Posted by pepperwu on 15th of Sep 2008 at 01:59 pm
The problem with the current administration is that they need to
go to the root of the problem and bail out US homeowners.
This could be done by:
1. Lending US homeowners $100k at 0% interest, which could be
used to reduce their mortgage and their interest. Such a loan
would be in the form of a bond which could be given to the mortgage
lender to use as partial repayment. US homeowners would only
be given this in return for the enforceable promise to service the
rest of their mortgage and remain in their homes.
The current administration lacks vision and needs to come up
with something bold, otherwise the next President will need to deal
with a depression.
Posted by rgoodwin on 15th of Sep 2008 at 04:19 pm
It's not just the President that needs this vision - there is
also a Senate and a House of Rep. - IMO - the folks campaigning
could also use thier brains and come up with some ideas - but
everyone is looking out for their rich lobby buddies in DC and Wall
Street.
Posted by dallahoo on 15th of Sep 2008 at 02:05 pm
and if they lose their jobs and cannot make the payment, what
happens to the promise, do they go to jail, will they be given
another 100k, 0 coupon bond?
and who pays the value of the bond at maturity? are we assuming
that at maturity house prices are higher, lower, unchanged?
Posted by pepperwu on 15th of Sep 2008 at 02:20 pm
the only way to fix it is to fix the assets at the base.
in any case, its better bailing out the homeowners directly (who
were stupid enough to be sold the mortgages) rather than
bailing out wall street crooks. The whole problem here is the
administration has sat on its backside and has not taken any
innovative or decisive action.
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Help out homeowners to solve the problem
Posted by pepperwu on 15th of Sep 2008 at 01:59 pm
The problem with the current administration is that they need to go to the root of the problem and bail out US homeowners. This could be done by:
1. Lending US homeowners $100k at 0% interest, which could be used to reduce their mortgage and their interest. Such a loan would be in the form of a bond which could be given to the mortgage lender to use as partial repayment. US homeowners would only be given this in return for the enforceable promise to service the rest of their mortgage and remain in their homes.
The current administration lacks vision and needs to come up with something bold, otherwise the next President will need to deal with a depression.
It's not just the President
Posted by rgoodwin on 15th of Sep 2008 at 04:19 pm
It's not just the President that needs this vision - there is also a Senate and a House of Rep. - IMO - the folks campaigning could also use thier brains and come up with some ideas - but everyone is looking out for their rich lobby buddies in DC and Wall Street.
If you really get down
Posted by rafe on 15th of Sep 2008 at 04:30 pm
If you really get down to nuts and bolts, we are more communist than Russia or China. Going to write the American Communist Manifesto.
Ask not what you can do for your Country but what can you get FREE from your country! Includes Gov't as well!
and if they lose their
Posted by dallahoo on 15th of Sep 2008 at 02:05 pm
and if they lose their jobs and cannot make the payment, what happens to the promise, do they go to jail, will they be given another 100k, 0 coupon bond?
and who pays the value of the bond at maturity? are we assuming that at maturity house prices are higher, lower, unchanged?
the only way to fix
Posted by pepperwu on 15th of Sep 2008 at 02:20 pm
the only way to fix it is to fix the assets at the base. in any case, its better bailing out the homeowners directly (who were stupid enough to be sold the mortgages) rather than bailing out wall street crooks. The whole problem here is the administration has sat on its backside and has not taken any innovative or decisive action.