Financial Crisis seems to be gripping the world. People are losing their jobs, homes, savings… Spending is at an all time low. We have no leadership out of this mess. Sounds like a great drama, huh? Unfortunately, it’s not something we’re going to see on a Soap Opera, but on all the news rags, websites, and television. It’s everywhere we look. The reality is.. what happens next? Another bailout? The first one didn’t work. The real way to solve this mess is to put the money in the hands of the consumers.
$700 Billion or whatever the number is up to now isn’t going to solve anything if we prop up the financial institutions. It’s only a stop-gap measure. The real way to solve this is to issue the payments directly to homeowners and let them decide how to deal with their finances. Now, I’m not saying give everyone a check for 300,000.00 and call it a day, but how about giving everyone a loan for up to 50% of their outstanding mortgage if they need it? Payments to start in 5 years? It would still require people to work, it would help them make ends meet and god knows it would stimulate the economy. The loans could be at Prime + 2%. It wouldn’t exactly be bad… but then again, what do I know? meh.