Sunday, January 11, 2009

OK, now it's a bail out. What is up with the Federal Government allowing requests for money from any business out there that is having financial problems? When I read that Larry Flynt was making an appeal for money it really made me go hmmmm. I thought we were a capitalist country which means everyone has the opportunity to make lots of money and the opportunity to lose lots of money. If a company needs a loan they go to a bank; not the government. It is against our basic principles to put our government in the business of business. How did it happen that one day we were talking about finding a way of a mortgage crisis and now we are looking at socializing our entire business community? A person I read a regular newsletter from has a perfect solution for stimulating the economy for the regular folks; main street not wall street as the current speak goes. Here's his idea.

The Fed and Treasury have the ability to borrow money for 10 years for under 3%. They make loans for 4%. These loans would be for conforming situations only and should be for purchases and refinances. No funky programs all Fannie/Freddie guidelines but at 4% everyone would be refinancing and the lowered interest would be a real stimulus to the folks and this program would really be a loan. In fact to borrow at 3% and loan at 4% the Fed/Treasury could actually pay off some debt.

Why on earth would anyone be even considering putting our country into the massive debt that being tossed around currently when there are real options for helping people without killing our capitalist society.

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