I don’t anything about the Mortgage Crisis…I admit it. The reason I don’t mind admitting it is that after watching our elected officials grilling Fed Chairman Ben Bernanke for the last two days on CNBC, I realize that they have no idea about the Mortgage Crisis either.
And while Ben Bernanke is the guy who’s trying to explain it to them he must understand the problem, at least now. It seems that he had no clue it was gonna happen either, otherwise you’d think he would’ve mentioned it earlier, at least in passing. So, really, no one knows any more about the Mortgage Crisis than I do. That said, I’ve got some suggestions…
First, if this Bailout goes through, and by all accounts it has to or, as Jim Cramer warns, we face a Second Great Depression, then the government is going to own a whole lot of empty houses. Now, the government also has a whole lot of wounded Iraq War veterans who can’t work- why don’t we give some of those houses to them at a really low interest rate, say 1 or 2%, or whatever is determined they can afford, based not on the original value of the home, but on the balance of the mortgage or it’s newer de-valued price, whichever is less? Let them just pay the property taxes based on that lower value to help the local economy, minus of course whatever tax breaks they already get as veterans. This way, the taxpayer still makes a buck or two and our wounded veterans at least have a comfortable place to live.
Or teachers? Teachers make like, no money. Couldn’t we throw a house their way? How about all those low paid government health care workers, EMT’s, firemen and cops, the people who labor for the common good for little or no money?
In order to fund this, we can sit on the really expensive Mc-Mansions and vacation homes that the speculators and stupid rich people lost until the market turns around and sell them to other stupid rich people with better credit at fair market value. We can also use the compensation money we don’t let the CEO’s of Fannie Mae, Freddy Mac, A.I.G. and any other company we have to bail out have to cover the shortfall in those lost property taxes. That’s tens, if not hundreds of millions, of dollars right there.
And don’t whine about this being Socialism- we’ve already gone way past that when the government took over and nationalized private financial and insurance institutions. All’s I’m suggesting is that everything proceeds according to the current Bush/Leninist norms.
What we end up with is all those empty lower priced houses filled up and making a minimal return, happy veterans, teachers, etc., local governments getting property taxes, a reduction in the housing market glut, and a possible gig for me as the Commissar of the newly created Housing Re-Allotment Commitat. It’s a win, win, win, win situation. Long live Kaptialism!