Posted by henleyoc on 26th of Sep 2008 at 10:43 am
For what its worth, I think the bailout is the wrong solution
though. Better would be to use $700b to buy every single house
currently in mortgage default in the US as at 5:00pm on 26
September 2008 thereby clearing the mortgages and then rent
the houses back to the occupiers at reduced rent. Then in a few
years offer the current occupiers a stepped buy-back plan.
Its a better solution because it purges the US of crap mortgages
completely, helps clear the housing overhang and helps keep people
in their houses.
Posted by dodgerdog on 26th of Sep 2008 at 11:14 am
Unfortunately - the outstanding mortage debt greatly exceeds
$700 Billion dollars and thus this alone would not clear the
overhang. At best, we need an approach to let the air out of
the balloon (leverage out of the system). The other
alternative is a collapse.
Posted by jcomptonod on 26th of Sep 2008 at 11:03 am
Nope, not in favor of rewarding
people for their bad decisions, living above their means,
or even just their inability to pay for what
they bought. It just feeds the widespread belief that nobody
is responsible for their actions. Tired of it.
Also, tired of getting jerked
around by the extreme greed of others, but that's another
issue.
a better solution
Posted by henleyoc on 26th of Sep 2008 at 10:43 am
For what its worth, I think the bailout is the wrong solution though. Better would be to use $700b to buy every single house currently in mortgage default in the US as at 5:00pm on 26 September 2008 thereby clearing the mortgages and then rent the houses back to the occupiers at reduced rent. Then in a few years offer the current occupiers a stepped buy-back plan.
Its a better solution because it purges the US of crap mortgages completely, helps clear the housing overhang and helps keep people in their houses.
Unfortunately - the outstanding mortage
Posted by dodgerdog on 26th of Sep 2008 at 11:14 am
Unfortunately - the outstanding mortage debt greatly exceeds $700 Billion dollars and thus this alone would not clear the overhang. At best, we need an approach to let the air out of the balloon (leverage out of the system). The other alternative is a collapse.
Solution
Posted by jcomptonod on 26th of Sep 2008 at 11:03 am
Nope, not in favor of rewarding people for their bad decisions, living above their means, or even just their inability to pay for what they bought. It just feeds the widespread belief that nobody is responsible for their actions. Tired of it.
Also, tired of getting jerked around by the extreme greed of others, but that's another issue.
see ya in the soup
Posted by dylan398 on 26th of Sep 2008 at 11:07 am
see ya in the soup line.....