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.