allenbarton -- All Comments -- In These Times

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allenbarton

- 03 Oct 08
- 4:05 pm
We face two problems immediately - how to restore the financial institutions funds needed for normal lending to business and consumers, and how to keep people who have trouble paying their mortgages in their homes. Why not bail out the homeowners, with a "housing voucher" program designed to make up the difference between an "affordable" payment and what they are contractually supposed to pay? The mass of subprime homeowners - many minorities, almost all low or moderate income families - would be made secure in their homes. The lending organizations would have their capital restored as the "bad mortgages" became "good …

Posted to Saying “No Deal” to This New Deal
- 03 Oct 08
- 10:57 pm
Progressive politicians and movements missed a great chance in responding to the "financial crisis." Since the banking systems freezing up was due to holding a large number of "subprime" loans to low and moderate income people, many of which were behind in payments or expected to default, the progressive answer should have immediately addressed this root problem. We should have proposed a "rescue" plan for the borrowers, in the form of government-financed mortgage payment vouchers, covering the difference between what a family at a given income level could afford to pay, and the actual payments the borrowers were asking for. This …

Posted to Turning a Wall Street Giveaway Into a Rescue for All Americans