Mar 08 2009
One common theme starting to percolate through the electorate is the resistance to any plans to bail out homeowners who got in over their heads (or worse, lied on their applications) before doing anything for those who have been responsible and keeping up with their mortgage payments.
As I proposed earlier, before a dime is considered for people who screwed up, the country would do much better to reward those who have been holding up their end of the bargain:
Bail Out The Good Home Owners, Let Them Spend Their Mortgage Payments: The Democrats and DC elites have it all backwards. Instead of bailing out the folks who screwed up (lenders, banks and buyers) bail out those of us who were responsible and made our payments. Instead of spending $9.5 million on a 1 mile bike path, buy out all of us who are doing well with our mortgages.
By paying off our mortgages you reward good behavior, the banks and lenders get an infusion of much needed cash, and those of us who are rewarded will start spending the money we use to allocate to our mortgages to investing, spending and saving! This plan would shore up banks, stabilize real estate, provide people something of value to offset the recent depreciations and stock market slide and it would stimulate the economy all at once.
Those who are stuck can get a little breather from the banks in terms of percentage rates, but no hand outs or do-overs. Maybe they will be bought out by those of us now free of our own mortgages we took care of all these years.
When we have all these Tea Parties, remind DC that is it us who played by the rules and performed responsibly who deserve the bail out first. The dupes and fools who screwed up should be at the back of the line.
I am extremely heartened to hear that the Tea Party movement is gaining momentum:
They are reporting that 15,000 people turned out at the Fullerton, California Tea Party Protest today.
If this movement can gain traction and grow to attract people from the left of center to the right of the political spectrum, then there is a real chance this nation can avoid another Great Depression. But it does require pulling together instead of tearing each other down.