Rogelio

-777.7: Where Do We Go from Here?

How about a bailout for American public: let everyone refinance to a long, long term of mortgage in regardless, the value of the house, credit, and income, as long as they willing. Anyone who has a mortgage now, let be allow to refinanced into a 40 years, 50 years, 60 years, 70 years, 80 years, 90 years or even 100 years mortgage at a low interest rate. However long it takes, as long as it is refinanced into a more affordable mortgage payment. This way, people will not walk the house they don't have to pay too much for monthly.

So long as people are paying their mortgages, banks are not losing money on papers. With this, people are happy, and banks are happy. Of cause, we could put some restrictions on this type of loan to prevent some fraud and abuse. This is minor concern compare to what benefit it will reap.

Stimulus Tracker: Results Are Scary

How about a bailout for American public: let everyone refinance to a long, long term of mortgage in regardless, the value of the house, credit, and income, as long as they willing. Anyone who has a mortgage now, let be allow to refinanced into a 40 years, 50 years, 60 years, 70 years, 80 years, 90 years or even 100 years mortgage at a low interest rate. However long it takes, as long as it is refinanced into a more affordable mortgage payment. This way, people will not walk the house they don't have to pay too much for monthly.

So long as people are paying their mortgages, banks are not losing money on papers. With this, people are happy, and banks are happy. Of cause, we could put some restrictions on this type of loan to prevent some fraud and abuse. This is minor concern compare to what benefit it will reap.

The Great Bank Rush of 2008: What's the Money For?

Do we know what is the fundamental cause of economic downfall and crisis? Yes, yes, we can blame on the housing slump. But, have anyone actually look into the statistic, that the housing started to decline when the gas price started sharply increased about 3 years ago.

We might say how in the world gas price has anything to do with the housing slump, but as the matter of fact, it does. As the gas price started to increase, for those who were barely making it, had no choice but to forwent the house and swallowed the high gas price to continue to go to work to make a living.

We are petroleum based economy. As the gas price continue to rise, it hit even more people and more houses went into foreclosure. Moreover, as gas price continue to rise, everything went up in price, because everything required gas to transport. This affected people in every ways: from food, clothing, furniture, daily necessities and more. Paying all of these material things, a lot of time come before paying the house payment, which is usually the biggest chunk of our payroll.

If the gas goes down to a little bit over $1 as it was 2000, we will be back on our foot economically in a short time. At a little bit over $1 in gas price, most of people would right away have one to several hundreds dollars more to spend every month. With this, our economy will be back running smoothly in a few months. With more spending income available will also make the housing for affordable.

Rogelio