Bail outs? How about you bail me in!

If it isn’t one thing, it’s another.  Freddie, Fannie, AIG, (WaMu?)…and other efforts to stabilize the economy.  The Federal Government is spending money like it’s the best man at a bachelor party.

But what are we doing giving all this money to people who obviously don’t know a good financial decision from a bad one?  I have a better idea.

I pay my mortgage.  My co-workers pay their mortgages.  My friends pay their mortgages (mostly). How about the government stops this bailing out the irresponsible business and starts rewarding those of us who can manage our money.

My idea: take the $85 billion you are loaning AIG, find the people in the US with credit scores above 700, who own their own homes, randomly select 85,000 of us, and loan us $1 million each.  Three rules:

1. We pay the loan back in 10 years, at prime

2. We must invest the money in the US (real estate counts, stock counts, bonds don’t count…that’s just financing the binge…but that’s another post)

3. We keep the proceeds above repayment

I am pretty sure that  we could figure out how to make this whole economic recovery thing work.  And I am at least sure we won’t squander it.

I mean, who really benefits in 30 years from propping AIG up?  Or Fannie and Freddie?  Let em fail, I say.  Maybe then we will learn not to take out, make or buy bad loans.  And in the meantime some of us get to get rich.

Everybody wins!

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3 Responses to Bail outs? How about you bail me in!

  1. mark s2 says:

    Great thinking outside of the box, Bill. 2 Points: $100 Billion = the bailout at this point, would finance health care for all! Further, I recently closed on a little Ocean Shores property, and when I participated in the Closing at the Escrow Office, the Escrow person told me how happy she was that restraints on lending were being newly imposed. She frequently went over the tedious process of closing with a borrower, knowing that person was or would soon be incapable of paying! Talk about lack of ethics….

  2. Herb Pearse says:

    I think a little light reading is in order and I recommend “Shock Doctrine / The Rise of Disaster Capitalism” by Naomi Klein and “Free Lunch”. Both books lend creedance to my firm beleif that our government is no longer for sale… It has been sold!
    The ultra-wealthy continue to play games with our taxpayer dollars and the latest game to get tax dollars funneled their way is through instilling fear in the general population that our financial structure is failing. So what!!! It is corrupt to the core!!! The only beneficiaries of the current structure are the upper 2% of our population! Let it fail and bring those who have been bleeding our coutry dry down to a reasonable, sustainable lifestyle.
    A bail out that needs to be made is to those families who have, or are in the process of, loosing their homes. Not just one home of several but the one that gives them shelter. Some government funds that could be redirected for this purpose are:
    Government subsidies and bailouts for corporations
    Government subsidies and tax breaks for oil companies
    Expenditures for the war in Iraq which only line the pockets of major corporations
    You get the idea… the list goes on.
    Some other methods to return our economy back to it’s feet:
    Make speculation and associated market manipulation for financial gain illegal
    Make lobbying by major corporations illegal
    Raise taxes on the ultra-wealthy to at least the 30% level
    Institute an excessive profits tax of at least 75% on all executive salaries and benefits packages
    And again… the list goes on.
    Now is a great opportunity for the bulk of Americans to say, “Enough is enough! I’m mad as hell and I’m not going to take it anymore!” Tell your representatives! Let them know how you feel. I am sure I am not the only one out here who is certain that they are being screwed!

  3. Lew McMurran says:

    Do you really want to solve the next housing/loan crisis? Bankers ALWAYS screw up every decade or so, so it is inevitable that another one will occur in our lifetime.

    Solution? Disallow the deduction of mortage interest on our federal income taxes.

    Hey Herb–chill out. Maybe you thought you were blogging on the Stranger’s website. If you want to disallow lobbying by corporation, then you better add the union’s to that list because they are just as corrupt as “the corporations”. Fannie and Freddie were among the worst as well. They used their foundation to throw shareholder money at “community groups” for very sketchy projects then twisted those same groups’ arms whenever Congress made attempts to rein them in. Fannie and Freddie were likely the major reason we are now in this mess by buying crappy loans.

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