When the tax payer saved the system from collapsing by bailing them out with tax money, many people in the country were losing everything, and were left without jobs and no way to recover;
the financial institutions owe the tax payers a debt, many people did not want to bail them out , but the government did it anyway, against their better judgement, and it seams to be working well for the banks and financial institutions, the trouble is the tax payers are collapsing now and they need a hand up;
the main problem is no jobs, and no way for these Americans to recover what they have lost and their is talk of a double dip, and if their is a double dip it could lead to a depression which could cause more people to lose their homes and lively hood, and who knows how long that could take to recover, then their is the city and state deficits, and the national debt, that could go higher; the point is that someone in the government needs to do something to solve these problems, even if it means thinking outside of the box if the system fails everyone loses anyway;
this is an idea that I think would work, and would get people working again, if the government would try it, and the banks would be willing to do it to help the tax payers out and their country and try it to get the country working again!
in order for it to work really good, it needs to be fair and equal to all who would want to do it, the people who are losing their homes, and the people who are still current and even the wealthy, if they chose to do it the more the better!
for different levels of need they could take part of the mortgage and place it in escrow say one third of it and refinance the balance for lower payments, for whoever qualifies they could do more even up to two thirds in escrow and refinance one third for lower payments, to think outside the box, they could refinance one fourth, and place three fourths in escrow, to lower the payments even more, when they pay off the one fourth, then start paying on another one fourth, a bank could do this and generate tons of business or the government could guarantee the loan or private investors, could do it, however it would be done it would keep people in their homes, and would generate a lot of money that these poor people could spend, or these rich people could spend, which in turn would give small business a boost, and they would need to start hiring again creating jobs, and in turn this spending would generate city and state tax revenue, which in turn would help shore up SS, and would generate federal tax money!!
If they think out of the box a little farther, when the jobs return, and everyone is working that wants to work, they could add a vat tax[ gottcha"] a really small vat tax, at first, to pay on the national debt; or not" but we do need to pay on the debt sooner or later!
one more thing the people who lost their homes and credit, should be eligible to either go back in their homes or buy new ones, for the same pay on a fourth, at a time deal and if they were paying be for this recession they should be eligible, for it, no matter about the credit score because they lost their job, also if they default, they would be many people willing to take over their one fourth mortgage ;
if you have say fifty million people who were paying twelve hundred dollars a month and it was reduced to 500 dollars a month, it would leave 700 dollars in their pocket to stimulate the economy and small business;
we do not take anything with us when we leave here so why not use it while we are here!!!