How to save the United States of America's economy
The answer to the current economic problem is to pay the mortgages of people up to $700,000,000,000 dollars. Rather than trickle down the money from the top percolate the money up from the bottom. This solution will solve the immediate problem of home owners loosing their homes, and put the much needed cash into the hands of the banks.
From what I have read of the proposed solution We the People will guarantee loans which are in great chances of default. By guaranteeing the loans the banks are free to loan additional money to new clients and the economy continues to operate. But the home-owner still cannot pay his/her mortgage and when the loan fails he/she and family become homeless. To make matters worse We the People are the bank owners and are responsible for evicting those former owners.
In my proposal We the People, (the government), gives the money to the [struggling] home owners by paying off our mortgage. That way the bank get the money, and is free to make additional loans. And now that the home owner is released from the burden of the monthly mortgage payment he/she is able to make purchases like cars, major appliances, home improvements. These purchased are an instant economic stimulus. Major money begins to flow through the system through the thousands of small businesses in local communities.
If the largest banks fail in this scenario, too bad. The executives should have thought of the consequences when they approved their business plans. The economy will be fine because the 'little' guy will be in a position to spend and that money will percolate up to the banks which had always done the right thing. This plan puts the people ahead of business and saves the family. Small business benefits and by extension all economic sectors see huge gains. This is the 'real' help the government, that is We the People, can provide to help each other out of this greedy mess.
Labels: bank, economy, money, percolate up, trickle down