Wow, it's all over the news these days. With wallstreet plummetting our president wants to stabilize the economy by pushing 700 billion dollars back into the troubled financial institutions. But that is treating the symptoms and not the cause. What is the cause of these economical difficulties? Poor lending practices to new home owners where the institution doesn't verify employment or wages. Now, in these troubled times banks are worried about their assets so now they are more inclined to foreclose on these houses when their mortgages are overdue (especially with the falling home values).
Oops, the value is falling. They are no longer receiving any money from their borrowers and the economy is going badly. So because they made these bad decisions we the tax payer should bail them out? I don't think so. Neither does the three or four people (average people with not a lot of money tied into the stock market) that I've asked.
I have complained and I have heard complaints about CEO's receiving million dollar salaries. Now my first complaint is that no one needs a multi-million dollar salary, but then a friend said they get paid so much because their decisions directly effect all the employees below them and the financial success of the company. How much are the CEO's of the company's we are looking to bail out making? They are horribly overpaid.
I think the President should be paid on a basis of his success. A term is four years. Each year is a quarter. While he is in office, let him get only room and board and he can collect his wages after his/her term. Have congress or some neutral party evaluate our economy, how he's done on his campaign promises and other issues. He does good give him a salary that is appropriate for his success or lack there of. Give him a million a year for successfully running the government... or give him the same wages as the lowest paid civil service worker for a crappy job.
How should we fix the current situation? Let us start with a basic concept which I am sure many people will cringe when I say it. Nothing is free. Having said that instead of giving 700billion to the corporations lets start a bail out program for the people's whose mortgages are reaching foreclosure. First, after a citizen applies for it, we review the terms of their current loan and make sure it is fair and not designed to fail. Then we take a look at jobs in the area that we would spend federal money on (roads, highways, trail ways and environmental clean up). For twenty hours a week the home owner does these jobs for a month and the government get the mortgages caught up. Or for less time a week the government could supplement the wages to make that little extra neccessary to make their mortgage and still bring in enough money to live. The money still gets to the corporations, but we save people's homes and we get things done that need to be done that we would be spending federal money on anyway.
Well that is enough for today's rant.
Have Fun and Be Great.
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Of course, there is another option out there for homeowners. It isn't pretty and it probably isn't fair but you could absolutely do this. Keep paying on that mortgage and "forget" to pay your local taxes. When you loose your house to a tax lein it goes up for auction for roughly the amount of the lein, and any previously due amount on it (remainder of your mortgage) no longer exists. Only catch here is that if you don't want to get caught manipulating the system, you may want to have an extremely trustworthy freind do the bidding for you then sell it back to you for what he/she paid for it. There goes that mortgage out the window ... which means more money in your pocket, a roof over your head, and you're able to put all that money that would have gone to the overpriced mortgage back into the economy and thereby giving a boost to the people who really need it.
But then again, what do I know? I'm just a mom.
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