Comments on: Hoyer: We are in the eye of the storm http://talkradionews.com/2008/10/hoyer-we-are-in-the-eye-of-the-storm/ The Talk Radio News Service is the only information news service dedicated to serving the talk radio community. Sun, 22 Nov 2009 05:46:24 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: edeldoug http://talkradionews.com/2008/10/hoyer-we-are-in-the-eye-of-the-storm/comment-page-1/#comment-20567 edeldoug Thu, 02 Oct 2008 17:25:25 +0000 http://talkradionews.com/?p=20833#comment-20567 To see a WORKABLE plan to address the financial mess without socializing the markets or providing corporate welfare, see http://starboard.blogtownhall.com . Before accepting the Paulson Plan, even with congressional tweaks, think about this: How much is $700 Billion? More than the government spent COMBINED in Fiscal 2006 for: Medicaid $180.6 in Billions Education $118.6 Health $ 63.9 Transportation $ 70.2 Veterans Benefits $ 70.0 Community Development $ 54.5 Food & Nutrition Assistance $ 53.9 Justice System $ 41.0 Housing Assistance $ 38.3 TOTAL:$691.0 Source: Budget of the United States Government, Fiscal Year 2006 According to CNN August 14, there were 750,000 homes in foreclosure. In addition to hurting the homeowners, these assets set the value of the banks' capitol plummeting due to Mark to Market Accounting rules. $700 Billion divided by 750,000 homes = 933,333 PER HOME! As ridiculous as this might be, and I'm not actually proposing it (just using it to illustrate JUST HOW bad the Paulson plan is!), why not give each troubled homeowner $100,000 toward their mortgage to keep them in their home and reduce or eliminate their balance? Then refinance any remaining balances for 15 years at 7% fixed. This will cost taxpayers only $75 Billion, the homeowners get to keep their homes and reduce or eliminate their house payments. The banks get instant liquidity. Balances under $100,000 are paid off! The lenders get to convert bad loans over $100,000 balance to smaller, better risk loans at a nice fat 7%. The only loser... the guy who bought a home he can afford, and who continues making his payments, on time. This would be an unconscionable giveaway bailout, giving taxpayer money to people who bought houses they couldn't afford; and yet it's more measured, more reasonable and more likely to WORK than the Paulson plan; which does nothing to address the cause of the problem: the CRA, Mark to Market, and corruption at Fannie & Freddie, which MUST be dismantled or at least downsized! To see a WORKABLE plan to address the financial mess without socializing the markets or providing corporate welfare, see http://starboard.blogtownhall.com .

Before accepting the Paulson Plan, even with congressional tweaks, think about this:

How much is $700 Billion?

More than the government spent COMBINED in Fiscal 2006 for:

Medicaid $180.6 in Billions
Education $118.6
Health $ 63.9
Transportation $ 70.2
Veterans Benefits $ 70.0
Community Development $ 54.5
Food & Nutrition Assistance $ 53.9
Justice System $ 41.0
Housing Assistance $ 38.3
TOTAL:$691.0

Source: Budget of the United States Government, Fiscal Year 2006

According to CNN August 14, there were 750,000 homes in foreclosure. In addition to hurting the homeowners, these assets set the value of the banks’ capitol plummeting due to Mark to Market Accounting rules.

$700 Billion divided by 750,000 homes = 933,333 PER HOME!

As ridiculous as this might be, and I’m not actually proposing it (just using it to illustrate JUST HOW bad the Paulson plan is!), why not give each troubled homeowner $100,000 toward their mortgage to keep them in their home and reduce or eliminate their balance? Then refinance any remaining balances for 15 years at 7% fixed. This will cost taxpayers only $75 Billion, the homeowners get to keep their homes and reduce or eliminate their house payments. The banks get instant liquidity. Balances under $100,000 are paid off! The lenders get to convert bad loans over $100,000 balance to smaller, better risk loans at a nice fat 7%.

The only loser… the guy who bought a home he can afford, and who continues making his payments, on time.

This would be an unconscionable giveaway bailout, giving taxpayer money to people who bought houses they couldn’t afford; and yet it’s more measured, more reasonable and more likely to WORK than the Paulson plan; which does nothing to address the cause of the problem: the CRA, Mark to Market, and corruption at Fannie & Freddie, which MUST be dismantled or at least downsized!

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