A different approach to a failing economy
December 22, 2008
Being one of the many who has been effected by our country’s economic woes has motivated me to formulate a different approach to this dire situation. It appears to me that funneling taxpayer money to the lending institutions and banks may be a little premature and does not effectively address the root cause. Therefore, I would like to suggest a different approach as follows:
– The bailout funds (taxpayer money) should be made available to the lending institutions via the taxpayer in the form of payments made directly to the taxpayer’s debtors.
– Allow up to $35,000 or some predetermined amount be made available to each taxpayer. Any amount that is not utilized by the taxpayer would be taken as a tax credit over time.
– These funds will be paid directly to the lending institutions involved upon a taxpayer application to the appointed governmental agency.
– The debt burden on the taxpayer will be reduced, and in some cases eliminated.
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– Consumer confidence will strengthen as their debt burden is relieved.
– The debt on the lending institutions books would be reduced through the elimination of consumer loans.
– The lending institutions would now be more motivated to lend as the number of outstanding loans are decreased, causing their revenue flow to diminish.
– The rate of foreclosures would slow as money flows to the mortgage companies and as a result would energize the housing market.
It is important to note that this approach that I have suggested above is just the beginning dialogue, and any input that you can provide, both positive and negative, would be greatly appreciated.