I’m sure someone who understands macro and micro economics can explain this better, but I have a suggestion to W and his bail-out, bandaid for wallstreet…
Take the 700 Billion and make it available to HOMEOWNERS who are about to loose their ONLY home because of the housing and mortgage crisis. Their mortgages could be rewritten and made more affordable.
Freddie Mack and Fannie May will HAVE TO help administer this process (to help pay off their bail out) other mortgage companies can also help if they want.
The US government will NOT become a mortgage writer, but will give oversight to see it is properly administered.
The result – the money goes directly to HOMEOWNERS who need it. The mortgage crisis is eased, (relatively quickly) investments are strengthened, and the rich don’t get help, fixing a problem, their greed helped create.
Could it work?