My New, New Deal for the economy.

[steven787]

bdbdbd said:
@steven: That was pretty well thought out, but i noticed one thing, that i need to comment; If the banks would give the people a couple of years free from payments, someone would need to bail the banks out until then, you suggest it would be the government, but all the money would be away from the public services.
Also, if the government creates more jobs artifically, the number of jobs would need to be so low, that it could be sustainable for extensive periods of time, if not, it will backfire (and this is the excact thing Jackson50 was talking about).
Now, what the US government is doing, is effective way, although not something you'd wish for, to bail out the banks by creating the trash bank, which only purpose is to get as much of the borrowed money back, no matter the cost.
The real problem has been the growth, when the economy grew beyond sustainable. What basically solves the issue, is devalvation and/or recession.

 

Actually if you go back and read the OP more carefully I say it would be a government buyout of mortgages with deferred payments, funded by Bond sales that the rich can buy to avoid higher graduated taxes (I explain this in the end portion on how to pay for it.)

The premise is government solutions, and it's implied.  I do say to shift from Hooverish bailouts to bailing out individual homeowners.

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• Misunderstanding the problem.  People's homes are losing value, people are not paying their mortgages, and losing their homes.  This hurts everyone, the homeowners, banks, and the whole country because the domino effect of tightening credit supply and less demand for credit.  The government is pretending it's a liquidity problem.  The bailouts are reminicent of Hoovers failed RFC, where they lent money to failing businesses. 

  • Stop the bull shit.  Refinance homes, not big companies.  If the company is still failing after all the buyouts, let it fail.  But once the bad debt is bought, they won't fail.  Give the homeowners a 2-3 year period not to make payments, and then collect them like student loans.  If they don't pay for a few months, start taking from the paycheck.

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This is from the finance section.

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Raise taxes on all people above poverty(~18k/yr) but increase the standard deduction so people on the lower end will be paying the same.

Offer tax write offs for good investment. (This is how the middle and upper class will save on taxes)  This will include U.S. bonds set up specifically to front the money for the mortgage buy back and student loans.

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The problem is very few people are willing to buy property, very few companies are willing to invest in expansion, and neither is willing to take on more debt.