mcgraw_wv
09-23-2008, 01:59 PM
To start, I want to say I am against any form of a bail out, whether it be on an individual basis, or a corporate basis., but if we are going to spend 700 Billion dollars... this is how it should be spent...
First, the problem...
The problem is there is a lot of what people grade as bad debt. This debt is from questionable lending, and people taking out loans they can't afford. Now supposdely only 4% of the current loans in America right now are foreclosed, or in fear of foreclosure, which makes me feel the 700 billion is a complete over shot and bonus to wall street.
The solution...
Instead of simply handing over money to these banks and buying their "bad debt" why don't we as a people ( Tax Money ) use our money to make the bad debt good again... The Debt is only considered bad because it is not being paid on, or is at a high risk of resetting rates and therefore making the foreclosure risk increase.
The purposed plan it to simply hand over money to these banks, and clear their debt... all that helps is the major banking institutions and thats it... with our money, they get saved, Mrs. Smith down the road still losing her house, and Mr. Jones still SOL...
We take that 700 billion dollars, and PAY down the mortgages of the bad debt... This way the 700 billoin dollars DO get funneled to the failing banks via helping the PEOPLE!!!
IF you dived 700 billion by 10,000 dollars .... you could buy down the liability of 70 million mortgages by 10,000. This would give all homeowners a nice shot in the arm and a chance to refinance...
But wait, there aren't even 70 Million mortgages out there... so let's say 20,000 to every Primary home mortgage, that's still 35 Million mortgages that get a 20,000 dollar reduction in liability and debt, funneling all that money to the banks who need it WHILE reducing the people's liability... AS WELL as bringing their mortgage in line with the 20% reduction in housing prices... Giving many people the real opportunity to then refinance from an even position rather than upside down...
Now that's a solution that bails us out while actually benifiting the people, something government is supposed to do...
Once again, I am against all bail outs, but if we are going to spend the money, why isn't this route the primary route to fix the banking system...
Thoughts?
First, the problem...
The problem is there is a lot of what people grade as bad debt. This debt is from questionable lending, and people taking out loans they can't afford. Now supposdely only 4% of the current loans in America right now are foreclosed, or in fear of foreclosure, which makes me feel the 700 billion is a complete over shot and bonus to wall street.
The solution...
Instead of simply handing over money to these banks and buying their "bad debt" why don't we as a people ( Tax Money ) use our money to make the bad debt good again... The Debt is only considered bad because it is not being paid on, or is at a high risk of resetting rates and therefore making the foreclosure risk increase.
The purposed plan it to simply hand over money to these banks, and clear their debt... all that helps is the major banking institutions and thats it... with our money, they get saved, Mrs. Smith down the road still losing her house, and Mr. Jones still SOL...
We take that 700 billion dollars, and PAY down the mortgages of the bad debt... This way the 700 billoin dollars DO get funneled to the failing banks via helping the PEOPLE!!!
IF you dived 700 billion by 10,000 dollars .... you could buy down the liability of 70 million mortgages by 10,000. This would give all homeowners a nice shot in the arm and a chance to refinance...
But wait, there aren't even 70 Million mortgages out there... so let's say 20,000 to every Primary home mortgage, that's still 35 Million mortgages that get a 20,000 dollar reduction in liability and debt, funneling all that money to the banks who need it WHILE reducing the people's liability... AS WELL as bringing their mortgage in line with the 20% reduction in housing prices... Giving many people the real opportunity to then refinance from an even position rather than upside down...
Now that's a solution that bails us out while actually benifiting the people, something government is supposed to do...
Once again, I am against all bail outs, but if we are going to spend the money, why isn't this route the primary route to fix the banking system...
Thoughts?