Thursday, September 25, 2008

Bingo! Help the economy by helping the people losing their homes

I know. That would be "socialism." Which is OK if it involves the redistribution of wealth from working folks to parasitic banksters, but not to help everyday folks like you and me keep their homes.

Trickle-down doesn't work, folks. Time to try trickle-up.
Nobel laureate Joseph Stiglitz, an economics professor at Columbia University, is describing the plan as a raw deal for taxpayers. What’s needed most, Stiglitz argues, is to assist struggling homeowners. “We should begin with the core of the problem, the fact that millions of Americans were made loans beyond their ability to pay. We need to help them stay in their homes, including by converting the home mortgage deduction into a cashable tax credit and creating a homeowners’ Chapter 11, an expedited way to restructure their liabilities.” If these mortgages are fixed so the debts are paid, will that not make the banks solvent? It is time to build the economy from the base, rather than the top. Trickle down does not work — especially when it is debts that trickle down.
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