A Simple Alternative to the Bail-out…
Here’s a plan that would save taxpayers $700Billion – and save people’s homes. Perhaps, as the writer says, it’s too simple.
“I have been following the economy and politics very carefully for the last 25 years. I believe I have a better solution to the mortgage crisis than any I have heard or read thus far. The beauty is in it’s simplicity. Do not bail out the banks and reward them for their excesses, instead reward the average mortgage holder.
The Fed Reserve recently opened their merchant discount window to a broader group of banks and investment houses. This rate is 2% for those special few.
I say that is not good enough. The Fed, instead of buying bad debt, should allow anyone who qualifies, to refinance their mortgage directly with the Fed, charging 2 1/2%. This gives the Fed a 25% markup. These rates would be locked in for up to 20 years. The Fed makes a profit, home-owners cut their interest by 50%-70% and the banks will get a great deal of loans off of the books.
Perhaps this is too simple to work.