.....only includes "conforming mortgages", that is only those under $417,000. I guess that means that people that live in bigger homes are not struggling also........ Also enables bankruptcy courts to amend note terms....moral hazard? Has the cost of borrowing just gone up? Class warfare and social engineering? Hmmmmmm..... http://www.marketwatch.com/news/sto...x?guid={23100FFE-C714-4352-B218-9DFC6D042960}
Like I was saying..... Take the trillion, pay off all outstanding mortgages saving the real estate market and the banking industry in one move. Put a moratium on new mortgages of 30 days until old fashioned lending guidelines can be re-established. All banks accepting this windfall would be required to sign off on this. The mortgage interest tax credit is discontinued pushing tax dollars back into the system. The housing values stabilize immediately. Instant impact. No need to create new layers of bureaucracy. Overhead costs minmimal. Defined targets with defined results. Money immediately starts flowing through the system. :wink:
....yes George, but surely you must see that your plan provides undue assistance for those with larger mortgages, hence larger homes.....surely that can't pass the creeping socialist test can it? What would Pelosi think? :wink:
Well one problem with paying off all the existing mortages would be the outcry from those who were thinking of buying a home but for whatever reason had not done so before they started paying off mortages. So unless you buy everybody in the US a home, there will be some unhappy people!
You raise a good point TOK....there are millions in the Obama nation who do not own a home and therefore would not receive a massive boost in their net worth.....Krebise, perhaps you could find room in your package to purchase all housing - apartments, mobile homes, owned or not - and simply transfer the title to the tenants!? Surely that would be the outcome if you tried to get it through Congress anyway, so why not load it up now?! :roll: May God help us....
I'm just saying that if we are hell bent to spend a trill, then get the biggest bang for the buck. I would love to know how much of this money will go to admin, new bureaucratic hires and othr "soft" costs. Whaddya think? 40% ? More?
I More than we want to know....the biggest problem with massive federal spending is the bureaucracy that it creates and takes an act of congress - literally - to remove. As opposed to private sector initiatives which then create private wealth and new jobs, etc, etc. The difference in the multipliers between public and private sector investment are vast......hence the greater efficiency of private sector investment.