This will coincide with Vern's post below. This is the best Idea I've heard yet and it'll work.............................

[therick]

BUT, because it will work you and I know it will never happen because then the Democrats won't be able to blame anything on anyone else and they won't have any more good reasons to gorge themselves at the Federal Reserve.

It is my understanding (mostly hearsay so I can't give names and dates) that there is a grass roots movement among some conservative Senators/congressmen/representatives to lower ALL mortgage rates to a flat 4% fixed for 30 years. Think about this for a looonnngg moment. This could provide an answer to a lot of the things that are presently holding the economy in a stalemate.

1 - existing mtges. would be lowered to 4% providing an extra several hundred dollars in "CASH" to each mortgagee EACH month that they can do what they want to with it in order to stimulate the economy.

2 - Houses that were not affordable now could very well become affordable providing an answer to bank repos, vacant houses sitting in neighborhoods (Realtors working again) and would prevent many houses from falling into foreclosure in the first place.

3 - Contractors could go back to work which would trickle down to laborers, hardware stores, and lumber yards.

4 - Car dealerships could sell cars again to people that have been holding back because of the extra savings provided by the lowering of their mtg pmt.

5 - Taxes would be collected on the additional sales generated putting local govt. employees back to work and extra money earned for infrastructure in the local communities.

6 - Restaurants would benefit as people may be able to go out to eat again or more frequently.

7 - Banks could loan money again (smart loans this time, not loans mandated by govt.) for car loans or mortgages.

These are just a few of the ideas that came to me off of the top of my head. Just imagine...... some people could pocket as much as 4 to 500.00 extra dollars EVERY MONTH to put into the local economy. Of course there are as many questions as there are answers but I think that this is far the best idea yet. What do y'all think?

 

[Keith IL]

It's a non-starter since they can't arbitrarily set interest rates to 4%, if they could it would have been done already. The idea that they can reflate the housing bubble is misguided and just wishful thinking. If house prices stabilize at these levels it will only be from massive inflation which would harm the savers and reward the debtors. I'm sure this is what they would like to do but who exactly are they going to lend to? the ones who have already been foreclosed once (fat chance). The problem isn't a lack of liquidity which they say it is and are treating it as such, but a solvency issue which is why bank won't lend because they know they're insolvent and know that the other guy probably is to. Until the banks clear their level 3 assets(CDO's SIV's Credit default swaps) nothing will get fixed, it;s as simple as that. There is a great game of pretend going on (I know it's worthless and you know but let's pretend) but nobody is willing to step into the breach because they know it's folly.
We are headed for something more severe than the 30's, Europe is imploding faster since they have currency exchanges that can kill you alot fast as in waking up in the morning and finding out your mortgage doubled while you were sleeping. There are riots in Spain,France Ireland,Greece and more to come.

 

[Craig in Alabama]

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[therick]

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[Craig in Alabama]

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[Virginia_Relic]

we are nothing more than an extremely deep well, filled to the overflowing, with a limitless supply of CASH. These people that have been voted into office are not stupid. They most likely began their careers as attorneys, the crookedest thing on Earth. If they were crooked enough as a lawyer, they become judges, and if they play their hand from the bottom of the deck well enough, they are rewarded by being elected into an office as a politician.They then have access to the "well" and which of them in their right mind would not "drink from the waters" copiously, and pay off his or her special interest groups that got them elected in the first place? The money is there for the taking !! We work for it every day...just for the opportunity to hand over a vast portion of it, to keep that well brimming for the use of the chosen elite.What are you going to do about it ?? Really?? The vast majority will bitch about it, yet continue to pay,pay,pay ! There is really nothing you can do. Why would they ever change a good thing? If any of us had a limitless supply of cash, would you be looking to change anything that might slow down your Gravy Train? Think about our problems with health care. Think they will improve? Not until the elected officials are restricted to use the same system as the ones working to pay for their GOOD insurance, and other benefits.Problems with Social Security?? The elected officials don't have to rely on it, so why would they fix it? Next trip to your bank, ask them for a million dollars. Tell them don't worry about collateral to secure the loan...your children and grandchildren will pay it back. Let me know if any of you get the cash? LOL...........Folks...its a matter of SURVIVAL nowadays, and I pray that we do. HH...Virginia_Relic

 

[Vernon in Virginia~Formerly Alaska]

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[Bobbie]

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[Brian(upstateNY)]

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[Brian(upstateNY)]

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[Brian(upstateNY)]

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[Elson(La)]

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[Elson(La)]

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[Brian(upstateNY)]

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[Elson(La)]

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[Ed SW Fla]

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[DC/Id]

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[Ed SW Fla]

... it does not matter that you've done without ... paying yourself nothing or less than minimum wage, paid your suppliers on time, paid all employees - regardless of if they gave you an hours work for an hours pay .... so long as the free loaders get what the Congress thinks they are due.

Don't get me going here. I'm about to beat a Vermont Valentines day teddy bear to death!

 

[Craig in Alabama]

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[Craig in Alabama]

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