Saturday, September 27, 2008

The bailout will fail

For several months I have talked to many business owners who have said basically that business is terrible.

This bail out, whatever it is, will probably be passed. It does not crate jobs, it does not stimulate the economy. Is everyone forgetting that the average American family is spending like $5,000 more per year in gasoline? Are we forgetting that people have no money to spend because food prices have risen?

Want to save everyone? Give a break on people's loans. In other words, if someone bought a house between 2002 and 2007, let's face it, they paid too much. This includes me and my wife. We paid $349,000 for our house in 2005. I would estimate about 10% over what it was really worth.

So, if the government really wants to keep people in their homes, they should buy 10% of the homeowners current loan amount. Then the Government should give a tax credit of about 5% of the CURRENT value of the home to homeowners who purchased homes between 2002 and 2007 with loan amounts NOT exceeding $500K.

We do not want homeowners to lose their homes because they are, after all, the ones who pay property taxes.

This would also help the homeowners with daily living expenses, food, gas, etc.

Just my idea.

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