund for each bond issue, and the Mutual fund is used to guarantee 60% of the gross risk of the issue. At the end of the life of the investment. Because the risk is diluted by a 3 to one investment over the issue value, each investor should be exposed only to 20% of the gross risk, and that risk will be taken off of the compounded interest on their investment. The Mutual Fund, and the Commitments to pay the junk bond, are brought together and offered to an international bond Issuer as bond sureties, and are used to buy a two tranche bond issue consisting of a senior tranche that is higher security (5% or less of the gross risk) and lower interest probably selling at a slight discount. And a junior tranche that is lower security (35% of the gross risk) and carries a high yield (just less than 2 X the interest on the Junk bond).

The whole purpose of this system is to upgrade the relative risk so that junk bonds are financed at market rates. Because the relative risk to the consumer is either taken up by interest payments or by a partial guarantee the risk is more or less evenly spread across the market, allowing all players to benefit evenly as long as the fundamentals are correct, and the risk is properly calculated.

A few Vertical Markets were identified Research, Low-income rental housing, Green Product Development, Growable apartments, etc. It was thought that the fundamentals could be checked out if we started with a Rental Deposit Insurance company and learned the bond market before we tried any of our vertical funding streams.

A wish-list company was proposed as an example of each of the different marketing streams. It was thought that there was enough interest in research and housing that they could be a financial vehicle, dependent on an already existing sector for custom. In the other cases, a target was identified as a test case for the vehicle, except for GSI Laboratory, my own pet Lab which I hoped to start on my own.

It was thought that once the fundamentals had been proven correct, we could have a charette of social and development Non Governmental organizations to decide what the priority funding targets should be.

Of interest was the creation of a peak in research dollars in time for EXPO 2017, which partially explains the early Research Focus.

Given these goals, I began to query the I-Ching about the order of the formation of the vertical markets, and fleshed out about a 9 year plan with a gap between the 3rd and 5th years, that wouldn't close when I queried the I-ching about each of the vertical markets. I had originally thought that growable houses was an application of the housing stream, but the fact that this area didn't close until I slotted growable houses into it, suggested that my sub-conscious mind, was resisting putting anything else into that slot and interpreting the I-ching in such a way as to force it into the slot before the housing bond corporation.

Finally I ended up with the following plan:


 * 1st year: Rental Deposit Insurance Pilot Project (Appoint a Director)
 * 2nd year: Basic Research Bond corporation with EEDC, the UofA and other research incubators
 * 3rd year: Menlo Park Research Park (Named after Edison)(Appoint a Director)
 * 4th year: Growable Housing Project (Appoint a Director)
 * 5th year: Basic Housing Bond corporation (Appoint a Director)
 * 6th year: Green Development Corporation (Appoint a Director)
 * 7th year: GSI Admin Lab (Gather eminent scientists)
 * 8th year: GSI Scientists appoint a director, finance labs separately
 * 9th year: Planning Charette with EEDC and Charitable Sector

Timelines:
 * RDI Timeline
 * BRB Timeline
 * Menlo Park Timeline
 * GHP Timeline
 * BHB Timeline
 * GDC Timeline
 * GSI Admin Lab Timeline
 * GSI expansion Timeline
 * Planning Charette