Simple Plan To Get Back On Our Feet
With the huge mess that is occurring in financial markets now, it’s not surprising that things are getting way out of control. I wonder if the market players are just overreacting a tad too much about the current news or if they aren’t overreacting enough. It seems like the major news networks are bringing out every talking head they can to talk about the problems and offer lame excuses and even more lame plans to get things moving again.
Me? I think it’s time to inflate our way out of the problem(more on inflation later or elsewhere). Stimulus checks are ok, but let’s make them worthwhile. They are talking about a $500 billion bailout. That’s almost $2,000 for every man, woman and child in the US. Why not come up with a special tax credit? The special tax credit can be used for several things, such as buying a home or making a business investment. Back this up by making a special government loan program whereby people could have access to government money at market interest rates. Allow people to use their credits to help not only buy a home using the government loan program, but also refinance an existing home loan.
I could envision a family of four receiving credits of $8,000 to put up as a down payment on an existing foreclosed home. I could envision a young couple using their combined credit to open up a new business or using it for collateral for a small business loan.
This plan would go a long way to stopping the slowdown in real estate market while at the same time moving loans off the books of existing financial institutes. Best of all, it would be done with minimal government bailouts of stupid corporate behavior. Think about it. Everyone with an existing home loan, or even one in default would get relief.