Interim Update – Mortgage Crisis? – October 2, 2008
With all that’s going on with the proposed federal bailout of lending institutions, I would like to give you my opinion, and some solutions that have not been thought of by the media or our elected officials in Congress.
First, I do not support rewarding failure. So, bailing out the banks and those who have made the decision to live way above their means is a course I have little sympathy for.
If we are going to spend $700 billion of taxpayer money, why not use that money to reward success? Give the money to those people who actually always pay their mortgages on time, with the agreement that they money would be used to pay off their mortgage. So the money would first go to reward those who have done the right thing, passing through their hands to the banks, which seem to be short of funds at this time. It would also ensure that the initial expenditure would stay 100% in the country. This would free the responsible mortgage payees to reinvest in our country, stimulating our economy.
Another solution — I have not heard that any of these banks or lending institutions have offered a discount for paying off a mortgage early. If they are that strapped for money, they should be offering a 10-20% discount on paying off your remaining principal, thus bringing in needed funds.
Third, there are tons of tax cuts that the government could do to help stimulate the economy.
The government’s plan sounds like a large hand-out, when probably all the economy really needs is a small hand-up. What I have suggested may not be the best solution, but I think it is a far better solution than the one Washington has come up with.
When did we become a country that rewards failure and punishes success?
Delegate Rick Impallaria