montross515

Real Estate Market Still Frozen

This may shock you, but this financial crisis didn't just happen. It was planned and meant to fall on us about 3 months after Bush left office. Anyone can turn this housing crisis around in a month. How? There are many ways, known and used in our history. Try making 10 billion dollars available through the Treasury Dept for new buy loans. 4%, the only qualifying is a credit score of 625 and prove you can make the payments. How about doubling the mortgage interest rate deduction to 200% for three years.

There are many ways, but with Bush. He loaned 350 billion, or gave it away to the banks and insurance companies in a way that almost no new loans are being made. The details are complex, but most of this money was required to be immediately reinvested back with the Treasury Dept.

When banks can borrow for less than 1%, and then loan ten times that amount through fractionalized reserve banking, what interest rate do they need to make a big profit: 2% or less.