The Spice Must Flow
Regarding last nights' speech, I am speechless! All this time I thought the financial "crisis" was a result of a derivative lending strategery that was most advantages to financial institutions. But no! This was all about the little guy, "struggling to put food on his family." This was about everybody having a house to call their own. How could I have missed this?!
So, let us consider the logic of the proposed fix. According to King George, we need to 'unclog the mortgage backed securities from the financial system.' OK...not sure what that means, but let's continue. It is important to allow people to borrow money; entrepreneurs, parents sending children to college, people wanting > cars and homes. (I have a tear in my eye.) The spice must flow! Sorry, I am off track. You get the point; everybody needs more money.
And now for the good part, the taxpayer, AKA entrepreneur, parent, person, is going to assume a $700 BILLION DEBT. (Here is where I really get lost.) And the money will go to an international collection of financial institutions. Huh?! Why won't the government give it to the US taxpayer? According to George, we are the ones that need it. So, if all the homeowners with a mortgage were given, say $100,000, and everybody met their mortgage obligation, wouldn't that 'unclog' the system?
So, I calculated this alternative, and what do you know? Gimme some spice, baby. Just an idea.
