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ASAP 4% HOME INTEREST RATE SOLVES CRISIS, MONDAY AM
Start the video about 10 minutes in....Ed Yardeni (brilliant guy) discusses the ONLY possible solution to the credit crisis....LOWER RATES...he wants 4%.
http://www.cnbc.com/id/15840232?video=928656875
The Nation and Detroit would benefit.
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Interesting. I don't like everything he said and I don't know how, practically speaking, he would get people into thesr loans, but I did appreciate his understanding that housing is the key and the fix needs to happen at the level of individual mortgages.
November 19, 2008 11:54 AM | Reply | Permalink
I (and many others) have been advocating this very approach for some time whilst all the "smart" guys even on sights like this have been focused on providing more and better welfare for the wealthy and greedy.
It only make sense to help the American homeowner first and quickly since we are now experiencing 10,000 foreclosures daily! The way to stop the bleeding is NOT to give the patient more units of blood. The way to stop the bleeding is to staunch the wound. The bleeding is the inability of millions of citizens to pay their mortgages.
And for those of you who think that most of these folks just bought more house then they could afford (which I believe is the case for only a very small percentage of cases) I would respectfully say: so fucking what if they did? Those folks are a damn sight less culpable for creating this mess than the con men of Wall Street who knew damn well this was all a big pyramid scheme. Those con men are the last people who need our assistance.
The homeowners (who are also the taxpayers) are the people who deserve and need assistance which will actually have a positive impact on the economy as opposed to dumping billions into the coffers of banks who won't lend the money and who are refusing to lower interest rates. Hopefully, someone important in the Obama coterie will have seen this show and listened.
November 20, 2008 12:44 AM | Reply | Permalink
What really peeves me, is the attitude.
TRICKLE DOWN has failed, yet they keep trying to solve the problem from the top first.
Is there not enough proof that when the government helps those at the bottom, money flows, because when people are making purchases, businesses are solvent?
November 20, 2008 5:22 AM | Reply | Permalink
Refinancing would help some somewhat. It doesn't deal with being underwater a long ways.
He was not asked to estimate the cost of doing this. Have you seen sound figures? Would it even be feasible to force the bonds to 2%?
November 25, 2008 3:46 PM | Reply | Permalink