mrtaxx

Foreclosure Stimulus to Boost Tech's Four Horsemen

People who foreclose are going to need another place to live, maybe they will rent, so the amount of money freed up will be substantially less then you suggest. The fact that people will have to pay for another place to live suggests you article is lacking additional needed thought.

The Credit Bubble: Deregulation Gone Wild

To resolve the crisis the article suggests "If banks of all sizes could regain their capital immediately and easily, it would be a tremendous benefit to the American economy. The federal government could make this happen by entering into an arrangement with American banks that hold subprime mortgages...Here’s how it would work: *The government would guarantee the principal of the mortgages for 15 years. And in exchange the banks would agree to leave their “teaser” interest rates on those loans in effect for the entire 15 years. "*.

So it's suggested that people, mortgage co.'s and banks etc. who may have commited fraud by enhancing their income on mortgage applications and doing whatever other shnanagins they did, should get away with it, get great mortgage rates and all the other American taxpayers should pay for it. Now that's simply wrong because their problems should not be my problems and the problems on honest people and bankers. However I would not mind this 15 year plan being done if those who committed fraud and other shananagins and wanted to live and stay in their homes gave up their appreciaition in those homes in full or to some extent after the 15 years to pay back the reduction they received in interest rates by the rates not being increased after the teaser rate period ended.