Mandatory Automatic Principal Balance Reduction Plan

I'm tired of hearing the banks complain about how hard times are. How they need our money to bail them out of turmoil. My answer to the banks....................Tough S_ _ T!!!! Y'all created this monster of an economy. Greed, Greed, and more Greed. Do the politicians really believe that the good ole banks are going to do what they say they are going to do? Well lets take a look:

1. We (banks) are going to use the bailout money to help start making new loans to people.

False



2. We (banks) are going to help people who are in trouble with their mortgages by restructuring their current mortgage to make it more affordable for the trouble borrowers.


False


Instead, they;
A. Increase people interest rate on their credit cards to help generate more money for their companies.
B. They make it harder for people to get loans.
C. Tell the public that they lost track of the money they got from the federal government the first time so they need even more money now.

My relief package hit the heart of the problem; The Real Estate Industry. After all, it was the housing market that started this turmoil, why not fix the source? If we fix this problem, the economy will start to move.



My plan:



Mandatory Automatic Principal Balance Reduction Plan



Make the banks reduce every homeowner principal balance by 20% -25%, charge homeowner current interest rate to the new balance, thus, giving the homeowner a cheaper mortgage. Having a lower mortgage will free up homeowners spending cash and put equity back into their homes. Thus, freeing up money to buy a much needed car if the homeowner needed it, home improvements, spending money for vacations, extra money for shopping, etc. See, the homeowner will put money back in the economy, not the banks. If homeowner interest rate is above 6.5%, make a mandatory reduction on interest rate to 6.5% or lower and adjust the principal balance as well. This will stabilize the market. Help people in need and also help the ones who were responsible enough to buy a home that they could afford in the first place. Win-Win Situation in my opinion. This way, the government does not have to keep giving a blank check to the banks and auto industries and they can use the money in other ways to stimulate the economy like alternative fuel sources, infrastructures, saving social security, etc.

For once, do the right thing for the American people.





Thanks,


Ken