RobertsJim

Gold: Now Demonstrating Trust in Obama

One way to create an instant stimulus, stop collapsing home values and to shore up many hurting banks is for the government to pay down every existing home mortgage by 80%.

Result: Affordable mortgages for all. Foreclosures are virtually eliminated. Falling housing values are abated if not stopped in their tracks. Banks are made more solvent, and our consumption based economy is invigorated by millions and millions of home owners who--having had their mortgages refinanced to 20% of its market value--have billions and billions of bucks with which to spend and save (which is merely deferred consumption, after all).

Cost: T'won't be cheap. For sure it will be in the same realm as all the other trillion dollar solutions to stoke America's engine so her train she can start a-movin again.

To recoup this massive investment by Uncle Sam in lots of real estate (75% of all homes have a mortgage), he'll need to place a lien on these houses so, when they sell, our generous Uncle can be made whole.