Wow, I hit this one on the head. In my posts in July and August I mention the down dipping below 11,000.
What's happening now is our "global partners" are also having to take a deep breath and wonder, "now what the hell do we do?"
Ha ha. Wow. This is going to get worse. 159,000 people lost their jobs in September. I also predicted this in my past blogs. Don't forget, I also mentioned in July that a report would come out about people falling behind on their credit card payments.
This will be another blow to the banks.
My solution, here is an idea:
1) Have the government buy 1 point off every one's loan for those people who purchased property between 2002 and 2007. Not on loans above $500 because these people should not have purchased a home for that much in the first place.
Here's an example. I'll use my loan. presently, my loan payment (30 year @ 5.25% LOCKED ) is $2167.05. If the Government lowers my interest rate by 1 point, making it 4.25% our mortgage payment, with taxes etc. would be lowered to $1974.21. That is a difference of $193.20 a month or $2316.00 per year.
Also, home owners should be givena tax credit of 2% of their current loan balance. If your loan balance is $420,000, you would get a tax credit of $8,400.00.
My wife and I are spending about $3,000 more for heating oil and gasoline just to get to and from work.
That's $3,000 right out of our pockets and the pockets of a million or more people.
This is exactly why people are losing their jobs. People have no money to put back into the economy. You want gas money to get to work or do you ant to go to the movies or out to dinner?. that's what it's come down to.
So, if the Government Really wants to help it's citizens, it needs to help the citizens, not the greedy banks who will receive money to give loans to people who have to have excellent credit. Due to this financial mess, most persons credit has been ruined, so we will have all this "loan" money which no one can touch except for, that's right, the wealthy.
get money back into the pockets of the MIDDLECLASS consumers!